AfricaPress-Tanzania: TRADING of Dar es Salaam Stock Exchange (DSE) is projected to continue slowing down until when coronavirus will be put under control.
The bourse weekly turnover dropped to the lowest in two years last week due to what is termed as the effect of the virus that hit hard the world.
DSE total turnover dropped ten times to 11.92m/-Tuesday from 111.34m/-recorded Monday.
Also shares exchanging hands dropped to 58,720 shares on Tuesday from 178,955 shares on Monday.
Orbit Securities Head of Research and Financial Analytics, Imani Muhingo said they were expecting the bearish mode to stick in the next few weeks or even month until the contagion is stopped.
”We expect to see the same in the next few weeks or months, until there is plausible evidence of the virus’ containment,” Mr Muhingo told ‘Daily News’.
Orbit Securities lead analysts said the impact is much on a sell-off and muted activities from foreign investors, which is contagion to local investors as well.
“As the results, weekly equity turnover on DSE dropped to the lowest point in the last two years,” Mr Muhingo, who is an economist, said.
The virus effect did not only affect DSE but also Kenya’s Nairobi Stock Exchange was halted from trading on Friday as the market dropped more than 5.0 per cent and trigger circuit breaker.
Zan Securities Chief Executive Officer (CEO), Raphael Masumbuko said the bearish mode might continue toward the end of quarter one.
“We do not expect a pick-up in activity until the end of this quarter,” Mr Masumbuko said through Weekly Market Wrap-ups.
He further said “the equity market has posted abysmal performance due to on-going global events [Covid-19]”.
The market turnover plunged to 75.17m/-for a week ending last Friday against previous week 182m/-to affect also the bourse indices—DSE Index and Tanzania Share Index (TSI).
DSE’s total market capitalisation declined by 3.27 per cent to 16.51tri/-while domestic market capitalisation slipped 0.43 per cent to close at 9.18tri/.
