Tanzania: Two cement firms boost DSE turnover, volume

Tanzania: Two cement firms boost DSE turnover, volume

The Dar es Salaam Stock Exchange (DSE) stellar performance has been boosted by two cement companies signalling a paradigm shift going forward. Thus, the bourse recovered from last week slump as turnover and volume increased with indices recovering too.

The exchange equity turnover increased by 63.89 per cent to close at 988.07m/- last week from 602.86m/- of the previous week.

Vertex International Securities said in its weekly market report that a surge in demand in Twiga and Simba cements counters backed the performance of the market and signalling a movement shift.

"The surge in investments signals a shift in paradigm going forward," Vertex said adding:

"We expect the strong demand for those two counters to continue to drive the momentum next week."

Twiga counter was a top market mover recording 73.88per cent of total market turnover followed by Simba with 20.43 per cent.

However, the price movement last week was only recorded on NICO that gained 2.27 per cent to close at 225/- and Twiga gained 9.38 per cent to close at 3,500/-.

Orbit Securities said in its weekly market synopsis said that Twiga went up on the back of a handsome dividend that has already been paid and expectations of performance maintenance by the cement manufacturer."

"NICO also went up as prospects of a handsome dividend, due to an increased dividend of NMB Bank, keeps attracting investors."

On top of the rally on Twiga and NICOL counters, the cross listed giants EABL and KCB Bank saw their prices increase by 1.59 per cent and 2.2 per cent last week, hence raising the DSE All Share Index by 19.27 points.

Tanzania Share Index (TSI) closed the week at 3,645.66 points while the domestic market capitalization grew by 0.57 per cent, being the cause for the gain of the TSI.The domestic market capitalisation closed the week at a total of 9.601tri/- while The DSEI closed the week at 1,975.43 points while the total market cap grew by 0.98per cent to 16.428tri./-.Orbit Securities said, "National Media Group (NMG) dropped by 1.0 per cent but was too trivial to tame the bull".On a changing scenery, Orbit Securities said: foreign investors were dominant of the market were m active on both sides of Twiga Cement, foreign investors were dominant on both sides of the market, accounting for 64.26 per cent and 89.89ler cent of the total investments and divestments respectively, while locals accounted for the balance.Foreign investors were also on the disposal side […]

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