Dar stock market’s share index slips


DSE Brokers
Dar es Salaam Stock Exchange (DSE) last week recorded a downward swing, pulled down by slumping of banks’ share prices by an average of two per cent.

The DSE all share index (DSEI) slipped by 0.32 per cent to close the week at 1,318.35 points, while the Tanzania Share Index (TSI) lost 1.46 per cent to settle at 1,204.18 points. 

According to Tanzania Securities, a brokerage firm, the market was pulled down by dropping share prices of CRDB bank that sunk two per cent to 123/- per share, the lowest in this year.

Other equities that slipped in last week were National Microfinance Bank (NMB) whose shares tumbled 2.2 per cent to 890/- and TBL’s 3.1 per cent to close at 2,500/-. 

“This week, the banking sector was very active and liquid than commercial and industrial sectors,” Tanzania Securities said in its weekly market report, saying that foreign investors did not participate.   

The Industrial and Allied (IA) index lost 20 points or 1.4 per cent to end the week at 1,479.27 points. 

The report indicates further that the Banking, Finance & Investment (BI) index was not spared by the downward spell either; it lost almost 20 points to close the week at 941.72.

 “Looking ahead, we expect the market to maintain a low to medium activity levels,” the report said. 

However, analysts said, there seems to be signal of a continual rise of liquidity levels in the money market.

“We, therefore anticipate institutional investors to continue coming into the market. We continue to expect a sustained foreign investors’ demand on the banking counters (especially NMB and CRDB, on undervaluation ride),” Tanzania Securities Analyst, Mr Magabe Maasa said.

Financial analysts have it that CRDB shares are trading at a give away price below its book value despite exhibiting handsome returns, backed by the bank’s good performance. 

According to the share price valuation made by Dhow Financial, the fair value of the stock is 260/- a piece, but it was trading at 123/- each as of Friday.
Source: The Daily News, http://www.dailynews.co.tz, reported by Abduel Elinaza

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