Market activities at the Dar es Salaam Stock Exchange (DSE) slightly picked during last week’s five-day trading session recording a 16.9% increase in total turnover to 592.03m/- as compared to 506.42bn/- recorded during the preceding session.
DSE data however shows that total market capitalization went down by 1.62% to 15.76bn/- while Domestic market capitalization went up by 0.19% closing at 10.70bn/- total market capitalization.
According to the Alpha Capital Weekly Report, domestic market capitalization rose by 0.2% due to the price increases of some domestic market capitalization specifically banking and investment stocks.
The top three trading counters, CRDB, NMB, and TPCC, dominated the market with 65.27%, 19.69%, and 4.65% of the overall market turnover, respectively. Counters reported upward price trends unlike the bearish performances in the previous week.
Four domestic counters registered price gains within the week with TCCL/Simba leading the gainers with a 10% increase to close at 1,100/- per share while NICO also saw a price increase of 3.95% closing the week at 395/- per share.
DCB also registered an increase of 3.13%closing the week at 65/- per share while the CRDB stock surged upwards by 1.12% to close off at 450/- per share.
The self-listed DSE was however on the losers’ sides as its stock suffered a 2.3% decrease in value, closing the week at 1700/- per share.
Market analysts however paint a rosy picture as the market head towards the end of Quarter 1 2023.
According to the Zan Securities Chief Executive Officer Raphael Masumbuko, the outlook for the stock market remains optimistic, driven by strong performance of several stocks year-to-date and overall stock market indices reaching four-year highs.
“Investors should however 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.
Masumbuko said that in Tanzania, several sectors of the economy, including manufacturing, banking, and consumer discretionary, have performed exceptionally well in recent months and are expected to continue driving growth.
“While 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 said.