IN the coming week, like previous week there could be an increase in market activities as we have witnessed increased in market activities during the start of the year 2021, we still prospect that the market will remain vibrant going forward, thanks to prospects from the banking sector performance for the year ended 2020 and activities in the industrial and allied sector.
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, but we remain wary that price will decline during the week. Other top counters expected to transact during the week include TBL, JATU, CRDB, TPCC, NICOL, SWIS and DSE.
In midweek we expect a 2-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 Medium-term instruments due to low appetite for these medium-term instruments, but with likelihood of oversubscription but at minimal amount compared to previous auctions.
Hence the increases in yields out-weigh the decline in the coming auction. In the interbank money market, notwithstanding the decrease 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 0.03 per cent to close the market at TZS 15.10 Trillion from TZS 15.09 Trillion in the previous week mainly due to share price appreciation of locally listed firms at the bourse.
CRDB share price increased by 5.13 per cent to close at TZS 205, DSE share price increased by 2.27 per cent to close at TZS 900, JHL share price increased by 6.09 per cent to close at TZS 6,100 while EABL lost 0.61 per cent to close at TZS 3,260, KCB declined by 1.23 per cent to close at TZS 800, JATU share price declined by 1.34 per cent to close at 2,940 and TCCL share price declined by 6 per cent to close at TZS 470.
Domestic market capitalisation increased by 0.27 per cent, thanks to share price appreciation of CRDB and DSE. TSI gained 0.27 per cent to close […]