Domestic stocks gain as Dar stock market turnover rises by 159% to 1.3bn/-

Domestic stocks at the Dar es Salaam Stock Exchange (DSE) closed the week higher during last week’s five-day trading session as compared to the previous week led by banking and investment stocks.

Available data from the DSE indicates that total market turnover rose by 159% to 1.3bn/- from 592.03m/- posted during the preceding trading session.

Total market capitalization went down by 2.055% to 15.44bn/- while Domestic market capitalization rose by 0.18% closing at 10.72bn/-

The Tanga cement stock appreciated by 7% to close at 1,180/-,while the CRDB stock rose by 1.1%  and the share price of NICO and DCB went up more than 1%.

According to the Alpha Capital Weekly Report, foreign purchase during the trading session accounted for 3.22% of the trade while foreign sale accounted for 0.02%

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.0-

“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.