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Tanzania: DSE Turnover Reaches 74bn/ – Year to Date

tanzania dse turnover reaches 74bn year to date

EQUITIES continue to rally the market as the Tanzania Share Index (TSI) gains 4.45 per cent from the start of the year to date, largely attributed to the increase in prices of CRDB, DSE, TPCC, TCCL and NICO.

Market turnover indicates how much trading activity took place on a given business day in the market as a whole, the Dar es Salaam Stock exchange equity trading activities has stemmed 74bn/-transacted between investors from the start of the year to 19th August 2021.

Higher turnover in a stock indicates better liquidity which means that it is easier to sell the stock in the market. Stocks that recorded turnover higher than 1.0bn/- in the period include: CRDB 12.35bn/-, DSE 1.67bn/-, NMB 18.21bn/-, TBL 19.38bn/-, TPCC 12.57bn/- and Voda 4.7bn/-.

All sectors posted gains during the year as the stock market performance was quite broad-based. Industry and allied was the best-performing sector, trading over 35.29bn/- spurred by stable yields. Banking came in second, trading over 30.56bn/- spurred by good 2020 end of year financial results. Investors continued the broad trend of rotation towards value stocks and large-cap stocks during the period.

Why is stock market liquidity important?

Liquidity describes the extent to which an asset can be bought and sold quickly and at stable prices. In simple terms it is a measure of how many buyers and sellers are present, and whether transactions can take place easily. If there are only a few market participants, trading infrequently, it is said to be an illiquid market or to have low liquidity.

Usually, liquidity is calculated by taking the volume of trades. As indicated above total turnover for the Dar es Salaam Stock market for locally listed stocks was 74bn/-.

The Dar es Salaam stock exchange has shown high levels of liquidity arising due to significant levels of trading activity owing to high supply and demand for stocks, as it is easier to find a buyer or seller. Most stocks that have traded during the period include ones that have announced dividends as investors are looking to cash in on equity returns as the fixed income market continues to suffer from low yields.

Key drivers for the stock market growth are:

(1) Stronger earnings expectation – We expect stronger earnings expectation in the Industry & Allied (IA) Banks, Finance & Investment sectors to stimulate demand for stocks.

(2) Increased foreign investor participation – we expect the recovery and stable outlook of the Tanzanian currency supported by improving economic conditions to boost investor confidence in the stock market and create more demand for stocks.

From a valuation perspective, Industry & Allied (IA) Banks, Finance & Investment the banking sectors are highly attractive with some key listed companies in the sectors trading at attractive metrics.

Enduring good performance of the stock market, our outlook appears to lean favorably as we expect the stock market indices to replicate positive growth trends as we head into September. High demand for CRDB, DSE, TCCL and TPCC will likely push their respective prices up in September.

Positive economic momentum

Expansive monetary policy by the central bank will accelerate economic growth and improve market liquidity; a low lending interest environment will lower borrowing cost making equities the most attractive option in risk assets. We expect the remainder of 2021 to be characterized by sector and stock selection as the market transitions to an economic expansion and stronger focus on valuations. Furthermore, equities in the stock market continue to make new highs as The Tanzania Share Index (TSI) is up by 4.45 per cent YTD with individual stocks such as CRDB up by 33.3 per cent and TPCC up by 56 per cent YTD and we continue to see improving economic environment. Expansive monetary policy by the central bank will accelerate economic growth and improve market liquidity.

Low Treasury bond yields

The yield curve, typically represented by the 20-year and the 2-year Treasury yield will continue to fall. A steep yield curve in the primary Treasury bond market often precedes a period of economic expansion. We will continue to see a low yield environment as the central bank continues to implement expansive monetary policy. We expect the central bank to remain cautious and diligent about maintaining expansionary policy.

The analysis is compiled by Zan Securities, a capital markets and securities authority licensed dealer and a member of the Dar es Salaam Stock Exchange (DSE). It is currently one of the leading stock market dealers in terms of modern ICT infrastructure and branch network from Zanzibar and Tanzania Mainland.

