Dar es Salaam Stock Exchange (DSE) recorded positive price movements that helped to spark rally in stocks in May but failed to increase the market turnover.
The bourse, according to Zan Securities’ Market Monthly Outlook, saw nine counters registering price gain against seven in April while two counters registered price drop.
Zan Securities said in the report that they saw both compelling opportunities in the stock market and potential for a solid year of returns attributed to steady growth of DSEI and TSI.
“…But we do expect relatively more volatility along the way as we approach halfway through the year,” Zan Securities said. The DSE index (DSEI) gained 4.4 per cent while the Tanzanian share index gained 2.4 per cent.
On other hand, the stock market recorded a turnover of 2.18bn/- in May, which was an 87.47per cent decrease from April turnover of 17.4bn/-.
Read: Dar es Salaam Stock Exchange suspends Jatu Plc for two months
The local stocks gainers in May were CRDB Bank from 230/- to 285/-, DSE from 1,100/- to 1,200/-, NICOL 200/- to 215/-, Tanga Cement 390/- to 395/- and Twiga Cement 2,500 to 3,200/-.
The cross-listed firm where EABL gained from 3,620/- to 4,000/-, Jubilee Holdings 5,950/- to 6,050/- KBC Bank from 860/- to 910/- and National Media 350/- to 410/-.
The losers in May were Jatu, an agri-based starterup, from 1,460/- to 1,200/- before was temporarily suspended from trading to pave the way for the initial primary offer and TOL Gases from 550/- to 500/-.
On the year to May basis, eight counters registered a price increase while one, Simba Cement, recorded a price drop.
The year to date gainers were CRDB opened the year traded at 195/- a share but closed last month at 285/- a stock, DSE traded at 800/- and closed at 1,200/-, NICOL 185/- to 395/- and Twiga Cement 2,500 to 3,200/-.
For cross-listed EABL opened the year at 3,250/- and closed last month at 4,000/-, JHL 5,800/- to 6,050/-, KCB 800/- to 910/- and NMG 330/- to 410/-.
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Zan Securities report showed that in government bonds the Bank of Tanzania issued two Treasury bond auctions, 20 year Treasury bond and 7 year Treasury bond in May.
The 20-year Treasury bond was issued with a coupon rate of 15.49per cent and fetched a weighted average price of 100.46 with a 15.4182 per cent weighted average coupon yield.
On the other hand, the 7-year Treasury bond was issued with a coupon rate of 10.08per cent fetching a weighted average price of 99.7165, and a weighted average coupon yield of 10.1per cent.
