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Tanzania: Dse Turnover Rise Reflects Forecasts of Analysts

by telegramnews
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DAR ES SALAAM Stock Exchange (DSE) total equities market turnover rose two-thirds to a week ending last Friday and reflected stockbrokers’ forecasts.

The market turnover climbed up from 956.63bn/- to 1.70bn/-, thanks to the participation of foreign investors during the week.

DSE data compiled by Zan Securities showed that foreign purchase jumped 10 times to 1.346bn/- and the remaining amount, less than 400m/-, from domestic investors.

Zan Securities Chief Executive Officer Raphael Masumbuko said the trend matched their prediction that the turnover would continue rising in the coming weeks.

“The domestic equity market performance reflects our last week’s sentiments where we forecast the turnover to continue increasing,” Mr Masumbuko said through the firm’s Weekly Market Wrap-ups.

The stockbrokerage firm, one of the largest, also forecast that this week’s turnover would continue increasing.

“We expect the trend to continue next week,” Mr Masumbuko said through the report without giving forecast reasons.

However, another stockbrokerage firm, Orbit Securities, the largest company, said the turnover tipped to surge based on poor government paper yields that pulled away investors to look for other portfolios investment equities.

Orbit Securities said, for instance, the Treasury Bills (T-bills) rate during the last auction two weeks ago plummeted to less than deposit rates and fixed deposit receipts (FDRs) and almost at par with the inflation rate at 3.97 per cent.