Stock Market ON the week ended 20th May 2022 the DSE bourse signalled green light as the market closed with a gain of a TZS 56Bln ($24.4Mln) to the market capitalization.
Both corresponding market indices the DSEI and the TSI recorded a 0.36 per cent and 1.02 per cent increase respectively.
To a great extent the small improvement of the market this week was influenced by several local counters given the dividend calendars of several companies, investors are seizing the opportunity to cash lucrative dividends by the end of the 2nd quarter. The improvement on counter prices went in tandem with the improvement in the volume on the board.
The bourse during the said week, exchanged a total of 14.3 million shares that generated a turnover of TZS 6.3Bln ($2.73Mln). Both turnover and number of shares traded mark a more than 3 folds hike from TZS 1.49Bln (0.64Mln) and 2.6 million shares that transacted on the week prior.
While most local investors were cashing in, foreigners appeared to be cashing out of the market on the week. The local purchases amounted to TZS 3.5Bln ($1.5Mln) and accounted for 55.8 per cent of the buy side.
The sell side however, was dominated by foreign investors who sold shares worth TZS 5Bln ($2.16Mln) and accounted for 77 per cent of sell side activities.
Three (3) gainers and three (3) losers of the week were responsible for the market volatility. CRDB counter which went up 16 per cent led the rally also doubling as the top mover , closing at TZS 430 per share up from TZS 370 at the start of the week. The counter transacted approximately 14 million shares that were worth TZS 5.8Bln.
Next up was JATU counter that went up 15 per cent and closed at TZS 410 up from TZS 355 of previous week JATU exchanged about 14,000 shares worth TZS 5.8Mln, DCB also went up 3 per cent closing at TZS 185 up from TZS 180.
On the other hand, NICO went down 7.6 per cent following a price decline to TZS 305 down from TZS 330. The stock transacted about 62,000 shares worth TZS 19.4Mln. Following up closely was TOL which also went down 1.78 per cent and closed at TZS 550 down from TZS 560. TOL generated TZS 1.1Mln transacting only 2,000 shares. TCCL also went down by 20 spreads, closing at TZS 1,820 down from TZS 1,840.
While the news about a possible acquisition of TCCL have not been definite yet, investors have remained cautious with trading of the counter, with most of investors maintaining a hold position, which has seen the counter's activity remain low-key in the recent weeks. The cross-listed board has yet again remained on the red, declining further this week.
National Media Group (NMG) and East African Breweries (EABL) have led the decline, where both counters went down 2.47 per cent and 2.13 per cent respectively. NMG closed at TZS 395 down from TZS 405 while EABL declined to TZS 2,760 down from TZS 2,820. KCB also 10 spreads down, closed at TZS 700, down from TZS 710 of last week.
Government Securities
The treasury bills auction held during the week by the central bank saw a hike in tender amount. The auction which had the usual offer of TZS 78.4Bln ($ 33.9Mln) from four tenors ;35-days, 91 days, 182 days and 364 days attracted tender size of about TZS 165.6Bln ($71.69Mln) from all four tenors.
This makes the auction oversubscribed by more than 100 per cent. The yield on the shorter-term tenors have kept on deteriorating, while the 364-day paper yield has improved by more than 80 bps to 4.17 per cent up from 3.3 per cent yield of the previous auction.
Despite the central bank offering TZS 78.4Bln the bank ended up taking almost all investor's money, leaving only TZS 3Bln investor's money.
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Money Market
The Interbank ash Market (IBCM) activity this week, picked up by 3.95 per cent from TZS 88.5Bln to TZS 92Bln of current week. The interbank rate has slightly declined by 5bps to 1.82 per cent down from the rate of 1.87 per cent. Liquidity in the banking sectors remain under the desired targets of the central bank, hence the lower stable rates compared to previous year where the interbank rate averaged 4 per cent.
The shilling has yielded to the USD this week, where the exchange rate between the currencies has kept on weakening. At the close of the week 1 USD could be exchanged for TZS 2,311.55 higher than TZS 2,311.05 that was recorded on the close of previous week as reported on the Interbank Currency market (IBCM).
The Volume traded on the market amounted to 9.95Mln which is more than two (2) folds 3.83Mln generated on the previous week.
