In the first week of December, the bourse posted a turnover of TZS 1.2 Billion, 4% higher than the previously reported TZS 1.14 Billion.
This went in tandem with an increase in volume (+30%), as 2.6 million shares exchanged ownership among investors. Total market capitalization stood at TZS 15.57 Trillion, a mere drop from the prior week's TZS 15.6 Trillion. On the other hand, both benchmark indices closed the week in red.
The All-Share Index shed 3.64 points and the Tanzania Share Index trimmed 11.68 points. Several counters played a major role in pulling down the indices. Major culprits included cross-listed stocks such as KCB which closed the week 1.4% down and Jubilee Holdings' (JHL) share price dropped by 0.54%.
Domestic stocks that closed in the red included, Tanga Cement whose share price dropped by 7%. This comes after the company reported a TZS 1 Billion loss in its 3rd quarter.
TICL, a Tanzania investment company lost 5.8% in its share price. The counter currently stands as the loser of the year shedding 54% in its share price since January. The counter's share price is currently at its all-time low. NMB rebounded after it hit TZS 3,000 mid-week, closing at TZS 2,920 marking a 2.67% drop.
Maendeleo closed the week, 2.4% down and lastly Swiss closed the week at TZS 1,320, after a major reversal from its bullish trend midyear. Stocks that performed well during the week included TOL, whose share price rose from TZS 650 to TZS 700 per share, a 7.7% increase.
Year to date the stock is up by 27%. On a technical analysis side, the stock has faced resistance at TZS 700 per share, failing to break beyond the level on several occasions.
Any potential breakout beyond TZS 700 will mark a new high, signalling a buy signal for short-term, technically driven investors.
CRDB was another notable performer of the week, closing 1.3% higher at TZS 385 per share. Year to date the counter is up by 60% minting outstanding gains for its investors.
Additionally, CRDB emerged as the most traded stock. The counter accounted for 90% of the total volume as 2.3 million of its shares exchanged ownership. This amounted to TZS 907 million in turnover which is 76% of the total turnover.
GOVERNMENT BONDS
A 10-year bond auction took place last Wednesday. The Bank of Tanzania ought to raise TZS 133 Billion from the public. The public submitted 53 bids of which only 34 emerged successful.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The bid price ranged between 80.14 and 99.39, with 94 turning up to be the minimum successful price of 94. Overall, the weighted average price for successful bids stood at 96.8379. The auction undersubscribed by 52% and as a result the central bank managed to raise only TZS 61 billion from the offered amount of TZS 133 billion.
Major factors influencing subscription include minimal investors' appetite for mid-term tenured bonds. Another plausible factor is the anticipation of an upcoming 25-year treasury bond auction on the 21st of December 2022. Meanwhile, the yield for the 10-year bond rose by 31.96 basis points to 10.77%.
Currently, Government bond prices are on a downward trend creating opportunities for investors to squeeze in higher yields.
CORPORATE BONDS
Later this week, the Dar es Salaam Stock Exchange is expected to list two new products in its corporate bond segment. The two products include Twiga Bond, issued by The National Bank of Commerce (NBC), and Fursa Sukuk issued by KBC (T).
This marks a record-breaking feat in the Dar es Salaam Stock Exchange as the bourse will have listed 3 corporate bonds in a single year following the listing of NMB's "Jasiri" Bond earlier this year.
orbit@orbit.co.tz; ammi.mwamunyi@orbit.co.tz
