Share trading at the bourse drops by 54.6pc as festive season

The bourse opened the trading session this year with investors exhibiting high appetite for stocks after posting a record 2.5bn/- during the first week of the year. DSE’s weekly market report said the volume of shares traded was 2,051,835 with NMB Bank Plc accounting for 51.1 percent or 271,800 shares traded.

Meanwhile, an Orbit Securities weekly report said the All Share Index (DSEI) lost 25.90 points as EABL, JHL, NMG and KCB’s share prices dropped by 6.1 percent, 3.1 percent, 5 percent and 3.1 percent respectively during the period.

The Tanzania Share Index (TSI) on the other hand, gained 7.6 points as Jatu and NMB share prices rallied throughout the week with an increase of 4.0 percent and 0.9 percent respectively.

“Foreign investors accounted for the majority of the transactions when they bought 56.9 percent of shares,” the report said while revealing that local investors dominated the selling side accounting for 99.98 percent.

In a related development, Zan Securities weekly report said the 364 days Treasury bills yield increased for seven consecutive auctions since October last year recording 4.0 percent then and ultimately gaining 103 basis points to reach 5.1 percent in the latest auction conducted on January 11, 2022, which is above the average yearly yield of 4.8 percent.

“The increase in the 364-days Treasury bills yield may be seen to have a negative correlation at the stock exchange as risk averse investors sell off their volatile positions and buy risk-free assets like Treasury bills owing to the relative uncertainty and volatility that comes with investing in the stock market,” Zan Securities said in its report.

According to the stockbrokers, the market remains bullish as it forecasts on the TSI to gain a few basis points as during the New Year, reflecting a ‘glass half full’ outlook based on strong corporate sales and profit growth resulting from good economic growth.

“These factors suggest a favourable backdrop for stocks, with the potential for more subdued gains when we enter the second quarter of 2022 as companies prepare to release their 2021 audited financials,” the report added. The secondary bond market registered a 100 percent increase in trading after generating 62.66bn/- during the period compared to 18.4bn/- generated during the previous week.

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