Tanzania’s equity market enjoyed a broad-based rally last week recording total turnover of 8.22bn/- being a 10.1 per cent increase compared to 7.46bn/- posted the preceding week.
The hefty turnover figure was bolstered by a number of pre-arranged block trades by NMB and TCC.
According to data from the Dar es Salaam Stock Exchange (DSE), the top trading counters during the week were NMB, CRDB, TCC and DSE dominating the overall market turnover figure by 82.32 perc ent,
12.66 per cent, 2.5 per cent and 1.44 per cent respectively.
Price movement was recorded on five domestic traded equities during the week with the TCCL/Simba stock appreciating the most, registering a 3.95 per cent gain closing the week at 1,580/- per share while the TPCC/Twiga stock also registered a 0.52 per cent upside closing the week at 3,880/- per share.
Data indicates that CRDB had a slight sell-off this week depreciating by 1.23 per cent to close at 400/- per share, SWISS ended its bullish run loosing 3.16 per cent of its value closing the week at 1,840/- per share while the MCB stock also depreciated by 8.86 per cent closing at 360/- per share.
Total market capitalization went up by 0.57 per cent to 15.96bn/- while the Domestic market capitalization went down by 0.1 percent closing at 10.33bn/-
The Tanzania share index (TSI) closed at 3,910.64 points decreasing by 0.10 per cent while the All Share Index (DSEI) increased by 0.57 per cent to close at 1,915.84 points.
According to the Zan Securities Chief Executive Officer Raphael Masumbuko, “August has been a fruitful month in the capital markets in terms of value appreciation for both equity and debt market, the general theme for 2022 has so far been market resilience, asset prices have largely been insulated from sharp rise in commodity price increases”
According to Masumbuko, a rally in prices in the first half of 2022 helped the domestic TSI Index return a +9.8% year-to-date, dwarfing the +2.5% posted in 2021.
“We expect strong valuations from the Banking sector as interest rates edge higher, albeit investors would be cautious with companies overheads exposed to higher commodity prices. However, we might see plateaued growth as we head towards the end of quarter 3, particularly as the central bank deploys a more restrictive monetary policy cautioning against inflationary risk,” he added