Domestic market capitalization crosses the 11trn/- milestone amidst rising fixed income yields

Despite the subdued trading activities at the Dar es Salaam Stock Exchange during last week’s trading session, the market performance portrayed a compelling narrative of optimism and growth, underscored by the surge in domestic capitalization that breached the 11trn/- mark.

This milestone was most recently achieved in April of this year, with a previous instance dating back to 2018, Highlighting the significance of surpassing the 11trn/- milestone, which is often interpreted as indicative of a bullish market sentiment, with notable counters like NMB significantly influencing this attainment.

Notably, NMB sustained its favor among investors who displayed confidence in its potential for growth.

According to available data from the DSE, the market turnover however fell sharply by 63.6 percent to 513.9m/- during the trading session last week attributed to the absence of pre-arranged deals during the week as compared to 1.41bn/- recorded the previous week.

Three domestic stocks showed positive movements in prices with NMB led the way with an impressive surge of4.89%, concluding the week at 3,860/- per share marking a year-to-date increase of 27.81%.

TICL also followeda positive trajectory with a 3.33% increase, closing at 155/-per share, following the announcement of a right issuance mid-week while NICO appreciated by 1.04% to close at 485/- per share.

Three domestic stocks however experienced price declines during the week with MKCB saw a decrease of 2.82%, closing the week at 690 per share/- while CRDB offset its gains from the previous week by losing 2.13%  of its value closing at 460/- per share.

Similarly, SWISS experienced a decline of 2.44%, settling at 1,600 per share.

In terms of market capitalization, there was a slight decrease of 0.34% in the total market capitalization, which reached 14.68bn/- mainly due to the decline in the price of the cross-listed KCB.

According to market analysts, the outlook for the equities market remains positive in the weeks ahead.

According to the Zan Securities Chief Executive Officer Raphael Masumbuko, “Despite the prevailing broader market challenges, particularly stemming from foreign exchange pressures, the local market demonstrates commendable resilience and adaptability,”