Dar es Salaam stock market rallies on NMB Bank’s block trading activities
What you need to know:
- Turnover improved to Sh1.89 billion at the end of the trading session on Friday last week from Sh1.26 billion registered during the preceding week.
Dar es Salaam. Turnover at the Dar es Salaam Stock Exchange (DSE) rallied by 49 percent last week, propelled by increased activities by local investors who snapped up NMB Bank Plc shares in pre-arranged block trading transactions.
Turnover improved to Sh1.89 billion at the end of the trading session on Friday last week from Sh1.26 billion registered during the preceding week.
NMB emerged as the top market mover after concluding two major transactions, dominated by local investors.
On Thursday, October 5, 2023, at the normal market board, the bank had 104,816 shares traded at Sh4,660 per share in a single deal that raised Sh488.44 million.
On Friday, October 6, 2023, on the block trade pre-arranged market board, the bank traded 150,000 shares and recorded Sh704.51 million in turnover.
CRDB Bank Plc was the second market mover, taking 23.19 percent of last week’s trading after a major transaction on Wednesday, October 4, 2023.
The bank traded 535,225 shares at an average price of Sh440 per share in 123 deals to record a turnover of Sh236.2 million.
The capital markets manager at Vertex International Securities Ltd, Mr Ahmed Nganya said the DSE continues to grapple with a decreased number of foreign buyers and negative spillovers from stocks that have been cross-listed from Kenya’s Nairobi Stock Exchange (NSE).
The outlook however remains bullish.
“We expect the market to outperform next week as we think this week’s momentum is not over yet,” he said.
Issues related to a shortage in forex were sending away foreign investors, said the CEO for Zan Securities Limited, Mr Raphael Masumbuko.
Like Mr Nganya, Mr Masumbuko also said the outlook remains bullish.
“Looking ahead, stocks such as NICOL, TOL and NMB are expected to maintain their favourable valuations in the coming weeks, indicating the potential for further upward movement in their prices,” he said.
Meanwhile, investors’ appetite for government securities remained low last week, with a new 10-Year Treasury Bond which offers a 10.25 percent coupon rate annually, receiving a subscription of only 30.59 percent.
