After two weeks of non-existence, prearranged block transactions returned to the market to raise the total equity turnover by more than ten times. The total turnover for the week ending 17th September 2021 was TZS 2.6bln ($1.12mln), up from TZS 250.58mln ($0.108mln) realized during the previous week.
The volume of shares traded also grew more than five times to a total of 4.03mln shares compared to 0.69mln shares traded in the last week. The shares were traded in 425 deals while 57% of the deals were executed on the JATU counter.
Five prearranged deals on the TBL and VODA counters accounted for 85.5% of the total turnover during the week, making the two counters the top movers for the week. Between the two, VODA accounted for 46.5% of the total weekly turnover while TBL accounted for 39%. Without the prearranged transactions, JATU would have been the top mover, accounting for 44.8% of the total turnover that went through the normal board.
Foreign participation was significant in the prearranged blocks, raising the foreign participation for the week relative to the previous week. Foreign investors were net sellers during the week as a result of the prearranged deals on the TBL counter. Foreign investment accounted for 81.4% of the total investments while foreign divestments accounted for 85.5% of the total divestments. The net foreign outflow for the week was $0.047mln.
Apart from being the most active counters, JATU and CRDB, both saw a depreciation in prices, thus suppressing the Tanzania Share Index (TSI) by 6.59 points. The price of JATU saw a cusp from a two weeks bull to a bear during the week under review, falling by 21.36%. JATU closed the week at 810/- from the previous week’s 1,030/-.
On the other hand, the price of CRDB is still under pressure from the half year results that showed flattening of quarterly profits since Q3-20. Investors are eager to see financial results for Q3-21 which are expected to be released in October. Profitability growth is crucial to the direction of the price of the bank.
The Tanzania Share Index (TSI) closed the week 6.59 points less compared to the previous week, closing at 3,615.98 points. The domestic market capitalization dropped by 0.182% equivalent to TZS 17.44bln ($7.54mln). Domestic market cap closed the week at TZS 9,560.6bln ($4.14bln)
On the other hand, the two cross listed giants appreciated, lifting the All Share Index (DSEI) by 14.99 points, neutralizing […]