Stockbrokers remain optimistic of sustained improvement of trading on the Dar es Salaam Stock Exchange (DSE) notwithstanding low supply on some counters.The brokers say supply constraint has hit the counters of banking and manufacturing sectors as a result of financial result influenced rising demand for shares. The counters that have experienced low supply include TCC, TBL and NMB.
Tanzania Securities Analyst Upendo Lyatuu said in her weekly commentary that the bourse’s last week turnover went up by 32 per cent to 1.744bn/- compared to the previous week’s performance of 1.318bn/-.
The bourse activities dropped due to, among other factors, the 37th Dar es Salaam International Trade Fair (DITF) that ended last week. Ms Lyatuu however said, “We remain optimistic that the bourse activities will remain moderate, with support from foreign investors on the bank counters.”
Lack of liquidity in circulation also brokers say affected trading on the stock market as interbank money market rate continued with upward trend, signaling liquidity squeeze in the market. Bank of Tanzania (BoT) data show that interbank borrowing rate towards the end of last week was 10.76 per cent higher than the 8.26 per cent rate at the end of the previous week.
The DSE all share Index (DSEI) gained by 0.74 per cent from last week to settle at 1,594.07 points while Tanzania Share Index (TSI) closed higher at 1,889.01 equals to an increment of 2.68 per cent.
The main drivers of the indices, according to Tanzania Securities weekly report, were Swissport, TCC, DCB, NMB, CRDB, TOL and TBL.
Source: The Daily News, reported from Dar es Salaam
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