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Namibia: Mtc to Prioritise Previously Disadvantaged On Listing

namibia mtc to prioritise previously disadvantaged on listing
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IF TOO many people and companies want to buy shares in Mobile Telecommunications Limited (MTC), priority would be given to previously disadvantaged Namibians, MTC has said.

The company announced this last Friday, and has set 20 September this year as the date to release the prospectus detailing how much its shares will cost as the company prepares to go public.

Approval to list has been granted by the Namibian Stock Exchange (NSX) and the prospectus was submitted to the registrar of companies last week.

The listing of MTC’s 49% is the largest proposed listing by a Namibian company since the establishment of the NSX and will have Namibia Post and Telecommunications Holdings Limited (NPTH) retaining the 51%.

NPTH – A 100% state-owned company holds majority of the market share in the country’s telecommunications industry through MTC and Telecom Namibia.

MTC is expected to be listed before the end of November 2021.

“We take great pleasure to invite you to share in the prosperity by subscribing for shares in this truly Namibian company. The listing will provide an opportunity for all MTC customers, staff, stakeholders, and the public in general, to acquire MTC shares and participate in the ownership,” said MTC.

Previously disadvantaged Namibians will be given preference on the shares, then MTC staff and customers, followed finally by Namibian institutions, the Southern African Development Community and international investors.

Full details of the public offer will be disclosed in the prospectus.

The offer to subscribe for shares is expected to close at 12h00 on 1 November 2021.

Following the announcement, the internet was abuzz with several Namibians overjoyed. Among them was former NPTH board member Ally Angula who said this listing is a “win for the Namibian people. Please register to buy your share of a great Namibian brand”.

The information and technology sector in which MTC is part, registered a 17,4% growth in 2020 and is expected to grow by 7,4% this year according the Bank of Namibia predictions.

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Tunisia: Net Foreign Exchange Reserves Down 1,945.4 Million Dinars – BCT

tunisia net foreign exchange reserves down 1945 4 million dinars bct
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Tunis/Tunisia — Net foreign exchange reserves stood at 19.731 billion dinars (123 days of import) until August 18, against 21.676,4 billion dinars (143 days of import) in the same period last year, posting a drop of 1.945,4 billion dinars (-20 days of import).

This drop is due to the 71.9% fall in cumulative tourism revenues until August 10, compared to 1.317,7 billion dinars last year, preliminary data of the Central Bank of Tunisia (BCT) issued Thursday showed.

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Nigeria: Oil Companies Owe NDDC Over $4 Billion – Minister

nigeria oil companies owe nddc over 4 billion minister
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The NDDC law mandates IOCs to pay three per cent of their revenue to the agency, but that has not happened over years.

International oil companies operating in Nigeria are owing the Niger Delta Development Commission (NDDC) over $4 billion, the Minister of Niger Delta Development, Godswill Akpabio.

Mr Akpabio said this Thursday while briefing journalists at the State House in Abuja at the weekly briefing organised by the presidential communications team.

He said the NDDC law mandates IOCs to pay three per cent of their revenue to the agency, but oil firms have been defaulting for years. The NDDC was set up in 2001 as an interventionist agency to aid the development of the oil-rich Niger Delta.

“All of them have been defaulting and efforts are ongoing to get them to pay,” Mr Akpabio disclosed.

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South Africa: JSE Opening Delayed By R140 Billion in Trading Over Naspers-Prosus Share Swap

south africa jse opening delayed by r140 billion in trading over naspers prosus share swap
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The JSE opened several hours late on Wednesday morning, not because hackers took the system down, but because R140bn worth of trading took place on Tuesday, double the usual volume, causing an almighty backlog. This followed the rebalancing of Naspers and Prosus on a number of indices.

Despite widespread shareholder reservations, Prosus’s offer to issue new shares in exchange for Naspers shares received the requisite shareholder support and was effected on Monday.

The share swap sees Naspers owning a 57% majority stake in Prosus, down from 73.2%. In turn, Prosus has taken up 45.33% of the total issued share capital of Naspers.

Considering that these are the biggest and sixth-biggest companies on the JSE, the transaction had a massive, if momentary impact on the JSE, which only opened for continuous trading at 2.30pm on Wednesday.

