Tanzania: BoT Pushes Banks to Lend By Cutting Govt Securities Yields

THE market was slightly bearish during the week that ended on 29th November 2019, after the Tanzania Share Index (TSI) lost a 0.18 point.

The TSI closed the week at 3,431.10 points compared to 3,431.28 points reported during the previous week.

The TSI retreat follows a 0.005 per cent decline in the domestic market capitalization which slightly fell to TZS 9,010.58bln ($3.917bln) from the previous week’s TZS 9,011.05bln ($3.918bln).

The slight decline of the domestic market capitalization is a result of a 2 per cent down movement on the Dar es Salaam Stock Exchange Plc (DSE: DSE) counter.

The price of DSE fell to 980/- per share during the week, compared to 1,000/- at the end of the previous week. The price of DSE goes down despite very lucrative quarterly results for the quarter ending September 2019.

The market seems to have priced in the fact that the Vodacom and Mirambo transaction, as a non-recurring activity, highly inflated the third quarter’s DSE results, part of the reason that we do not see a positive reaction in the DSE price.

Total equity turnover during the week has risen by 32.5 per cent to a total of TZS 3.4bln ($1.49mln) compared to TZS 3.14bln ($1.37mln) realized during the previous week.

This has been the trend for all of November which saw turnover rise by more than 300 per cent compared to October.

Similar to the previous week, CRDB (DSE: CRDB) maintained the top mover spot, accounting for 92 per cent of the total equity turnover realized during the week.

TBL counter is still dull, taking a back seat for the whole month of November. The All Share Index (DSEI) dropped off 24.8 points to close the week at 2,026.95 points.

The drop in the DSEI follows a 1.2 per cent drop in the total market capitalization after four cross-listed counters complemented DSE in the decline of the total market capitalization.Cross-listed counters that went down are Kenya Airways (DSE: KA) which was the top loser after dropping by 15 per cent, East African Breweries Ltd (DSE: EABL) which dropped 4.4 per cent, National Media Group (DSE: NMG) down by 3.3 per cent and Jubilee Holdings Ltd (DSE: JHL) down by 2.5 per cent .Kenya Airways is still dwindling since the government announced the decision to nationalize the airline to save it from mounting debt.Uchumi Supermarket Ltd (DSE: USL) remained unchanged while KCB Bank (DSE: KCB) gained 0.9 per cent in the momentum […]

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