Banks dominate as Dar stock market slumps 87.4% to 1.26bn/-

The Dar es Salaam Stock Exchange (DSE) posted a substantial decrease in activity during the trading session last week recording a turnover of 1.26bn/- being a 87.4% fall as compared to 10.10bn/- recorded the previous week.

According to available data from the DSE, market capitalization slightly by 0.25% to reached 14.86bn/- while domestic market capitalization experienced a gain of 0.64%, reversing the losses from the previous week, with a closing value of 11.32bn/-

This drop can be attributed to the shortness of the week due to a midweek public holiday, which reduced overall trading activities.

Despite the decrease in overall turnover however, market indices showed growth due to price increases in several counters.

Throughout the week, notable trading activity was observed in CRDB, NMB, and TCCL, accounting for 61.78%, 13.18%, and 11.31% of the total market turnover, respectively.

During the week, three domestic counters recorded price gains with TICL leading the way with an impressive 10% increase, closing the week at 165/- per share, while TCCL posted a 4.88% upswing, concluding the week at 1,720/- per share.

NMB continued its bullish run, reaching 4,600/- per share, equivalent to a 3.6% week-on-week growth.

On the losing side, MBP saw a decrease of 9.52%, closing at 285/- per share, while CRDB ended the week at 440/- per share, marking a 1.12% decline in value.

According to the Zan Securities Chief Executive Officer Raphael Masumbuko, several factors will affect market activities next week which are likely to influence market dynamics and trading activities.

“The previous week’s sharp decline in tradingactivity, is expected to rebound as. Expectations for optimistic third quarter will likely drive liquidity into banking stocks such as NMB and CRDB,” he said.

Conversely foreign investors continue to remain weary on key blue-chip stocks, resulting in a net outflow of 650.16m/- within the week which aggregates to 13.762bn/- for third quarter of 2023.

Masumbuko said the 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 favourable valuations in the coming weeks, indicating the potential for further upward movement in their prices,” he added.