Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) recorded a substantial increase in turnover for the week ending February 21, soaring by 63.62 percent to Sh14.17 billion from Sh8.66 billion in the previous week.
According to the analysis by brokerage firm Zan Securities Limited, the general market sentiment was upbeat, and with the upcoming release of financials by listed firms, the DSE is expected to experience increased activity and potential price appreciation in the coming weeks.
Last week witnessed significant block deals on CRDB Bank Plc, NMB Bank Plc, Vodacom Plc, Tanzania Breweries Limited (TBL), and Tanzania Cigarette Company (TCC), taking market activity to the upper side.
The highest traded stock was CRDB, which accounted for 37.01 percent of the total market turnover, followed by TBL (28.1 percent) and TCC (15.44 percent).
Pricewise, Nicol led the gainers for the week with an increase of 17.24 percent to Sh680 per share.
Other significant gainers include:
– DCB (+3.85%) closing at Sh135 per share,
– MKCB (+3.45%) at Sh600 per share,
– NMB (+2.63%) at Sh5,850 per share,
– TCCL (+2.56%) at Sh1,940 per share,
– TPCC (+2.11%) at Sh4,000 per share,
– CRDB (+1.39%) at Sh730 per share.
Some shares lost despite the bullish trend.
MBP topped as the worst loser, losing 3.13 percent to close at Sh310 per share, while DSE fell 1.72 percent, closing the week at Sh2,280 per share.
The total market capitalisation was up 0.72 percent, closing at Sh19.04 trillion by the end of the week. Similarly, domestic market capitalisation rose by 1.02 percent to Sh12.73 trillion.
On the market performance, Zan Securities Limited Advisory and Research Manager Mr Isaac Lubeja said that the domestic equity market remained in a bullish trend, leading to a Sh129 billion increase in domestic market capitalisation.
The market has added Sh533 billion in domestic market capitalisation year-to-date.
Mr Lubeja was bullish about upcoming market trends.
“We anticipate that this trend will persist, with maybe a price spike later in March as firms report their audited 2024 earnings,” he said.
Demand for fixed-income securities from investors was firm, as illustrated by the latest sale of the 20-year Treasury bond.
The sale of the bond garnered Sh592 billion worth of bids, which is the fourth largest ever tendered auction.
It took until January 2022 before a larger volume of bids were witnessed.
Only 38 percent of the sale was accepted, which is an excellent demand signal.
Market analysts forecast yields in the secondary market to decline as demand continues to be greater than supply.
“Additionally, we anticipate a shift towards the mid-segment of the yield curve as yields begin to decline on the long end,” said Mr Lubeja.
On February 19, the Bank of Tanzania (BoT) issued a 20-year Treasury bond worth Sh224.88 billion with a coupon rate of 15.25 percent per annum.
The auction was oversubscribed by 263.29 percent, for which bids worth Sh592.077 billion were accepted, whereas total bids received amounted to Sh228.246 billion.
This was the first auction for a 20-year Treasury bond in the 2024/25 financial year of the new issuance calendar.
A shift from fixed to market-based coupon rates was observed in this calendar.
Compared to the previous auction, the minimum price increased to 99.6, and the weighted average yield decreased by 42.89 basis points from 15.7 percent to 15.27 percent.
The subscription level bears witness to continued high demand for long-term tenors, and BoT is compelled to allocate more than budgeted.
