Africa-Press – Tanzania. Some of the Dar es Salaam Stock Exchange (DSE) brokers have forecast that the equity market’s bullish performance will continue throughout the first quarter of this year on the back of the recovery of economy from Covid-19 disruptions.
They have it that the economic growth will subsequently trigger profitability among companies as depicted by the banking sector’s fourth quarter financial results.
Zan Securities Chief Executive Officer Raphael Masumbuko said the recovery of the economy will subsequently make companies relatively more profitable.
For example, banks like NMB and CRDB have posted impressive performance.
“We expect to see increased market activities in the stock exchange for the remainder of the first quarter of 2022, the equity prices are likely to increase in Q2 (2022) as companies begin to disclose their unaudited financials for the year ending 2021,” Mr Masumbuko said in the brokerage firm weekly market wrap-ups.
“With our sentiment relatively neutral, we see equity markets in a positive trajectory.” CRDB share price increased by 4.84 per cent to close the last week trading at 325/- per share.
Simba Cement appreciated by 6.38 per cent to end the week at 1,000/- and Jatu up by 5.41 per cent to close at 390/- while NMB also gained 1.79 per cent to close at 2,280/- per share.
On the other hand, DCB Bank share price dropped by 5.26 per cent to180/- per share and DSE also dropped by 1.49 per cent to end the week at 1,320 per share.
NMB, which is leading in profitability, posted a 41 per cent pre-tax profit increase to close the year 2021 at 420bn/-.
CRDB delivered strong fourth quarter earnings result, bolstering impressive profit numbers after profit before tax rose by 63.7 per cent to 387bn/- from 236bn/-.
Vertex International Securities said in its weekly market review that the equities market recorded a good performance last week as CRDB, NMB and DSE posted strong fourth quarter results.
“We expect the momentum to continue next week as results are yet to be fully factored into prices,” Vertex said, “We also expect the participation of domestic investors to continue to increase.”
CRDB was a top market mover, recording 50.06 per cent of total market turnover followed by DSE with 31.06 per cent and TBL with 12.89 per cent.
DSE All Shares Index (DSEI) increased by 1.36 per cent to close at 1,922.69 points, while Tanzania Shares Index (TSI) increased by 0.64 per cent to close at 3,659.82 points. Sectoral, Banks, Finance & Investment (BI) closed at 2,715.66, which was 2.74 per cent up as CRDB and NMB prices increased.
The Industrial & Allied (IA) closed at 4965.37 points, 0.07per cent up as Jatu and Simba prices increased.
Commercial Services (CS) closed at 2,134.28 points, like the week before.
Total market capitalization went up by 1.36 per cent to 16.025tri/- and domestic market capitalization also went up by 0.64 per cent to close at 9.676tri/-.
The DSE equity market continued with a bullish performance last week, recording a turnover of 3.85bn/- which is 51 per cent higher than the preceding week and was largely attributed to multiple prearranged block trade transactions.
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