Dar bourse records strong growth in November

Dar bourse records strong growth in November

During the week, the bourse wound up the month of November to begin the last month for the year.

The month of November was one of the strong performers for the 2nd half of the year, in terms of the amount of activities recorded on the bourse. For the month the bourse facilitated exchange of 13.61million shares worth TZS 6,678.09 Mln, which is more than double the TZS 3,078.98 Mln turnover generated on the month of October.

While the trend for locals taking over on market activities on the bourse keeps prevailing, it was no different for November. On the buy side, locals accounted for approximately 65% of buy side activities, purchasing shares worth TZS 4,343Mln and foreigners accounting for 34.97% purchased shares worth TZS 2,335.09Mln.

On the sell side Foreigners were net sellers, selling shares worth TZS 3,608.198 Mln about 54% of sell side activities while locals accounted for 46% of sell side activities.

Majority of these sell-offs happened on the pre-arranged board in bulky deals. The stocks for the two largest Banks; NMB & CRDB spearheaded market activities for the month.

NMB which had been in a limbo for several years, had broken its resistance towards the end of Q3, found new price and began trading freely.

Collectively, the stocks accounted for 81.79% of the total market turnover for the month. CRDB which was the top mover, traded a total of 11.51Mln shares worth TZS 2,870.31Mln about 43% of the total turnover and about 84.57% of all the shares traded for the month.

Nineteen (19) out of twentytwo (22) local counters were active during November which is a decent amount of activity compared to other months, but only a few recorded price changes.

The Top gainer was TCCL (SIMBA) which moved from 640/share at start of the month to TZS 700/share at the end of the month, about 55.56% gain. The counter’s price has been soaring mainly due to the possible Acquisition by a German company.

On the other hand, JATU was the top loser, dropping by 26.98% from TZS 630/ share to TZS 450/share at the close of the month. JATU had recently been faced by uncertainties by some of its members, something to do with payments, these uncertainties have unfortunately been also reflecting on its market performance.

Other counters that changed prices includes NICOL, which closed up by 8% and NMB up by 3.09%. Other losers include DCB, which declined by 5%, TPCC also by 5%.

The cross-listed counters showed a bearish trend for the month, where majority of the counters recorded price drops at close of the month. The top loser was NMG which had declined by 13.95% from TZS 490/ share to TZS 370/ share.

Similarly, EABL, JHL and KCB also dropped 9.88%, 6.71% and 3.3% respectively. NMG share price has been volatile following the struggle in the media industry with newspaper prints, as people are switching to digital reads.

It became intense specially during COVID lock-downs where demand for news papers declined, as people stayed home and switched to digital reading, the company has in place a working strategy to meet the trend of the readers.

At the month’s end the market succumbed to the bearish trend recorded by heavy-weighted counters. The total capitalization of the market lost some TZS 399.95Bln equivalent to a 2.5% drop compared to the TZS 15,790.53 ($6.87Bln) capitalization at the end of October.

The market closed with a capitalization of TZS 15,390.58 ($6.71Bln). On the domestic side, the capitalization was up by a mere 0.1%, gaining about TZS 5.57Bln to close with a capitalization of TZS 9,295.49 ($4.05Bln).

The corresponding Indices for the market recorded the same trend, where the All Share Index (DSEI) closed the month of November with 1,846.47 points from 1,894.44 points for October.

The Tanzania Share Index (TSI) closed with 3,515.75 points from 3,513.63 points of October. Money Market, Bonds and Bills For November.

The Bank of Tanzania for November raised a total of TZS 450Bln from the general public through a total of four (4) auctions, two (2) for Treasury Bills and Two (2) for Treasury Bonds.

The Treasury bills sought to raise a total of TZS 156.8Bln, but bidders were unable to meet the offer, and tendered a total of TZS 112.37Bln, an undersubscription of over 28%. Historically the Treasury bills are usually less preferred by investors, apart from institutional investors that have a regulatory requirement or necessary obligations, therefore this record brings no surprise. The 364-day bill’s Weighted average yield stands at 4.39%.

On the other hand, the Treasury bonds, which are Investor’s favourite, through a 2-year, and a 20-year re-issue bond sought to raise a total of TZS 253Bln, but received tender of over TZS 878Bln, a 3-folds over subscription.

Despite being significantly oversubscribed, the government went ahead and took only TZS 293Bln, returning more than TZS 500Bln subscriber’s funds. With the increase in demand, the Weighted Average Yield for the bonds keeps declining, as investors pushes their chances of getting picked, by bidding at high prices. The 2-year bond yield stands at 7.65% while the 20-year yield stands at 14.75%.

Banks through the Interbank Cash Market, traded a total of TZS 75.5Bln, compared to TZS 112.3Blntraded in October, a 31% decline. The Interbank cash market was not as Active in November as previous months, this could be due to sufficient liquidity among the financial institutions.

The interbank rate remained the same at 4% the same rate recorded on the previous month. Currency The shilling, put up a strong resistance against the USD for the month of November, the Shilling depreciated by 0.05% from October to November, from an Exchange rate of TZS 2,304.36 to TZS 2,305.61.

The Interbank Foreign Exchange Market (IFEM) transacted a total of TZS 132.85Mln.

orbit@orbit.co.tz; wende@orbit. co.tz


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