Market activities at the Dar es Salaam Stock Exchange (DSE) gained by 34.4 per cent registering a total turnover of 1.52bn/- during last week’s trading session as compared to 1.13bn/-registered during the previous week.
According to available data from the DSE, TCCIA investment (TICL) and NICO dominating the overall market turnover figure by 45.5 per cent and 18.72 per cent respectively.
Price movement was however recorded on seven domestic counters during the week with DSE, TOL and CRDB being gainers for the week.
Self-listed DSE gained the most with its stock appreciating by 6.2 per cent closing off the week at 1,700/- per share while the TOL stock gained by 5.7 percent closing off the week at 690/- per share.
The CRDB stock also took the same direction as its stock registered a 1.3 per cent gain closing off the trading week at 385/- per share.
Alternatively on the losers side TICL endured a sell off dropping by 9.3 per cent to close off at 155/- per share while the TCCL stock lost 7.2 per cent of its value closing off the week at 1,100/- per share.
The NMB stock slightly dropped to 2,920/- per share equivalent to 2.7 depreciation.
According to figures, Total market capitalization went down by 0.25 per cent to 15.5bn/- while Domestic market capitalization went up by 0.01 per cent closing at TZS 10.20bn/-
The Tanzania share index (TSI) closed at 3,860.02 points increasing by 0.01 per cent while the All Share Index (DSEI) closed at 1,863.94 points decreasing by 0.25 per cent.
Market analysts however say that equity and debt trading has registered a slowdown with the slowdown attributed to external shocks.
The Zan Securities Chief Executive Officer Raphael Masumbuko said, “We understand that the general slowdown is attributed to two main phenomena one being the Inflationary risk that poses an adverse effect on equity valuations such that relatively higher inflation has historically correlated with lower returns on equities due to cost pressure and weak demand hence relative weak inflows to the DSE,”
He added that the second factor is expectations of a tighter monetary policy by the Bank of Tanzania (BoT) that has resulted to a shift of investors towards fixed income securities as they seek to capitalize rising yields on discounted treasury bonds.
“Investors have already begun under cutting treasury auctions seeking to gain from the central banks tightening. Allocation of liquidity to fixed income securities in the primary market has crowded out equity activities in recent times,” Masumbuko added.