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The world bank’s praise came from the fact that inflation remained at single digits and less than 5.0%, there were strong forex reserves and a low fiscal deficit of 3.5 percent of GDP, well-coordinated monetary and fiscal policy actions, and prudent macroeconomic management.

Tanzania has the lowest inflation in East Africa and is not expected to top 6.0% in the foreseeable future, especially with the easing of fuel prices. The annual headline inflation rate for the month of January 2023 has increased by 0.1% to 4.9% from the 4.8% that was recorded in December 2022.

The increase in headline inflation explains the speed of price change for commodities for the year ended January 2023, which has increased compared to the speed recorded for the year ended December 2022. The overall index went up from 105.59 in January 2022 to 110.81 in January 2023.

Uganda's inflation rate in January increased by 1.96% to 10.4% from 10.2% in December, while Kenya's inflation rate in January declined by 1.09% to 9% from 9.1% in December 2022. However, Rwanda’s inflation rate decreased by 1.8% to 31.1% in January 2023, from 31.7% in the prior month.

Tanzania will manage its economy by maintaining the current low inflation, increasing foreign reserves by diversifying its export portfolio, upholding a low fiscal deficit relative to GDP, and maintaining fiscal and monetary policy discipline.


Tz Inflation Rate for the month of January 2023 has increase by 0.1% to 4.9% from 4.8% recorded in December 2022

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TANZANIA INFLATION INCREASE IN LOW RATE THAN OTHER EAST AFRICAN COUNTRIES 

498,454 shares were transacted last week with CRDB, NMB & DCB shares comprising 51%, 25% & 14% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,918.09 on Friday 03rd February, 2023, an increase of 1.47% compared to TZS 1,890.33 on Monday 30th January, 2023.

Market capitalization closed at TZS 15,985.54 billion on Friday 03th February, 2023 from TZS 15,754.23 billion on Monday 30th January, 2023, an increase of 1.47%.


The most traded Treasury bonds were the 15-year and 20-year Treasury bonds offering a coupon rate of 13.50% and 15.49% p. a.

All the 13.50% 15-year Treasury bond transactions were executed at average premium prices with the highest average price being recorded at TZS 128.0782 on Thursday 02nd February, 2023 whereas the lowest average price being recorded at TZS 113.4343 on Tuesday 31st January, 2023.

All the 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest average price being recorded on Monday 30th January, 2023 at TZS 129.8246 whereas the lowest average price being recorded on Tuesday 31st January, 2023 at TZS 105.4715.

Total volume of shares traded last week was 498,454 shares.

The most traded Treasuries were the 15-year and 20-year Treasury bonds with a coupon rate of 13.50% and 15.49% per annum (p. a) respectively. 

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DSE WEEKLY UPDATE

DSE Weekly Update (January 30 - February 03).mp4

The growing use of digital banking systems has contributed to a 112% increase in DCB Commercial Bank Plc's pre-tax earnings.

The bank reported a TZS 2.25 billion profit before tax in 2018, up from TZS 1.06 billion in 2021. This development was the result of an 11% increase in total income, which was related to rising interest income, which increased by 4% to TZS 28.61 billion from TZS 27.62 billion in 2021.

Additionally, non-interest income increased by 45% year over year (YoY) to TZS 10.4 billion in 2022 from TZS 7.2 billion in 2021.

The bank increased its non-funded income during the year, focusing on trade finance activities and foreign exchange activity, according to DCB's acting Chief Financial Officer (CFO), Mr. Siriaki Surumbu, who made the announcement yesterday.

The lender that was listed on the Dar es Salaam Stock Exchange (DSE) also profited from higher transaction fees brought on by the improved features and expanded use of digital banking platforms.

With its balance sheet position surpassing the TZS 200 billion thresholds and its total assets reaching TZS 214 billion last year, the bank further cemented its status as a mid-sized bank.

The 2018 asset base, which was valued at TZS 133 billion, contributed to the 61% rise in the balance sheet during the previous five years. Last year, the bank's gross loan book reached TZS 130.36 billion, a 4.0% increase from TZS 125 billion in 2021.

