DSE equity market slumps 21.6 pct to 890m/- on reduced foreign investors’ appetite for stocks

The Dar es Salaam Stock Exchange (DSE) equity market slumped 21.6 per cent during last week’s trading session as compared to 1.13bn/- recorded during the preceding week on reduced foreign investors participation and further decline in pre-arranged deals.

According to data from the DSE, the top trading counters for the week were SWISS, CRDB, NMB, and TCC dominating the overall market turnover figure by 27.3 percent, 22.9 percent, 22.5 per cent and 22.4 per cent respectively.

Price movement was recorded on three domestic traded equities TICL stock depreciating the most

After recoding a 9.62 percent in its value to close at 235/- per share.

The MCB stock lost 1.54 per cent of its value closing the week at 320/- per share while the NMB stock also lost by 1.41 per cent of its value closing the week at 2,800/- per share.

Total market capitalization during the week went down by 0.38 per cent to 15.55bn/- while Domestic market capitalization went down by 0.22 per cent closing at 10.25bn/-

The Tanzania share index (TSI) closed at 3,878.65 points decreasing by 0.22 per cent as the All Share Index (DSEI) decreased by 0.38 per cent to close at 1,866.15 points.

Market analysts however predict that the equity market will sustain a period of plateaued growth towards the end of Q4, 2022 after sustaining a bear run as signaled by the benchmark indices’ week-on-week performance drop.

According to the Zan Securities Chief Executive Officer Raphael Masumbuko, “Stocks will weather the prevailing uncertainties in the market. So far this year earnings expectations have trended upwards but current economic headwinds have introduced a significant amount of forecast risk to our estimates,”

Masumbuko noted that in fixed income, yields would edge slightly higher reflecting tightening liquidity conditions.

“Furthermore much of the activity will be centered on the long end of the curve; we expect significant turnover for the 15y papers and more trading activities for the 20y papers. The rising inflationary pressure is expected to push the yield curve higher and subsequently drive investor-pricing aggression in auctions as investor’s factor in elevated duration risk on long-term papers,” he noted