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Tanzania: Local Investors Dominate DSE Market Activities

LOCAL investors on the Dar es Salaam Stock Exchange (DSE) became dominant last week accounting for 99.86 per cent of the total investments and 98.84 per cent of the total divestments.

During the week under review, the foreign investors took a back seat along with zero transactions at the TBL counter.

According to the Weekly Market Synopsis from Orbit Securities, the major market movement was seen on Thursday when CRDB Bank saw a prearranged block transaction involving a little over 3 million shares at a price of 200/- between local investors.

Automatically CRDB Bank became the top mover for the week, accounting for 93.1 per cent of the total weekly equity turnover.

CRDB Bank moved a total of 3.19 million shares during the week and realised a weighted average price of 201.17/- per share, highly skewed downwards by the prearranged block.

Normalising the block transaction, the average price rose up to 214.99/- per share, although still lower than the closing price of 220/-.

It seems the restrictions on dividend payment subject to regulatory cost to income ratio (CIR) and non-performing loans (NPL) ratios are still weighing on the price of the bank.

The total equity turnover for the week went up by 96.4 per cent to a total of 689.93m/- mostly as a result of the prearranged block transaction at the CRDB Bank counter.

The total number of shares traded rose from 0.28 million to 3.23 million shares traded in 143 deals.

Due to its low price and high magnitude of the listed shares and free float, trading sessions that are dominated by CRDB Bank usually have a large amount of volume of shares on transactions.

Both indices were on the green during the week, although both by a slight. The Tanzania Share Index (TSI) gained a 0.44 point to close the week at 3,509.25 points.

The gain follows a marginal 0.012 per cent growth of the domestic market capitalisation to 9.22tri/-.

Jatu was the only counter that saw its price move during the week after a significant appreciation of 43.33 per cent to close the week at a price of 1,720/- per share.

Due to its trivial weight on the TSI, a significant move on the price of Jatu has a minuscule impact on the index.

The All Share Index (DSEI) also gained a 0.81 point to close the week at 1,853.71 points. Correspondingly, the total market capitalisation grew by 0.04 per cent to close the week at 15.40tri/-.

The total market cap is still down 9.92 per cent since the beginning of the year.

The appreciation resulted from the giant, KCB Bank (KCB) which grew by 5.06 per cent. Other domestic counters that saw movements were on the losing side.

The National Media Group (NMG) fell by 6.9 per cent, Jubilee Holdings (JHL) dropped by 3.48 per cent, awhile other giant East African Breweries (EABL) dropped by 3.28 per cent.