Posted on

Tanzania: Foreign Investors’ Participation On Dar Exchange Rises

tanzania foreign investors participation on dar exchange rises

FOREIGN investors were net sellers during the week that ended on 26th February 2021 as a load was traded on the TBL counter. TBL saw zero transactions for the better part of the week, until Friday when a prearranged block of 491,409 shares was traded at a price of 5,000/- per share.

The block was sold by foreign investors and bought by locals, hence raising foreign participation to 94.43 per cent on the selling side.

The net outflow during the week was $1.06mln. Locals accounted for 99.82 per cent of the total investments. The total equity turnover for the week amounted to TZS 2.6bln ($1.13mln), which was 278 per cent higher than the previous week, thanks to the prearranged transaction on the TBL counter.

TBL accounted for 94 per cent of the total equity turnover for the week while CRDB and JATU followed with 2.8 per cent and 2.1 per cent respectively. Activities on the CRDB counter slightly lowered as the market finds its footing with the circular by the Bank of Tanzania.

The average trading price for the bank has been lower than the official closing price but due to lowered activities on the counter, the volume has not been enough to alter the price. CRDB has moved 347,463 shares during the week, realizing a weighted average price of 208.77/- for the week while the official closing price is still 220/-. The price of JATU is now finding its balance between 1,800/- and 2,000/-.

The counter moved 29,395 shares during the week, while the weighted average price realized was 1,898.74/-. The price was still bullish at the beginning of the week and took an about turn on Wednesday to end the week on a bearish mode. The counter entered the week at 1,720/- and closed the week at 1,860/-. The net appreciation was 9.3 per cent. Both indices faced down during the week under review as prices were retreating.

The Tanzania Share Index (TSI) lost a 0.44 point as a result of a decline of the price of DSE. DSE traded 16,076 shares, realizing a weighted average price of 1,072.6/- while closing the week at a price of 1,040/- from the previous week’s 1,100/-. The decline on the DSE counter was enough to offset the appreciation of JATU, for the TSI to close on a net bear.

The All Share Index (DSEI) also lost 9.62 points following a decline of the giants, East African Breweries (EABL) and KCB Bank (KCB) by 1.13 per cent and 2.41 per cent respectively. National Media Group (NMG) rose by 24.07 per cent following the news of a share buyback programme announced by the company during the week.

The company announced that it’s looking to buy back up to 10 per cent of its shares listed on the Nairobi Stock Exchange. Usually a buyback programme indicates confidence a company has on its prospects relative to the valuation of its shares on the open market.

When a company believes its shares are undervalued, the company may opt to buy back the shares at market prices, and the news usually props up the prices of the company in question. The buyback news comes two weeks after NMG launched a premium section of its digital platform Nation.Africa, where consumers shall access exclusive, in-depth and analytical content for a fee.

NMG initially launched the digital platform in August 2020, and now has launched the premium section. Given the news and the announced share buyback programme, NMG is displaying confidence on the future of the company. It is believed that, the bullish trend of the U.S market on the better part of the last 10 years is on the back of share buyback programmes.

Late last year Dangote Group announced that they will be buying back up to 10 per cent of its shares, and has now already bought about 0.4 per cent. The DSEI at the end of the week stood at 1,844.09 points while the total market capitalization was TZS 15,320.86bln ($6.63bln).

The TSI closed the week at 3,508.81 points and correspondingly the domestic market capitalization dropped by a marginal 0.012 per cent to a total of TZS 9,225.45bln ($3.99bln). Market, Bills and Bond The week had only three reported trading sessions on the Interbank Cash Market (IBCM), similar to the previous week.

The total value of transactions for the week fell by more than half while the interbank rate plunged, indicating tightening liquidity in the banking sector. The total weekly transactions amounted to TZS 18.9bln ($8.18mln). The interbank rate went up by 100bps to 4.5 per cent.

Currency Market The value of transactions on the Interbank Foreign Exchange Market (IFEM) went up by 11.8 per cent to a total of $4.46mln as the shilling held ground.

The shilling maintained resilience with a slight appreciation by a pip. The shilling has already depreciated by more than 25 pips since the second week of January, which was the last week with weekly transactions above $5mln.

The weighted average exchange rate during the end of the week under review was TZS 2,309.97/USD

Posted on

South Africa: Emerging Markets’ Bonds Stand to Bear the Brunt of a Risk-Off Response to Global Inflation Fears

south africa emerging markets bonds stand to bear the brunt of a risk off response to global inflation fears
aa logo rgba no text square

US bonds just keep on rising despite the US Fed again insisting this week that it doesn’t see inflation becoming a problem. A continuation in this vein spells bad news for emerging markets’ currencies and assets, with bonds likely to be worst hit by an erosion of their yield premiums in what has been a low-yielding investment world.

All eyes have been on rising US bond yields as fears of global inflation have prompted investors to anticipate an earlier-than-expected withdrawal of central bank support.

For South Africa and other emerging markets, the concern is that higher US bond yields could undermine risk-on investor appetite for emerging market assets. That could put paid to growing market consensus that 2021 could be a bumper year for developing countries, supported by a combination of robust global economic growth and low developed-market yields.

Since the start of the year, US 10-year Treasuries have added more than 50 basis points in response to rising inflation expectations. However, firm evidence of inflation rising is yet to come through and thus it’s a move that could well prove to be premature.

Investors are now seeing the Fed increasing interest rates for the first time in 2023 -…

Posted on

Angola: Micro, Small and Medium-Sized Companies Get New Regulation

angola micro small and medium sized companies get new regulation

Luanda — The Economic Commission of Cabinet Council approved Friday a new regulation of the Law on Micro, Small and Medium Enterprises, aimed at improving the business environment in the country, states a communiqué released at the end of the session chaired by the President João Lourenço.

It states that the move is meant to respond to the requirements of the current context, establishes the procedures for classification, constitution, certification and accountability.

The Angolan Executive wants to foster the development, competitiveness of micro, small and medium-sized companies, as well as individual traders.

The aim is to generate jobs and improve income distribution, social inclusion, reducing informality and strengthening the economy.

The meeting also approved measures for the management of marine fisheries, continental fisheries, aquaculture and salt for the year 2021, as part of the protection of aquatic ecosystem resources and fisheries policy

The Economic Commission also approved the project for the recovery of urban solid waste in the province of Luanda, which contains the measures for the implementation of a new collection and treatment model, with greater installed capacity for this purpose.

On the other hand, the session approved the balance sheet report of the National Development Plan 2018/2020 aimed at ensuring the implementation of the measures planned for the said period and assesses the degree of achievement of the planned objectives.

In terms of the State’s financial activity, the Economic Commission approved two balance sheet reports on the execution of the National Treasury’s financial programming – the fourth quarter of 2020 and the financial year 2020.

The Commission also approved the National Treasury cash plan execution balance report for December 2020.

Finally, the Economic Commission was informed about the evolution of the foreign exchange market during 2020, as well as the monetary policy measures that the National Bank of Angola has been implementing, with a view to improving liquidity control in national currency.

It states that the move is meant to respond to the requirements of the current context, establishes the procedures for classification, constitution, certification and accountability.

The Angolan Executive wants to foster the development, competitiveness of micro, small and medium-sized companies, as well as individual traders.

The aim is to generate jobs and improve income distribution, social inclusion, reducing informality and strengthening the economy.

The meeting also approved measures for the management of marine fisheries, continental fisheries, aquaculture and salt for the year 2021, as part of the protection of aquatic ecosystem resources and fisheries policy

The Economic Commission also approved the project for the recovery of urban solid waste in the province of Luanda, which contains the measures for the implementation of a new collection and treatment model, with greater installed capacity for this purpose.

On the other hand, the session approved the balance sheet report of the National Development Plan 2018/2020 aimed at ensuring the implementation of the measures planned for the said period and assesses the degree of achievement of the planned objectives.

In terms of the State’s financial activity, the Economic Commission approved two balance sheet reports on the execution of the National Treasury’s financial programming – the fourth quarter of 2020 and the financial year 2020.

The Commission also approved the National Treasury cash plan execution balance report for December 2020.

Finally, the Economic Commission was informed about the evolution of the foreign exchange market during 2020, as well as the monetary policy measures that the National Bank of Angola has been implementing, with a view to improving liquidity control in national currency.

Posted on

Nigeria: NSE – Heavy Sell-Offs in Wema, Zenith, MTNN Shares Spur N155 Billion Loss

nigeria nse heavy sell offs in wema zenith mtnn shares spur n155 billion loss
aa logo rgba no text square

The market’s cumulative loss for February stood at N1.363 trillion.

Nigerian stocks tumbled 0.74 per cent on Friday as Wema Bank’s 2020 financials release failed to wow investors, and profit-taking deepened across the market as Zenith Bank and wireless operator MTNN saw huge sell-offs in their shares.

The market lost N155 billion, bringing the cumulative loss for February to N1.363 trillion, on its last day of trade.

That compares with a total capital gain of N1.130 trillion the month before.

A 2.32 per cent slide in the insurance index to 202.09 points, which was the runt of the litter among the five sectorial indices, complicated investors’ woes.

Market breadth was negative, with 24 fallers recorded against 17 gainers.

The benchmark index contracted to 39,799.89 points, while market capitalisation eased to N20.823 trillion at the end of trade.

Year to date, the index is down by 1.17 per cent.

TOP FIVE GAINERS

Oando led the flock of gainers, appreciating by 9.82 per cent to close at N1.23. Mutual Benefits added 0.40 per cent to end trade at N8.11. Courteville was up by 5 per cent at N0.21. Oando rose to N3.45, notching up 2.99 per cent in the process. NAHCO completed the top 5, climbing by 2.70 per cent to N2.28.

TOP FIVE LOSERS

Wema led losers at Friday’s trade, declining by 10 per cent to close at N0.63. Champion Breweries shed 10 per cent to end trade at N2.52. Sunu Assurance fell to N0.66, losing 9.59 per cent. Africa Prudential slumped to N5.75, recording 45.74 per cent depreciation. Mansard closed at N1.06, going down by 5.36 per cent.

TOP FIVE TRADES

In all, 507.254 million shares estimated at N2.443 billion were traded in 4,465 deals.

Wema was the most active stock with 304.527 million of its stocks worth N197.628 million traded in 58 deals. 30.754 million units of FBN Holdings shares priced at N226.051 million exchanged hands in 219 transactions. Zenith had 26.613 million shares valued at N677.409 million traded in 555 deals. Transcorp traded 22.926 million shares estimated at N20.681 million in 130 transactions. UCAP traded 17.150 million shares valued at N104.609 million in 255 deals.

Posted on

Nigeria: Nigerian Stocks End Two-Day Rally With N66bn Loss

nigeria nigerian stocks end two day rally with n66bn loss

The benchmark index fell to 40,095.49 points while market capitalisation contracted to N20.978 trillion at the end of trade.

Nigerian stocks ended their short-lived rally Thursday with an 0.31 per cent decline, as bank equities led a N66 billion drawback that obliterated the feeble gains reported on Tuesday and Wednesday.

The benchmark index fell to 40,095.49 points while market capitalisation contracted to N20.978 trillion at the end of trade.

Nigerian Breweries joined big lenders Zenith, UBA, Access as well as investment banking company United Capital in the biggest losses.

The banking index, worst hit by the depreciation, went down 1.44 per cent to 384.62 points.

Market breadth was positive with 26 gainers emerging against 14 losers.

Year to date, the index is down by 0.44 per cent.

TOP FIVE GAINERS

Chams led the flock of gainers, appreciating by 9.09 per cent to close at N0.24. Royal Exchange added 8 per cent to end today’s trade at N0.27.

Wema went up by 7.69 per cent to N0.70, following a 14.8 per cent revenue drop in its 2020 financials that also saw profit decline, in this case marginally by 2.7 per cent.

Red Star Express rose to N3.30, notching up 5.77 per cent in the process. Prestige completed the top five, climbing by 4.55 per cent to N0.46.

