THE DSE- All Share Index (DSEI) in the week ended 10th June 2022 shed about 21 points, equivalent to TZS 1.13% decline, a sum of TZS 177Bln in monetary terms, this depicts that the speed of price decline was higher than price improvement on the week under review resulting in a declined market cap.
The DSE closed at TZS 15.58Trn ($6.72Bln) market capitalization down from TZS 15.76Trn of previous week. Similarly, the domestic Index (TSI) and the domestic market cap both went down by 43.5points and 1.1% respectively.
In addition to the slip in the market Indices, the overall activity on the market shrunk significantly week to week as both turnover and the volume transacted fell short of prior week's records.
The turnover recorded this week only amounted to TZS 947.27Bln ($ 0.4Mln) which is about 84% lower than TZS 5.93Bln ($2.56Mln) that was generated on the prior week.
The volume transacted in the same manner was also down 80% to 473, 964 shares from 2.6 million that was transacted the week before.
This marks this week as the slowest week since the beginning of the current quarter. The past week marked a final week for the major stocks to put their registers in order ready for dividend payments next week.
This resulted in investors disposing off- shares whose dividends they have already locked-in resulting in a temporary slump on the domestic market. CRDB recorded another 20 spreads decline in share price resulting in a closing price of TZS 400 per share down from TZS 420 of prior week.
The counter exchanged 123,615 shares worth TZS 49.44Mln. The two cement stocks edged downwards 4.6% and 3.7% down for TPCC and TCCL respectively.
TPCC transacted more than 20,000 shares generating TZS 83Mln while TCCL also exchanged over 100,000 shares worth TZS 165.36Mln, counters closed at TZS 3,700 for TPCC and TZS 1560 for TCCL. Other downers included JATU an NMB both down 2.8% and 2% respectively, closing at TZS 350 an TZS 2,960 respectively.
NMB transacted about 55,000 shares while JATU only exchanged 2,700 shares. Despite the down trend that was recorded some counters were still on the green during the week, including SWISS which opened the week at TZS 1,040 per share, gaining 60 spreads to close at TZS 1,100.
This stock has been in the dip for the past year, following the shakeup in the aviation industry, however signs of recovery have been observed and the company is expected to award his investors with about TZS 29 per share dividend, after two years of no dividend returns.
DCB and DSE have also maintained their rally, where DCB this week was up 2.5% to close at TZS 195 per share, followed by DSE which was also up 2% closing at TZS 1,980 per share.
The cross-listed market, was only let down by East African Breweries (EABL) which was down 5% during the week closing at TZS 2,620 per share while the rest counters rallied during the week.
This comes as a turnaround for the said market since it has recorded consistent down trend since the year started. National Media Group this week was up 10% closing at TZS 435 per share, followed closely by Jubilee Holdings (JHL) which was also up 3% closing TZS 5,200 and KCB which closed up 1.32% at TZS 770.
Treasury Securities
The Bank of Tanzania on behalf of the government administered a 15-year treasury bond which carries a fixed coupon of 11.15%. The government from this particular bond was looking to raise TZS 123Bln ($53.2Mln) from the public but the public only tendered TZS 90.3Bln ($39Mln) to the offer.
This means the public only subscribed up to 64% of the offered amount. Historically the 15-years paper hasn't been investor's go-to tenor, however it had picked up popularity not long ago, following extreme prices on the longer-tenors investors resorted to 15-year paper as a substitute to the highly priced 20- and 25- years bonds.
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The yield to Maturity for this paper had slightly declined compared to the previous yield, this is due to the down-ward coupon adjustment by the central bank in Q1, so despite the prices for the current bond being lower, averaging 99.12% the yield stood at 11.27%.
Eventually, the government only took one third of the tendered amount, TZS 23Bln ($10.2Mln) returning over TZS 70Bln back to investors.
Money Market
The Interbank Cash Market (IBCM) recorded a TZS 156Bln worth of transactions a 25% hike from TZS 124.6Bln that was transacted on the previous week. T
he interbank rate has remained steady averaging about 2% throughout the week, although some transactions carried a rate as high as 4.5% but overall weighted average Interbank rate remained lower at around 1.6% to 2.4%.
