DSE equities fall Sh323 billion on headwinds

Dar es Salaam. The value of equities listed on the Dar es Salaam Stock Exchange (DSE) dropped by Sh323 billion in the last 20 days as global trends affecting the performance of the local markets.

The bourse’s total market capitalisation reached Sh15.55 trillion on Friday, a decrease from Sh15.87 trillion that was recorded in the close of trading on September 2, 2022, according to the DSE market reports.

The downtrend is attributed to the fall of stock prices that is said to be influenced by the global movements where the equities have been struggling as investors anticipate that rising interest rates to tame inflation might trigger a possible recession.

Capital markets manager at brokerage form Vertex, Mr Ahmed Nganya, said that other factors that have been negatively impacting the equities globally include the political tensions in Europe where recently the Russian President Vladimir Putin announced the partial mobilization of troops for the war with Ukraine.

“Domestic counters were victims of other events such as the fees on bank and mobile money transactions, which the government announced to scrap starting next month,” he said.

Last week, in terms of price movements, the market continued to trade in loss as there were again no gainers as counters closed in red.

Top losing counters included TCCIA Investment PLC (TICL) which lost by 9.62 percent to close at Sh235, followed by Mwalimu Commercial Bank (MCB) which lost by 1.54 percent to close at Sh320 and NMB which lost by 1.41 percent to close at Sh2,800.

On the other hand, the DSE turnover for the last week decreased by 21.62 percent to Sh890.43 million, from Sh1.13 billion of the preceding week.

The turnover is also near 90 percent down from the Sh8.2 billion that was recorded in the first week of the month, according to the data by the brokerage firm Vertex International Securities Limited.

Other performance indicators shown that the All Shares Index (DSEI), which tracks the performance of all the listed firms, decreased by 0.38 percent to close at 1,866.15 points while the Tanzania Shares Index (TSI) decreased by 0.22 percent to close at 3,878.65 points.

Banks, Finance and Investment (BI) segment of the bourse slowed down by 0.85 percent to close at 3,252.14 points while both Industrial and Allied (IA) and Commercial Services (CS) closed the same as the previous week at 5,075.41 points and 2,169.63 points respectively.