THE DSE equity market posted bounces back with a bullish performance of 1.49bn/- billion, up by 14 per cent compared to last week. Vodacom emerged as this week's top trading counter with 50.43 per cent of the market share, attributed by a prearranged block trade followed by CRDB Bank at 28.18 per cent and NMB Bank at 14.65 per cent. Price movement was recorded on five domestic traded equities this week.
The self listed DSE appreciated the most by 21.79 per cent to end the week at 1,900/- per share, followed Jatu up by 19.23 per cent to close at 355/- per share, NMB gained 8.15 per cent to close at 2,920/- per share and TCCL/Simba Cement closed at 1,840/- after gaining 1.11 per cent. On the other hand, NICO went down by 9.88 per cent to end the week at 330/- per share.
Total market capitalization went up by 0.88 per cent to 15.56tri/- and domestic market capitalization also went up by 1.16 per cent closing at 10.308tri/-. The key benchmark indices were as follows: -
- Tanzania share index (TSI) closed at 3,898.22 points after increasing by 1.16 per cent.
- All Share Index (DSEI) also increased by 0.88 per cent to close at 1,866.70 points. Sector Indices closed as follows; -
- Industrial & Allied Index (IA) closed at 5,134.99 points, up by 0.04 per cent.
- Bank, Finance & Investment Index closed at 3,270.32 points, up by 4.64 percent.
- Commercial Services Index closed at 2,134.28 points, unchanged from the previous week
Market News
NMB has announced its 22nd Annual General Meeting which will be held on Friday, 3rd June 2022 physically at Julius Nyerere Convention Center in Dar es Salaam.
The directors propose payment of a dividend of 193/- per share, to be paid on or about 15th June 2022. Twiga Cement Plc has announced its 30th Annual General Meeting which will be held on Wednesday, 25th May 2022 physically at Ramada Beach Resort, Grand Ocean Hall, Ground Floor, Dar es Salaam.
DSE Plc has announced its 7th Annual General Meeting which will be held on Wednesday, 18th May 2022 physically at Kambarage House, 3rd Floor, Ufukoni Street, Dar es Salaam and virtually through Zoom Video conferencing commencing at 09:30am.
DEBT
Primary Market
The Central bank was in the market on May 11, 2022 offering 135bn/- on to investors through issuing a 25 year Treasury bond.
The auction was slightly over-subscribed receiving a subscription rate of 128.82 per cent. Long-term treasury bonds such as the 25 year are preferred by investors due to their high coupon compensating for duration.
We expected a slight drop in participation compared to what we have seen on long term bonds considering this is the first 25- year Treasury bond issued with revised coupon.
Total amount tendered was a mere 173.9bn/-, the minimum successful price printed at 100. The central bank accepted 352 bids out of 404 bids placed by investors to keep the price above discount.
With the introduction of new issues we expect the yield curve to slightly tilt up on the long end.
Secondary Market
In the trading week ending May 13, the yields on government securities in the secondary market remained relatively unchanged. Activities in the secondary market slightly increased, tenures traded included 7,10,15,20 and 25.
Number of trades doubled from 25 trades recorded in the previous trading week to 54 trades in the trading week ending May 13. Furthermore value of bonds traded increased by 113 per cent to 53.47bn/-from 25.06bn/- recorded in the previous week.
May 18, the Bank of Tanzania (BoT) will be auctioning Treasury bills, we expect yields ease from falling as it has been the recent situation. However expect the 364 and 182-day bills to attract higher subscription rate.
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Outlook Equities
Listed companies have started releasing 2022 1st quarter 1 earnings results, with the likes of CRDB and NMB posting bullish numbers.
Our outlook for the year remains strong we expect increased activities in the exchange to be fueled by growth stocks. As many investors are now seeking capital gains and turning a blind eye to treasury bonds whereby yields have dropped and coupons revised lower.
Auction result of the 25 year Treasury bond will slightly force yields to go up on the long end of the curve as the market registers price adjustments relative to the 25 year, however in the coming weeks we expect more investors to dispose old bonds in favor of the more liquid on-the-run newly issued bonds.
Mr Masumbuko is a Chief Executive Officer of Zan Securities--a capital markets and securities authority licensed dealer and a member of the DSE. raphael.masumbuko@zansec.co.tz
