Africa-Press – Tanzania. THE Bank of Tanzania (BoT) collected the second-highest amount from a Treasury bond auctioning in ten years after a 20 years bond was oversubscribed three times last week.
The government sought to raise 151.68bn/- at a coupon rate of 15.49 per cent but bidders tendered 443.3bn/-. At the end of the day, they took 361bn/-.
The bond, which on average was sold at a premium, saw bidders tendered three times the amount offered thus cutting down coupon and yield rates.
Zan Securities Chief Executive Officer Raphael Masumbuko said the amount collected was the highest in a decade to be taken from a single Treasury bond.
“…The central bank collected 361.93bn/-which is the second-highest amount collected from a single Treasury bond auction in 10 years.
“Treasury bond market continues to be in very high demand for retails and institutional investors,” Mr Masumbuko said in the firm’s weekly market wrap-ups.
Orbit Securities said in its weekly market synopsis that the weighted average price for successful bids of the 20 years Treasury bond slightly fell by 1.05 basis points (bps) during an auction held last Wednesday following a slide of the highest and lowest successful prices.
“The weighted average coupon yield trivially grew by a marginal 0.16bps to 15.4182 per cent,” the Orbit report said.
The highest bid price was Tsh 102.00, the lowest bid price was Tsh 80.00 while the minimum successful price and the weighted average price for successful bids stood at Tsh 99.9387 and Tsh 100.4654 respectively.
Vertex International Securities said in its weekly review that the bond echoed their prediction for oversubscription and yield increase albeit slightly.
“The auction results for 20–year Treasury bond came out as expected as we saw an increase in subscription and a slight increase in yield,” Vertex said.
Meanwhile, Vertex International said the equities market recorded a mixed performance last week as volume and turnover tumbled while market turnover increased.
“We think this is mainly due to subdued offers for some counters as would-be sellers anticipate some significant changes in performance,” Vertex International said.
The weekly turnover and volume dropped by almost 80 per cent to 268.11m/- from 1.3bn/- traded in the previous week.
Total market capitalization increased by 0.29 per cent to close at 15.976tri/-and domestic market capitalization closed at 9.481tri/-, a slight increase of 1.20per cent.
The market capitalization gain came from CRDB Bank and Twiga Cement gained 10.20per cent and 8.84 per cent to close at 270/- and 3,200/- while Jatu lost 7.69per cent to close at 1,200/-.
The CRDB counter was a top market mover recording 43.32per cent of total market turnover followed by Twiga with 14.75per cent and NMB Bank with 9.82 per cent.
