IN the coming week, the outlook remains optimistic, however, wary of the low participation of the Foreign investors, since their low participation affect the market with high sentiment. The price discovery challenge will still hinder local investors who are looking to sell Foreign preferred and in active counters at the market price.
In the Domestic market the market price movements and turnovers are expected to be in the following counters CRDB, DSE and NICOL which are the most liquid counters in the market.
During the week, the market closed firmer after slightly upward movement in DSEI, TSI and B&F index mainly due to mixed movements in share price of Kenyan listed companies and upward share price movement in locally listed active counters. The total market size increased by 30.20bn/-, while domestic market capitalization increased by 13.40bn/-.
In midweek we expect Treasury bill auction to be held by the central bank. We may see oversubscription of the Treasury bill due to the higher appetite for Government securities despite the declining yields on Government securities. Furthermore, the Government securities yield curve will continue to remain normal, with downward movements in the weighted average yields.
In the interbank money market, notwithstanding the decrease in the weighted average rate (WAR) during the previous week, we still anticipate that WAR to be within a range of 3.00 per cent to 3.50 per cent with slight volatility in the high and low rate.
Total Market Capitalization slightly decreased by 0.20 per cent to TZS 14.95 trillion from 14.91tri/- in the previous week, while Domestic Market Capitalization declined by 0.15 per cent to 9.11tri/- from 9.10tri/- in the previous week.
During the week only DSEI increased by 0.20 per cent to close the market at 1,800.16 points from 1,796.52 points in the previous week, TSI increased by 0.15 per cent to close the week at 3,471.91 points from 3,466.81 points in the previous week and B&F Index increased by 0.79 per cent to close the week at 2,166.07 points from 2,149.01 points in the previous week.
Other indices remained flat as follows; Industrial & Allied index closed the week at 4,743.61 points, and Commercial services index closed the week at 2,356.49 points.
Companies whose share price decreased are as follows; JHL share price decreased by 1.94 per cent to 5,050/- from 5,150/-, and NMG share price decreased by 12.00 per cent to 220/- from 250/-.
On the other hand, KCB share price increased by 1.35 per cent to 750/- from 740/-, CRDB share price increased by 3.57 per cent to 145/- from 140/- and NICOL whose share price increased by 3.03 per cent to 170/- from 165.
During the week, the market recorded an increase in volume to 502,793 shares with 52 deals from 540,900 shares with 97 deals in the previous week. Total turnover decreased by 81.83 per cent to 87.18m/- from 479.73m/- in the previous week.
During the week, CRDB dominated the market after trading shares worth 68m/- being 78.10 per cent of the total weekly turnover, followed by DSE which traded shares worth 11.14m/-.
TPCC traded shares worth 3.11m/-, NICOL traded shares worth 2.49m/-, SWIS traded share worth 1.11m/-, TOL traded share worth 0.973m/-, VODA traded share worth 0.209m/- while TBL falls last after trading shares worth 52,000/-.
During the week, the weighted average rate (WAR) for interbank market increased and closed at 3.00 per cent from 3.02 per cent in the previous week. Total volume traded decreased by 40.68 per cent to 70bn/- compared to 118bn/- in previous week.
The highest rate in the interbank market was 3.00 per cent while the lowest was 3.00 per cent compared to the previous' week high and low rate of 3.50 per cent and 3.00 per cent, respectively.
As of the close of the week the outstanding government bond listed on exchange was 11.53tri/-. On the secondary market, the Government bond segment transacted 15.82bn/- with the face value of 15.40bn/- from last week's transaction value and the face value of 42.76bn/- and 41.05bn/-, respectively. The corporate bond segment transacted bond worth 226.25m/- with face value of 250m/- from previous week transaction and face value of 16.95m/- and 17.50m/-.
During the week, the Government sought to raise 136bn/- through 20-year Treasury bond. The Government pocketed 134.10bn/-. The bond was undersubscribed by 214.44bn/- receiving bid worth 350.44bn/-. Weighted average price (WAP) stood at 99.35/100. While the minimum successful price was 98.84/100. Weighted average yield (WAY) declined to 15.63 per cent from 15.78 per cent in the previous auction in 20th May 2020.
Interbank Foreign Exchange Market
During the week, total volume traded was USD 8.85 million at an average rate of TZS/USD 2,309.29 being a decrease from USD 9.70 million at an average rate of TZS/USD 2,309.14.
Tanzania securities Analyst: