IN the coming week, like previous week there could be an increase in market activities as we have witnessed increased in market activities during the start of the year 2021, we still prospect that the market will remain vibrant going forward, thanks to prospects from the banking sector performance for the year ended 2020 and activities in the industrial and allied sector.
The market will remain active during the week and mainly from the top local active counters. Even though it remains a mystery to justify JATU PLC’s demand at the bourse it is likely that it may remain active for some coming trading sessions, but we remain wary that price will decline during the week. Other top counters expected to transact during the week include TBL, JATU, CRDB, TPCC, NICOL, SWIS and DSE.
In midweek we expect a 2-year Treasury bond auction to be held by the central bank. There could be slight increase in the WAY with low volatility towards decline in yields for the Medium-term instruments due to low appetite for these medium-term instruments, but with likelihood of oversubscription but at minimal amount compared to previous auctions.
Hence the increases in yields out-weigh the decline in the coming auction. In the interbank money market, notwithstanding the decrease in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
The Bourse
During the week, total market capitalisation slightly gained by 0.03 per cent to close the market at TZS 15.10 Trillion from TZS 15.09 Trillion in the previous week mainly due to share price appreciation of locally listed firms at the bourse.
CRDB share price increased by 5.13 per cent to close at TZS 205, DSE share price increased by 2.27 per cent to close at TZS 900, JHL share price increased by 6.09 per cent to close at TZS 6,100 while EABL lost 0.61 per cent to close at TZS 3,260, KCB declined by 1.23 per cent to close at TZS 800, JATU share price declined by 1.34 per cent to close at 2,940 and TCCL share price declined by 6 per cent to close at TZS 470.
Domestic market capitalisation increased by 0.27 per cent, thanks to share price appreciation of CRDB and DSE. TSI gained 0.27 per cent to close at 3,493.88 points, DSEI gained 0.03 per cent to close at 1,817.41 points, Industrial & allied index lost 0.04 per cent to close at 4,821.47 points, Bank, Finance and Investment Index (B&F) gained 1.44 per cent to close at 2,363.98 points while Commercial Service (CS) remained stationary for the week to close at 2,139.33 points.
Total Volume of shares traded decreased by 99.20 per cent to 1,395,341 with 258 deals from last week’s 175,031,822 with 176 deals. Total turnover for the week declined by 99.74 per cent to TZS 1.39 billion from TZS 420.91 billion previous week.
Tanzania breweries Limited (TBL) led all counters after transaction shares worth TZS 657.65 Million, CRDB counter followed after transacting shares worth TZS 216.57 Million, JATU transacted shares worth TZS 92.25 Million, TCCL counter transacted shares worth TZS 57.39 Million, TPCC transacted shares worth TZS 34.92 Million, DSE transacted shares worth TZS 12.95 Million, SWIS transacted shares worth TZS 4.72 Million, NICOL transacted shares worth 3.99 Million, VODA transacted shares worth TZS 1.28 Million, NMB transacted shares worth TZS 224,000.00, DCB transacted shares worth TZS 17,500.00, MCB transacted shares worth TZS 4,500.00. TICL joined the laggard after transacting shares worth TZS 1,400 after a prolonged dormancy for the latter.
Interbank market
During the week, the Interbank Cash Market (IBCM) recorded a total transaction value of TZS 229.5 billion being an increase from last week’s TZS 63 billion traded. The WAR declined to close at 3.55 per cent from 3.73 per cent. The highest and lowest rate was 4.50 per cent and 3.50 per cent from last week’s 4.00 per cent and 3.00 per cent.
Debt Market
In the debt market, outstanding government bond listed at the bourse stood at TZS 12.91 trillion. On the Secondary market, the government bond segment transacted TZS 39.40 billion whose face value was TZS 37.70 billion from last week’s TZS 19.61 billion and TZS 18.81 billion, respectively. For the Corporate bonds the market transacted bond worth TZS 5.44 Million and face value of TZS 6.00 Million from the previous week transaction value of TZS 9.07 Million and face value of TZS 10.00 Million.
During the week, the central government in line with its debt issuance plan sought to raise total of TZS 90.23 Billion from the public through a treasury bill. The auction was undersubscribed by TZS 21.70 Billion. The central bank pocketed total of TZS 50.53 Billion; 35-days successful amount worth TZS 1 Billion, 91-days successful amount worth TZS 1.5 Billion, 182-days successful amount worth TZS 873.68 Million and 364-days successful amount worth TZS 47.15 Billion.
WAY for 35 days, 91 days, 182 days and 364 days was 1.99 per cent, 2.50 per cent, 2.60 per cent and 4.63 per cent respectively. WAP for 35-days, 91-days, 182-days and 364-days was 99.81, 99.38, 98.72 and 95.59, respectively.
Interbank Foreign Exchange
Market Total volume in the Interbank Foreign Exchange Market decreased to USD 3.65 Million from USD 9.97 Million in the previous week. TZS/USD remain strong to close the market at TZS/ USD 2,309.92 from TZS/ USD 2,309.90 in the previous week