DURING the week Dar es Salaam stock exchange all-share index (DSEI), moved upwards mainly due to share price increase of Kenyan listed companies.
The total market size increased by 137.81bn/-while the domestic market decreased by 0.24bn/-.
In the coming week, with the uncertainty of Covid-19 foreign investor’s participation in the market is farfetched to happen, we anticipate local investors to dominate the market and the performance to be maintained by the active local counters in terms of volume, turnover, and price movements in the bourse.
In the industrial and allied segment, TPCC is anticipated to remain active during the week while in the banking, Finance, and Investment segment DSE and CRDB will maintain their activeness in the market with the lower volatility in their share prices.
In midweek we expect seven years Treasury bond auction to be held by the central bank. From the previous auction held on 23 October 2019, the bond was undersubscribed by 17.5 percent, we may see undersubscription of this bond despite higher appetite of government securities.
This is because the investor’s prefer higher Coupon bonds, unlike these medium-term bonds also the fact that in two weeks there will be an auction for 20-year bond hence investors are likely to hold and wait for 20-year bond.
Furthermore, the government securities yield curve may continue to remain normal, and weighted average yields are expected to decline, this indicates that the government has the chance to raise funds at the cheapest cost during this time of Pandemic.
In the interbank money market, notwithstanding the decrease in the Weighted average rate (WAR), during the previous week, we still anticipate that WAR to be within a range of 4.60 per cent to 5.00 per cent with slight volatility in the high and low rate.
The Bourse
Total Market Capitalization increased by 0.94 per cent to 14.80tri/-from 14.67tri/-while Domestic Market Capitalisation remained flat during the week and close the week at 9.17tri/-.
DSEI and Bank, Finance, and investment Index moved northwards by 0.94 per cent and 0.01 percent to close the market at 1,783.33 points and 2,183.28 points respectively from 1,766.73 points and 2,183.58 points in the previous week.This is mainly due to an increase in the share price of cross-listed stocks as follows: EABL increased by 7.50 percent to 3,440/-. While other counters experienced a decline in share price as follows; JHL decreased by 3.33 per cent to 5,800/-, KCB decreased by 1.28 per cent to 770/-, NMG also […]