From TZS 28 billion in 2021 to TZS 41 billion in 2022, DCB investment in government securities increased by 44%. Because of the bank's deliberate efforts to increase its customer base, deposits increased by 11% from TZS 150 billion in 2021 to TZS 165 billion last year.

The bank received various honors during the year and shone at the Consumer Choice Awards Africa, where it won Most Preferred Bank in the Customer Service category.

However, the share price of DCB decreased by 16.67% to TZS 150 on February 2, 2023, from TZS 180 on February 2, 2022.
 


Profit before taxes rose from TZS 1.02 billion in 2021 to TZS 2.25 billion in 2022, an increase of 112%

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DCB PROFITS RISE BY 112%

991,990 shares were transacted last week with CRDB, TPCC & NICOL shares comprising 84%, 7% & 5% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,889.13 on Friday 27th January, 2023, an increase of 0.46% compared to TZS 1,880.44 on Monday 23rd January, 2023.

Market capitalization closed at TZS 15,744.21 billion on Friday 27th January, 2023 from TZS 15,671.67 billion on Monday 23rd January, 2023, an increase of 0.46%.


The most traded Treasury bond was the 20-year Treasury bond offering a coupon rate of 15.49% p. a.

All the 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest average price being recorded on Friday 27th January, 2023 at TZS 127.2125 whereas the lowest average price being recorded on Tuesday 23rd January, 2023 at TZS 106.2624.

Total volume of shares traded last week was 991,990 shares.

The most traded Treasury was the 20-year Treasury bond with a coupon rate of 15.49% per annum (p. a).

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DSE Weekly Update_1 (Januari 23-27).mp4

The government's deliberate efforts to create a welcoming business environment for developing a robust sector have allowed Tanzania's banking sector to successfully fulfill its function as a vital liquidity source for the economy and show resilience.

The nation's banks have persisted in giving the economy the crucial boost it needs despite the unfavorable global conditions produced by soaring inflation, the war in Ukraine, and COVID-19.

The high private sector credit that increased by 22.6% in the year ending in December last year, compared to 7.8% in the previous year, is evidence of the government's efforts to create an influential banking sector.

According to the Bank of Tanzania's (BoT) most recent monthly economic report for December, the increased lending from the private sector is due to both increased economic activity and the effects of monetary and fiscal measures taken to reduce the negative spillover effects of supply shocks around the world.

The monetary policy measures implemented in July 2021 to support cost-effective credit intermediation for agricultural and agribusiness activities were credited with the highest credit growth, which was 54.1%, according to the central bank report, which shows that agriculture, which employs more than 70% of the workforce, recorded the highest credit growth.

One of the success stories of the government’s efforts to create an enabling business environment in the banking sector is NMB Bank, the largest lender in the country, which has managed to raise the profitability bar to a historic record.
The bank’s profit after tax rose by 47% to TZS 429 billion last year, compared to TZS 290 billion recorded in the previous year.

The bank’s Chief Executive Officer, Ms. Ruth Zaipuna, said the profit increase is leading to the biggest historic profit to have ever been made in Tanzania’s banking sector.

From the new historic net profit, the bank has allocated a whopping $6.2 billion for social investments, an increase of over 114% compared to the $2.9 billion the bank shared with communities last year.
Also, the new profit records mean the dividend paid to the government as one of the banks’ shareholders (with 31.8%) will increase, as will the taxes paid to the government.

Total assets have now peaked at over TZS 10 trillion, up from TZS 5.5 trillion four years ago, with the deposit base expanding to TZS 7.5 trillion from TZS 4.2 trillion in just three years.

The amount of lending, which mostly benefited businesses, individual borrowers, and strategic industries like agriculture and small and medium-sized companies (SMEs), reached TZS 6 trillion last year as opposed to TZS 3.2 trillion in loans made in 2018.

However, the share price of NMB increased by 3.33% from December 1, 2022, at TZS 3000, to January 26, 2023, at TZS 3100.
 



