Market activities on the Dar es Salaam Stock Exchange (DSE) plummeted 73% during last week’s trading season recording a turnover of 252.4m/- traded in 352,631 shares as compared to 938.1m/- recorded the previous session.
The general market was in bearish mode leading to a drop in both total and domestic market capitalization.
Market analysts however linked the temporal rotation out of equities during the week due to investors liquidating positions ahead of the 25-year Treasury bond auction scheduled for May 10, 2023.
According to available data from the DSE, total market capitalization fell by 2.19% to 15.22bn/- while Domestic market capitalization fell by 0.71% closing at 10.91bn/-.
Key benchmark indices including the All Share Index (DSEI) closed at 1,826.34 points decreasing by 2.19% while the Tanzania Share Index (TSI) closed at 4,124.52 points decreasing by 0.71%.
The top three trading counters within the week were, CRDB, NMB, and NICO, dominating the market with 62.5%, 31.8%, and 1.8% of the overall market turnover respectively.
DCB was the lone gainer during the week registering 2.7% increase to close the week at 190/- per share.
On the loser’s side, CRDB lost 5.56% of its value closing the week off 510/- per share while NICO slightly backtracking by 2.38% closing the week at 410/- per share.
According to the Zan Securities Chief Executive Officer (CEO) Raphael Masumbuko, “Domestically, the bullish momentum, which commenced at the start of the year, halted in May as investors gravitate towards fixed income securities further capitalizing rising yields, both the total and domestic market capitalization lost value this week as equities backtracked for a second week in a row,”.
Masumbuko added, “However, we see this being a temporary gut. We see the rest of the year being optimistic for equities,”