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DSE turnover up 56pc boosted by pre-set transactions

THE total equity turnover for the week ending on 30th April 2021 grew by 56 per cent on a weekly basis thanks to a prearranged block transaction on the TCC counter.

The total turnover for the week amounted to TZS 3.16bln ($1.37mln) from a volume of shares totalling to 1.48mln shares traded in 160 deals.

Two major transactions on the TCC and NMB counters were at most part the culprits for the turnover growth, collectively accounting for 89 per cent of the total equity turnover during the week.

TCC moved 280,000 shares at a price of 7,000/- on Friday 30th April, to make the counter the top mover for the week, accounting 62.07 per cent of the total turnover.

NMB, another major mover for the week, moved 500,000 shares at a price of 1,700/-, accounting for 26.9 per cent of the total turnover. Domestic investors were dominant during the week while foreign investors remained net buyers.

Local investors accounted for 73 per cent of the total investment and 98.36 per cent of the total divestments during the week.

Foreign investors accounted for the balance, with a net inflow of $0.35mln. Movement of prices on domestic counters was seen on other two counters namely CRDB and JATU, similar to the previous week.

RDB ascended by 6.98 per cent to close the week at a price of 230/-. The bank’s appreciation is based on the expectations of a handsome dividend despite the uncertainties of regulatory approvals from the Bank of Tanzania.

JATU on the other hand dropped by 6.41 per cent as the counter maintains trivial volatility compared to the beginning of the year. The movement on the two counters led the Tanzania Share Index (TSI) to gain 9.6 points to close the week at 3,512.78 points.

The bull on the CRDB counter was fierce enough to fight off the bear on the JATU counter hence the net TSI appreciation at the end of the week. Correspondingly, the domestic market capitalization grew by 0.42 per cent to a total of TZS 9,249bln ($4bln).

The All Share Index (DSEI) went on a different path from the TSI after losing 4.76 points to close the week at 1,878.46 points. Apart from East African Breweries (EABL), all other counters that are usually active were on the downside.

EABL marginally appreciated by 0.56 per cent while the other giant, KCB Bank, dropped by 2.27 per cent. National Media Group (NMG) and Jubilee Holdings (JHL) both dropped by 9.09 per cent and 3.25 per cent.

Market, Bills and Bond

The interbank transactional value on the Interbank Cash Market (IBCM) more than doubled despite fewer trading sessions during the week.

The total value at the end of the week amounted to TZS 24bln ($10.4mln) which is 133 per cent higher than the previous week.

Showing signs of improved liquidity, the interbank rate dropped to a two months low, closing the week at a weighted average rate of 3.5 per cent.

The 35 days and 91 days tenors were again cancelled similar to most Treasury bills auctions during 2021, especially until mid-March.

The total offer size from the Bank of Tanzania amounted to TZS 76.7bln ($33.2mln) while the total tender size was TZS 133.22bln ($57.67mln) from a total of 68 bids. The total oversubscription rate was 73.68 per cent.

The Bank of Tanzania accepted a total of 53 bids worth TZS 125.32bln ($54.25mln) which is 94 per cent of the tender size. Both of the two tenors that were active during the auction saw a 1bps rise in the yield to maturity.

The yield for the 182 days tenor was 3.91 per cent while that of the 364 days was 6.02 per cent.

Currency Market

The value of transactions on the Interbank Foreign Exchange Market (IFEM) dropped by 21 per cent on a weekly basis as trading days during the week under review were fewer than the previous week due to the Union Day.

The total value of transactions at the end of the week was $3.6mln compared to $4.57mln during the previous week.

The shilling remained resilient against the greenback, with a slight appreciation of a pip while closing the week at a weighted average exchange rate of TZS 2,309.96/USD.

I know I have a very forgetful ...

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Author: WEEKLY MARKETS SYNOPSIS

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