Sabasaba slows down DSE activity

The Dar es Salaam Stock Exchange (DSE) activities slowed down by 66 per cent last week due to the just ended Dar es Salaam International Trade Fair, stock analysts have said.

The 10-day fair that wound up on Monday is a crowd puller and usually acts like a biggest shopping mall and investment deals bazaar.

Tanzania Securities weekly report shows that activity levels slowed to 2,797,480 shares – a sharp decline of 65.97 per cent compared to the previous week’s performance where 8,219,076 shares exchanged hands.

While the week-on-week turnover sloped down by 62.06 per cent to 1.32bn/-from last week’s 3.47bn/-. Tanzania Securities Analyst, Upendo Lyatuu, said activities in the market last week were quite lower in comparison to the previous week.

Zan Securities Chief Executive Officer, Raphael Masumbuko said on Monday that the trade fair slowed down the activity at the bourse as majority stock investors are also traders and buyers in the fair. “To some extent the DITF affected DSE operation well because (portfolio investors) are one of the contributors of Sabasaba thus affecting each other,” Mr Masumbuko said.

Similarly, the Tanzania Securities analyst said, both indices—DSE all share index (DSEI) and Tanzania Share Index (TSI) edged south. “We are optimistic about the trend of activity in the coming week,” Ms Lyatuu said adding “volumes are expected to increase, moderate -to- high with activities pronounced on CRDB, DCB, NMB and TBL counters.”

The DSEI dropped slightly by 0.01 per cent points to close at 1,582.43 while the TSI dropped by 0.02 per cent to settled at 1,839.78 points at the end of last week, mainly pulled down by CRDB and Swissport counters that lost by 3.57 per cent to 270/- and 0.97 per cent to 2,040/- respectively.

The Banking segment Index (BI) settled was the most affected after going down by 0.81 per cent to settle at 1,844.97 points weaker than previous week due to losses made on the CRDB. Banks shares accounted for 64 per cent of the market value and 97 per cent of the week’s total volume traded.

CRDB accounted for 90 per cent of the BI market value for the week, despite price fell from last week’s to end the week at 270/-. “The week’s underperformance may be explained by a slight decrease of demand against the supply arising from the counter’s side,” Tanzania Securities said. NMB continued with the positivity outlook in price.

During the week, NMB gained by 1.23 per cent to close the week at 1,640/-. On other hand, the Industrial and Allied Index ended the week at 2,008.61 points, slightly higher than last week supported by TBL and Twiga counters that gained to close the week at 3,260/- and 2,660/- respectively.
Source: The Daily News, reported from Dar es Salaam
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