JENGA AFYA TOKOMEZA UMASIKINI WHAT an eventful week for the Dar es
Despite the all-round good news, both major indices still took a beating and closed the week on the red. On the quarterly results, CRDB and NMB have shown that the banking sector is still on a significant growth rampage with even cleaner balance sheets and loan books.
CRDB and NMB recorded an annual profit growth of 39% and 42% respectively, as a result of growing interest incomes from a growing loan book and depository.
Non interest incomes were also growing especially from growing transactions that bring in significant fees and commissions. Both banks reported lower NPLs with NMB reporting 3.8% while CRDB reporting 3.5%. At 55.6%, CRDB was still slightly non-compliant of the cost to income ratio (CIR) which is above the regulatory level of 55%.
The prices of both banks on the exchange, NMB and CRDB, fell during the week by 9.35% and 4% respectively. The Exchange also released her financial results for the third quarter and a cumulative year to
Revenue went up by 2.1% on an annual basis while the net profit grew by 8.7%, mostly due to a 28.5% decline in operational expenses.
More than 76% of the Exchange's income came in from listing fees and investment income, of which majority of both is related to
Revenue for the full 2021 financial year is expected to be lower than the year 2020 because of the one-off event regarding the transaction of NMB shares between
The price of DSE climbed 1.56% during the week. On another story the parent company of
The indicative price announced is
The announcement has urged investors to trade
Following the announcement, the price of
Another active counter during the week was
The management of the company have indicated that they have scrapped off the requirement for members to consume at least 50kg of any products of the company every month after securing some substantial markets. The requirement was a serious nuisance to
The company also has plans to launch an insurance firm with a specific mission to insure agricultural products. Also, with the next two years, it is in their plans to grow the SACCOS unit into a bank, so as to provide further credit to the agricultural sector.
This shall coincide well with the government's move to provide cheap financing to agriculture. They also plan to list both financial institutions on the Dar bourse If they will be able to pull off all these plans successfully in the next five years is yet to be seen.
As a result of all that movement, the Tanzania Share Index (TSI) dropped by 46.94 points to close the week at 3,513.63 points while the domestic market cap dropped by 1.3%.
On the cross listed table,
The total equity turnover grew by 10.7% on a weekly basis to a total of
The volume of shares traded grew by 180% to a total of 2.16mln shares traded in 315 deals, that is 102 more deals than the previous week.
Expectedly,
Foreign investors accounted for 33.14% and 42.33% of the total investments and divestments during the week with a net foreign outflow of
Domestic investors accounted for the balance on both sides. Market, Bills and Bond The value of transactions on the Interbank Cash Market (IBCM) rose more than five times to a total of
The interbank rate went back to the mean reversion level at the beginning of the week, and then dropped to 3.88% at the close of the week, marking a weekly decline of 12bps. The central bank auctioned a 15 years
The public came forth in 205 bids with a tender size of
The central bank accepted only 174 bids worth
Despite the rise in highest bid price along with the minimum successful price which rose from 97.9657/- to 98.0150/-, the weighted average successful price dropped from 99.7563/- to 99.5432/- leading to a slight rise of the weighted average coupon yield by 2.9bps. The coupon yield at the end of the auction was 13.562%.
Currency Market
After seemingly a loss of momentum during the second week of October, the shilling came back with a bang and appreciated by 159 pips during the week, following a 161 pips appreciation during the end of the previous week.
The weighted average exchange rate at the end of the week was
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