Tanzania: Dse Activities Remain Strong Despite Fall in Weekly Equity Turnover

Stock Market

DESPITE a 41 percent reduction of the weekly equity turnover, activities on the market are still higher than most recent weeks before the last.

Pre-arranged block transactions still account for a major share of activities, on a few large counters. Equity turnover realized during the week totals to TZS 3.36bln ($1.46mln) compared to TZS 5.67bln ($2.46mln) realised during the previous week.

Despite a number of deals falling from 124 to 106, the volume of shares traded rose by 28 percent to 2.08mln shares due to increased activities on the NMB counter.

NMB emerged as the top mover during the week, first time since February 2020, after trading a total of 1.7mln shares at an average price of TZS 1,000.25/-and realized a turnover of TZS 1.7bln ($0.74mln), mostly in pre-arranged transactions.

NMB accounted for 50.7 per cent of the total equity turnover followed closely by TBL which accounted for 48.7 percent. TBL traded a total of 0.32mln shares at an average price of TZS 5,071/-to realize a turnover of TZS 1.63bln ($0.71mln), mostly in pre-arranged transactions.

Foreign investors were still highly active during the week, especially on the TBL counter. The pre-arranged transactions on the TBL counter seems to be among foreign investors while on the NMB counter involved foreign divestment and local investment.

Foreign investors accounted for 43 per cent of total investments and 98.4 per cent of total divestments during the week while locals accounted for the balance on both.

The Tanzania Share Index (TSI), gained a marginal 0.09 point to close the week at 3,486.99 points following a 0.003 percent rise of the domestic market capitalisation. The domestic cap closed the week at TZS 9,157.29bln ($3.97bln). The gain on the TSI originates from a slight 1.14 percent on the DSE counter which closed the week at a price of TZS 890/-.

Despite an outstanding year in 2019, the price of DSE is 9.2 percent down in the year to date mostly as a result of slowing activities on the equity segment.

Revival of activities seen in the last two weeks is still on the pre-arranged board while the main board, which involves more retail investors, remains dull.The All Share Index (DSEI), gained 26.84 points during the week as a result of price appreciation on East African Breweries (EABL) and KCB Bank counters. EABL and KCB gained 5.32 percent and 3.33 per cent respectively while the DSEI closed the week at 1,834.31 points.National Media Group (NMG) […]

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