The market turnover increased by 13.35 per cent to TZS 2.33 billion last week.
In the coming week, we forecast that Dar bourse will remain active, as foreign investors participation continues to increase. Different counters have been trading on pre-arranged board. This justifies that the market is peaking, and it is expected to perform well in the coming weeks.
The market will remain active during the week and mainly from the top local active counters. CRDB is likely to be the most active counter, and this has been due to its liquidity in the market, but despite the strong fundamentals we do not see increase in its share price in the coming week.
Other top counters expected to transact during the week include TBL, TPCC, NICOL, JATU, SWIS and DSE. We have witnessed share price movement in the local counters which amplifies that there is demand in the market that will drive market activities during the week. In midweek, we expect a new 25-year Treasury bond Auction by the central bank.
The instrument carries attractive yield which is projected to entice the investor’s appetite at a fixed return of 15.95 per cent. This is in line with the central government’s objective to enhance and promote financial market as well as fund government’s long-term projects.
The introduction of this longer-term instrument may dilute the oversubscription of the 20 years bond which has been sequentially happening due to high appetite by investors for the risk free but higher yield instruments.
In the interbank cash market, despite the decrease in the Weighted average rate (WAR) during the previous week, we still anticipate 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 Capitalization gained by 1.43 per cent to close the market at TZS 15.74 Trillion from TZS 15.52 Trillion in the previous week mainly due to increase in share prices of locally listed and cross listed firms at the bourse.
EABL share price increased by 4.57 per cent to close at TZS 3,660, JHL increased by 3.36 per cent to TZS 6,150, KCB share price increased by 4.65 per cent to TZS 900, NICOL share price increased by 2.63 per cent to TZS 195, and DSE share price increased by 3.77 per cent to TZS 1,100.
On the other hand, CRDB share price declined by 6.52 […]
