AfricaPress-Tanzania: DAR ES SALAAM Stock Exchange (DSE), equities market turnover has 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.
Zan Securities CEO, Raphael Masumbuko said, however, things are heading to better in the weeks ahead.
“We expect the equity market performance to pick up in the weeks ahead,” Mr Masumbuko said in Weekly Market Wrap-Ups yesterday.
Mid-last week, European stocks closed sharply higher closed 2.0 percent as investors took stock of the gradual opening of economies in Europe and beyond.
During the week, European markets, especially, Europe Stock 600, are paying close attention to coronavirus developments and the lifting of restrictions in many countries in the region, while keeping an eye on the data.
Tanzania didn’t impose a blanket-social restriction and reported 480 cases and 16 deaths, but the bourse activities are mostly affected and driven by foreign portfolio investors (FPIs).
Thus the easing of social restriction shed light at the end of tunnel for DSE trading activities ahead.
Tanzania Securities’ Weekly Market Blast anticipated last week 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.
For the week ending last Friday, CRDB dominated the market share by 38.20 per cent of the total turnover followed by NICO and TBL at 19.15 per cent and 16.94 percent respectively.
Domestic market capitalization decreased by 0.05 per cent to 9.17tri/-pushed down by Swissport share price fall.
Swissport, the biggest ground handling firm in the country, lost 9.72 percent of its value to close at 1300/-per share.
However, total market capitalisation increased by 4.00 percent to 15.397tri/-.
The key benchmark indices closed at mixed trend. Tanzania share index (TSI) closed at 3,492.23 points, 0.05 percent down and All Share Index (DSEI), increased by 4.00 percent to close at 1,854.59 points.
