24 December 2012

Tanzania: DSE Turnover Dwindles By 38 Percent

TURNOVER at the Dar es Salaam Stock Exchange (DSE) dwindled by 38 per cent to 658m/- last week from 908m/- recorded in the previous week largely due to reduced market activities at the year end.

The activity levels on the bourse shrunk, with shares traded plummeting to 1,045,201, a 41 per cent decline compared to the previous week's 1,470,484 stocks. According to Tanzania Securities Limited (TSL) weekly market commentary, foreign investors maintained a buy position, supporting NMB and CRDB counters that contributed about 16 per cent of the week's turnover.

The DSE All Share Index (DSEI) closed 0.36 per cent higher at 1,480.37 points while the Tanzania Share Index (TSI) ended the week at 1,386.84 points, a 1.63 per cent gains. The outstanding performance was mainly supported by NMB, CRDB, TCC and Twiga counters which gained by 1.82 per cent, 8 per cent, 1.45 per cent and 2.36 per cent to close the week at 1,120/-,135/-, 4,200/- and 2,600/-, respectively.

Other counters remained flat throughout the week. The banking segment moved 87 per cent of total turnover and 94 per cent of the market activity. Foreign investors' participation on the banking industry was 16 per cent of the week's turnover supported by the CRDB and NMB counters.

NMB had 448,582 shares transacted during the week at an average price of 1,120/-. Local participation was significant at 90 per cent of the counter's activity and turnover. Foreign investors contributed only 10 per cent of its turnover. The CRDB counter transacted 563,020 shares through the week at a price of 132.50/-.

The counter also saw some foreign support of 6 per cent, while local contribution was 94 per cent. During the week, Twiga traded 19,679 shares at 2,600/- each. The counter was the most active among the Industrial segment. TBL counter transacted 9,700 shares at 2,800/- per stock while Simba, Precision Air, TCC and Swissport were the other active counters during the week.

Simba counter had 1,600 shares while TCC moved only 800 shares at a price of 4,200/- higher than last week's 4,140/-. TATEPA counter remained idle during the week, with Swissport trading 620 shares.

The lower inflationary pressure following its decline to 12.1 per cent from 12.9 in October may start putting pressure on the yields of short-term maturities. However, this has not been the case so far as witnessed in the increasing yields on the T-Bills during this week's auction.

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