Dar es Salaam Stock Exchange (DSE) equities market turnover has bounced back with impressive performances this week thanks to massive movement from three pre-arranged block trading.
The market turnover leaped ten times to 11.66bn/- for the week ending last Friday from 111.35m/- recorded on previous ones.
Zan Securities Chief Executive Officer, Raphael Masumbuko, said the equity market showed a lot of momentum from both local and foreign participation last week.
“We anticipate this trend to continue [in] this week,” Mr Masumbuko said in his firm’s weekly Market Wrap-Ups.
Tanzania Cigarette (TCC) dominated the weekly market share - accounting for 63.7 per cent of the total turnover followed by the NMB Bank, with 29.49 per cent and TBL by 12.72, according to Zan Securities.
The volume of shares traded also went up almost 200 times from 207,990 shares during the previous week to 3.99million shares during the week under review. Orbit Securities said in its Weekly Market Synopsis that over 99 per cent of the turnover was realized on three counters, in prearranged block transactions.
“The shares were at prices half the official market closing prices of the respective counters,” Orbit report showed.
Orbit, one leading stock brokerage, said 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.
“More interestingly, is the increased capacity of the domestic players to absorb the sell-off clout,” Orbit said.
Foreign investors remained net sellers with a net outflow of 2.25million US dollars. On the other hand, 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 2.33per cent during the week as the counter shows more stability compared to the beginning of the year,” Orbit said.
National Media Group (NMG) led the losing streak after falling by 6.58 per cent followed by EABL which lost 5.68per 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.
Thus pushing down the DSEI that closed the week at 1,851.27 points while the total market capitalization closed at 15.38tri/- while domestic market capitalization remained the same as last week at 9.249tri/-