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Tanzania: Local Investors Dominate DSE Market Activities

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LOCAL investors on the Dar es Salaam Stock Exchange (DSE) became dominant last week accounting for 99.86 per cent of the total investments and 98.84 per cent of the total divestments.

During the week under review, the foreign investors took a back seat along with zero transactions at the TBL counter.

According to the Weekly Market Synopsis from Orbit Securities, the major market movement was seen on Thursday when CRDB Bank saw a prearranged block transaction involving a little over 3 million shares at a price of 200/- between local investors.

Automatically CRDB Bank became the top mover for the week, accounting for 93.1 per cent of the total weekly equity turnover.

CRDB Bank moved a total of 3.19 million shares during the week and realised a weighted average price of 201.17/- per share, highly skewed downwards by the prearranged block.

Normalising the block transaction, the average price rose up to 214.99/- per share, although still lower than the closing price of 220/-.

It seems the restrictions on dividend payment subject to regulatory cost to income ratio (CIR) and non-performing loans (NPL) ratios are still weighing on the price of the bank.

The total equity turnover for the week went up by 96.4 per cent to a total of 689.93m/- mostly as a result of the prearranged block transaction at the CRDB Bank counter.

The total number of shares traded rose from 0.28 million to 3.23 million shares traded in 143 deals.

Due to its low price and high magnitude of the listed shares and free float, trading sessions that are dominated by CRDB Bank usually have a large amount of volume of shares on transactions.