The market turnover increased by 13.35 per cent to TZS 2.33 billion last week.
In the coming week, we forecast that Dar bourse will remain active, as foreign investors participation continues to increase. Different counters have been trading on pre-arranged board. This justifies that the market is peaking, and it is expected to perform well in the coming weeks.
The market will remain active during the week and mainly from the top local active counters. CRDB is likely to be the most active counter, and this has been due to its liquidity in the market, but despite the strong fundamentals we do not see increase in its share price in the coming week.
Other top counters expected to transact during the week include TBL, TPCC, NICOL, JATU, SWIS and DSE. We have witnessed share price movement in the local counters which amplifies that there is demand in the market that will drive market activities during the week. In midweek, we expect a new 25-year Treasury bond Auction by the central bank.
The instrument carries attractive yield which is projected to entice the investor's appetite at a fixed return of 15.95 per cent. This is in line with the central government's objective to enhance and promote financial market as well as fund government's long-term projects.
The introduction of this longer-term instrument may dilute the oversubscription of the 20 years bond which has been sequentially happening due to high appetite by investors for the risk free but higher yield instruments.
In the interbank cash market, despite the decrease in the Weighted average rate (WAR) during the previous week, we still anticipate that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
During the week, Total Market Capitalization gained by 1.43 per cent to close the market at TZS 15.74 Trillion from TZS 15.52 Trillion in the previous week mainly due to increase in share prices of locally listed and cross listed firms at the bourse.
EABL share price increased by 4.57 per cent to close at TZS 3,660, JHL increased by 3.36 per cent to TZS 6,150, KCB share price increased by 4.65 per cent to TZS 900, NICOL share price increased by 2.63 per cent to TZS 195, and DSE share price increased by 3.77 per cent to TZS 1,100.
On the other hand, CRDB share price declined by 6.52 per cent to TZS 215, JATU share price declined by 5.95 per cent to TZS 1,580, and TCCL share price declined by 1.23 per cent to TZS 400, and this affected domestic market capitalization to slightly decline by 0.42 per cent.
TSI lost 0.42 per cent to close at 3,503.06 points, DSEI gained 1.43 per cent to close at 1,895.48 points, Bank, Finance and Investment Index (B&F) lost 1.96 per cent to close at 2,403.95 points, Industrial & Allied (I&A) lost 0.01 per cent to close at 4,814.89 points. On the contrary Commercial Services (CS) remained stationary to close the week at 2,139.33 points.
Total Volume of shares traded increased by 13 folds to 6,894,993 traded in 172 deals from 530,743 traded in 132 deals. Total turnover for the week rallied northwards after recording an increase by 13.53 per cent to TZS 2.33 Billion from TZS 2.06 Billion in the previous week.
VODACOM transacted shares worth TZS 1.74 billion which is 74.63 per cent of the total chunk, CRDB counter transacted shares worth TZS 518.93 million which is 22.22 per cent, DSE transacted shares worth TZS 60.87 million, TCCL transacted shares worth TZS 5.07 million, JATU transacted shares worth TZS 4.06 million, NICOL transacted shares worth TZS 3.28 million, TBL traded shares worth TZS 104,000, TPCC transacted share worth TZS 38,000, TTP traded shares worth TZS 15,600, TOL transacted shares worth TZS 5,500, MCB transacted shares worth TZS 4,500, TTP transacted shares worth TZS 15,600, while PAL lagged behind with TZS 3,600.
During the week, the Interbank Cash Market (IBCM) recorded a total transaction value of TZS 8.50 billion being an increase from last week's TZS 7.00 billion traded. The WAR decreased to close at 3.90 per cent from 3.64 per cent in the previous week. The highest and lowest rate was 4.50 per cent and 3.50 per cent similar to previous week.
In the debt market, outstanding government bond listed at the bourse stood at TZS 13.26 trillion. On the Secondary market, the government bond segment transacted TZS 69.13 billion whose face value was TZS 64.14 billion from last week's TZS 15.90 billion and face value of TZS 15.04 billion.
For the Corporate bonds, the market transacted bond worth TZS 78.45 million and face value of TZS 83.80 Million from the previous week transaction value of TZS 10.55 Million and face value of TZS 11.10 Million. During the week, the central government in line with its debt issuance plan sought to raise total of TZS 90.23 Billion from the public through a treasury bill. The auction was oversubscribed by TZS 91.96 Billion.
The central bank pocketed total of TZS 162.92 Billion. WAY for 35 days, 91 days, 182 days, and 364 days WAY was 2.93 per cent, 3.30 per cent, 3.90 per cent and 6.01 per cent respectively. WAP for 35 days, 91 days, 182 days, and 364 days was 99.72, 99.18, 98.09, and 94.35 respectively.
Interbank Foreign Exchange Market
Total volume in the Interbank Foreign Exchange Market increased to USD 5.46 million from USD 3.00 million in the previous week. TZS/USD remains strong to close the market at TZS/USD 2,309.94 from TZS/USD 2,309.96 in the previous week.