DSE posts 16.4bn/- monthly equity turnover in April 2022

11May 2022
Geoffrey Nangai
Dar es Salaam
The Guardian
DSE posts 16.4bn/- monthly equity turnover in April 2022

THE Dar es Salaam Stock Exchange (DSE) posted an impressive performance of 16.4bn/- equity turnover in April being a 233 per cent increase from 4.95bn/- posted in March, 2022.

According to analysts, a strong outlook on corporate profitability remains the key reason for stock market growth driving a massive buying spree in a number of counters.

Available data from the DSE shows that VODACOM dominated that market in April after registering a 5.3bn/- mostly through pre-arranged deals hence not affecting its market price.

TBL on the other hand recorded 4.5bn/- billion while CRDB registered 2.7bn billion while NMB and Tanga Cement counters recorded 1.46bn/ and 1.1bn/- respectively.

The benchmark index (DSEI) however lost 3.6 per cent attributed largely by fall in share price of cross listed companies within the period such as EABL (-5%), KCB (-17%), JHL (-4%).

 The domestic equity index (TSI) also lost 0.26% caused mostly by falling domestic equities such as DCB (-3%) CRDB (-4%) TCCL (-1%) SWALA (-8%) NICO (-14%), TICL (-19%).

On the other hand, stocks that registered positive price movement within the period include, TPCC (+3%), DSE (+5%) JATU (+30%).

According to the Zan Securities Chief Executive Officer Raphael Masumbuko, the market remains bullish and the Domestic Listed stocks index (TSI) is expected to gain more points in Q2, 2022 reflecting a “glass half full” outlook based on still-strong corporate sales and profit growth resulting from economic growth, measured inflation and low interest rates.

“We expect to see more trading activities for domestic listed equities as we head towards the dividend period. Overall good earnings reported by a number of companies in 2021 will create incentive for investors to drive momentum for price appreciation in a number of counters, recovery from COVID pandemic and the overall economic growth pulsating a number of companies to higher profitability,” he said.

Masumbuko said factors suggest a favorable backdrop for stocks, with the potential for more gains in the second quarter of 2022 adding that consequently dividend calls scheduled for Q2, 2022 will increase stock prices,” he stressed.

He noted that yields on the long end of the yield curve to maintain current levels on the onset of the recent coupon revision, however we expect a marginal upside risk to the inflation outlook as global fossil fuel prices edge higher prompted by the ongoing Russia-Ukraine conflict which will prompt investors to demand higher yields to compensate for inflation risk.

“We expect cost push inflation to drive consumer price index higher in April and May driven by the sharper-than-expected oil price rise,” he added.