Africa-Press – Tanzania. The Dar es Salaam Stock Exchange (DSE) has posted mixed performance in the third quarter as the equity market headed south and the debt market north in terms of liquidity.
According to the CEO’s Quarterly Note, indices and equity market capitalization–both domestic and total–recorded a decline compared in quarter two while for debt– listed bond–market recorded an increase.
DSE Chief Executive Officer Mr Moremi Marwa said through the Note that total market capitalization decreased from 16.514tri/-in Q2 to 16.241tri/- in Q3.
“This follows the decreases in prices for some of the domestic as well as cross-listed companies,” Mr Marwa said.
The total domestic market capitalization increased from 9.62tri/- at end of Q2 to 9.48tri/- at end of Q3.
“The domestic market capitalization for the 22-domestic listed companies decreased by 1.4 per cent or 139.71bn/- during the quarter,” he said.
This decrease was a result of the decrease in prices for some of the domestic listed companies namely CRDB Bank that fell by 19 per cent and DCB Bank down by 8 per cent.
Others were DSE down by 8 per cent, NMB down by 4 per cent, TOL down by 4 per cent and SWISSPORT down by 2 per cent.
“The significant decrease in prices in the mentioned counters reduced more to the total domestic market capitalization proportionately to the increase in prices on some counters,” Mr Marwa said.
Those counters were NICOL, Simba Cement, Twiga Cement and JATU – hence the notable decrease in domestic market capitalization during the quarter, Mr Marwa said.
However, the equity trading turnover increased by 17 per cent from 29.5bn/- to 34.5bn/-.
The companies that led in liquidity creation were TBL, NMB Bank Vodacom, CRDB, Twiga, Jatu and DSE.
Other counters with minimal trades during the quarter were NICOL, TOL, Simba, DCB, and SWISSPORT.
On debt market, the total outstanding listed Treasury) bonds increased by 3.4 per cent from 13.796tri/- at three months to June to 14.268tri/- at the end of September.
While corporate bonds listed at the exchange increased slightly from 120.1bn/- to 128.89bn/-.
Also, liquidity-wise, trading activities in the secondary market fixed income/bonds increased during the quarter from 684.92bn/- to 688.46bn/-.
The bond transacted face value was 647.23bn/- at Q2 compared to 645.93bn/- traded during the quarter under review.
Transactions in the corporate bonds market also increased to 565.17m/- from 385.39m/- that recorded in Q2.
