Trading at DSE drop by over 80pc as institutional investors stay home

21Oct 2021
Geoffrey Nangai
The Guardian
Trading at DSE drop by over 80pc as institutional investors stay home

STOCKS trading at Dar es Salaam Stock Exchange recorded nearly an 83 percent slump last week when turnover was only 239.72m/- compared to 1.37bn/- generated during the previous week.

DSE Plc’s CEO, Moremi Marwa.

According to Orbit Securities Weekly Report, a total of 474,223 shares were traded on the bourse during the course of the week compared to 3,589,772 shares traded the previous week. Orbit Securities Head of Research and Financial Analytics, Imani Muhito said the market during the week was largely dominated by retail investors.

“The week under review had zero pre-arranged block transactions because of lack of institutional investors, who usually go through such transactions which led to the low turnover,” Muhito said. He added that since the end of 2019, more than 85 percent of the turnover at DSE has been dominated by prearranged block transactions with CRDB Plc topping the movers’ chart with 38.87share.The bank has its share price pegged at 250/- per share at the closure of last week’s trading session.

“The All Share Index (DSEI) lost 6.85 points in value as KCB share price fell by 1.05 percent during the week,” the Orbit report said. The report further added that the Tanzania Share Index (TSI) on the other hand, lost 10.33 points as JATU Plc, NMB Bank Plc, DCB Commercial Bank Plc and DSE Plc counters lost 2.74, 4.46, 4.62 and 9.09 percent of their share prices respectively.

“Foreign investors dominated share buying in the market accounting for 60.26 percent of the value while local investors accounted for the remaining 39.74 percent only,” the report stated noting that local investors accounted for 100 percent of the sold stocks. “The net foreign inflow for the week was 144.4m/-, compared to the previous week when the inflows were only 7.67m/-,” the report added.

 In a related development, the 25-year Treasury Bond auction issued by Bank of Tanzania last week raise 133.45bn/- which was oversubscribed by 503.1bn/-. According to the DSE website, investors tendered 637bn/- through 1,427 bids, from which only 384 bids were successful amounting to 182.3bn/-. The secondary bond market on the other hand generated a total of 12.02bn/-, being an 80.96 percent reduction from the 63.17bn/-that was generated during the previous week.

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