Tanzania: DSE Turnover Surges Despite Election Risks
THE Dar es Salaam Stock Exchange (DSE) equities market turnover surged three times and downplayed risks associated with the just ended general election.
The election held last Wednesday saw ruling party incumbent President John Magufuli defend his position in a landslide victory.
The turnover increased from 778.01m/- in a week before the election to 2.61bn/- in a week ending last Friday, which was the voting week.
Zan Securities Chief Executive Officer Raphael Masumbuko attributed the positive performance contrary to previous elections week to good financial results demonstrated by banks and cement manufacturers.
“The domestic equity market recorded a positive performance last week contrary to what is normally expected during the election week. Financials drove the volume and price as expected,” Mr Masumbuko said in the brokerage firm’s Weekly Market Wrap-ups.
The CEO projected the bourse stellar performance to continue post-election week when foreign investors make a comeback. Local investors dominated trading during the election week.
“We expect the momentum to continue next week,” Mr Masumbuko said.
During the week under review, local investors dominated trading with 96 per cent participation and foreign with remaining 4.0 per cent.
TBL counter, the darling of foreign investors was out of action leaving CRDB Bank to dominate the bourse turnover.
“CRDB Bank counter controlled the turnover, recording 97.02 per cent of the total turnover,” Mr Masumbuko said.
On the other hand, Twiga Cement and CRDB Bank saw those shares appreciating due to their good financial performance.
Twiga counter continued climbing and closed the week by 0.80 per cent to 2,520/-, while CRDB Bank gained 9.09 per cent closing at 180/-.
The two firms’ share appreciation failed to push up total market capitalisation during the week and decreased by 0.80 per cent to 14 8tri/-.
However, they managed to drive domestic market capitalisation as increased by 0.47 per cent to 9.11tri/-.
Key benchmark indices closed with mixed reaction. Tanzania share index (TSI) closed at 3,469.17 points, 0.47 per cent up. All Share Index (DSEI) decreased by 0.80 per cent to close at 1,782.93 points.