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Dar es Salaam Stock Exchange (DSE) recorded a substantial hype in activities after equity market turnover increased by 113 per cent last month. This primarily resulted from stock demand spurred by the release of earnings and payment of dividends. The equity turnover increased from 4.36bn/- in April to 9.25bn/- last month.
Dar es Salaam Stock Exchange (DSE) recorded a substantial hype in activities after equity market turnover increased by 113 per cent last month. This primarily resulted from stock demand spurred by the release of earnings and payment of dividends. The equity turnover increased from 4.36bn/- in April to 9.25bn/- last month. Despite the increased turnover, the total market capitalisation declined by 2.4 per cent to 15.19tri/- by the end of last month while domestic market capitalisation went down by 0.81 per cent. This resulted from a fall in share prices after the stocks began trading post-corporate actions.
Similar to the market cap performance, the all-share index (DSEI) declined from 1,867.18 to 1,821.99 points while the Tanzania Share Index (TSI) decreased by 0.81 per cent. This indicates that both local and cross-listed counters recorded a negative performance in the period. Locally, TCCL recorded the highest share appreciation of 69 per cent followed by DSE (6 per cent), NMB (4 per cent) and TPCC (0.5 per cent). On the other hand, CRDB recorded the lowest performance falling by 14.81 per cent followed by Jatu 8.62 per cent. In general, the domestic market has observed a decline as a result of corporate actions undertaken by prominent domestic companies.
The bourse shows that the banking sector recorded the lowest performance pushing down the banking sector index by 4.1 per cent. Commercial services followed with a drop of 0.19 per cent. The majority of the counter prices have declined post ex-dividend trading date. As such, the market is expected to shift towards the fixed income market,” the report painted the future outcome.
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Industrial and Allied recorded a positive performance growing by 0.91 per cent. During the month under review, Vodacom Tanzania released their preliminary annual results showing a huge turnaround recording a profit of 44.55bn/-.This is a significant growth from the loss recorded in the preceding year. The shilling depreciated against the US dollar moving from 2,324/97 at the end of April to 2,330/75 at the end of last month.