The high private sector credit that increased by 22.6% in the year ending in December last year, compared to 7.8% in the previous year

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THE GOVERNMENT IMPOSED A NEW PROFITABILITY STANDARD ON THE BANKING SECTOR

4,452,501 shares were transacted last week with CRDB, TCCL & NMB shares comprising 97.3%, 0.9% & 0.5% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,877.05 on Friday 20th January, 2023, a decrease of 0.78% compared to TZS 1,891.72 on Monday 16th January, 2023.

Market capitalization closed at TZS 15,643.42 billion on Friday 20th January, 2023 from TZS 15,765.71 billion on Monday 16th January, 2023, a decrease of 0.78%.


The most traded Treasury bond was the 20-year Treasury bond offering a coupon rate of 15.49% p. a.

All the 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest average price being recorded on Wednesday 18th January, 2023 at TZS 126.50935 whereas the lowest average price being recorded on Monday 16th January, 2023 at TZS 103.6181.

Total volume of shares traded last week was 4,452,501 shares.

The most traded Treasury was the 20-year Treasury bond with a coupon rate of 15.49% per annum (p. a).

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DSE Weekly Update (16-20 January, 2023).mp4

The depreciation of Tanzanian Shilling (TZS) was low and durable last year (2022), according to Dr. Suleiman Missango, Director of Economic Research and Policy at the Bank of Tanzania (BoT), supported by positive economic outlooks and supportive monetary measures.

The shilling had been depreciating moderately since the commencement of the war between Ukraine & Russia which began in late February, with the rate of depreciation remaining minor at less than one percent on a year-over-year basis, he said.

Despite the worldwide economic shocks in 2022, the TZS remained stable against the dollar and other major currencies, with a depreciation rate that stayed below 1%.

By the end of November of last year, the TZS was trading at an average rate of TZS 2,319.87 per dollar (USD $), according to information from the BoT's Monthly Economic Review (MER) for December 2022. This stability was consistent with a mild inflation rate.

There was a 0.4% depreciation rate from the exchange rate of TZS 2,309.23 per USD $ that was recorded in January 2022.

By January 20, 2023, the year-on-year depreciation rate has also remained stable below one percent at 0.49% trading at TZS 2320.67 per USD $.

Despite the global shocks, according to the Director of Economic Research and Policy at the BoT, the TZS "has been and remains one of the most stable currencies in Sub-Saharan Africa in 2022."

By January 20, 2023, the year-on-year depreciation rate has remained stable below one percent at 0.49% trading at TZS 2320.67 the US dollar

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TZS REMAINS STABLE, DESPITE SHOCKS IN 2022

3,859,980 shares were transacted last week with CRDB, TPCC & NICOL shares comprising 97%, 1% & 1% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,894.31 on Friday 13th January, 2023.

Market capitalization closed at TZS 15,787.28 billion on Friday 13th January, 2023 from TZS 15,830.67 billion on Monday 9nd January, 2023, a decrease of 0.27%.


The most traded Treasury bond was the 20-year Treasury bond offering a coupon rate of 15.49% p. a.

All the 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest average price being recorded on Tuesday 10th January, 2023 at TZS 125.1302.

Total volume of shares traded last week was 3,859,980 shares.

The most traded Treasury was the 20-year Treasury bond with a coupon rate of 15.49% per annum (p. a).

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DSE Weekly Update (9-13 January, 2023).mp4

4,071,692 shares were transacted last week with CRDB, NMB & NICOL shares comprising 90%, 6% & 3% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,903.58 on Friday 6th January, 2023.

Market capitalization closed at TZS 15,864.48 billion on Friday 6th January, 2023 from TZS 15,685.37 billion on Monday 2nd January, 2023, an increase of 1.14%.


The most traded Treasury bond was the 15-year Treasury bond offering a coupon rate of 13.50% p. a.

Most of the 13.50% 15-year Treasury bond transactions were executed at average premium prices except for transactions executed on Monday 2nd January, 2023 that were executed at average discount price of TZS 99.999.

Total volume of shares traded last week was 4,071,692 shares.

The most traded Treasury was the 15-year Treasury bond with a coupon rate of 13.50% per annum (p. a).

