DSE starts new year bullish but brokers warn of tough times ahead

12Jan 2022
Geoffrey Nangai
Dar es Salaam
The Guardian
DSE starts new year bullish but brokers warn of tough times ahead

STOCK trading at Dar es Salaam Stock Exchange started on a high note after end of year festive season with sales totalling 2.5bn/- during the first week of trading this year.

Stock brokers at DSE trading floor recently.

But analysts have painted a rosy picture for the stock market betting on the country’s steady economic recovery. According to an outlook report by Zan Securities, the market remains bullish with forecast on domestic listed stocks index (TSI) to gain a few basis points during this period and thus reflecting a ‘glass half full’ outlook based on strong corporate sales and profit.

“The growth projection will result from acute economic growth, measured inflation and low interest rates which suggest a favourable backdrop for stocks, with the potential for more subdued gains when we enter the second quarter of 2022 as companies prepare to release their 2021 audited financials,” the Zan Securities report said.

In a related development, Orbit Securities said the TSI closed at 3,611.32 points which was growth of 1.2 percent from the previous trading week while the market capitalization increased by 130.6bn/-. “At the close of trading last Friday, the stock exchange market’s valuation stood at 15.9trn/- from 15.8trn/- recorded in the previous,” Orbit Securities said in the report.

 Last week’s top mover was TBL which accounted for 78.8 percent of the turnover which was largely contributed by its 2bn/- is sales, followed by NMB with 284m/-, CRDB with 143m/-, TCCL had 69m/, TPCC with 25.9m/- while others had 17.8m/-.

 The all share index (DSEI) gained 15.68 points as KCB’s share prices rose by 1.09 percent. The TSI gained 46.14 points as CRDB and NMB share prices rallied throughout the week with an increase of 9 and 5.36 percent respectively. 

“Foreign Investors accounted for the majority of transactions on both the buying and selling sides as they accounted for 80.4 percent of the buying and 78.9 percent of the selling activities,” the report said.

Local investors on the other hand accounted for 19.6 percent of the buying and 21.1 percent of the selling throughout the week.  The domestic stock index (TSI) closed at 3,611.32 points, to reflect a growth of 1.29 percent.