Dar equities market plunges 57.5% to 1.9bn/- on low investors’ appetite for stocks

Market activities at the Dar es Salaam Stock Exchange (DSE) registered a notable downtick to post a 1.9bn/- turnover being a 57.5% drop as compared to 4.52bn/- posted during the preceding week.

This drop in turnover can be attributed to a fall in pre-arranged transactions, during the week.

According to available data from the DSE, despite the substantial decrease in turnover, the domestic market capitalization increased due to increases in the prices of domestic counters.

Total market capitalization slightly decreased by 0.54% reaching 14.75bn/- while domestic market capitalization experienced a slight growth of 0.38%, with a closing value of 11.43bn/-

Throughout the week, the counters that saw significant trading activity included CRDB, NMB, and DSE, accounting for 68.69%, 17.96%, and 10.13% of the total market turnover, respectively.

In the same week, a four domestic counters experienced price gains with NICO leading the way, with its stock price rising by 3.85%, bringing its share price to 540/-

CRDB registered a 2.27% uptick bringing its price to 450/- while thw TOL also registered a gain of 1.54%, bringing its stock price to 660/-.

The NMB stock gained 0.85% within the week reaching 4720/-.

On the downside, two domestic counters dropped in price with SWISS registering the largest fall dropping by 6.94% to close of the week at 1340/- per share while MCB lost 3.13% of its value closing off the week at 310/- per share.

According to the Zan Securities Chief Executive Officer Raphael Masumbuko, foreign investors continue to remain bearish, resulting in a net outflow of 1.08bn/- within the week.

“This shift in sentiment was primarily driven by concerns related to foreign exchange issues. Looking ahead, upcoming 3rd quarter report releases is expected to have positive effect on some counters, which will propel their prices upwards and are expected to maintain their favourable valuations in the coming weeks, indicating the potential for further upward movement in their prices,” Masumbuko said.