The weighting of Naspers in the JSE’s Top 40 moved from 15% to 8%, while Prosus moved from 11.1% to 9.6%. Similarly, on the Swix40 (Shareholder Weighted Index) Naspers was downweighted from 23.4% to 11.9%. And on the capped Swix40 (where weightings are capped at 10% regardless of their market capitalisation to reduce concentration risk), Naspers downweighted from 9.50% to 4.9%, while Prosus was upweighted…

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Nigeria: Covid-19 Relief – Customs Agents to Sue Terminal Operators, Shipping Companies

nigeria covid 19 relief customs agents to sue terminal operators shipping companies
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National Council of Managing Director of Licensed Customs Agents, NCMDLCA, is set to drag terminal operators and shipping companies to court over refusal to refund charges and levies collected from importers and their agents during the lockdown occasioned by the Covid-19 pandemic.

Recall that the Federal Government had directed terminal operators and shipping companies to grant 35 days demurrage waivers as relief to cushioning the economic effects of the pandemic.

To this effect, the Council petitioned the Secretary to the Government of the Federation, claiming that both Terminal operators and shipping Companies connived with the Nigerian Ports Authority, NPA, to undermine the relief measure.

NCMDLCA, in the petition signed by its National President, Lucky Amiwero, noted that the government directive conforms with the principle of force majeure restricting the movement of all agencies especially the Importer/ Licensed Customs Agents, LCA.

The petition read in part, “NPA aided the Terminal Operators and Shipping Companies by issuing the circular HQ/GM/MRS/OP/L.1/VOLII/434 OF 14TH MAY 2020 on the demand of the refund to the National Council Of Managing Directors of Licensed Customs Agents, NCMDLCA after the ease of the lockdown, when the Terminal Operators/ Shipping Companies have illegally and forcefully collected the rent of the 35 days without refund to the Importers/Licensed Customs Agents, LCA.

“The Management of the Nigerian Port Authority, NPA was forwarded with the Terminal Operators and Shipping Companies receipt of payment made by the importers/Licensed Customs Agents, LCA which falls under the date of the waiver of the 35 days that was illegally and forcefully collected, which was not paid up till date”.

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Tanzania: Dse Posts Mixed Movement for Local, Cross-Listed Shares

tanzania dse posts mixed movement for local cross listed shares

Dar es Salaam Stock Exchange (DSE) has posted a mixed movement where domestic and crosslisted stocks split between green and red. Tanzania Share Index (TSI) gained by 0.26 point following a 0.007per cent gain on the domestic market capitalisation.

The TSI and domestic market cap closed the week at 3,640.38 points and 9.588tri/- respectively for a week ended last Friday.

On the other hand, the All Share Index (DSEI) dropped by 0.87 points to close the week at 1,997.55 points, associated with a 0.04 per cent decline of the total market capitalisation to 16.613tri/- Orbit Securities said in its Weekly Market Synopsis that last week was the day for mixed reaction on share prices as the local stock went north while cross-listed stick to green while others went south.

“Another week of mixed movements on the major stock market indices on the DSE as only one domestic counter registered a price movement while cross-listed counters were equally split between green and red,” Orbit report said.

During the week, NICOL was the only counter that saw a price movement during the week as the counter’s price moved up 4.17per cent to close the week at 250/-.

“NICOL has been on a steady gradual climb and has already jumped 35.1per cent since the beginning of the year,” Orbit said adding: “NICOL is riding on the back of the performance of NMB which makes up more than 90per cent of NICOL’s holdings”.

For cross-listed, EABL and Jubilee Holdings (JHL) went down by 1.58ler cent and 9.62 per cent respectively.

The price dropping of the EABL and JHL pulled down the DSEI and neutralize the price climb on KCB Bank and National Media Group (NMG) which appreciated by 3.06 per cent and 4.95 per cent respectively.

Zan Securities said in its Weekly Market Wrap-Ups that CRDB emerged as this week’s top performer, capturing 94.48 per cent of the market share, thanks to a pre-arranged block trade of 3,000,000 shares.

Twiga cement counter came second at 2.56 per cent.

“In the previous week, NMB Bank led the market share but [last] week, its counterparts CRDB dominated the market share after posting a bullish performance from the high demand of the counter. “We anticipate these two counters will continue to trade high volumes on our exchange,” Zan said.

