The Dar es Salaam Stock Exchange (DSE) exhibited a bearish performance during the trading session last week with total turnover falling by 53.2% to 53.2bn/- as compared to 1.08bn/- posted the previous week.
During the five-day trading session, a number of stocks experienced price fall leading to the overall decrease in market capitalization.
According to DSE data, total market capitalization slightly fell by 0.53% to 16.02bn/- while Domestic market capitalization went down by 0.13% closing at 10.68bn/-
The All Share Index (DSEI) closed at 1,923.02 points decreasing by 0.53% while the Tanzania Share Index (TSI) closed at 4,041.47 points decreasing by 0.13%.
The top three trading counters, CRDB, NICO, and NMB, dominating the market with 57.86%, 16.86%, and 14.97% of the overall market turnover, respectively.
The NICO stock suffered a 3.8% decrease in value, closing the week at 380/- per share while the TICL stock closed at 140/- per share marking a fall of 3.45% in value.
Consequently, the CRDB stock closed at 445/- per share marking a fall of 1.11% in value.
According to market analysts, the outlook for the stock market remains optimistic as we enter the final month of Quarter 1 2023,driven by strong performance of several stocks year-to-date and overall stock market indices reaching four-year highs.
The Zan Securities Chief Executive Officer Raphael Masumbuko however cautioned investors to be mindful of rising fixed income yields due to higher demand for risk premiums from government lending, prompted by creeping inflation and tight fiscal positions.
“Despite these headwinds, the stock market has remained resilient, and there are several reasons to remain positive about its prospects. Firstly, the global economy is showing signs of continued recovery from the commodity price-induced recession, IMF revising outlook from gloomy to less gloomy, which is expected to boost demand for goods and services from various sectors of the market. Additionally, reduction in interest hikes by Central monetary authorities across the globe are likely to sustain investor appetite for stocks, especially as they seek higher returns,” he said.
Masumbuko said the stock market may face short-term headwinds in the form of rising fixed income yields, the overall outlook remains optimistic.
“The global economic recovery, and sustained growth in various sectors are key drivers of this optimism. However, investors should remain vigilant and continue to monitor developments in the fixed income market. Overall, the stock market appears to be in a strong position to deliver healthy returns for investors in the medium to long term,” he added.