DAR ES SALAAM Stock Exchange (DSE) bearish mode continue for the second week as the market plunged further in what seems as financial implications caused by coronavirus pandemic.
The market turnover plunged to 75.17m/-last Friday against previous week 182m/-to affect also the bourse indices—DSE Index and Tanzania Share Index (TSI).
Zan Securities Chief Executive Officer (CEO), Raphael Masumbuko said bearish mode might continue toward the end of quarter one.
“We do not expect a pick-up in activity until the end of this quarter,” Mr Masumbuko said through Weekly Market Wrap-ups.
He further said “the equity market has posted abysmal performance due to ongoing global events [Covid-19]”.
DSE’s total market capitalisation declined by 3.27 per cent to 16.51tri/- while domestic market capitalisation slipped 0.43 per cent to close at 9.18tri/.
Orbit Securities said in its weekly synopsis report that for a second week in a row, foreign investors’ participation into DSE was minimal.
“[This was] due to uncertainties in the global financial markets thus investors parking funds in safe assets,” Orbit report showed.
During the week, foreign investors participated on the buying side, with a net inflow of 722 US dollars.
Locals dominated the market with a participation rate of 97.8 percent and 100 per cent on the buying and sell side respectively.
“The significant drop of foreign portfolio investment into Dar es Salaam is on the bigger part caused by the global widespread of the coronavirus which keeps on causing mayhem in Europe and America,” the report showed.
During the week under review, Orbit Securities said, the New York Stock Exchange hit the circuit breaker twice, Monday and Thursday, after the market decelerated more than 7.0 percent in a matter of minutes.
“Roughly 17 trillion US dollars has been wiped out of stock exchanges worldwide in just 52 days,” Orbit report said.
MSCI’s All-Country World Index, the broadest measure of global stock markets, plunged by 12.4 per cent last week, and its heaviest losses since Lehman Brothers failed in 2008.
