Tanzania: Dse Witnesses Boom Cycle for Local Shares

THE Dar es Salaam Stock Exchange (DSE) is witnessing a boom cycle in domestic equities, thanks to increasing earnings and dividends.

The boom cycle is also signifying that the market and listed firms are walking out of the Covid-19 woods thus posting encouraging performance.

Zan Securities Chief Executive Officer (CEO), Mr Raphael Masumbuko said generally the exchange is witnessing "a boom cycle" on increasing earnings and dividends that propelled an upward surge in share prices.

"However," Mr Masumbuko said, "we remain cautiously optimistic given the current volatile global macro-environment.

"Our market will experience slight spill over effects from inflation and surging prices as we head towards the end of quarter two."

NICOL, which had shown signs of retreat in the past two weeks, last week came back to the spotlight. The NICOL went up 4.9 per cent from 305/- and to close at 320 per share.

NMB went up 4.0 per cent to close at 3,020/- last week this week, transacting 0.93 million shares 2.85bn/- making the stock the top mover for the week as well.

NMB has proposed 193/- dividend a share subjected for AGM approval this Friday.

Also, DCB Bank's share jumped up by 2.7 per cent to close at 190/- per share last week, up from 180/- of the previous week.Orbit Securities said in its weekly market synopsis that DSE all-share index (DSEI) and Tanzania Share Index (TSI) both depicted an upward movement.

"The positive movement on the market indices means the speed of counter's price increase was greater than price decline," Orbit said.

The top loser was Jatu, which appears to have hit a resistance following a great gain fortnight ago, but last week went down 7.3 per cent and closed at 380/- from 410/- of the previous week.

CRDB Bank which in the past two weeks was one of the top performers after announcing a 64 per cent dividend raise to 36/- a share, last week recorded a 2.0 per cent decline to 420/- from 430/- of the previous week.

Simba cement and Swissport both declined by 1 per cent to 1,800/- and 900/- down from 1,820/- and 1,000/- respectively.

Vertex International Securities also said in its weekly market review that the equities market posted a mixed performance last week as an increase in prices came at a dispense of volume and turnover despite an increase in foreign activity.

"Financial counters continued to dominate the market as we expected. We forecast volume and turnover to pick up this week as we expect this week's price momentum and foreign activity to continue," Vertex said.

The turnover declined by over 40 per cent from 6.3bn/- of the previous week to 3.7bn/-for the week ended last Friday. The volume traded had also declined by more than 80per cent to only 2.36 million shares down from 14.3million shares.

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