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Market turnover surge, while indices declined Weekly outlook

Weekly outlook

DURING the week, the market closed lower after downward movement in DSEI, TSI, and industrial & Allied index mainly due to blended share price movement of Kenyan listed companies and local listed companies.

The total market size has decreased by TZS 203.13 billion while the domestic market slightly decreased by TZS 65.70 billion 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 foreigner’s comeback 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.

In midweek we expect Treasury bill auction to be held by the central bank. We may see oversubscription of the treasury bill 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 per cent to 5.00 per cent with slight volatility in the high and low rate.

The Bourse

Total Market Capitalization decreased by 1.34 per cent to TZS 15.00 trillion from TZS 15.20 trillion in the previous week, while Domestic Market Capitalization declined by 0.72 per cent to close the week at TZS 9.09 trillion from TZS 9.16 trillion previous week.

DSEI moved downward by 1.34 per cent to close the market at 1,807.50 points from 1,831.96 points in the previous week.

Furthermore, TSI index moved downward slightly by 0.72 per cent to close at 3,461.84 points from 3,486.86 points, B&F Index moved downward by 1.53 per cent to close the week at 2,132.39 points from 2,165.62 points in the previous week, Industrial & Allied index declined by 0.73 per cent to close the week at 4,743.61 points from 4,778.72 points while Commercial services index remained flat to close at 4,778.72 points.

Companies whose share price decreased are as follows; EABL decreased by 5.91 per cent to TZS 3,500 from TZS 3,720, JHL decreased by 3.74 per cent to TZS 5,150 from TZS 5,350, KCB decreased by 3.80 per cent to TZS 760 from TZS 790, NMG decreased by 3.03 per cent to TZS 320 from TZS 330, CRDB decreased by 6.90 per cent to TZS 135 from TZS 145, and TPCC which decreased by 10.00 per cent to TZS 1,980 from TZS 2,200. On another note KA share price increased by 45.45 per cent to TZS 80 from TZS 55.

During the week, the market recorded an increase in volume to 7,117,544 shares with 91 deals from 401,621 shares with 73 deals in the previous week. Total turnover increased by 10 folds to TZS 5.06 billion from TZS 471.62 million in the previous week.

During the week, TBL dominated the market after trading shares worth TZS 2.5 billion being 49.39 per cent of the total weekly turnover, followed by DSE which traded shares worth TZS 1.82 billion.

CRDB traded shares worth TZS 610.72 million, TPCC traded share worth TZS 125.29 million, SWIS traded shares worth TZS 1.24 million, NICOL traded share worth TZS 0.72 million, while NMB falls last after trading shares worth TZS 0.56 million.

Debt Market

As of the close of the week the outstanding Government bond listed on exchange was TZS 11.33 trillion, On the secondary market, the government bond segment transacted TZS 77.84 billion with the face value of TZS 76.45 billion from last week’s transaction value and the face value of TZS 121.75 billion and 120.84 billion respectively.

The corporate bond segment transacted TZS 1.01 million and face value of TZS 1.0 million during the week.

TODAY’S  article   is  a  continuation  ...

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Author: Weekly Performance

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