Tanzania: Acacia, Eabl Share Rally Lifts DSE Capitalisation

THE Tanzania Share Index (TSI) remained unchanged during the week, stuck at 3,319.95 points with a domestic market capitalization of 9.13tri/- ($3.97bn) while the All Share Index (DSEI) edged 16.39 points higher compared to the previous week, as a result of a 0.87 per cent increase of the total market capitalization to 18.77tri/- ($8.17bn).

The uptick in the total market capitalization results from rising share prices of two cross listed counters namely, Acacia (DSE:ACA) which grew by 8.89 per cent and East African Breweries Ltd (DSE: EABL) which grew by 1.32 per cent.

Three cross-listed counters saw their prices fall, led by National Media Group (DSE: NMG), Jubilee Holdings Ltd (DSE: JHL) and KCB Bank (DSE: KCB) while Kenya Airways (DSE: KA) and Uchumi Supermarket (DSE: USL) remained constant.

Total equity turnover during the week under review, remained within the same levels as previous week, with a slight uptick of 0.78 per cent to record a total of 2.47bn/- ($1.07ml), compared to previous week's 2.45bn/- ($1.06ml).

However, the volume of shares traded on the market fell by 86.55 per cent to a total volume of 344,028 shares compared to 2,557,822 shares traded during the previous week.

Tanzania Breweries Ltd (DSE: TBL) regained the top mover spot from Vodacom (DSE: VODA) after moving 249,498 shares to realize a turnover of 2.44bn/- ($1.06ml), which accounts for 98.9 per cent of the total equity turnover realized during the week.

Last week Vodacom was the majority mover after contributing 67.4 per cent of the total previous week's equity turnover. Market activities were highly dominated by foreign investors, who remained net buyers during the week, same as the previous week.

Foreign investors accounted for 95.13 per cent of total investments into the market and 83.57 per cent of total divestments from the market while local investors accounted for the balance of both respectively.

Money Market, Bills and Bonds The amount traded on the Interbank Money Market (IMM) was 22 per cent lower, to record a total of 104bn/- ($45.23ml) compared to 134bn/- ($58.28ml) traded during the previous week.

Less volumes traded, can be explained by fewer trading days during the week under review, due to Eid holidays. The interbank rate closed 8bps higher at 5.52 per cent compared to 5.44 per cent during the close of the previous week.

On 3rd June 2019, the Bank of Tanzania offered a 10-years Treasury bond worth 87.2bn/- ($37.92ml) with a coupon rate of 11.44 per cent of the face value.

The bond was significantly under subscribed as the market tendered only 18.2 per cent of the offer with a tender size of 15.9bn/- ($6.9ml).

On a similar auction held on 13th March 2019, of a similar bond which the Bank of Tanzania offered 87bn/- ($37.9ml), the under subscription rate was not as bad, as the market tendered 72.5 per cent of the offer size.

During the auction under review, the Bank of Tanzania accepted 10.84bn/- ($4.52ml), which is 12.4 per cent and 68 per cent of the offer size and tender size respectively.

The weighted average yield to maturity (WAYTM) gained 58bps compared to the previous auction.

The WAYTM realized during the auction under review was 15.6957 per cent compared to 15.1080 per cent realized during the previous comparable auction on 13th March 2019.

Currency Market Interbank foreign exchange transactions through the Interbank Foreign Exchange Market (IFEM) amounted to $15ml during the week, posting a 58.2 per cent decline week on week.

Foreign exchange transactions posted during the previous week amounted to $35.95ml. The shilling kept gaining momentum against the greenback, closing the week at a weighted average exchange rate of TZS 2,299.40/USD compared to TZS 2,299.98/USD posted the previous week.

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