TOP FIVE LOSERS

Lasaco was the worst performing stock, declining by 9.68 per cent to close at N1.12. Fidson fell to N4.90, losing 8.41 per cent. ETI dipped to N5.20, recording 6.31 per cent depreciation. Mutual Benefit shed 5.13 per cent to close at N0.37. UACN closed at N7.55, going down by 5.03 per cent.

TOP FIVE TRADES

In all, 326.042 million shares estimated at N3.713 billion were traded in 4,567 deals.

Transcorp was the most active stock with 48.439 million units of its stocks worth N43.727 million traded in 136 deals. 33.887 million units of Dangote Sugar shares priced at N611.834 million exchanged hands in 253 transactions.

UBA traded 27.468 million shares estimated at N229.570 million in 226 transactions. Zenith Bank traded 24.566 million shares valued at N637.594 million in 566 deals. United Capital had 19.239 million shares valued at N118.035 million traded in 267 deals.

Posted on

Nigeria: Edo Shuts Illegal Cattle Markets

nigeria edo shuts illegal cattle markets
aa logo rgba no text square

Edo State Governor Godwin Obaseki has ordered the immediate closure of all illegal cattle markets across the state following a recent clash between youths of Ogheghe and youths of Hausa communities in Ikpoba Okha local government of the state.

Obaseki gave the order in Benin City on Wednesday evening during a meeting with members of Arewa Community, security agencies and members of Ogheghe Community in Ikpoba Okha Local Government Area of the state, following the recent clash in the area.

He said his administration has realized that there are still illegal cattle markets operating across local governments in the state.

According to him, the illegal grazing may have been responsible for the clash witnessed recently in Ogheghe Community.

“All illegal cattle markets in Edo state must be closed .Local governments are to submit all approved legal cattle markets and Landlords are warned never to allow their premises to be used for sales of cattle unless such premises have been approved. If not, the affected cattles will be confiscated.”

Obaseki expressed worry that the peace mechanism put in place some years ago by his administration was not working as expected and ordered that the Peace Committee be reconstituted and names of members submitted to his office before 1st of March 2021.

“The Peace Committee (comprising Arewa Community, Local governments and traditional institutions in the local government) set up two years ago are not working effectively as they should.

He however commended the security agencies for their efforts in restoring peace to the area.

The Commissioner of Police, Philip Ogbadu, urged the community to live in peace.

He however advised them to report any strange faces in the area to the nearest police station.

The leader of the Arewa Community, Alhaji Badamasi Saleh and the Enogie of Ogheghe, HRH Ogbonmwan Michael,commended the governor for his prompt response in restoring peace in the area.

Posted on

Nigeria: All-Share Index Appreciates By 0.14% As Market Sustains Gain

nigeria all share index appreciates by 0 14 as market sustains gain

The stock market sustained its positive performance for the second day as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose 0.14 per cent to close at 40,221.30, while market capitalisation added N29.5 billion to close at N21.043 trillion.

The gain recorded followed increased buying interest in Lafarge Africa Plc, Zenith Bank Plc and Guaranty Trust Bank Plc. A total of 22 stocks appreciated compared with 20 that depreciated. Market operators said bargaining hunters are positioning for dividends that are being declared for the 2020 earnings season. United Capital Plc and African Prudential Plc had last week announced dividends of 70 kobo and 50 kobo last week.

Leading financial institution, Zenith Bank Plc on Tuesday announced a final dividend of N2.70 per share after reporting an improved audited results. Details of the results showed that Zenith Bank posted net interest income of N299.682 billion, up from N267.031 billion in 2019, while net fee and commission income stood at N79.332 billion as against N100.106 billion in 2019. Impairment charges rose from N24.032 billion to N39.534 billion.

Profit before tax (PBT) grew by 5.2 per cent from N243.294 billion to N255.861 billion, just as profit after tax (PAT) rose by 10.4 per cent to N230.565 billion from N208.843 billion in 2019.

Based on the performance the board announced a final dividend of N2.70 per share, to bring the total dividend to N3.00 having paid an interim dividend before now.

