DSE performance declines as foreign purchases drop

What you need to know:

  • The bourse’s weekly turnover went down to Sh1.65 billion compared to Sh4.13 billion recorded in the previous week, according to the market reports

Dar es Salaam. Performance by the Dar es Salaam Stock Exchange (DSE) decelerated last week as foreign purchases dropped by 57 per cent in a week that all indicators experienced a negative trend.

The bourse’s weekly turnover went down to Sh1.65 billion compared to Sh4.13 billion recorded in the previous week, according to the market reports. The foreign purchases dropped from Sh3.38 billion to Sh1.42 billion, according to Zan Securities weekly wrap ups.

Last week’s trading was dominated by the Tanzania Breweries Ltd (TBL) counter, which accounted for 86.37 per cent of the total turnover, followed by Vodacom Tanzania PLC at 4.28 per cent and DSE at 3.57 per cent.

Other active counters were Tanzania Portland Cement Company (TPCC), NMB Bank Plc, National Investment Company Ltd (Nicol), CRDB Bank Plc, Swissport Tanzania Ltd (Swiss) and Tanga Cement Company Ltd (TCCL).

The DSE counter declined by 7.14 per cent to Sh1,300 and Nicol lost 5.71 per cent to close at Sh165 per share.

Total market capitalisation declined by 0.35 per cent to Sh20.619 trillion on Friday from Sh20.692 trillion in the previous Friday (February 08, 2019). The Domestic market capitalisation also went down by 0.03 per cent to Sh9.281 trillion.

However, Zan Securities stated in its weekly commentary that: “Investors should not be concerned much with the development as there are still a few key positive signals in the coming weeks such as the improvement in liquidity of some counters such as Vodacom as well as an increase in earnings of banking stocks.”

Meanwhile, key benchmark indices were also on a decline with Tanzania share index (TSI) closing at 3,533.52 points compared with 3,534.60 points recorded in the week before. The All Share Index (DSEI) closed at 2,139.21 points from 2,146.75 points previously.

Industrial & Allied Index (IA) closed at 4,971.14 points, the same as the previous week while Bank, Finance & Investment Index closed at 2,142.97 points down.

by 0.18 per cent.