DSE’s turnover jumps 440pc on strength of three counters

Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) advanced by 437 per cent last week, backed by massive transactions on TBL, NMB and CRDB counters, market data show.

Meanwhile, the DSE Plc —which is still a new entrant on the stock market — maintained its winning tempo to close the week at a share price of Sh1,150 as investors remain buoyant over the future market proceeds.

The week-on-week turnover rose to Sh21.665 billion during the week ending July 29 as compared to Sh4.029 billion that was attained during the week ending July 22.

TBL accounted for Sh15.55 billion (about 71 per cent of the week’s turnover) as investors exude confidence that the economy - which is projected to grow at 7.2 per cent this year - will create an increased demand for beer and thus they will yield lucratively in the near future.

“Basically, investors are very optimistic that a growing economy will result into increased beer consumption,” said the Zan Securities chief executive officer, Mr Raphael Masumbuko.

The maker of Kilimanjaro Premium Lager hit the ground running last week when it transacted some 921,020 shares at a weighted average price of Sh13,750/share in a pre-arranged deal on July 25. On the same day, the Dar es Salaam-headquartered beer maker transacted some 68,880 shares on a similar price. On Tuesday, TBL transacted 115,000 shares at Sh13,750/share, signaling that in just two days, the company recorded transactions worth Sh15.19 billion.

With commercial banks announcing their financial statements for the first half of the current calendar year, it was not amazing to see investors rushing to inject their money into CRDB and NMB shares.

The latter transacted shares worth Sh3.383 billion during the week under review to contribute roughly 156 per cent to the week-on-week turnover while the former transacted 763,346 shares and closed the week at a price of Sh295 per share. 

Last week, NMB registered a net profit of Sh84.316 billion during the first half of the current calendar year, up from Sh77.024 billion during a similar period last year. Similarly, CRDB reported a net profit of Sh65.978 billion during the first half of the current calendar year, up from Sh65.121 billion during a similar period last year.

The DSE Plc – which officially went public earlier last month after successfully undergoing a demutualization process – traded a total of 345,922 shares to net Sh387.27 million during the five days of last week’s trading activities.

Though the contribution to total turnover may have been minimal, investors who sold their DSE Plc shares might have put on broad smiles as the price rose.

The share of the DSE Plc was traded for Sh500 during the initial public offering (IPO) - which was conducted from Monday 16th May, 2016 to 3rd June, 2016. But last week, the same went for between Sh1,080 and Sh1,150.

This means that an investor - who bought DSE Plc shares during the IPO and sold them last week on the stock market - earned between 116 per cent and 130 per cent as investors’ confidence on stock market operations remain high.

 “When the government embarked on privatisation of its companies about 20 years ago, the idea was that the privatised firms would go public again by listing their shares on the stock market. Unfortunately, it is less than 10 per cent of the companies that have actually done so, signalling that the market is still a virgin one and many more will be coming soon,” Mr Masumbuko, told The Citizen recently.

Looking forward, analysts are optimistic that the market will see more activities coming 

 We anticipate more activities in the banking segment in the coming week with the continued presence of some speculative trading on these counters as Q2,2016 results occured this might stimulate further support to the bourse in the short term.