The Dar es Salaam Stock Exchange (DSE) recorded a net foreign outflow of 11.2bn/- ($4.41 million) in September from 466.6m/- ($0.18 million) posted in August due to geopolitical uncertainty and U.S tightening policy.
Available data from the DSE shows that foreign participation was skewed on the selling side, with 55% of divestments originating from foreign investors with a mere 0.73% of investments during the month originated from foreign investors.
Market activities at the bourses however surged by 340% in September this year to post a 20.7bn/- equity turnover from 4.7bn/- posted during August this year.
The uptick in the equities market is attributed to a number of prearranged block transactions, particularly on the TBL counter.
Tanzania Breweries Ltd saw two major block transactions during the month. The initial block transaction was executed in the first week of the month, trading one million shares at a price of 6,000/-
The second transaction was during the third week of the month, with the same of number of shares but at a price of 6,500/- pushing turnover for TBL to 12.5bn/- during the month, making the counter the top mover for the month, with a 60% contribution to the total turnover.
CRDB was the second top mover following a few prearranged as well as market transactions accounting for 19% of the total turnover during the month, while the turnover on the counter went up 34% on a monthly basis, to 3.84bn/- at the end of September.
Other top movers were TCC and NMB which collectively accounted for 15% of the total turnover.
According to the Alpha Capital Research and Analytics Head Imani Muhingo, all the major indices closed the month in the green mostly a result of positive movement on the NMB counter.
The Tanzania Share Index (TSI) gained 118.04 points during the month, to close at 4,280.33 points.
The growth is equivalent to 2.84% monthly growth of the domestic market capitalization which closed the month at 11.32trn/- while the All Share Index (DSEI) similarly went up by 7.4 points to 1,782.75 points.
“The DSEI uptick resulted from a 0.42% growth of the total market capitalization, which closed the month at 14.87trn/-,” Muhingo said.
The growth of the indices was mostly influenced by the 19.2% growth of the NMB price during the month.
Losers and gainers
NMB remained the top gainer for a second consecutive month as the price moved up from 3,860/- in the end of August, to 4,600/- in the end of September.
The appreciation of NMB originates primarily from the half year performance where the six months net profit grew by 26% compared to a similar period last year.
Other gainers during the month were TICL, TOL and NICO with the TICL stock appreciating by 10% closing the month at 165/- while TOL and NICO went up by 4.84% and 3.09% respectively.
Six counters saw their prices fall during the month, but the weights were offset by the weight of NMB leading to a net gain of the TSI.
Leading losers were MBP and MKCB) with the two banks stocks dropping by 9.52% and 8.70% respectively.
Other losers included TCCL which dropped by 4.44% despite the announcement released by the company that the FCT hurdles have been lifted, and the FCC unconditional approval prevails.
CRDB also fell by 4.35% as the counter still suffers from the mere 3% half year profit growth, down from 96% growth in the previous year.
DCB Commercial Bank Plc (DSE: DCB) and Dar es Salaam Stock Exchange (DSE: DSE) were other losers and fell by 3.45% and 3.30% respectively. The price of DCB has been volatile since the beginning of the year, with an initial appreciation following impressive annual results, but began falling from investors’ realization of ineligibility of DCB to pay dividends for the year 2022. The movement of DSE price is likely out of normal market volatility.
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