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DSE Weekly Update (2-6 Januari, 2023).mp4

8,711,155 shares were transacted last week with CRDB, NMB & NICOL shares comprising 99.73%, 0.19% & 0.05% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,881.99 on the last Friday of the year.

Market capitalization closed at TZS 15,684.55 billion on the last Friday of the year from TZS 15,617.59 billion on Tuesday 27th December, 2022, an increase of 0.43%. 


The most traded Treasury bond was the 20-year Treasury bond offering a coupon rate of 15.49% p. a.

Two-day (Tuesday & Thursday) 15.49% 20-year Treasury bond transactions were executed at average discount prices while two-days (Wednesday & Friday) 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest premium being recorded at TZS 116.6041 on Wednesday, 28th December, 2022 resulting into the lowest yield.

Total volume of shares traded last week was 8,711,155 shares.

The most traded Treasury was the 20-year Treasury bond with a coupon rate of 15.49% per annum (p. a).

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DSE Weekly Update (27-30 Disemba, 2022).mp4

For the past six months, customers have continued to benefit from the government's fuel subsidies since prices in the local market have been steadily declining. Data indicates that the pump prices for petrol have decreased by an average of 14% during the period for petrol imported through three major ports of Dar es Salaam, Tanga and Mtwara.

From August last year to January this year, prices after subsidy for petrol imported through Dar es Salaam Port reduced from TZS 3410 to TZS 2819, equivalent to 17.3%. During the same period, prices of petrol imported through Tanga Port decreased from TZS 3435 to TZS 2989, equivalent to 13%. 

In the meantime, the retail price of petrol imported through Mtwara Port has decreased by 11.8% from TZS 3393 in August of last year to TZS 2993 this month. However, data reveals that diesel prices in the two ports of Dar es Salaam and Tanga have continued to decline, on average, by 0.55%.

The price of diesel imported through Tanga Port decreased by 0.3% from TZS 3349 to TZS 3340 during the same period, while the price of diesel imported through Dar es Salaam Port decreased by 0.8% from TZS 3,322 in August to TZS 3295 in January of this year.

While fuel sold at a cap price of TZS 3351 in August as opposed to TZS 3404 declared yesterday by the Energy and Water Utilities Regulatory Authority, diesel imported via Mtwara Port has seen a minor increase of pump prices by 1.58% from August last year to January this year.

In the public notice on Tuesday, the EWURA announced the indicative prices for petroleum products for this month. The statement said pump prices of petrol in Dar es Salaam have decreased by TZS 8 per liter, while those in Tanga and Mtwara have increased by TZS 164 per liter and TZS 168 per liter, respectively, and diesel prices have increased by TZS 48, TZS 91, and TZS 135 per liter, respectively, compared to the prices that prevailed in December 2022.

The increase in cap prices is attributed to changes in Free on Board (FOB), premium and appreciation of the US dollar against the Shilling. The prices differ from one location to another due to differences in recommended loading port and transportation costs.

Therefore, the drop in fuel prices may benefit SWALA OIL & GASES PLC, a company listed on the DSE that produces and distributes oil, and as a result, there is reason to believe that the share price of the firm will alter in the near future. But from August 2022 to January 1st, 2023, the share price of Swala Oil and Gases PLC remains constant by TZS 450.


 Pump prices for petrol has decreased by an average of 14% during the period

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FUEL COSTS HAVE BEEN DECLINING FOR SIX MONTHS

The demand for government bonds surged in the last year, causing the market to experience tremendous volatility. This led to a bidding frenzy and inflated bond prices in the first quarter. To avert the situation, the Bank of Tanzania (BoT) intervened in the second quarter by lowering coupon rates on all its bonds to lower its cost of borrowing and align with market conditions.

The Securities Company demonstrates how Central Bank intervention in the market for government bonds resulted in a drop in bond prices.

In a bond auction held in May last year, the yield was 12.36% and the average price stood at a premium of 101.4. However, in a bond auction held in December last year, the yield increased to 12.7% and the price fell to a discount of 98.54.

