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Tanzania: Bond Trading Boosts Dse Turnover By Well Over 50pc

Dar es Salaam — Liquidity at the Dar es Salaam Stock Exchange (DSE) rose by 53 percent in March, propelled by a rise in trading of government securities which offset a minimal drop in shares trading.

Market data shows that a total of Sh192.6 billion was realised in total turnover as of March 26, up from Sh126.06 billion that was realised during the month of February.

Out of that sum, Sh186.12 billion was realised through trading of government securities (Treasury Bonds) in March, up from Sh119.46 billion realised in February.

On the other hand, the value of traded shares dropped slightly – to Sh6.48 billion – in March compared with Sh6.6 billion in February.

CRDB Bank Plc accounted for Sh2.69 billion, representing 41.6 percent of the total turnover that was realised in March.

With Sh1.7 billion, NMB Bank Plc was in the second slot while TBL Plc, TCC, DSE Plc, Jatu, Twiga, Swissport, Nicol, Tanga Cement and Vodacom followed in that order.

On weekly basis, the equity market posted a slow activities during the week to Friday, March 26, as the country mourned the passing on of President John Magufuli, 61.

The DSE recorded a weekly turnover of Sh111.34 million which is a 96.7 percent drop compared to last week’s turnover of Sh3.44 billion.

Dr Magufuli died on March 17 and was laid to rest on Friday, March 26.

The government announced two national holidays (Monday, March 22, and Friday March 26) in honour of the departed leader.

This had an impact on the number of trading days at the bourse.

The volume of shares traded decreased to 207,990 last week from 760,823 shares that were traded in the week ended March 19, 2021.

However, analysts remain optimistic that investors’ participation will rise during the coming weeks and months.

“We expect more improvement and participation on the bourse this coming week,” said Zan Cecurities Limited chief executive officer Raphael Masumbuko.

During the week, CRDB emerged as the top market mover, recording 28.9 percent of total turnover followed by DSE and Twiga with 23.37 percent and 16.51 percent respectively.

Total market capitalisation increased by 0.11 percent to Sh15.58 trillion and domestic market capitalisation posted a decrease of 0.01 percent to close at Sh9.24 trillion.

The Tanzania Share Index (TSI) closed at 3,518.08 points, down by 0.01 percent while the All-Share Index (DSEI) increased by 0.11 percent to close at 1,875.85 points.