DSE turnover jumps to Sh2.7 billion

 

By Josephine Christopher

Josephine Christopher is a business reporter for The Citizen and Mwananchi newspapers.

Mwananchi Communications Limitted

Summary

·         last week’s weekly turnover totalled Sh2.70 billion, a nearly 384 percent increase over the Sh572.18 million recorded the previous week

Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) saw an increase in turnover last week as investors scooped up commercial banks’ shares in order to cash in on their [banks’] recently disclosed favourable financial results.

Commercial banks’ net earnings increased to over Sh1.164 trillion in 2022, up from little more than Sh760 billion in 2021, thanks to the government’s pro-business policies. This sent good news to investors who snapped up shares at NMB Bank and CRDB Bank at the DSE last week.

As a result, last week’s weekly turnover totalled Sh2.70 billion, a nearly 384 percent increase over the Sh572.18 million recorded the previous week.

The volume of shares also improved significantly from 0.49 million during the preceding week to 3.07 million last week.

NMB Bank Plc accounted for 51.9 percent of the week’s turnover mainly through a major block trading deal that was conducted on Wednesday Friday 8, 2023.

The lender traded a block of 357,147 shares to foreign investors valued at Sh1.35 billion. NMB has announced a net profit of Sh429 billion for the year 2022.

The amount translates into an annual net profit growth of 46.8 percent compared with the Sh292.14 billion that registered during the preceding year.

With a 36.76 percent contribution to the week’s turnover, CRDB Bank Plc came second after it transacted shares valued at nearly Sh1 billion.

The lender announced a net profit of Sh353 billion in 2022, being a 31 percent increase compared with Sh268 billion that it registered in 2021.

The capital markets manager at Vertex International Securities Ltd, Mr Ahmed Nganya, said it is expected that the earnings results will continue to factor in the coming week.

“The volume and turnover have finally improved after a few weeks of a negative trend. We expect a continuation of this performance trend next week as we believe the earnings factor has not lost its steam yet,” he said.

Last week, the two leading lenders’ equities also had positive price movements, with NMB up 10.97 percent to Sh3,440 and CRDB up 10.26 percent to Sh430.