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DSE closes the week lower after DSEI decline by 0.13 percent

Weekly outlook

DURING the week, the market closed lower after downward movement in DSEI mainly due to blended share price movement of Kenyan listed companies and local listed companies. The total market size increased by 19.45bn/-while the domestic market slightly decreased by 0.34bn/-during the week.

In the coming week, we anticipate improvement in the stock market performance particularly improvement in share prices and turnover as market recoup amidst coronavirus pandemic as well as foreigners started to swamp in the market.

The market performance to be maintained by the active local counters in terms of volume, turnover, and price movements in the bourse. In the industrial and allied segment, TPCC and TBL is anticipated to remain active during the week while in the banking, Finance, and Investment segment DSE and CRDB will maintain their activeness in the market with the lower volatility in their share prices.

During the week CRDB shareholders approved Dividend of 17/-per share and DCB shareholders approved Dividend per share of 5.4/-for the year ended December 2019. During the AGM which was conducted virtually unveiled plan to open a subsidiary in the Democratic republic of Congo.

In midweek we expect 10 years Treasury bond auction to be held by the central bank. we may see oversubscription of the treasury bond due to the higher appetite for government securities. Furthermore, the Government securities yield curve may continue to remain normal, and weighted average yields are expected to decline, this indicates low funding cost by the government.

In the interbank money market, notwithstanding the decrease in the Weighted average rate (WAR), during the previous week, we still anticipate that WAR to be within a range of 4.50 percent to 5.00 percent with slight volatility in the high and low rate.

The Bourse

Total Market Capitalization increased by 0.31 per cent to 15.20tri/-from 15.22tri/-in the previous week, while Domestic Market Capitalisation remained flat during the week to close the week at 9.17tri/-.

DSEI moved downward by 0.13 percent to close the market at 1,831.96 points from 1,834.31 points in the previous week. Furthermore, TZS index moved downward slightly by 0.004 percent to close at 3,486.86 points from 3,486.99 points, B&F Index moved downward by 0.02 percent to close the week at 2,165.62 points from 2,166.06 points in the previous week, while Industrial & Allied index and Commercial services index remained flat to close at 4,778.72 points, and 2,356.49 points respectively. Companies whose share price decreased are as follows; EABL decreased by 1.06 percent to 3,720/-from 3,760/-, JHL decreased by 0.93 per cent to 5,350/- from 5,400/-, KA decreased by 8.33 per cent to 55/-from 60/-, and NICOL which decreased by 2.94 percent to 165/-from 170/-. While KCB share price increased by 1.94 percent to 790/-from 775/-.

During the week, the market recorded a decrease in volume to 401,621 shares with 73 deals from 2,084,625 shares with 106 deals in the previous week. Total turnover decreased by 85.93 percent to 471.94m/-from 3.36bn/-in the previous week.

During the week, TBL dominated the market after trading shares worth 220.81m/-being 46.79  percent of the total weekly turnover, followed by VODA which traded shares worth 217.68m/-. TPCC traded shares worth 19.29m/-, CRDB traded share worth 9.76m/-, NICOL traded shares worth 3.43m/-, SWIS traded share worth 0.91m/-, while DSE falls last after trading shares worth 0.055m/-.

Debt Market

As of the close of the week the outstanding bond listed on exchange was 11.29tri/-, On the secondary market, the government bond segment transacted 121.75bn/-with the face value of 120.84bn/-from last week's transaction value and the face value of 46.34bn/-and 45.43bn/-, respectively.  The corporate bond segment was dry during the week, compared to last week transaction of 1.35m/-with the face value of 1.5m/-.

Tanzania securities Analyst

ombeni@tanzaniasecurities.co.tz

mariam@tanzaniasecurities.co.tz

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Author: Stock Market Weekly Performance

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