It is expected that investors will continue to demand high compensation for lending capital to the government this year, resulting in higher yields on government bonds.

Furthermore, last year, the corporate bond market experienced a record-breaking year. For the first time in the history of the Dar es Salaam Stock Exchange, three corporate bonds were listed on the market. This marked a significant milestone in the market and introduced a range of innovative products.

- NMB listed the first social bond in East Africa, called JASIRI, which supports women-owned SMEs and won the Sustainable Bond of the Year award at the 2022 Global SME Finance Forum.
- NBC listed its first bond, TWIGA, on the DSE, and it was oversubscribed by 30%.
- KCB also issued the first Sukuk, called the FURSA SUKUK, which was oversubscribed by 10%. Sukuk are structured to comply with Islamic principles and involve a sharing of risks and returns between the issuer and investors, rather than being debt obligations.

The Dar es Salaam Stock Exchange's corporate bond sector is becoming more significant. This follows the emergence of a government bond market and, subsequently, a corporate bond market, with the government frequently playing a prominent role through privatizing and listing state-owned firms. The banking industry typically assumes the lead in issuing corporate debt once it has been created.

Compared to bank borrowing, issuing bonds can be more affordable, offer longer-term financing, and give firms more flexibility. Bonds provide longer repayment terms and the flexibility to organize debt to suit the requirements of various investors because their interest rates are often fixed.


The demand for Govt bonds in Tz has caused the market to experience tremendous volatility

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MARKET VOLATILITY FOR GOVERNMENT BONDS IN 2022

343,519 shares were transacted last week with NMB, CRDB & NICOL shares comprising 65%, 24% & 4% of the total shares traded respectively.

The All Share Index (DSEI) closed at TZS 1,874.06 on last week's Friday.

Market capitalization closed at TZS 15,618.54 billion on last week's Friday from TZS 15,664.99 billion on last week's Monday, a decrease of 0.30%.


The most traded Treasury bond was the 20-year Treasury bond offering a coupon rate of 15.49% p. a.

All of the 15.49% 20-year Treasury bond transactions were executed at average premium prices with the highest premium being recorded at TZS 127.7479 on Wednesday, 21st December, 2022 resulting into the lowest yield.

Total volume of shares traded last week was 343,519 shares.

The most traded Treasury was the 20-year Treasury bond with a coupon rate of 15.49% per annum (p. a).

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DSE Weekly Update (5).mp4

2,617,413 shares were transacted last week with TICL, NICOL & CRDB shares comprising 73%, 13% & 8% of the total shares traded.

The All Share Index (DSEI) closed at TZS 1,863.94 on last week's Friday.

Market capitalization closed at TZS 15,534.18 billion on last week's Friday from TZS 15,537.98 billion on last week's Monday, a decrease of 0.02%.


 The most traded Treasury bond was the 15-year Treasury bond offering a coupon rate of 13.50%.
 
All the 13.50% 15-year Treasury bond transactions were executed at average premium prices with the highest premium being recorded at TZS 116.0001 on Thursday, 15th December, 2022.

Total volume of shares traded last week was 6,258,481 shares.

The most traded Treasury was the 15-year Treasury bond with a coupon rate of 13.50%.

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DSE Weekly Update_2 (12-16 December).mp4

Yetu Microfinance Bank’s suspension by the central bank has denied the pro-poor lender a chance to raise TZS 4.0 bil through a corporate bond on Mauritius’ Afrinex Exchange.

The transaction was therefore delayed until the pro-poor bank resolved the issue with the Bank of Tanzania by Afrinex Exchange, which was scheduled to begin trading this week (BoT). Altemius Millinga, the managing director of Yetu Microfinance, said that the funds were intended for Afrinex but were instead invested to increase the bank's cash flow.

Yetu Microfinance chief says Afrinex has issued a circular "suo moto" based on information made public by the Bank of Tanzania (BoT). The bank was put under statutory administration by the BoT due to capital inadequacy, but their financials for quarter two showed they had a capital level above the central bank requirement.

