Trading activities on DSE likely to boom

Dar es Salaam Stock Exchange (DSE) trading activities are expected to gain momentum further following the beginning of half year dividends’ announcing seasons.

Trading at the bourse, which experts said is mainly driven by dividends than earning per share in the last two weeks continue to exhibit positive short term signals.

According to a brokerage firm, Tanzania Securities’ weekly report, the results driven demand could continue to support rallies in some counters.

“We anticipate more activity in the coming week as the reporting season for listed companies and banks’ interim results set in,” the TSL report indicates.

However, while analysts expects increasing activities, last week trading ended in the red for stocks despite the marginal upward adjustments for some stocks.

The poor show saw both indices, the DSE all share index (DSEI) and Tanzania Share Index (TSI), close the week downwards having settled at 1,440.06 and 1,216.40 points respectively.

“The loss on both counters was a result on CRDB bank that closed the week at 110/- equals to a drop of 6.3 per cent compared to last week’s 117/50,” the report shows.

Turnover also slid to 601m/- or 2,536 per cent low compared to the previous week’s 3.6bn/-.

Nevertheless, analysts said, the market continues to exhibit positive short term signals as the reporting season goes underway, as it may as well correct marginally on more profit taking on second quarter announcements comes into play.

“We anticipate the continued presence of foreign investors particularly taking position in the NMB (national Microfinance Bank) counter, though in small bits due to the general lack of supply,” TSL said in the report.

TBL will continue to have traction into foreign investors (especially from East Africans) who are currently allowed to take position into the counter, the weekly report indicates.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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