IN the coming week, we still prospect that the market will remain vibrant going forward specifically on the banking sector and Cement sector as we have seen the previous week’s top counters coming from those sectors. The market will remain active during the week and mainly from the top local active counters.
JATU Plc share price expected to decline at the bourse, it is likely that it may remain active for some coming trading sessions, but we remain wary with the decline in the volume to be traded.
CRDB is likely to be the most active counter and this has been due to analysts and traders’ expectations on the 2020 performance of the bank, and hence creates higher demand for the shares and will push the price higher in the coming week.
Other top counters expected to transact during the week include TBL, TPCC, NICOL, SWIS and DSE. In midweek we expect a Treasury bill auction to be held by the central bank.
There could be slight increase in the WAY with low volatility towards decline in yields for the short-term instruments, but with a likelihood of oversubscription as we have observed the yields started to increase for treasuries.
In the interbank money market, despite the increase in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
The Bourse During the week, total market capitalisation lost by 1.03 per cent to close the market at TZS 14.97 Trillion from TZS 15.09 Trillion in the previous week mainly due to share price depreciation of both cross listed and locally listed firms at the bourse.
CRDB share price increased by 9.76 per cent to close at TZS 225, DSE share price increased by 2.22 per cent to close at TZS 920, NMG share price increased by 1.56 per cent to close at TZS 325 while EABL declined by 3.07 per cent to close at TZS 3,160, KCB declined by 3.75 per cent to close at TZS 770, JATU share price declined by 18.37 per cent to close at 2,400 and JHL share price declined by 0.82 per cent to close at TZS 6,050.
Domestic market capitalisation gained by 0.69 per cent thanks to share price appreciation of CRDB and DSE. TSI gained 0.69 per cent to close at 3,513.49 points, DSEI lost 1.03 per cent to close at 1,803.04 points, Industrial & allied index lost 0.05 per cent to close at 4,820.43 points, Bank, Finance, and Investment Index (B&F) gained 3.56 per cent to close at 2,430.70 points while Commercial Service (CS) remain stationary for the week to close at 2,139.33 points.
Total Volume of shares traded increased by 84.49 per cent to 2,574,267 with 205 deals from last week’s 1,395,341 with 258 deals. Total turnover for the week declined by 45.08 per cent to TZS 594.32 million from TZS 1.08 billion previous week.
CRDB led all counters after transacting shares worth TZS 557.28 Million, TPCC counter followed after transacting shares worth TZS 13.73 Million, DSE transacted shares worth TZS 7.89 Million, SWIS counter transacted shares worth TZS 7.10 Million, JATU transacted shares worth TZS 6.44 Million, VODA transacted shares worth TZS 555,000, DCB transacted shares worth 515,000, NICOL transacted shares worth 556,850, TCC transacted shares worth TZS145,800, TCCL transacted shares worth TZS 65,800, TICL transacted shares worth TZS 10,500, MPB and SWALA transacted shares worth TZS 4,500 each.
TTP joined the laggard after transacting shares worth TZS 1,200. Interbank market During the week, the Interbank Cash Market (IBCM) recorded a total transaction value of TZS 134 billion being a decrease from last week’s TZS 244.5 billion traded. The WAR increased to close at 3.95 per cent from 3.70 per cent.
The highest and lowest rate was 4.50 per cent and 3.50 per cent similar to previous week. Debt Market In the debt market, outstanding government bond listed at the bourse stood at TZS 13.04 trillion. On the Secondary market, the government bond segment transacted TZS 12.27 billion whose face value was TZS 11.80 billion from last week’s TZS 39.40 billion and TZS 37.70 billion, respectively.
For the Corporate bonds, the market transacted bond worth TZS 19.32 Million and face value of TZS 21.00 Million from the previous week transaction value of TZS 5.44 Million and face value of TZS 6.00 Million. During the week, the central government in line with its debt issuance plan sought to raise total of TZS 122.5 Billion from the public through a 2-year treasury bond.
The auction was undersubscribed by TZS 87.87 Billion equivalent to 71.73 per cent. The central bank pocketed total of TZS 34.62 Billion, while the weighted average yield increased to 7.5 per cent from 7.09 per cent in the previous auction. WAP for successful bids was 100.68, and minimum successful price was 99.91, highest and lowest bids was 101.59 and 99.91, respectively.
Interbank Foreign Exchange Market Total volume in the Interbank Foreign Exchange Market increased to USD 23.50 Million from USD 10.35 Million in the previous week.
TZS/USD remains strong to close the market at TZS/USD 2,309.70 from TZS/USD 2,309.83 in the previous week.