The Dar es Salaam Stock Exchange (DSE) experienced a significant decline in market value last week, with a loss of Sh438.95 billion. This drop pushed the total market capitalisation down by 1.08 percent to Sh40.37 trillion, down from Sh40.81 trillion in the previous week. The decline was attributed to a price drop across several counters. Domestic market capitalisation also fell by 1.57 percent, from Sh28.32 trillion to Sh27.88 trillion.
The Tanzania Share Index (TSI) declined by 1.57 percent, mirroring the drop in domestic market capitalisation. The decline in TSI and overall market capitalisation is expected to lead to cautious market behaviour. Despite a marginal increase in equity turnover, which rose 1.47 percent to Sh27.87 billion, the number of shares traded fell by 8.68 percent to 11.66 million. This indicates weaker trading activity across most counters.
According to Vertex International Securities Ltd's weekly market review, the decline in market capitalisation and TSI may lead to selective investor participation. Manager of Research & Analytics at Vertex International Securities Ltd, Mr Frank Abel, noted that investors are likely to remain selective due to the current market conditions. CRDB led trading activity during the week, recording a turnover of Sh15.8 billion, equivalent to 56.69 percent of total market turnover.
The top-performing stocks of the week were NMG, Nicol, and TTCL, which gained 8.62 percent, 4.43 percent, and 3.67 percent, respectively. On the other hand, MBP, DCB, and AFRIPRISE were among the losers, declining by 7.44 percent, 4.76 percent, and 4.49 percent, respectively. The DSE All Share Index (DSEI) fell 1.08 percent during the week, from 4,682.13 to 4,631.77.
The sector indices also experienced significant movements, with the Banks Index (BI) recording the largest decline at 2.22 percent. The Consumer Services Index declined by 1.56 percent, while the Industrial and Allied Index was the only major index to post a gain, rising 0.43 percent. Exchange-traded funds (ETFs) recorded combined turnover of Sh799.10 million during the week.
In the fixed-income market, 78 secondary bond market transactions generated a turnover of Sh102.95 billion during the week. The Bank of Tanzania conducted a 15-year Treasury bond auction on September 30, attracting 312 bids, of which 208 were accepted, raising Sh196.51 billion. The market movements reflect investors' ongoing assessment of returns across equities and fixed-income securities.
Market analysts, including Vertex, expect selective participation in the equity market in the near term. The recent market trends indicate that investors are becoming more cautious and selective in their investment decisions. As the market continues to evolve, investors will likely focus on stocks with strong performance potential.
Key points
- The Dar es Salaam Stock Exchange lost Sh438.95 billion in market value last week.
- Total market capitalisation dropped to Sh40.37 trillion, down 1.08 percent from the previous week.
- The Tanzania Share Index declined by 1.57 percent, mirroring the drop in domestic market capitalisation.
