Tanzania: Cement firms’ shares rally on the Dar Es Salaam Stock Exchange

THE Dar es Salaam Stock Exchange’s listed cement firms have registered over 10 per cent price gain in seven days to last Friday thanks to anticipation of better last year financial results.

The firms–Twiga cement and Simba cement–closed the last week gained by 10 per cent and 11 per cent to 3,740/- and 1,220/- respectively.

Orbit Securities said on its Twitter that the manufacturing sector stole the week after registering a strong rally last week following an increase in share prices.

The cement prices increased push north by 1.21 per cent the Industrial and Allied (IA) to closed last at 5,030.82 points.

The Commercial Services (CS) closed at 2,134.28 points, like the week before, despite NMB price increase by 7.2per cent to 2,680/-. Jatu dropped by 8.0per cent to 345/-.

Vertex International Securities said in its weekly market review that the price movement echoed their last week’s projections that would continue to rise.

“The market echoed our last week’s forecast; where we foresee a continuation of price movement,” Vertex said.

Also, the Vertex report said, “we forecast volume and turnover to recover next week.”

Analysis showed that so far in this year, stockbrokers saw investors return to the equities market as a result of falling Treasury yields.

Zan Securities said in its weekly market wrap-ups that the move coincided with a rise in the local equities market, which has gained 6.29 per cent year-to-date (YTD) with blue-chip stocks such as NMB and CRDB gaining 34 per cent and 25 per cent YTD respectively as investors seek higher returns.

“The equity market’s resurgence has been fuelled largely by falling fixed income rates, which have resulted in a liquidity exodus to the equities market,” Zan Securities said.

The brokerage firm said further “the rates are expected to continue falling, impacting [positively] on equities activity”.

The spread between 15-year and 20-year yields government bond shrunk to 0.97 basis points. So far this year there have been three primary auctions in the long end of the curve 25-year, 15-year and 20-year.

“The yield curve continues to flatten on the long end at a very fast rate in a short period,” Zan said.

Nevertheless, the DSE equity market continues with a positive momentum despite recording a bearish performance of 1.5bn/- compared to the previous week’s massive turnover of 11.67bn/-.

Source