Stock Market:
The Dar es Salaam stock exchange closed the month on a low, as all benchmark indices closed in the red. The All-share index shed 36.93 points, and the Tanzania Share Index trimmed 50.66 points.
Market capitalization fell from TZS Trillion 15.9 at the end of August to TZS Trillion 15.6 in September, a 2% decline.
Total turnover amounted to TZS 18.6 Billion, 14% higher than TZS 16.2 Billion realized in the previous month. The transaction volume also increased from 13 million shares in August to 15 million in September, a 16% incline.
The banking sector drove most of the activity in the market as NMB and CRDB accounted for more than 65% of the total turnover and 61% of the volume of shares traded.
Local investors dominated market activity accounting for more than 56% of all the buying and 90% of all the selling. Foreign investor participation shrank. A gloomy global economic outlook forces many to watch from the sidelines or direct most of their capital towards US risk-free assets.
On individual stock performance, most stocks underperformed. Mwalimu Commercial Bank was the top culprit, as it shed 19% of its share price. In the manufacturing sector, Tanga cement's share price fell by 14% as investors priced in their second quarter financial results, which saw the company record a TZS 1.9 Billion loss. Twiga Cement, the market leader in the sector, saw its share price sink by 1.5%.
The downward trend also plagued the banking giants, NMB closing 3.4% lower and CRDB 4.9% down. Investment houses, TICL and NICOL, also saw their share prices plunge by 9.6% and 2.8%, respectively.
Furthermore, the top performer of 2022, SWISS, shed 3% of its share price as investors continued to take their profits, while the self-listed DSE trimmed 9% of its share price.
The only standout was TOL, a Tanzanian gas producer and distributor. Its share price soared by 7.7% following significant capital expenditures that have instilled investor confidence and a stellar performance in 2021, which saw profits increase by 41%.
The downward trend in the Dar es Salaam Stock Exchange is mainly due to investors securing their profits and sell orders from illiquid counters finally meeting willing buyers.
Following a rally post-the Kenyan Presidential elections, most cross-listed counters closed the month in the red as investors rushed to secure their profits. NMG closed 8.4% down. EABL, the brewing giant, saw its share price drop by 6.2%, while Jubilee Holdings' share price dwindled by 5.6%.
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Government Debt Market
The Bank of Tanzania held two government bond auctions in September. A 10-year treasury bond ran on 14th September, and as expected, the auction was undersubscribed by 77% as most investors stood on the sidelines awaiting the 20-year treasury bond auction.
The much anticipated 20-year bond auction took place on 28th September. The central bank sought to raise a total of TZS 136 billion from the public. The auction was oversubscribed by 120.5% as the public tendered TZS 164 billion, while the government only fetched TZS 136.8 Billion. Investor secured their bids at an average price of 99.95, yielding 12.1%.
Money Market
On the Interbank Foreign Exchange Market (IFEM), the volume transacted amounted to $ 34.6 million, an 18% decrease from $ 42.42 Mln exchanged in the previous month. A rate hike by the Fed saw the exchange rate between TZS/USD close the month at a WAR of TZS/USD 2,318.52, as opposed to the prior month's closing rate of TZS/USD 2,316.68 as the green-back strengthened against the shilling.
orbit@orbit.co.tz; ammi.mwamunyi@orbit.co.tz
