IN the coming week, the outlook stays afloat, despite the decline in the market activities during the previous week. Investors participation is expected to increase especially Local investors, this indicate that the market will remain firmer and sound.
Top active counters such as CRDB, TPCC, NICOL and DSE to continue to overshadow the next week's transactions and turnover.
During the week, the market closed weaker on Friday after the decline in the market turnover by 89.71 per cent while indices experience an upward movement notably DSEI, TSI and Industrial & Allied Index.
The positive movement was due to the increased share price of local and cross listed securities such as TPCC, NMG, and KCB. B&F index declined was due to decline in CRDB share price during the week. The total market size increased by 169.66bn/-, while domestic market capitalization increased by 19.33bn/-.
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 craving for Government securities.
We have witnessed to the decline in yields for the medium-term securities, the same will be applied to short-term instruments. 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 increase 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 increased by 1.15 per cent to 14.88tri/- from 14.71tri/- in the previous week, while Domestic Market Capitalization increased by 0.21 per cent to 9.18tri/- from 9.16tri/- in the previous week.
During the week DSEI, TSI and Industrial & Allied index increased by 1.15 per cent, 0.21 per cent, and 0.61 per cent respectively. DSEI closed the week at 1,792.90 points from 1,772.47 points in the previous week, TSI closed the week at 3,499.04 points from 3,491.68 points in the previous week and Industrial & Allied index closed the week at 4,772.33 points from 4,743.61 points in the previous week. On the other note B&F index declined by 0.74 per cent to close at 2,215.47 points from 2,232.09 points in the previous week.
Commercial services index remained flat during the week at 2,356.49 points. Companies whose share price decreased are as follows; CRDB share price decreased by 3.03 per cent to 160/- from 165/-, JHL share price decreased by 0.85 per cent to 4,660/- from 4,700/-.
On the other hand, TPCC share price increased by 9.09 per cent to 2,160/- from 1,980/-, NMG share price increased by 10.20 per cent to 270/- from 245/-, and KCB share price increased by 7.04 per cent to 760/- from 710/-.
During the week, the market recorded a decrease in volume to 588,938 shares with 79 deals from 1,281,889 shares with 136 deals in the previous week. Total turnover decreased by 89.71 per cent to 132.81m/- from 1.29bn/-in the previous week.
During the week, CRDB dominated the market after trading shares worth 89.87m/- being 67.68 per cent of the total weekly turnover, followed by TPCC which traded shares worth 40.90m/-.
NICOL traded shares worth 0.957m/-, DSE traded shares worth 0.747m/- and VODA traded share worth 0.319m/-.
During the week, the weighted average rate (WAR) for interbank market increased and closed at 3.25 per cent from 3.00 per cent in the previous week. Total volume traded decreased by 9.82 per cent to 138.60bn/- compared to 153.70bn/- in previous week. The highest rate in the interbank market was 4.75 per cent while the lowest was 3.00 per cent compared to the previous' week high and low rate of 5.00 per cent and 3.00 per cent respectively.
As of the close of the week the outstanding Government bond listed on exchange was 11.81tri/-. On the secondary market, the Government bond segment transacted 78.49bn/- with the face value of 76.84bn/-from last week's transaction value and the face value of 62.48bn/- and 57.79 billion, respectively. The corporate bond segment transacted bond worth 46.80m/-with face value of 52.00 m/- from previous week transaction and face value of 93.15m/- and 103.5m/-.
Interbank Foreign Exchange Market
During the week, total volume traded was USD 9.90 million at an average rate of TZS/USD 2,309.07 being a decrease from USD 10.30 million at an average rate of TZS/USD 2,309.10.
Tanzania securities Analyst: