DAR ES SALAAM, Last week proved promising for the Dar es Salaam Stock Exchange (DSE) as key indicators like traded value and domestic market capitalization rose significantly.
In a report by Zan Weekly Wrap-ups, a staggering 100.29 percent growth from the previous week took the total trade value to 1.194bn/-. Leading the charge in market turnover were high-performing stocks like CRDB, Voda, and NMB, contributing 67.55 percent, 17.17 percent, and 8.8 percent respectively.
Of the domestic stocks making headlines, Tanga cement stole the show, soaring by 3.26 percent, ending the week priced at 1,900/- per share. This robust performance is especially significant given the existing ambiguities related to its acquisition by Scancem. An Orbit Securities review highlighted the Tanga cement stock’s success as “remarkable amidst the current unpredictability of its acquisition discussions.”
In a turn of events from last year's 22bn/- loss, Tanga Cement is back on the radar after previously boasting a 3.0bn/- profit in 2021. NMB shares also enjoyed a boost, escalating by 2.22 percent, marking the end of the week at 3,680/- per share.
However, not all stocks shared this prosperity. CRDB witnessed a reduction for the second week in a row, ending at 460/- per share—a 1.08 percent dip. NICO, too, suffered a decrease, falling by 1.03 percent to settle at 480/- per share.
Market capitalization metrics also delivered mixed results. While there was a marginal 0.67 percent drop in total market capitalization (finalizing at 14,911.25bn/-), domestic market capitalization showed a 0.28 percent upswing, reaching 10.92tri/- by week's end.
Key indexes like the All-Share Index (DSEI) and Tanzania Share Index (TSI) closed at 1,788.18 and 4,130.97 points, reflecting a decrease of 0.67 percent and an increase of 0.41 percent respectively.
Orbit's analysis indicates that domestic investors have consistently dominated for nearly a year. This trend, according to Orbit, is due to global rate hikes encouraging investors to gravitate toward stable returns in international financial arenas. Mounting worries over currency risk in African countries further dissuaded foreign portfolio investments.
While there's been a downturn in equity market action, experts believe that the market is currently undervalued and possesses substantial growth prospects.