Dar equity market slumps 55.2 per cent on low investor appetite for stocks

Market activities at the Dar es Salaam Stock Exchange (DSE) slumped by 55.2 per cent during last week’s five-day trading session recording a total turnover of 1.09bn/- from 2.44bn/- registered the previous week.

According to data from the DSE, NMB and CRDB dominated the overall market turnover figure by 48.6 per cent and 37.4 per cent respectively during the trading session last week.

Details indicate that price movement was recorded on four domestic counters during the week with NMB and TPCC being sole gainers for the week.

NMB gained the most as its stock appreciating by 4.29 per cent closing off the week at 2,920/- per share while TPCC/TWIGA gained 2.78 per cent closing off the week at 3,700/- per share.

Alternatively on the losers side TICL lost the most value within the week dropping by 5.56 per cent to close off at 170/- per share while the SWISS lost 4 per cent of its value closing off the week at 1,440/- per share.

Data further shows that Total market capitalization went down by 0.05 per cent to 15.57bn/- billion while Domestic market capitalization went up by 0.74 per cent closing at 10.196.94bn/-

According to analysts, expectations of a tighter monetary policy will see a shift of investors towards fixed income securities as they seek to capitalize on discounted treasury bonds. Allocation of liquidity to fixed income securities will crowd out equity activities in the coming weeks.

The Zan Securities Chief Executive Officer Raphael Masumbuko is however optimistic that general expectations of higher bottom line for FY’22 will drive prices of respective counters upwards in the early stages of next year.

“With system liquidity being constrained by a tight monetary policy cycle we see potential opportunities in stocks with strong fundamentals and attractive entry points,” he said.