Dar bourse trading falls on absence of foreign investors
What you need to know:
- An analysis by Vertex International Securities Ltd shows that the volume of traded shares dropped by 88.4 percent, reaching 1.8 million from 15.6 million in the preceding week
Dar es Salaam. Stock market trading activities at the Dar es Salaam bourse dropped significantly by 54.48 percent last week, attributed primarily to the absence of foreign investors.
Weekly turnover plummeted from Sh7.35 billion in the previous week to Sh3.3 billion by the close of business on Friday.
An analysis by Vertex International Securities Ltd shows that the volume of traded shares dropped by 88.4 percent, reaching 1.8 million from 15.6 million in the preceding week.
Tanzania Breweries Plc had the highest turnover at Sh1.3 billion, which is 39.9 percent of the total turnover. It was followed by NMB Bank Plc at 33.85 percent of the total turnover.
Last week’s trading was partly characterised by block trading activities, according to the capital markets manager at Vertex International, Mr Ahmed Nganya.
He noted that this was particularly so at the TBL, which registered 13.78 percent of the total weekly traded volume.
“The coming week, therefore, is expected to be dominated by financial counters, specifically TCCIA Investment Company Limited (TICL) and Nicol,” he said.
The Dar es Salaam stock market’s total market capitalization increased by 0.14 percent from Sh14.72 trillion to Sh14.75 trillion.
Domestic market capitalization also increased by 0.18 percent, from Sh11.6 trillion to Sh11.63 trillion.
There were some price movements on some stocks. The self-listed DSE saw a 1.1 percent price rise; Nicol saw a 1.75 percent jump; and NMB saw an increase of Sh40 per share, which was equivalent to a 0.86 percent jump.
In the fixed-income market, there were 100 deals during the week, which collectively registered Sh161 billion.
Four corporate deals—three for NMB and one for CRDB—contributed to Sh60 million.
At the primary market, the Bank of Tanzania (BoT) auctioned Treasury bills on February 14, 2024, that attracted 79 bids, of which 71 were successful.
According to Vertex, the auction registered a turnover of Sh392.8 billion, which was an oversubscription of Sh314 billion. The amount offered was 73.24 billion.
