Tanzania: Stockbrokers' Upbeat On DSE Rebound in Coming Weeks

THE equities market turnover of Dar es Salaam Stock Exchange (DSE), continued to decrease last week to register a new low amid global markets uncertainty due to coronavirus.

The bourse market turnover, for the week ending last Friday, plunged further to 13.93m/-, against last week's 16.37m/-.

However, stockbrokers are upbeat that the situation may make a rebound since investors started to cheer as states are reopening their economies.

Zan Securities Chief Executive Officer (CEO), Raphael Masumbuko said they expect the market to make a U-turn in the coming weeks due to economies decision to lift lockdown.

"We expect a rebound in volume and turnover in the weeks ahead as countries are easing the lockdown and businesses reopen," Mr Masumbuko said.

For the week ending last Friday, Dow, S&P 500 and Nasdaq Composite all three indexes gained more than 3 percent as states reopening economies, as well as hopes for progress on a Covid-19 drug.

However, DSE indexes closed the week in mixed reaction as DSE all share index (DSEI), climbed up while Tanzania Share Index (TSI), slight went down.

TSI was affected by NICO price dropping by 2.94 percent to close at165/-. TSI closed at 3,491.92 points, a slight decrease compared to the week before while DSEI increased by 0.35 percent to close at 1,806.88 points.

DSE's sector indexes namely Industrial & Allied Index (IA) closed at 4,778.72 points, same as last week.

Bank, Finance and Investment Index dropped 0.03 percent to close at 2,182.53 points. And, Commercial Services Index closed at 2,356.49 points, 0.05 percent down.

The dropping of turnover and volume affected domestic market capitalisation that went down slight to 9.17tri/-. However, total market cap increased by 0.35 percent to 15tri/-.

CRDB dominated the market share by 25.43 percent of the total turnover followed by Swiss and Twiga at 25.03 percent and 17.86 percent respectively.

However, Asian stocks slipped, not because of coronavirus pandemic, but with the bulk of losses coming in Hong Kong, as China announced plans to impose a national security law on the city.

Hong Kong's Hang Seng fell about 3.5 percent and losses were modest in Tokyo and Seoul, while shares edged up in Sydney.

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