Trade at DSE drops steeply
Hopes for increased trade at the Dar es Salaam Stock Exchange (DSE) is now pegged on the reporting seasons for listed firms and banks’ interim financial results.
This follows the bearish mood the bourse exhibited in the last few weeks, where during the week ending last Friday turnover dropped by 755 per cent.The Tanzania Securities Chief Executive Officer (CEO), Mr Moremi Marwa, said the market may as well correct marginally on more profit taking as second quarter announcements comes into play.
“Despite the short term weaknesses exhibited by the bourse,” Mr Marwa said, “we anticipate more activity in the coming week as the reporting season for listed companies and banks” interim results set in.”
The CEO said in the brokerage’s weekly market report issued over the weekend that they anticipated presence of foreign investors will continue particularly taking position in the NMB counter, though in small bits due to the general lack of supply.
The report shows that week-on-week turnover dropped to 243m/- from 995m/- equals to a slid of 755 per cent.The activity levels also shrunk on lower local and foreign participation with shares traded plummeting to 186,496 shares or 896 per cent.
“Both indices witnessed a bearish week,” Mr Marwa said. The DSE all share index (DSEI) closed 0.02 per cent lower at 1,441.12 points. The Tanzania Share Index (TSI) ended the week at 1,220.88 points a climb down of – 0.07 per cent, mainly pulled by CRDB that lost ground by 2.04 per cent to close the week at 120/- per share.
Zan Securities CEO Mr Raphael Masumbuko said the trend shows that the bourse trading normally picked up in the second half as investors have less obligation compared to the opening of the year due to end year effects.
“The trading normally picks up in July to the rest of the year, but we are not seeing that at the moment,” Mr Masumbuko told the ‘Daily News’ earlier in the last week.
He added: “We are assuming the situation will normalise in the near future.”Generally, the weekly report shows that banking sector moved 54 per cent of the total volume that exchanged hands during the week and 14 per cent of the market turnover.
Foreign investors’ participation during the week decreased significantly to 16 per cent compared to 79 per cent recorded during the previous week.
Foreigners were dominant in NMB which accounted for 51 per cent and CRDB 12 per cent of total trading on the banks counters. The industrial and allied (IA) segments moved 46 per cent of total market’s activity and 86 per cent of the total turnover.
By ABDUEL ELINAZA, Tanzania Daily News
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