Africa-Press – Tanzania. Some stockbrokers have predicted that domestic investors are poised to dominate the Dar es Salaam Stock Exchange (DSE) trade towards Christmas festival.
The brokers’ hope was pegged on last week’s trading volume where local investors accounted for 66.86 per cent against 33.14 per cent of foreign participation of total market turnover.
Zan Securities said in its market wrap-up report that the exchange continued to register positive streak for the week to last Friday.
“The equity market continues its positive streak following our sentiments from last week.
“We anticipate this positive trend to roll over into the new month of November as we are approaching the end of the year,” Zan Securities said.
The DSE equity market continued with a positive momentum for the week ending last Friday after surging 10.73 per cent with a turnover of 1.16bn/- from 1.04bn/- the previous week.
However, Vertex International Securities said in its weekly market blast that the bourse good results was based on good financial results for banks and the taking over of Simba Cement by its rival Twiga Cement.
“We expect this week’s momentum to carry on this week due to the strong third quarter results for bank financials and major acquisition announcement of Simba Cement,” Vertex said.
Despite equity turnover to go north the DSE’s market capitalisation went south since the increase in volume came at the expense of prices.
Total market cap decreased by 1.01 per cent to 15.97tri/-and domestic cap dropped 1.32per cent to 9.289tri/-.
“Despite the all-round good news, both major indices still took a beating, closing the week on the red,” Orbit Securities said in its Weekly Market Synopsis.
Orbit said that last week was an eventful at Exchange as banks and the DSE released their quarter three results with the cement sector announcing a major acquisition. Jatu gave a roadmap of the next five years for the company.
“…Most of this has been nothing short of amazing news,” Orbit said.
On the quarterly results, Orbit said both CRDB and NMB recorded an annual profit growth of 39 per cent and 42 per cent respectively, as a result of growing interest incomes from a growing loan book and depository.
“CRDB and NMB have shown that the banking sector is still on a significant growth rampage with even cleaner balance sheets and loan books,” Orbit report said.
Both banks reported lower non-performing loans (NPLs) with NMB reporting 3.8 per cent while CRDB reporting 3.5 per cent.
“The prices of both banks on the exchange, NMB and CRDB, fell during the week by 9.35 per cent and 4 per cent respectively,” Orbit said.
DSE revenue went up by 2.1 per cent on an annual basis while the net profit grew by 8.7 per cent, mostly due to a 28.5 per cent decline in operational expenses.
The parent company of Twiga Cement, Scancem International released a joint announcement with Afrisam Mauritius Investment, which is a majority owner of Tanga Cement, that they have reached an acquisition agreement of the 68.3per cent stake of Afrisam in Tanga Cement.
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