Block trading ups DSE performance
A man stands by the bill board of the Dar es Salaam Stock Exchange (DSE) in Dar es Salaam at a past event. PHOTO | FILE
What you need to know:
- The market registered a weekly turnover of Sh2.97 billion, an increase of 234 percent compared to Sh890.43 million recorded the previous week, according an analysis by the brokerage firm Zan Securities
Dar es Salaam. Performance of the equity market improved at the Dar es Salaam Stock Exchange (DSE) last week as block trading deals made a comeback to the banking sector.
The market registered a weekly turnover of Sh2.97 billion, an increase of 234 percent compared to Sh890.43 million that was recorded the previous week, according an analysis by the brokerage firm Zan Securities Limited.
The report showed that CRDB Bank Plc dominated the trading activities by 71.65 percent after two huge pre-arranged transactions.
The bank traded a total of five million shares at Sh380 each and garnered a total turnover of Sh2.12 billion.
NMB Bank Plc was the second major trader after transacting 223,056 shares traded at Sh2, 800 per share and recorded Sh751. 6 million in turnover.
Zan Securities chief executive Raphael Masumbuko said at the close of the third quarter the market had sustained a plateau growth.
“Stocks will weather the prevailing uncertainties in the market. So far, this year earnings expectations have trended upwards but current economic headwinds have introduced a significant amount of forecast risk to our estimates,” he said.
According to the firm’s analysis last week, price movements were recorded in four domestic traded equities which closed in red.
The firms were the self –listed DSE whose stocks depreciated by nine percent to close at Sh1,820 per share and Tanga Cement Company Limited (TCCL) lost 7.89 percent of its value closing the week at Sh1, 400 per share.
Tanzania Portland Cement Company (TPCC) also depreciated by 2.06 percent closing at Sh3,800 per share, and lastly CRDB which lost 1.28 percent of its value closing the week at Sh385 per share.
On the fixed income market on Wednesday September 28, 2022, the Central Bank was in the market offering Sh136.23 billion to investors for a new 20-Year Treasury bond offering a 12.1 percent coupon rate annually.
The offer was successful as investors responded with a 20 percent oversubscription, as the auction received bids totaling Sh164.2 billion and accepted Sh136.9 billion out of the Sh136.2 billion sought.
According to the Bank of Tanzania (BoT) the weighted average yield to maturity has increased by 7.58 basis points in comparison to the previous auction held in late July this year from 12.03 percent to 12.1 percent.
