DAR ES SALAAM Stock Exchange (DSE), weekly abysmal performance may be due to the impact of coronavirus on global markets.
The exchange total week turnover plunged 99.03 per cent to 182m/-for a week ending last Friday against previous week’s18.78bn/-.
Zan Securities Chief Executive Officer (CEO), Raphael Masumbuko said in a statement that the abysmal performance may be due to the impact of contagious— COVID 19 that started to devastate global investment and markers.
“Equity market posted abysmal performance this week, largely due to the impact of coronavirus on global markets,” Mr Masumbuko said. The epidemic seemed to affect price of CRDB bank that lost 2.86 percent of its value to close at 170/- per share. Also, the self-listed Dar es Salaam Stok Exchange (DSE), decreased by 1.11 percent to close at 890/-per share.
Dr Hildebrand Shayo, an economist-cum-banker, said Moody’s analysts report released recently indicates that the coronavirus was likely to have the largest negative impact on goods and services sectors within and outside China.
“While it might be too early to say what the extent of the impact on Tanzania or East Africa will be, let’s identify some effects at least in short and long term on our region,” Dr Shayo said.
Globally, China said its GDP will slow down to 4.5 per cent in quarter one against 6.0 per cent of previous quarter due to the contagion disease that has cause havoc in world.
China contributes 16 per cent of the global economy growth. Nevertheless, total market capitalization improved by 0.94 percent to 17,069tri/- while the domestic market capitalisation slipped 0.14 percent to close at 9.228tri/- due declined price of CRDB and DSE.
The two local counter prices slowing down also affected negatively Tanzania share index (TSI) closed at 3,513.95 points, 0.14 percent down.
On other hand All Share Index (DSEI) increased 0.94 percent to close at 2,055.94 points. Sectorial indices, Industrial and Allied Index (IA) closed at 4,778.72 points, same as last week.
Bank, Finance & Investment Index lost 0.75 percent to close at 2,249.74 points because of CRDB. While Commercial Services Index closed at 2,362.38 points, same as last week.
Also, Tanzania Portland Cement Company (Twiga) dominated the market share by 44 percent of the total turnover followed by CRDB at 29 and the selflisted Dar es Salaam Stock Exchange (DSE) at 18 percent.