Vertex International Securities said Ty the equities market slowed down in performance last week as turnover and volume declined.

“Increase in foreign investors’ participation could not yield positive results this week as volume and turnover declined. “We did not experience a drop in prices for any domestic counter. We expect the market to perform well next week as impressive half year results keep on rolling out,” Vertex weekly report said. The market recorded a weekly turnover of 1.18bn/- against 6.66bn/-of previous week.

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Zimbabwe: C-Trade Buoys ZSE

zimbabwe c trade buoys zse

The launch of C-Trade has significantly improved participation of small retail investors on the Zimbabwe Stock Exchange (ZSE) accounting for more than 50 percent of volumes in the first half of 2021.

Zimbabwe launched the C-Trade — an automated trading platform in 2018, which effectively opened capital markets to all and enhanced financial inclusion.

Escrow Systems, a subsidiary of Escrow Group provided the technology that also enables mobile and online share trading, becoming a first of its kind in Sub Saharan Africa region. Although values still remain low, C-Trade has been a significant volume pusher on the bourse and the trend is continuing in the second half of the year.

For instance, on July 27, C-Trade accounted for 69 percent of the total trades recorded on the ZSE, which was a new record for retail participation. Of the 651 trades recorded, retail participation via the mobile application accounted for 449.

Financial Securities Exchange Limited (FINSEC) general manager Garikayi Munema, said as operators of exchanges, there were more opportunities available to ride on technology to attract more retail participation and make capital markets a preferred investment destination for Zimbabweans. Finsec is Escrow Group’s subsidiary.

“People have not been participating on equities market, which is why we brought C-Trade which allows anyone to trade from anywhere using their mobile devices.

“Since its launch, we have seen an impressive improvement in retail participation, although the values are still low, it is encouraging to see retail investors using C-Trade account for more than half the trades on the ZSE,” said Mr Munema.

Prior to the launch of C-Trade, it is estimated that only around 7 000 individuals were active on the local stock markets. Institutional investors dominated trades on the bourse. But through the initiative, small retail investors, right up to the largest institutions can have direct access to the equities markets.

Mr Munema said prospects were high for the platform with plans to widen product range, while further increasing retail participation.

“Our intention is to keep the platform growing by extending products and connections to other payment platforms such as ZIPIT so that we can have more people transact more values.

“We want to see shares, exchange traded funds (ETFs), derivatives on the C-Trade app, to increase participation. We want to ride on technology which is convenient and enhances efficiencies of capital markets so that we lure more retail participation and boost financial inclusion,” he said adding more products such as derivatives were in the pipeline.

Mr Munema said they were looking at futures and optional derivatives targeting both retail and institutional investors.

Derivatives are financial instruments created and derive their value from an underlying assets such as gold or a group of assets. The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates and market indexes.

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Zimbabwe: Guchu Lands ZSE Chief Finance Officer Position

zimbabwe guchu lands zse chief finance officer position
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Seasoned accountant, Prisca Guchu has been appointed chief finance officer at the Zimbabwe Stock Exchange (ZSE).

The appointment is with effect from August 11 2021.

Holder of a Master’s in Business Administration (MBA) from the prestigious University Of Bradford School Of Management, Guchu has a long professional history underpinned by a traceable record of integrity which began with Deloitte (Zimbabwe) where she trained and qualified as a Chartered Accountant.

She is a member of the Institute of Chartered Accountants of Zimbabwe (ICAZ).

Apart from the MBA she holds an Honours Bachelor of Accounting Science degree from the University of South Africa (UNISA) and a Bachelor of Commerce Honours degree in Accounting from the National University of Science and Technology (NUST).

Prior to joining the Zimbabwe Stock Exchange (ZSE), Prisca held a senior position in a capital market organisation and accumulated over eight years’ experience.

During her tenure, she played a key role in the automation of the Zimbabwean capital markets. Previous appointments include a senior role at an insurance group where she spearheaded the establishment of an Internal Audit department.

” The Board of Directors, Management and Staff at ZSE congratulate her in this position and warmly welcome Prisca to the team. We wish her success during her tenure in this new role,” ZSE chief executive officer Justin Bgoni said.

