ACTIVITIES significantly rose on the market through equity turnover which grew by more than five times on weekly basis, thanks to prearranged blocks on the NMB counter.
Equities turnover recorded during the week that ended on the 20th of August 2021 amounted to TZS 6.01bln ($2.6mln), up from TZS 1.18bln ($0.51mln) for the previous week.
The volume of shares traded during the week slightly rose by 13.2% to a total of 4.96mln shares traded in 139 deals, 25 deals less than the previous week.
NMB took back the top mover spot from CRDB following two block transactions that went through the counter.
NMB accounted for 73.1% of the total equity turnover for the week, followed by TCC and DSE which both accounted for 9.99% and 9.14% respectively.
NMB saw two-block transactions on Thursday and Friday, moving a total of 2.58mln shares for 1,700/-.
TCC and DSE also saw pre arranged block transactions. All the activities on NMB and TCC counters went through prearranged block transactions, while 98% of the activities on the DSE counter was through the prearranged blocks window.
Collectively, prearranged blocks accounted for 92% of the total market activities during the week under review.
Foreign participation dwindled during the week as the majority of participants in the prearranged blocks were local institutional investors. Foreign participation was limited to 24.13% on the investment side and 10.06% on the divestment side, while the balance was accounted for by local investors.
Despite dwindling participation, foreign investors were net buyers during the week, with a net inflow of $0.37mln. While market activities shot up significantly, the major market indices indicated mixed movements.
The Tanzania Share Index (TSI) slightly dropped by 0.5 points following a deceleration of the price of DCB by 8.33%. On the other hand, Tanga Cement (TCCL) rose by 2.08%to close the week for 490/- per share.Despite a larger weight of TCCL, the intensity of the drop on the DCB counter was large enough to offset the rise on the TCCL counter.TCCL has been gaining traction since it reported a significant drop in the company’s losses for the year 2020, and the lowest loss in four years, despite a 3.8% decline in top-line revenues due to technical challenges and COVID headwinds. The company’s performance was a result of increased operational efficiency, from core manufacturing and company operations to distribution channels.TCCL shows prospects of eliminating losses shortly depending on the direction of the construction sector, especially with the direction of […]