Tanzania: Election fever dampens activity at Dar bourse

The Dar es Salaam Stock Exchange (DSE) experienced a major decline in turnover in October by 12.36 per cent to 112.10bn/- compared to 127.91bn/- posted in the previous month.

Zan Securities Limited Chief Executive Officer, Mr Raphael Masumbuko said, in Dar es Salaam at the weekend that low foreign participation due to election fear contributed largely to the decline in turnover at the bourse.

“The election fear reduced foreign investors’ participation in the equity market resulting into fall of share prices, thus discouraging local investors (sellers) to release more shares for sale at low price,” he said.

He, however, said the market is likely to recover between now and December therefore investors must use this opportunity to take advantage on existing short positions. During the month under review, TBL, CRDB Bank and TCC emerged October’s top traded equities, controlling 99.19 percent of the value.

TBL, CRDB and TCC contributed to 86.26 percent, 8.95 percent and 3.98 percent of October’s total turnover respectively. CRDB, NMB and TCC emerged as the top gainers dominating the price movement within local listed companies.

CRDB experienced a 20/- or 5.48 percent price increase to close at 385/- per share. NMB increased by 70/- or 2.47 percent increase to close at 2900/- and TCC experienced a 30/- or 0.18 percent increase, closing at 16,330/-.

Tanga Cement Company Ltd, Tanzania Portland Cement Company Ltd and Swissport lead the losers by 900/- or 24.32 percent, 400/- or 11.80 percent and 100/- or 1.35 percent respectively.

DSE Market capitalisation decreased by 5.38 percent to close at 20.97tri/- while Domestic Market capitalization decreased by 0.71 percent to close at 9.73tri/-.

Consequently, on a monthly comparison, key benchmark indices were in red territory where the Tanzania share index (TSI) capped at 4,598.55 points closing low by 0.72 percent compared with 4,631.91 points posted a month earlier.

On the other hand, the All share index (DSEI) closed at 2,394.50 points low by 5.40 percent. Industrial and Allied index sustained downward trend by 2.20 percent to close at 6,058.45 points.

Banks, Finance and Investment index recorded a positive trend by 3.61 percent to close at 3,208.12 points. Commercial Services index capped at 3,932.32 points low by 1.05 percent during the month under review.
Source: Daily News, reported from Dar es Salaam, Tanzania

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