Tanzania: Dar es Salaam Stock Exchange’s monthly turnover increases by 13%

FOR February, the DSE exchange recorded a 12.63% increase in turnover generated on the stock market. The recorded turnover amounted to 15.74 billion TZS (6.84 million dollars) against 13.98 billion TZS (6.08 million dollars) generated the previous month.

On the other hand, the number of shares traded decreased by 45.59%, from around 22 million shares in January to around 12 million shares traded in February.

Thanks to TBL who traded over 1 million shares which generated a turnover of TZS 10.00 billion ($4.35 million). Revenue generated by TBL accounted for more than 60% of total DSE stock revenue in February.

Despite being the top mover, the counter has maintained its price level which has not changed since 2020, so trades have mostly occurred on the pre-arranged board, which has no impact on the closing price of the respective meter.

The cement sector’s Simba Cement (TCCL) was the month’s biggest gainer, jumping 30% from TZS 1,000 to TZS 1,300 per share at the end of the month. The cliffhanger announcement for the company’s possible acquisition had since made the counter attractive to investors as its shares dwindled, driving up the share price.

The counter traded a total of 107,099 shares generating a turnover of TZS 128.3 million. Following the same acquisition, the story is TPCC (Twiga cement) whose parent company is supposed to be the acquirer of the majority of TCCL shares. TPCC rose 15.29% in February to close at TZS 3,920 per share.

The Banking, Finance and Investments (BI) index remained broadly bullish in February, supported by NMB, CRDB, DSE and NICOL. Leading the group was NMB, which registered a 19.3% rise from TZS 2,280 to TZS 2,720 at the end of the month.

The meter generated a turnover of TZS 677.34 million. NICO also rebounded 15% closing the month at TZS 345 per share worth TZS 135.05 million, CRDB which generated total revenue of TZS 2.03 billion also rose slightly, closing at TZS 350 per share, an increase of 7.69%. DSE gained 6.06% from TZS 1,320 to TZS 1,400 per share, also generating revenue of TZS 224.57 million from 169,715 shares traded.

In contrast, JATU, the biggest loser and the only loser of the month, closed down 19%, down 75 spreads to close at TZS 320 per share.

The counter processed just over 87,000 shares generating a turnover of TZS 30.7 million. The market, in general, portrayed a positive sentiment for the duration of the month, where both market indices, namely DSEI and TSI, registered an upward movement from the previous month.

The All-Share Index (DSEI) posted a gain of 35.57 points, mostly following the rally in the domestic market as the cross-counters also maintained their bearish trend in February. KCB was the only cross-list winner, improving its share price by 1.1% to close the month at TZS 920 per share, from TZS 910 per share.

The other interlisted counters were in the red at the end of the month. Jubilee Holdings (JHL) lost the most, closing down 8.94% at TZS 5,600 while East African Breweries (EABL) was also down 3.59% closing at TZS 3,220 per share. .

The Tanzania Equity Index (TSI) also rose by 151.82 points following the aforementioned rally on the national meters.

Participation of foreign investors improved in February, where foreigners bought shares worth TZS 11.13 billion ($4.8 million), about 70.7% of turnover total and sold shares worth TZS 11 billion ($4.8 million), or about 69.94%.

This left local investors behind in buying and selling shares worth TZS 4.6 billion ($2 million) and TZS 4.73 billion ($2.06 million) respectively. of dollars). Money Market, Debt Securities The Bank of Tanzania held a total of four (4) auctions of short and long term treasury securities.

From treasury bills, the government had offered to raise TZS 155 billion ($0.07 billion), but instead attracted a tender of TZS 425.23 billion ($0.18 billion) from the public, although he ultimately only took the originally proposed amount of TZS 155 billion.

From long-term debt securities, the central bank held 15- and 20-year bond auctions that aimed to raise TZS 269.3 billion ($0.12 billion), instead investors had underwrote over TZS 1.03 billion ($449.09 billion) at auction; more than three times the proposed amount.

The central bank rejected about TZS 739.9 billion ($321.70 billion) of investors’ money and took about TZS 293 billion ($0.13 billion), which was the initial offer .

As a result, yields for both stocks fell significantly due to the price push by investors. The 15-year paper yield was 11.97% while the 20-year paper yield was 11.98%.

The yield of 364-day paper is now 4.81%. Yields on all government papers remained persistent with the downward move as investors continue to drive prices higher. The volume traded in the spot interbank market also fell in February compared to January, when the volume traded stood at TZS 33 billion, about 20.5% less than the TZS 41 billion traded in January.

While volume declined, the interbank rate held more or less at the same level. In February, the average negotiated rate was 3.5%, slightly below 3.9%, which was in line with the average for transactions in the previous month. The interbank rate at the end of February stood at 3.58%, 8bp higher than the 3.5% January closing rate.

Currency market

The Tanzanian Shilling relatively maintained its status with the USD, where the exchange rate rose slightly by 0.01%, indicating that the TZS fell slightly against the USD.

The exchange rate at the end of February was 2,309.74 TZS against 2,309.55 TZS in January. Market activity had also weakened in February compared to January, with the volume traded for the month standing at TZS 21.8 million compared to TZS 31.26 million recorded the previous month.

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