Dar stock market ends seven-week bull run, turnover dips 87.8% to 1bn/-

Market activities at the Dar es Salaam Stock Exchange (DSE) ended a seven-week bull run during the trading session last week leading to a decrease in domestic market capitalization.

According to available date from the DSE, equities market turnover dipped by 87.8% to 1bn/- last week attributed to a reduction in pre-arranged transactions according to available data from the Dar es Salaam Stock Exchange (DSE).

During last week’s trading session, domestic market capitalization also decreased by 80m/- during the week, ending a seven- week streak of consistent growth as a result of decreases in the prices of domestic stocks.

In terms of market capitalization, there was a slight decrease of 0.03% in the total market capitalization, which reached 14.90bn/- while the domestic market capitalization saw a small decrease of 0.00071%, ending its seven-week growth streak and concluding the week at 11.2bn/-.

Throughout the week, notable stocks with substantial trading activity included NMB, NICO, and TCC, which accounted for 29.38%, 28.78%, and 20.04% of the total market turnover, respectively.

Two domestic stocks, experienced price gains with TICL recording a 7.14% increase, closing the week at 150/- per share while NICO sustained its second consecutive week of growth, gaining 2.04% and closing at 500/- per share.

DSE was the sole loser for the week, as its stock decreased by 3.3% and closing at 1,760/- per share.

According to the Zan Securities Chief Executive Officer Raphael Masmbuko, foreign investors took a bearish stance on key blue-chip stocks, resulting in a net outflow of 216.3m/- within the week.

“This shift in sentiment was primarily driven by concerns related to foreign exchange issues. Looking ahead, stocks such as NICOL, TOL, and NMB are expected to maintain their favorable valuations in the coming weeks, indicating the potential for further upward movement in their prices,” he said.