IN the coming week, we forecast that Dar bourse will remain active, as foreign investors participation continues to increase.
Different counters dormant counter has been trading on pre-arranged board. This justifies that the market is peaking, and it is expected to perform well in the coming weeks. The market will remain active during the week and mainly from the top local active counters.
CRDB is likely to be the most active counter, and this has been due to its liquidity in the market, but despite the strong fundamentals we do not see increase in its share price in the coming week. Other top counters expected to transact during the week include TBL, TPCC, NICOL, JATU, SWISS and DSE.
We have witnessed share price movement in the local counters which amplifies that there is demand in the market that will drive market activities during the week. In midweek, we expect a Treasury bill auction by the central bank. There could be a slight increase in the WAY especially for the 364 days - T bill than other tenors.
In the interbank cash market, despite the decrease in the Weighted Average Rate (WAR) during the previous week, we still anticipate that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
During the week, Total Market Capitalisation slightly gained by 0.95 per cent to close the market at TZS 15.52 trillion from TZS 15.38 trillion in the previous week mainly due to increase in share prices of cross listed firms at the bourse. EABL share price increased by 5.42 per cent to close at TZS 3,500, NMG increased by 1.41 per cent to TZS 360, and JATU increased by 0.85 per cent to TZS 1,680.
On the other hand, DSE share price declined by 3.64 per cent to TZS 1,060, and this affected domestic market capitalisation to slightly decline by 0.01 per cent. TSI lost 0.01 per cent to close at 3,517.67 points, DSEI gained 0.95 per cent to close at 1,868.83 points, Bank, Finance and Investment Index (B&F) lost 0.05 per cent to close at 2,451.89 points.
On the contrary, Industrial & Allied (I&A) and Commercial Services (CS) remained stationary to close the week at 4,815.37 and 2,139.33 points respectively. Total Volume of shares traded declined by 91 per cent to 530,743 by 132 deals from 3,989,409 by 155 deals.
Total turnover for the week rallied southwards after recording a decline by 82.33 per cent to TZS 2.06 Billion from TZS 11.66 Billion in the previous week.
TCC transacted shares worth TZS 2.0 billion which is 97.09 per cent of the total chunk, CRDB counter transacted shares worth TZS 36.21 million which is 1.76 per cent , TPCC transacted shares worth TZS 10.98 million, JATU transacted shares worth TZS 5.86 million, DSE transacted shares worth TZS 3.51 million, NICOL transacted shares worth TZS 2.49 million, TCCL traded shares worth TZS 0.364 million, SWALA transacted share worth TZS 0.187 million, TBL traded shares worth TZS 0.104 million, TOL transacted shares worth TZS 71,500, NMB transacted shares worth TZS 58,240, DCB transacted shares worth TZS 48,000, VODACOM transacted share worth TZS 41,440, SWISS transacted shares worth TZS 22,800 while TTP lagged behind with TZS 3,600.
During the week, the Interbank Cash Market (IBCM) recorded a total transaction value of TZS 7.00 billion being a decrease from last week’s TZS 9.50 billion traded. The WAR decreased to close at 3.64 per cent from 4.00 per cent in the previous week.
The highest and lowest rate was 4.50 per cent and 3.50 per cent from 5.50 per cent and 3.80 per cent in previous week. Debt Market In the debt market, outstanding government bond listed at the bourse stood at TZS 13.26 trillion.
On the secondary market, the government bond segment transacted TZS 15.90 billion whose face value was TZS 15.04 billion from last week’s TZS 52.07 billion and face value of TZS 49.26 billion. For the Corporate bonds, the market transacted bond worth TZS 10.55 million and face value of TZS 11.10 million from the previous week transaction value of TZS 4.75 million and face value of TZS 5.0 million.