Why DSE turnover rose by 86pc

Dar es Salaam. Turnover at the Dar es Salaam Stock Exchange (DSE) rose by 86 percent last week, thanks to prearranged block trading deals.

A total of Sh3.16 billion was realised in turnover last week, buoyed by prearranged block trading deals at the Tanzania Cigarette Company (TCC) and the NMB Bank trading counters.

This was more than the Sh1.6 billion recorded during the week which ended on April 23, 2021.

TCC’s trading counter was a top market mover, accounting for 62.07 percent of the total market turnover. NMB came second with a 26.92 percent slice, according to the weekly wrap up by brokerage firm Vertex International Securities Limited.

A major deal was concluded on Friday whereby the TCC counter traded a block of 280,000 shares to register a turnover of Sh1.96 billion.

That came after the NMB counter traded a block of 500,000 shares to register a turnover of Sh850 on Thursday, April 29, 2021.

Both local and foreign investors were active last week.

The market capitalization was however down, largely due to a fall in prices of cross-listed equities which wiped away the impact of the positive performance of locally-listed equities.

Total market capitalisation declined by 0.17 percent to close at Sh15.61 trillion, while the domestic market capitalisation closed at Sh9.24 trillion: slight increase of 0.42 percent.

Price movement was recorded at the CRDB counter which appreciated by 6.98 percent to close the week at Sh230 per share. On the other hand, share price depreciation was recorded by JATU, down by 6.41 percent to close at Sh1,460 per share. Also, and SIMBA stocks went down by 2.50 percent to close the week at Sh390 per share.

“The market validated our last week’s forecast on volume and turnover pick-up, as block trades continue. We expect banks’ first quarter results to boost equity market performance next week,” Vertex International Securities Limited stated in its weekly outlook. The All Shares Index (DSEI) - which tracks the market value of both domestically-listed and cross-listed equities - lost 0.25 percent to close at 1,878.46 points, while the Tanzania Shares Index (TSI), which tracks the market value of domestically-listed equities only, gained 0.27 percent, to close at 3,512.78 points.

Banks, Finance and Investment gained 1.37 percent to close at 2,437.22 points, Industrial and Allied declined slightly to 4,814.08 points, while Commercial Services (CS) remained unchanged at 2,139.33 points.