Tanzania: Dse Turnover Rises 42pc Pushed By TCC

2 July 2024
Tanzania Daily News (Dar es Salaam)
By Raphael Masumbuko

DAR ES SALAAM — DURING the trading week ending on June 28th, the Dar es Salaam Stock Exchange (DSE) saw an increase in turnover compared to the prior week.

The total market turnover increased to 2.007bn/- , reflecting a 41.78 per cent uptick from the previous week's 1.415bn/-.

The pre-arranged board registered some activities as TCC recorded a block trade. Throughout the week, TCC dominated trading activities, representing 59.89 per cent of the total market turnover, followed by CRDB at 30.26 per cent and TPCC at 3.11 per cent. AFRIPRISE was the top gainer for the week, appreciating by 10.53 per cent to close off the week at 210/- per share.

CRDB gained 4.0 per cent closing the week at 520/- per share while DSE's price increased by 3.77 per cent concluding the week at 2,200/- per share.

However, TCCL lost 4.44 per cent in its share price closing off the week at 1,720/- per share while MKCB depreciated by 1.64 per cent reaching 600/- per share.

In terms of market capitalisation, there was a general decrease in the size of the markets, with total market capitalisation decreasing by 0.53 per cent to 16.834tri/- by the week's end.

However, domestic market capitalisation increased by 0.44 per cent, reaching 11.853tri/-.

Key benchmark indices

· All Share Index (DSEI) closed at 2,027.67 points decreasing by 0.53 per cent.

· Tanzania Share Index (TSI) closed at 4,455.67 points increasing by 0.44 per cent. Sector Indices

· Industrial & Allied Index (IA) closed at 5,120.14 points, down by 0.09 per cent

· Bank, Finance & Investment Index closed at 5,205.50 points, up by 1.385 per cent

· Commercial Services Index closed at 2,134.27 points, unchanged from the previous week Market news round up CRDB Bank cashes out 51.7bn/- in dividend to government.

Minister for Investment and Planning, Prof Kitila Mkumbo, on behalf of the government, has received a highest dividend ever given by a financial firm in the country worth around 51.7bn/- as a result of the government's investment in CRDB Bank.

Speaking at the handover ceremony, Prof Mkumbo hailed the bank for cashing out such a huge dividend, equivalent to an increase of 12.8 per cent of the dividend given by CRDB in 2022 that stood at 45.8bn/-.

This dramatic rise was attributed mainly to the bank's stellar financial performance recorded in the year ended in 2023.

DSE shareholders approve 145/- dividend per share Dar es Salaam Stock Exchange (DSE) shareholders have approved the proposed dividend of 145/- per share for the year ended last December during the Annual General Meeting (AGM), recently.

DSE Board proposed a dividend of 61 per cent of after-tax profit which is equivalent to a proposed dividend of 3.45bn/- for the year to last December up from 2.76bn/- paid in the prior year.

The approved dividend has increased by 25 per cent compared to 116/- per share paid in the preceding year, thanks to the DSE's robust financial performance registered for the year ending last December.

Moody's fitch upgrade to attract more FDIs to Tanzania Two global credit rating agencies have upgraded Tanzania's economic status to stable from a positive outlook, thanks to its steady macroeconomic fundamentals. The country's upgraded economic status is poised to attract more foreign direct investments (FDIs) and increase access to funds in international financial markets.

Fitch Ratings affirmed Tanzania's long-term foreign-currency Issuer Default Rating (IDR) at B+ with a stable outlook, while Moody's Analytics upgraded the country to B1 from B2 and expects continued robust GDP growth.

Outlook

As we conclude the first half of the calendar year 2024, the general market performance has demonstrated a bullish trend, marked by significant price increases in various stocks, such as:

· NICOL: 60 per cent increase to 800/-

· DSE: 22.22 per cent increase to 2,200/-

· NMB: 15.56 per cent increase to 5,200/-

· CRDB: 13.04 per cent increase to 520/- This growth has led to a 3.97 per cent rise in domestic market capitalisation, reaching 11.853tri/-, an additional 452bn/- over the six-month period. Cross-listed equities have also performed well, contributing 15.21 per cent to the total market capitalisation, which now stands at 16.834tri/-, representing an increase of 2.2tri/-.

In the debt market, fixed-income securities have shown cyclical returns in terms of yields. At the start of the year, yields on the long end of the yield curve were at 14 per cent, peaking at 15.7 per cent in early March following the reintroduction of reopening.

By the end of June 2024, treasury bond yields on the long end had decreased to 14.6 per cent.

Our outlook for the second half of 2024 is optimistic, as we anticipate that these impressive numbers will positively impact stock prices.

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