Tanzania’s equities market heads north on acquisition of 68.3% Tanga stake

Tanzania’s equities market ended the trading session in green last week recording a total market turnover of 107.5bn/- marking a 6,750% increase as compared to 1.57bn/- recorded the preceding week.

This increase in turnover can be attributed to the acquisition of 68.33% (43.5 million ordinary shares) in Tanga from Afrisam Mauritius Investment Holdings Limited by Scancem International DA a subsidiary of Heidelberg Materials which was completed on November 22, 2023.

Available data from the Dar es Salaam Stock Exchange (DSE), shows that  total market capitalization decreased by 0.23% to 14.6bn/- while the domestic market capitalization surged by 0.02% similar to the previous week to 11.43bn/-

According to the Alpha Capital Weekly Report, foreigners dominated in both sales and purchases arena by 98.99% and 98.82% respectively.

“This symbolizes an increase in the activeness for the foreigners in the Dar es Salaam Stock Exchange Market,” said Alpha Capital Head of Research and Analytics Imani Muhingo.

The counters that saw significant trading activity during the week included TCCL, CRDB, and NMB, accounting for 99.42%, 0.38%, 0.12% of the total market turnover, respectively.

During the week, TCCL was the only domestic counter that registered price gain within the week, appreciating by 4.17% to end the week at 2000/- per share.

On the downside, two domestic counters lost value within the week with TICL losing 10% of its value closing the week at 225/- per share while NICO lost 3.33% of its value reaching 435/- per share

The Zan Securities Chief Executive Officer Raphael Masumbuko is however optimistic that the recent release of 3rd quarter reports will solidify year end estimates further propelling stock prices upwards and are expected to maintain their favourable valuations in the coming weeks.

“In the secondary market, the focus remains on the longer end of the yield curve. Specifically, we anticipate more trading activities centered on off-the-run 20-year treasury bonds. This is expected to push yields to approximately 14.2%,” he said.

He added, “In the weeks ahead, activity in the secondary market will be driven by investors who missed out on the primary market auction and hence we anticipate significant trading activities for the 20 year treasury bond no 649,” he added.