- Published on Monday, 09 July 2012 01:30
- Written by DAILY NEWS Reporter
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DARES SALAAM Stock Exchange’s (DSE) bullish trend came to halt last week following reduced support in the market, dragged by losses in the industrial and allied segments that slid by 0.59 per cent.
However, stockbrokers saidthe market may correct marginally on reduced support and more profit taking as banks are likely to pick up on higher speculation ahead of the first half financial results.The week saw the DSE all share index (DSEI) to loss grounds and settle at 1,437.35, a drop of 0.03 per cent at the close of the week on Friday.
Tanzania Share Index (TSI) closed 0.17 lower at 1,204.92 points. “Activity was also low in almost all counters,” Tanzania Securities’ Chief Executive Officer, Mr Moremi Marwa said.
He added that the volumes of trade also dropped to 760,257 shares compared to 3,060,065 shares transacted in the previous week. Week-on-week turnover declined from 4.12bn/- last week to 319m/- during the week, a drop of 1,191 per cent in just five days.
“Foreigners were dominant and accounted for 52 per cent of the turnover,” Mr Marwa said over the weekend in his firm’s weekly commentary.
Orbit Securities Investment and Research Officer Mr Godfrey Gabriel said the bourse also was affected by the price fluctuations including TBL and CRDB bank especially last month.
“The fluctuations in price at different counters affected the index,” Mr Gabriel said in Orbit’s market overview.
The Orbit Securities’ monthly review of June shows that the market also sank last month compared to previous as shares valued 5.53bn/- were transacted against 12.73bn/-.
Mr Marwa anticipated relatively low activity due to the absence of significant institutional investors after end of second quarter. “Nonetheless,” he said, “Banks may pick up on higher speculation ahead of the first half results.”
He added: “Support on Industrial and Allied segment will be a combination of both dividend expectations and earnings-driven while the banking counters (particularly NMB &CRDB) will be backed by earnings expectations”.
On foreign investors, more support is expected on NMB and CRDB as investors strengthen their positions on the counter. “NMB is expected to post substantial increase in half year earnings backed by strong growth and the first quarter performance,” the CEO said.