Africa-Press – Tanzania. DAR ES SALAAM Stock Exchange (DSE) has returned to bearish mode as the year enters its third week after equity market turnover plunged by over 50 per cent.
Despite the decline, analysts see a positive trajectory ahead.
The equity market turnover closed the last week session at 1.163bn/- down from 2.563bn/- equivalent to a decrease of 54.61per cent.
Zan Securities said in its weekly market wrap-ups that despite their sentiment to be relatively neutral, for the coming weeks, they believed equity markets are in a positive trajectory.
“…The recovery of the economy and GDP growth will subsequently make companies relatively more profitable, equity prices are likely to increase in quarter two as companies begin to disclose their audited financials for the year ending 2021.
“We expect a grind-it-out market environment in which valuations could remain flat or slightly decline but with profit growth to supersede this and equity outperformance to continue,” Zan report said.
During the week under review, top trading stocks was led by NMB Bank with 51.13 per cent of the total market share, followed by CRDB Bank at 44.24 per cent. CRDB share remained unchanged for the week ending last Friday.
Vertex International Securities said in its weekly market review that prices of cross-listed counters decreased while domestic counters almost remained relatively the same.
“The equities market recorded a mixed performance this week as turnover, volume and prices diverged from each other” Vertex report said:
“We expect the performance to improve next week”.
The price movement was recorded on two domestic traded equities last week where Jatu went up by 4.05 per cent to end the week at 385/- per share and NMB ticker closed at 2,220/- per share after appreciating by 1.83 per cent.
On other hand, Simba Cement lost 9.09per cent to close at 1,000/-.
Total market capitalisation went down by 1.35 per cent to 15.724tri/- and domestic market capitalisation increased by 0.21 per cent to closed at 9.568tri/-.
Stock market analysts pegged their projections behind some economic recovery and IMF’s Covid-19 stimulus package.
For instance, according to the central bank, credit extended to the private sector continued to recover, growing by 7.8 per cent compared to a growth of 5.6 per cent in the preceding month and 5.2 per cent in the corresponding period of 2020.
“The sustained recovery of growth of credit to the private sector is largely attributed to accommodative monetary conditions as well as ongoing initiatives by the government to improve the business environment,” Zan report said.
Orbit Securities said in its weekly market synopsis that the market records, placed foreign investors as the net buyers for the week, purchasing 663.16m/- worth of shares equals to 56.99 per cent of the week’s turnover.
On the contrary, local investors were net sellers, accounting for about 99.98 per cent of the week’s sales turnover of 1.16bn/- and purchasing shares worth 500.46m/- about 43.01 per cent of the week’s turnover.
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