The Dar es Salaam Stock Exchange (DSE) saw an increase in turnover during last week when compared to the prior week.

The market report show that total market turnover increased to 4.977bn/- from 4.542bn/- recorded during the previous week.

The pre-arranged board registered some activities as DSE and TBL recorded block trades.

Throughout the week, TBL dominated trading activities, representing 68.8percent of the total market turnover, followed by CRDB at 13.8 percent and DSE at 10.08 percent, according to the weekly report by Zan Securities Limited.

The report shows NICO was the top gainer for the week, appreciating by 6.67 percent reaching 800/- per share,  while DCB gained 3.23 percent reaching  160/- per share and DSE share price increased by 0.83 percent reaching 2420/- per share.

However, TPCC lost 2.7 percent reaching 3600/- per share, AFRIPRISE depreciated by 2 percent closing off the week at 245/- per share and TCCL lost 1.02 percent concluding the week at 1940/- per share.

In terms of market capitalization, there was a general increase in the size of the markets, with total market capitalization increasing by 1.24 percent to 18,114.84bn/- by the week’s end. 

However, domestic market capitalization decreased by 0.13 percent, reaching 12,160.78bn/-.

“Optimistic expectations for third-quarter results drove stocks higher throughout the week. We anticipate this positive trend to continue in the coming weeks, as companies are expected to start releasing their third- quarter results by the end of the month,” states Zan Securities Limited report.

On bond market, the report shows on Wednesday 16th October 2024, the Central Bank was in the market offering 82bn/- to investors for the re-opening of a 5- Year Treasury bond offering a 9.18 percent coupon rate annually.

The auction was subscribed by 64.79 percent the auction received bids totaling 53.12bn/- and accepted bids worth 53.04bn/-.

This is the second and last 5-year auction for the first half of the financial year calendar 2024/25. 

The bond received less subscription further showing investors’ appetite for longer term maturities. The amount offered remains at 82bn/-. 

The weighted average yield in this auction has increased by 231.68 basis points from 10.0922 percent in the last auction in 2023 to 12.409 percent and the minimum price was further lowered to 87 from 100 in the auction in July. 

The central bank accepted bids worth 53.047bn/-. 

The inflation rate was recorded at 3.1 percent in September. During the week ending on October 18th, market activities saw an increase compared to the previous week. 

Overall turnover increased by 24.45 percent, from 46.89bn/- to 58.3bn/-. 

However, there was a notable decrease in the number of trades, falling from 84 to 67.

Trading activities primarily focused on the long- end of the yield curve, with the 20-year and 25- year bonds traded contributing to 98.8 percent of the total turnover.

In the corporate bond segment, there was a decrease in activity compared to the previous week as NMB corporate bond NMB-2023/26.T1 recorded three trades totalling 7.5m/-  at an average price of 89 and CRDB corporate bond CRDB-2023/28.T1 recorded one trade with a face value of 10m/- at a price of 100.

The 1-year T-bill yield reached 11.18 percent in the mid-week auction, aligning with our expectations. However, liquidity constraints in the interbank market discouraged investor participation, leading to a significant undersubscription, with the auction receiving only 23 percent—the lowest in 2024. 

“We expect similar undersubscription for upcoming treasury bonds, pushing yields higher and lifting the yield curve. The next auction, featuring a 5-year bond (No. 571, maturing on 16-Sept-2026), is expected to see yields rise to 13 percent, with likely undersubscription,” says the broking firm report.