Dar equity market slumps by 74 pct to 1.08bn/- on low investors’ appetite for stocks

The Dar es Salaam Stock Exchange (DSE) registered relatively low activities during the trading session last week with the total market capitalization slightly falling by 0.15% resulting into a drop in trading volumes.

According to data from the DSE, the total turnover also fell by 74% to 1.08bn/- with a number of stocks experiencing price fall leading to the overall decrease in market capitalization.

The top three trading counters were CRDB, NMB, and NICOL, dominating the market with 57.88%, 33%, and 3.15% of the overall market turnover, respectively.

During the week, two domestic counters registered price gains with DCB leading the gainers with a 6.67% increase to close at 160/- per share while CRDB also saw a price increase of 3.45% closing the week at 450/- per share.

On the losing side, TCCL/SIMBA suffered a 9.09% decrease in value, closing the week at 1,000/- per share. NICO closed at 395/- per share marking a fall of 1.25% in value.

Total market capitalization went down by 0.15% to16.11bn/- while Domestic market capitalization went up by 0.31% closing at 10.69bn/-

The All Share Index (DSEI) closed at 1,933.28 points decreasing by 0.15% while the Tanzania Share Index (TSI) closed at 4,046.90 points increasing by 0.31%.

According to analysts, market activities continue to build up as we head towards the final month of Quarter 1.

The Zan Securities Chief Executive Officer Raphael Masumbuko said market sentiment remains optimistic which is a reflection of the overall positive economic outlook and growth potential of the country.

“Investors are drawn to the favorable investment climate and the prospects for returns in the stock market. Additionally, the continued support from the government and regulatory bodies to enhance the stock market infrastructure has also played a key role in attracting investors,” he said.

The Tanzania Share Index (TSI) continues reach new heights, closing the week at 4,046, which are levels last recorded in 2018.

The milestone moment is a clear indication of the growth and stability of the Tanzanian economy, which has been boosted by positive earnings from some of the country’s largest banks.