Dar es Salaam Stock Exchange kicks off new year on high note

Monday January 10 2022
DSE PIC

DSE chief executive officer Moremi Marwa.

By Josephine Christopher

Dar es Salaam. The stock market began the first week of the New Year on a high note, echoing investors’ positive sentiments for 2022.

Weekly turnover at the Dar es Salaam Stock Exchange (DSE) improved by 266 percent while positive price movements were also recorded on bank counters, market data shows.

In the week that ended January 7, 2021 foreign investors made a comeback and injected over Sh2 billion, mainly through Tanzania Breweries Plc (TBL) shares via a prearranged deal. The transaction, which was conducted on Tuesday January 4, involved a block trade of 439,740 shares.

As a result, a weekly turnover of Sh2.56 billion was realized, up from Sh698.82 million that was recorded in the last week of 2021.

According to the chief executive officer for Zan Securities Limited, Mr Raphael Masumbuko, the performance was a clear indication that 2021 proved to be a year of growth as the market bounced back from the Covid-19 pandemic, and the same growth momentum was being expected in 2022.

“The year also demonstrated the resilience of people, institutions, and financial markets. The underlying narrative is positive with expectations that we will see another year of strong corporate revenue, earnings growth and excess cash flow generation in 2022,” he said.

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Last week, NMB Bank Plc’s share appreciated by nine percent to end the week at Sh2,180 per share.

CRDB Bank Plc’s stock price rose by 4.85 percent to close at Sh295 per share.

On the other hand, Jatu lost 9.76 percent of its value to end the week at Sh370 per share while Tanga Cement depreciated by 9.09 percent to close at Sh1,000 per share.

Total market capitalisation gained by 0.83 percent to Sh15.94 trillion.

As a result of the price improvement in the domestic firm, domestic market capitalization also went up by 1.29 percent to close at Sh9.54 trillion.

Both of the DSE share indices closed in green. The all shares index (DSEI) rose by 0.83 percent at 1,912.39 points and the Tanzania Share Index (TSI) increased by 1.29 percent to close at 3, 611.32 points.

At the primary market, the first bond to be issued in 2022 was undersubscribed last week.

The Bank of Tanzania re-opened a 5-year Treasury Bond (T-Bond) through an auction held on Wednesday January 5, 2022.

The central bank attracted Sh101 billion in overall public bids for the auction compared to the offered Sh116.5 billion.

Out of the 45 bids received, the BoT accepted only 40 which had a total value of Sh45.47 billion.

The auction result indicates that investors continue to prefer the longer term government securities which continue to be oversubscribed.