AfricaPress-Tanzania: THE Dar es Salaam Stock Exchange (DSE), equity market turnover plunged yet to another lowest level which was against some analysts’ expectation for a week ending last Friday.
The market turnover dropped to 16.37m/-from previous week’s 26.02m/-as stock market analysts expectation that trend would make a reserve and climbed north. However, some predicted correctly.
Zan Securities Chief Executive Officer (CEO), Raphael Masumbuko said the equity market performance was against their last week expectation.
“However”, Mr Masumbuko said “we think our opinion will be validated as we approach the end of this [second] quarter.”
The low turnover also affect the total market capitalization to decrease by 2.91 per cent to 14.94tri/-and domestic market cap dropped slightly to 9.7bn/-.
Zan Securities’ Weekly Market Wrap-ups, showed that Tanzania share index (TSI) closed at 3,492.10 points, a slight decrease compared to the week before.
“No Price movement was recorded on any [domestic] counter”, Mr Masumbuko said.
However, Tanzania Securities predicted correctly saying the equities market turnover set to deep down as investors are hedging those funds on government treasuries to quash Covid-19 contagious effect on stocks.
Tanzania Securities’ Weekly Market Blast anticipated that with the uncertainty of Covid-19 foreign investor’s participation in the market is farfetched to happen.
“…We anticipate local investors to dominate the market and the performance to be maintained by the active local counters in terms of volume, turnover, and price movements…” Tanzania Securities said in its report on a week ending Friday May 8.
The Zan Securities report for the week ending last Friday said despite no price movement but there were trading in three counters out of 21 counters, namely TWIGA Cement and CRDB Bank.
Twiga dominated the market share by 49.39 per cent of the total turnover followed by CRDB and Swissport at 31.25 per cent and 11.68 per cent respectively.
However, DSE All Share Index (DSEI) increased by 2.91 per cent to close at 1,800.64 points pulled up by cross-listing stocks. On sector Indices closed on a mixed trend as one stagnated while two decreased.
The Industrial and Allied Index (IA) closed at 4,778.72 points, same as last week.
While, Bank, Finance and Investment Index dropped 0.02 percent to close at 2,183.14 points and Commercial Services Index closed at 2,356.49 points, 0.05 percent down.
For the week ending Friday’s 8th this month, the market turnover dropped nine times to register one of the lowest trading weeks.
The trend seems to signify recently increasing investors’ appetite on debt market as means of hedging their investment against stocks uncertainty driven by coronavirus pandemic.
The bourse turnover dropped to 26.02m/-for a week ending last Friday against 238.56m/-in a previous week.
