By SEBASTIAN MRINDOKO, 27th December 2011 @ 13:00, Total Comments: 0, Hits: 3546
HIGH yields offered in the money market instruments in comparison to stocks are expected to impact heavily on the level of activity at Dar es Salaam Stock Exchange (DSE) in the coming weeks.
For example, investors in the Treasury bills auctions last week fetched a high rate of return of about 19.5 per cent for 364 days offer. “Low level of activity is expected to persist as money market instruments continue to offer high yields in comparison to most stocks at the market,” said Joel Nkya, an analyst with the Tanzania Securities Limited (TSL).
However, he said the bourse recorded an improvement in activity last week in comparison to the previous period. The bourse recorded a turnover of around 472.28m/- from trading of 229,994 shares comparing to 92.34m/- recorded in the preceding period from sales of 79,704 shares, a 411.46 per cent increase in turnover and 188.56 per cent increase in volume of shares traded.
Both DSE all share index (DSEI) and Tanzania share index (TSI) fell further as CRDB shares recorded a price decline of 2.5/- to 172.5/- from 175/-. The DSEI dropped 19 basis points to 1,303.23 while TSI dropped 85 basis points to 1,140.26.
The CRDB was the only counter in the sector to record activity during the week recording a turnover amounting to 1.18 per cent of the total market earnings during the week. The counter recorded a price decline of 1.43 per cent from 175/- to 172.5/-.
The industrial sector contributed 97.72 per cent of the total market turnover. Twiga was the market top trader with a turnover of 238.48m/-, equivalent to 50.50 per cent of the market turnover.
The TCC counter recorded a turnover amounting to 39.26 per cent of the market turnover while TBL and Simba contributed 1.43 per cent and 6.53 per cent of the market turnover respectively. Prices remained flat at all counters in the sector.
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