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Zimbabwe: Old Mutual Zimbabwe Awards 2021’s Top Companies

zimbabwe old mutual zimbabwe awards 2021s top companies

Twelve companies received awards at the annual Top Company Survey awards, held virtually last week. The prestigious awards, powered by Old Mutual Zimbabwe, defied all odds following the onset of the Covid-19 pandemic. The awards ran under the theme “From surviving to thriving: reimagining business after the pandemic”, as Zimbabwe’s companies are shifting to reach new heights despite the unpredictable environment. The awards celebrated companies that have elected not only to survive, but to seize current adverse conditions to reshape mindsets and behaviours, embracing the opportunity to innovate fresh solutions and make bold bets that spur growth.

The Top Company Survey recognises companies that are listed on the Zimbabwe Stock Exchange, as well as in the banking and insurance sectors. The survey considers a range of quantitative and qualitative aspects in order to determine and award the winning companies. In 2020, an entirely new evaluation model was created, that is adjusted in line with the hyperinflationary environment. The model was put to the test this year, and it demonstrated its resilience, robustness and functionality. Additionally, the insurance sector and banking sector models were adjusted in order to increase their relevance to the operating environment, enhance quality and increase objectivity of results.

Samuel Matsekete, Group CEO of Old Mutual Zimbabwe reinforced the significance of the theme and the impact of Covid-19 on the business environment. “We all appreciate the difficulties and abnormalities that have been created by Covid-19. We are in a third wave, which has brought with it new vicissitudes and created uncertainties in the markets,” he said.

Referring to the adage “nothing is constant except change”, Mr Matsekete said that threats to the endeavours of businesses are more real and more pronounced under the conditions such as those induced by Covid-19. More and more, businesses need to make increasingly difficult decisions faster, under conditions that are extremely volatile, uncertain, and often with less information. “Change is a constant and we cannot escape it. In a way, crises are adrenaline for innovation. Present and future times demand that our mindset truly embraces fast change so that these constraints feed the creativity in us. Necessity and urgency unleash in us the ideas and innovations to dissipate inertia and to spur us on,” said Mr Matsekete.

By solving challenges, striving to make lives easier, and working to make communities look and live better, businesses create value. Old Mutual believes that the value created from doing business needs to benefit wider communities, as well as customers, shareholders and other stakeholders. When business entities invite the public to participate in value creating activities, that fosters wider and inclusive economic growth. By listing on an exchange, a business exhibits even more transparently what it has to offer for the benefit of wider communities and stakeholder groups. As Old Mutual navigated through the Covid-19 pandemic, the business learned that agility is key to success. It allows the business to quickly respond to the sudden and constant changes in their customers’ needs- as they also respond to the changes in our environment. Agility defines who falls and who survives in troubled waters.

Lillian Mubayiwa, Old Mutual Zimbabwe’s Group Marketing and Innovation Executive, shared Old Mutual’s responsible business mindset, which underpins its operations even in turbulent times. “As a responsible business, Old Mutual believes that crisis begets opportunity. The company will continue to put its best foot forward, to be creative and to find novel solutions to customers’ problems. We will continue to reimagine the way we run our business, to deliver in-person experiences online and engage the customers in new ways,” she said. “We have committed to do great things always, by maintaining the forward momentum to partner with institutions that share the same philosophy.” While this year’s awards celebrated governance, profitability and corporate social initiatives, the occasion also marked the solid and enduring relationship between Old Mutual and the Financial Gazette, as the Top Companies Survey has been running for 41 years. “Our collaboration with the Financial Gazette on the Top Companies Awards is testament to our support of customers, who have continued to achieve greatness in the face of Covid-19,” Lillian Mubayiwa said.

An efficient and reputable stock exchange is anchored by companies that create real value. Old Mutual has committed to continue to play its role to support efficient and transparent financial intermediation. The company’s products and services continue to adapt, to respond to the voice of the customer, and are designed to support the development of the wider economy. Old Mutual congratulates all the winners of the Top Companies Survey 2021, as well as all companies who have continued to innovate and grow in these trying times.