Dar es Salaam Stock Exchange weekly trading falls 21pc on slowing foreign purchases

Monday January 27 2020

Dar es Salaam Stock Exchange's CEO, Mr Moremi

Dar es Salaam Stock Exchange's CEO, Mr Moremi Marwa 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. Trading at the Dar es Salaam Stock Exchange decreased last week as the market received less foreign participation in the market. The equity market turnover decreased by 21.44 percent - to Sh17.78 billion - while the week-on-week foreign purchases (which dominated the market) slowed from Sh22.32 billion previously to Sh15.399 billion this week, according to Tanzania Securities – a local brokerage firm.

Tanzania Breweries Ltd (TBL) was a top market mover - accounting for 99.52 per cent of the total market turnover - followed by CRDB Bank by far.

The TBL counter had pre-arranged transactions from Tuesday to Friday, according to the bourse’s market reports.

The CRDB counter - which was the second in terms of turnover - gained ten percent to close at Sh110 per share.

“Again, this week’s market performance echoed our last expectation where we oversaw a decline in turnover, but a balanced performance. We expect a further slowdown in the coming weeks,” stated the brokerage firm in its commentary.

Benchmark indices

Advertisement

The total market capitalisation increased by 0.63 percent to S17.36 trillion and the domestic market capitalization gained by 0.29 percent to Sh9.05 trillion.

The All Shares Index (DSEI) increased by 0.63 per cent to close at 2,091.01 points while the Tanzania Shares Index (TSI) increased by 0.29 percent to 3,445.89 points.

The DSE was recently reclassified, and is now among frontier markets – also known as pre-emerging equity markets – which usually draw investors seeking high, long-run return potential as well as low correlations with other markets.

The classification means that DSE and its listed securities will henceforth be on the list of global investors who invest based on market classifications.