Analysts at Cordros Securities had said Zenith Bank’s performance was above their performance. According to them, they had had expected that the combination of a slowdown in business activities due to the pandemic and continual sterilisation of funds by the Central Bank of Nigeria (CBN) would result in weak income generation.

“However, the bank was resilient during the period, with this positive performance ultimately propelled by the strong balance sheet management and much-reduced tax expense,” they said.

The shares of Zenith Bank rose from N26.00 to N26.30 to be among the price gainers. But Oando Plc led the table with 10 per cent, trailed by ABC Transport Plc with 9.3 per cent. Japaul Gold and Ventures Plc chalked up 9.2 per cent.

Conversely, LASACO Assurance Plc led the price losers with 9.4 per cent, trailed by Consolidated Hallmark Insurance Plc with 8.3 per cent. Cornerstone Insurance Plc and Flour Mills of Nigeria Plc 7.8 per cent and 6.9 per cent respectively.

Posted on

Zimbabwe: Bvta Calls for Clarity in the Decentralisation of Markets

zimbabwe bvta calls for clarity in the decentralisation of markets

Bulawayo Vendors and Traders Association (BVTA) has bemoaned the lack of clear guidelines in the relocation of vendors from the Central Business District (CBD) to the high-density suburbs as part of efforts to minimise the spread of Covid-19.

Last year the Bulawayo City Council (BCC) ordered more than 600 vendors who were trading at the 6th Avenue in the CBD to move to vending spots closest to their places of residence.

The local authority had said the relocation would be informed by the existing City of Bulawayo’s vendors database.

Speaking during a meet the councillors online meeting last week hosted by BVTA, the association’s president, Aleck Ndlovu said the decentralisation process is not effective.

“The other challenge is that the decentralisation of traders from the CBD to the suburbs is not visible I would say, according to me it’s not visible, there are plans, City Council talks about having identified these hubs where the wholesalers are going to be selling stuff from the identified site but on the other hand they also talk about negotiations with those people who are in the wholesale trade business, so we don’t know where really City Council is standing, it is not visible,” said Ndlovu.

He said their expectations were that the setting up of the markets would be expedited in light of Covid-19.

Ndlovu added that the current lockdown also affected the livelihoods of most vendors as they were not operating.

“The other challenge that we face is that we bemoan the slow pace of licensing by City Council, members were in the course of renewing licenses but lockdown put that off due to closure of the offices for some time,” he said.

“You will realise also that towards the end of the year the markets were briefly reopened and it brought temporary relief to our traders but it was short lived.”

Meanwhile, responding to some of the questions ward 10 councillor Sinikiwe Mutanda highlighted that the decentralisation process was meant to decongest the CBD.

“We are currently making a plan on making these market structures, we noticed that with this lockdown, people still needed passes to go into town but when these market structures are put in place it would reduce the number of people going to town as they can buy within their suburbs.”

She added that “The other important thing as vendors, let us get licenses to operate as this helps even Council so that when we start a project, for example, market clusters, it makes it easier for planning processes so that people can be allocated good spaces in shopping areas.”

Source: Centre for Innovation and Technology (CITE)

Posted on

Zimbabwe: Seedco Dismisses Foul Play in Exiting ZSE

zimbabwe seedco dismisses foul play in exiting zse

Listed seed manufacturing giant, SeedCo International Limited (SCIL) has dismissed as false allegation of foul play after its recent decision to delist its local unit SeedCo Limited (SCL) from the Zimbabwe Stock Exchange (ZSE).

The remarks come shortly after asset management company, Imara which has been investing in SeedCo Zimbabwe for over 20 years on behalf of its clients raised concerns the de-listing was biased in favour of one shareholder, Limagrain.

Imara also alleged local investors would be sidelined and shortchanged as SeedCo’s local unit shares on the ZSE are worth US$100 million and risk being taken over by SCIL whose shares are worth US$70 million.

The asset management company also claimed it will be impossible for Zimbabwe pension funds and private individuals with no access to foreign exchange to buy US$ shares after SCIL’s listing on the Victoria Falls Stock Exchange (VFEX).

