DSE forecasts robust recovery
Africa-Press – Tanzania. DAR ES SALAAM Stock Exchange (DSE) is looking at a strong recovery this year after experiencing one of the lowest activities ever recorded of 104bn/- last year.
According to Orbit Securities Company, the first six months this year has seen DSE recording an equity turnover of 75bn/- which is about 42 per cent higher than a turnover of 52.7bn/- of the similar period last year.
The number of shares that was transacted also improved from 68 million shares in the first half of 2021 to 94 million shares that was transacted during the six months this year.
“More on the stock market performance, we have observed that in the six months domestic equities have performed better than the cross-listed equities,” the report said.
As a result, the domestic Index went up 10 per cent representing the growth in the domestic market cap (TSI), which closed the period at 10.39tri/-.
As activities in the market revamped so did the foreign investors’ participation in the market during the first six months of the year. Overall foreign investors’ participation dominated the bourse.
Total foreign participation in the equities was around 49bn/-which makes up about 65.41 per cent of all purchases on the bourse, subsequently, the selling from foreigners amounted to 46.76bn/-.
Local participation slightly contracted to 25.9bn/- purchase and 28bn/- selling equivalent to 34 per cent and 37 per cent, respectively.
The cross-listed stocks remained in the red for most of the first half-year with the reported sell-off of foreigners in the Nairobi Stock Exchange, the bourse, in general, remained bearish, as a result affecting the cross-listed companies on the DSE bourse.
The Jubilee Holdings (JHL) and East African Breweries (EABL) experienced the greatest decline, a 21 per cent drop from 6,450/- to 5,050/- and a 20.8 per cent drop from 3,360/- to 2,660/- per share respectively.
The rest of the counters; KCB and National Media Group (NMG) followed suit, dropping by 17 per cent and 10 per cent, respectively.
On the domestic counters, bank stocks outperformed the market greatly, with investors making double digits returns on the stocks just for six months.
The NMB was the top performer, making a 56 per cent capital gain, from 2,000/- per share at the beginning of the year to 3,120/- per share at end of June.
Two counters, DSE and CRDB also lined up as top performers both recording 54 per cent and 42 per cent capital gain for the period.
Furthermore, CRDB also doubled as the top mover for the period, accounting for about 30 per cent of all market activities for the period by generating 22.6bn/-turnover.
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