Tanzania: Domestic Share Index Up By 15 Pc On Gaining Local Counters

By Stock Market

IN the coming week, like previous week there could be an increase in market activities during this End of year and Christmas season due to end of year sell-off to meet obligations.

The market will remain active during the week and mainly from the top local active counters. Even though it remains a mystery to justify JATU PLC's demand at the bourse it is likely that it may remain active for some coming trading sessions, as we have seen the price skyrocket to 920/- as of the close of the week.

Other top counters expected to transact during the week include TBL, CRDB, TPCC, NICOL and DSE. In midweek we expect a 20-year Treasury bond auction to be held by the central bank.

There could be slight increase in the WAY with low volatility towards decline in yields for the Long-term instruments due to obligations in this festival, with high likelihood of oversubscription but at minimal amount compared to previous auctions. Hence the increase in yields outweighs the decline in the coming auction.

The demand for this instrument is still high and its expected to remain high in the coming auction. In the interbank money market, notwithstanding the increase in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.

The Bourse During the week, total market capitalisation slightly gained by 0.083 per cent to close the market at 14.85tri/- from 14.84tri/- in the previous week mainly due to share price appreciation of locally listed firms at the bourse.

CRDB share price increased by 2.70 per cent to close at 190/-, JATU share price increased by 29.58 per cent to close at 920/-, NICOL share price increased by 5.56 per cent to close at 190/-, NMG share price increased by 3.23 per cent to close at 320/- while Jubilee Holdings lost 0.71 per cent to close at 5,560/-.

Domestic market capitalisation increased by 0.15 per cent thanks to share price appreciation of JATU, CRDB and NICOL. The TSI gained 0.15 per cent to close at 3,482.92 points, DSEI gained 0.083 per cent to close at 1,789.19 points, Industrial & allied index gained 0.008 per cent to close at 4,828.87 points, Bank, Finance and Investment Index (B&F) gained 0.71 per cent to close at 2,314.14 points while Commercial Service (CS) remain stationary for the week to close at 2,141.86 points. Total Volume of shares traded increased by 139.59 per cent to 2,047,943 with 186 deals from last week's 854,740 with 178 deals.

The total turnover for the week declined by 32.75 per cent from 1.34bn/- to 874.49m/-. Tanzania breweries Limited (TBL) led all counters after transaction shares worth 269.70m/-, VODA counter followed after transacting shares worth 261.54m/-, CRDB transacted shares worth 245.36m/- , TPCC counter transacted shares worth 46.67m/-.

JATU Plc transacted shares worth 28.37m/-, SWIS transacted shares worth 11.92m/-, DSE transacted shares worth 8.95m/-, NICOL transacted shares worth 1.22m/-, MCB transacted shares worth 450,000/-, TCCL transacted shares worth 280,000/- , SWALA transacted shares worth 9,000/-, NMB transacted shares worth 8,960/-. DCB and MBP joined the laggards after transacting shares worth 5,000/- and 4,500/-, respectively, after a prolonged dormancy for the latter.

Interbank market During the week, the Interbank Cash Market (IBCM) had two trading session with total transaction value of 14bn/-being an increase from last week's 13bn/-traded. The WAR declined to close at 3.67 per cent from 3.00 per cent. The highest and lowest rate was 4.50 per cent and 3.50 per cent from last week's 3.50 per cent and 3.00 per cent .

Debt Market In the debt market, outstanding government bond listed at the bourse stood at 12.66tri/-from the previous week. On the Secondary market, the government bond segment transacted 8.30bn/- whose face value was 7.69bn/- from last week's 44.50bn/-and 40.96bn/-, respectively. For the Corporate bonds the market was dry while previous week transacted 11.18bn/- whose face value was 12bn/-.

During the week, the central government in line with its debt issuance plan sought to raise total of 90.23bn/-from the public through a treasury bill. The auction was undersubscribed by 14.74bn/-. The central bank pocketed total of 53.45bn/-, 35-days successful amount worth 1bn/-, 91-days successful amount worth 1.7bn/-, 182-days successful amount worth 3.0bn/- and 364-days successful amount worth 47.75bn/-.

The WAY for 35 days, 91 days, 182 days and 364 days was 1.99 per cent, 2.50 per cent, 2.61 per cent and 4.34 per cent respectively. WAP for 35-days, 91-days, 182-days and 364-days was 99.81, 99.38, 98.72 and 95.85 respectively. Interbank Foreign Exchange Market Total volume in the Interbank Foreign Exchange Market decreased to USD 2.77 Million from USD 4.50 Million in the previous week.

TZS/USD remains resilient to close the market at TZS/USD 2,309.10 from TZS/USD 2,309.09 in the previous week.

Tanzania securities Analyst: ombeni@tanzaniasecurities.co.tz mariam@tanzaniasecurities.co.tz