However, in response to the allegations, SCIL said that local investors still have the opportunity to invest in US$ shares and stand the opportunity to derive lucrative benefits.

“The gazetting of Statutory Instrument 280 of 2020 (“SI 280″) which allows for payment of pension contributions and benefits and payment of insurance premiums and settlement of insurance claims in the USD currency, should result in improved activity on the newly created VFEX,” SCIL said.

The seed manufacturer said retail investors will soon start participating on the VFEX as more workers and informal players begin to receive part or all of their earnings in US$.

SCIL said allegations to the effect that the proposed transaction was designed to benefit only one shareholder, Limagrain, are misplaced because both SCIL and SCL shareholders are set to derive benefits through the harmonisation of synergies as well as the elimination of duplicated functions and associated costs.

The company said the swap ratio of one SCIL share for every 0.98 SCL shares held was arrived at using intrinsic valuations of the two companies.

“The valuations were reviewed by independent experts appointed by the boards of both SCIL and SCL, Grant Thornton and Deloitte respectively who both confirmed that the swap ratio was fair and reasonable to the respective shareholders they were representing,” SCIL said.

Whilst SCL owns most of the intellectual property, it was noted it was of little value if it is not leveraged to generate sales. The distribution footprint is also important whilst the technology still enjoys patent protection.

SCIL added that the de-listing was done in line with ZSE regulations and concluded that there was no illegality on the transaction.

Posted on

Tanzania: Local Investors Dominate DSE Market Activities

tanzania local investors dominate dse market activities

LOCAL investors on the Dar es Salaam Stock Exchange (DSE) became dominant last week accounting for 99.86 per cent of the total investments and 98.84 per cent of the total divestments.

During the week under review, the foreign investors took a back seat along with zero transactions at the TBL counter.

According to the Weekly Market Synopsis from Orbit Securities, the major market movement was seen on Thursday when CRDB Bank saw a prearranged block transaction involving a little over 3 million shares at a price of 200/- between local investors.

Automatically CRDB Bank became the top mover for the week, accounting for 93.1 per cent of the total weekly equity turnover.

CRDB Bank moved a total of 3.19 million shares during the week and realised a weighted average price of 201.17/- per share, highly skewed downwards by the prearranged block.

Normalising the block transaction, the average price rose up to 214.99/- per share, although still lower than the closing price of 220/-.

It seems the restrictions on dividend payment subject to regulatory cost to income ratio (CIR) and non-performing loans (NPL) ratios are still weighing on the price of the bank.

The total equity turnover for the week went up by 96.4 per cent to a total of 689.93m/- mostly as a result of the prearranged block transaction at the CRDB Bank counter.

The total number of shares traded rose from 0.28 million to 3.23 million shares traded in 143 deals.

Due to its low price and high magnitude of the listed shares and free float, trading sessions that are dominated by CRDB Bank usually have a large amount of volume of shares on transactions.

Both indices were on the green during the week, although both by a slight. The Tanzania Share Index (TSI) gained a 0.44 point to close the week at 3,509.25 points.

The gain follows a marginal 0.012 per cent growth of the domestic market capitalisation to 9.22tri/-.

Jatu was the only counter that saw its price move during the week after a significant appreciation of 43.33 per cent to close the week at a price of 1,720/- per share.

Due to its trivial weight on the TSI, a significant move on the price of Jatu has a minuscule impact on the index.

The All Share Index (DSEI) also gained a 0.81 point to close the week at 1,853.71 points. Correspondingly, the total market capitalisation grew by 0.04 per cent to close the week at 15.40tri/-.

The total market cap is still down 9.92 per cent since the beginning of the year.

The appreciation resulted from the giant, KCB Bank (KCB) which grew by 5.06 per cent. Other domestic counters that saw movements were on the losing side.

The National Media Group (NMG) fell by 6.9 per cent, Jubilee Holdings (JHL) dropped by 3.48 per cent, awhile other giant East African Breweries (EABL) dropped by 3.28 per cent.