THE two major indices faced down during the week while the equity turnover significantly rose as pension funds scale up participation in financial markets.
The Tanzania Share Index (TSI) dropped by a mere 0.04 point to close the week at 3,518.04 points, resulting from a decline of JATU. The price of JATU fell by 2.33 per cent during the week as the counter shows more stability compared to the beginning of the year.
The domestic market capitalisation fell by a slight 0.001 per cent and closed the week at TZS 9,249.74bln ($4bln). The All Share Index (DSEI) was no different, as the cross listed giants were on the red zone. The index lost 24.58 points as the total market capitalisation dropped by 1.31 per cent.
The index’s retreat was mainly a result of declining giants from the cross listed board, on top of JATU from the domestic board. National Media Group (NMG) led the losing streak after falling by 6.58 per cent followed by East African Breweries (EABL) which lost 5.68 per cent off of its price. KCB was another counter that fell, and dropped by 2.27 per cent.
Jubilee Holdings (JHL) was able to go against the pack and rise by 4.42 per cent but due to the magnitude of the falling counters, the net effect was a bear. The DSEI closed the week at 1,851.27 points while the total market capitalisation closed at TZS 15,380.46bln ($6.7bln).
Equity turnover shot up by more than ten thousand per cent on a weekly basis thanks to massive movement on the TCC, NMB and TBL counters. Equity turnover grew from TZS 111.35mln ($0.05mln) the previous week to TZS 11.66bln ($5.05mln) during the week under review.
The volume of shares traded also went up almost 200 times from 207,990 shares during the previous week to 3.99mln shares during the week under review. The number of deals slightly rose from 120 deals to 155 deals. More than 99 per cent of the turnover was realised on three counters, in prearranged block transactions, at prices half the official market closing prices of the respective counters.
TCC was the top mover after accounting for 57.3 per cent of the total equity turnover, followed by NMB which accounted for 29.5 per cent and TBL which accounted for 12.7 per cent of the total turnover. More interestingly, is the increased capacity of the domestic players to absorb the sell-off clout.
More than 87 per cent of the equity sales during the week were bought by domestic players as locals accounted for 87.28 per cent of the total investments. Foreign investors remained net sellers with a net outflow of $2.25mln. Market, Bills and Bond Despite a higher number of trading sessions on the Interbank Cash Market (IBCM), the week reported lesser total value of transactions on a weekly basis.
The total value traded during the week was TZS 9.5bln ($4.11mln) less than the TZS 10bln ($4.33mln) traded during the previous week. Volatility on the interbank rate persisted as the weighted average interbank rate (WAR) at the end of the week gained 35bps to a WAR of 4 per cent, cementing indications of a tightening liquidity in the banking sector.
For the first time in a while all Treasury bills tenors received bids and most were successful, while tenors of 182 days and below saw a significant rise in Treasury yields. The total amount offered by the Bank of Tanzania totalled to TZS 76.7bln ($33.2mln).
The total tender size from the public amounted to TZS 139.03bln ($60.19mln) from 37 bids, marking an oversubscription of 81.3 per cent. The Bank of Tanzania accepted 23 bids worth TZS 93bln ($40.26mln) while taking all the tender size on the 35 days, 91 days and 182 days tenors and only 66 per cent of the tender size on the 364 days tenor.
Yields on the tenors were 3 per cent, 3.3 per cent, 3.72 per cent and 5.98 per cent for the 35 days, 91 days, 182 days and 364 days respectively. Currency Market Only one session was reported to have been active on the Interbank Foreign Exchange Market (IFEM) and as a result the amount traded on the platform significantly fell by 46 per cent to a total of $1.1mln.
The shilling remained resilient during the session, with a mere depreciation of 3 pips. The weighted average exchange rate at the end of the session was TZS 2,309.98/USD.