Business

Foreigners boost DSE turnover

TURNOVERS at the Dar es Salaam Stock Exchange (DSE) last week improved significantly because of an active participation of foreign investors by 93 per cent.

According to the Tanzania Securities Limited (TSL), a total of 3,321,059 shares were transacted, generating 3,950m/-. “Compared with the week before, the bourse recorded significant improvement on both the activity and turnover, although it ended the week at a low mode,” stated the TSL report.

Similarly, the total Market capitalization stood at 12.80trn/-, while domestic market capitalisation was 2.56tri/- as at the end of the week. Both the Dar es Salaam Stock Exchange All Share Index (DSEI) and the Tanzania Share Index (TSI) edged upward to settle at 1,441.20, equivalent to 0.01 per cent and 1,221.22, a 0.03 high points, respectively.

The market continued to exhibit positive short term signals as the reporting season for the listed companies sets in. For example, the NMB may continue to record more support ahead of half year results to be announced over the next few days. Likewise, activity on CRDB will also be underpinned by the speculation ahead of the results.

During the week, Twiga, Swissport, TCC and Simba will be buoyed by expectations of interim dividends. The DCB rights issue announced this week on one to one shares held at 380/- per shares, a discount of 40 per cent will remain attractive in view of
their current discount to the market. Bargain hunters may also be drawn by mentioned companies’ interim dividends.

TBL and NMB will remain among foreigners’ favourites. The listed banks closed flat during the week on the backdrop of a 68 per cent of the total market activity and 32 per cent of the turnover changed hands during the week. Out of the 2,247,609, the counter moved 65 per cent of the volume.

The NMB contributed 13 per cent of the banking segment’s volume while CRDB was at four per cent. The banking segment turnover during the week was 1.27bn/-. The sector is expected to remain vibrant through the first half reporting season. The three counters, NMB, CRDB and DCB closed the week at 940/-, 117.50/- and 640/- respectively.

CRDB lost some grounds to close 250/-, a 2.2 per cent compared to previous week. Profit and dividend expectations saw TBL continue to be the most active counters among the Industrial and Allied sector indices month to date. TBL gained further traction from foreign investors during the week.