Tanzania: DSE trading activities slow over European financial crisis

The Dar es Salaam Stock Exchange (DSE) market expects continued low level of activities as foreign investors participation continues to slow.However, the status of recovery in the financial sector in the West, mainly the European zone is likely to continue to hinder foreign investors from investing in the local market.

“We anticipate some activities in most counters due to strong demand but we do not anticipate any major changes in the general level of activity over the coming week,” says Joel Nkya, an analyst at Tanzania Securities Limited, brokers and members of DSE.

A recent weekly report shows that CRDB Bank led the sector in both turnover and volume, as the counter recorded a turnover of Tsh30 million, 20 per cent of the market’s total turnover.

 The counter changed hands for 167,157 shares backed by a price of Tsh180 - with CRDB followed by NMB which recorded a turnover of Tsh14 million, equal to nine per cent of the market turnover.

The Dar es salaam Community Bank (DCB) followed by recording a turnover of Tsh11 million, which is equal to 7 percent of the markets activities.

Both NMB and Dar es Salaam community Bank contributed to seven and eight percent of the markets total volume respectively.

“CRDB and NMB counters were characterized by strong supply indicating investors’ mixed feelings in the two banks’ performance over the second half of the year based on the first half results,” he said in his weekly market commentary.

The report shows that NMB recorded strong performance in the second quarter of this year seeing its return on average total assets and shareholders fund increase as compared to the second quarter period of last year.

The Dares Salaam Community Bank, according to the report, was characterized by strong demand indicating investors’ confidence in the bank’s performance in the short to medium term.


The report has shown that the industrial sector led the market in measured turnover. Simba Cement was top in turnover as the counter traded shares worth Tsh35 million, 23 percent of the total market turnover.

It was followed by Twiga which contributed to 20 percent of the market’s total weekly turnover. Tanzania Breweries and Tanzania Cigarette Company contributed 15 percent and three percent of total turnover, respectively.

Investors continued to show confidence in the sector, with strong demand pushing up share prices for Tanzania Breweries, Tanzania Cigarette Company and Twiga.

The share price for Twiga moved up by Tsh20 per share from Tsh2060 to Tsh2060, a one percent increase.

Tanzania Cigarette Company share price rose by Tsh20 from Tsh2600 to Tsh2620, an increase of a three quarter of one percent.

Also, Tanzania Breweries shares moved up to Tsh1860 last week from Tsh1800, an increase of two percent.

The report says that Tanzania Breweries Limited share price increase could be attributed to the fact that some investors may be striving to take advantage of the coming mini IPO which is expected to drive the stock price on the higher side.
                    
Swissport was the biggest gainer during the week as it moved up by Tsh60 from Tsh730 a week before, to Tsh790 last week, indicating an increase of eight percent.

The company’s consistent and outstanding performance and high dividend yield have contributed to the rise in price together with future prospects.

The company enjoys a virtual monopoly in airport cargo handling, supported by the goodwill of the parent company, Swissport International. All this has created great confidence from investors in the stock, the report noted.