In Q2, the bank's capital decreased significantly from TZS 6.89 bil at the end of Q1 to TZS 6.83 bil. The central bank must have TZS 5 bil in the capital. Yetu was given permission to raise TZS 2 bil through an IPO three years ago in order to increase its market share, but the COVID-19 pandemic prevented it from taking place.
The Q2 financial results showed a balance with BoT declining from TZS 70.5 mil to only TZS 6.4 mil and a balance with banks going from TZS 136.8 mil to only TZS 17.5 mil.

Yetu Microfinance NPLs grew to 31% at the end of June, which is almost equivalent to the total deposits at the time considering a loan-to-deposit ratio of 343%. He also said NPLs led to a decline in interest income, leading to a drastic rise in the cost-to-income ratio from 36% to 87% within a year.

BoT placed Yetu Microfinance Bank Plc under statutory administration on Monday after the bank failed to meet regulatory requirements regarding liquidity and capital adequacy.

Investors are encouraged to take note of BoT information when dealing with the securities of Yetu Microfinance Bank, according to a public warning from the Dar es Salaam Stock Exchange (DSE). Shares of Yetu Microfinance closed the market at TZS 510, holding steady at the previous week's opening price. Since it began operations five years ago, the lender has been providing dividends. 



From TZS 6.89 bil at the end of Q1 to TZS 6.83 bil in Q2, the bank's capital significantly decreased

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YETU MICROFINANCE PLC TZS 4 BILLION AGREEMENT IS REJECTED BY BOT SUSPENSION

In November 2022, the National Bank of Commerce (NBC) issued Twiga bond as the first tranche of the Medium-Term Note (MTN) program with the goal of raising TZS 300 billion over the next 5 years (until 2027) to boost business financing and other economic activities, particularly for SMEs. On the first tranche, NBC offered TZS 30 billion (with a minimum bid size of TZS 500,000) promising to earn a whopping interest rate of 10% per annum.

This is NBC Bank’s first public issuance aimed at supporting lending to retail, small and medium-sized businesses, agricultural activities, businesses whose products and services directly impact women and youth, and local and multinational corporations.

Yesterday, NBC announced its first Twiga Bond issuance oversubscription; the bank has surpassed its targets by 30%, whereby TZS 38.91bil was raised, representing a subscription of 130%.

NBC’s Director of Business Banking, Mr. Elvis Ndunguru, said the bond sold for one month was officially closed on December 8 this year with great success compared to the bank’s expectations.

Also, the Management of NBC thanks and acknowledges guidance and support from the Bank of Tanzania (BoT), Capital Markets and Securities Authorities (CMSA), and Dar es Salaam Stock Exchange (DSE), and efforts made by all parties, including transaction advisors, to ensure that the first tranche of NBC Twiga Bonds was a success.
 


Twiga bond was issued early last month and oversubscribed by 30%, raising a total of TZS 38.91bil from the initial target of TZS 30bil



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A 30% INCREASE IN NBC TWIGA BOND SUBSCRIPTIONS

The world bank’s praise came from the fact that inflation remained at single digits and less than 5.0%. There were strong forex reserves and a low fiscal deficit of 3.5 % of GDP, well-coordinated monetary and fiscal policy actions, and prudent macroeconomic management.

Tanzania has the lowest inflation in East Africa and is not expected to top 6.0% in the foreseeable future, especially with the easing of fuel prices. The annual headline inflation rate for the month of November 2022 has stagnated at 4.9% as it recorded in October 2022.

The stagnation of headline inflation explains the speed of price change for commodities for the year ended November 2022, which has remained the same as it was recorded for the year ended October 2022. The overall index went up from 104.08 recorded in November 2021 to 109.16 in November 2022.

Uganda's inflation rate in November declined by 0.93% to 10.6% from 10.7% in October, while Kenya's inflation rate in November declined by 1.04% to 9.5% from 9.6% in October 2022.

Tanzania will manage its economy by maintaining the current low inflation, increasing foreign reserves by diversifying its export portfolio, upholding a low fiscal deficit relative to GDP, and maintaining fiscal and monetary policy discipline.
 



Tz Inflation Rate for the month of November 2022 has stagnated at 4.9% as it was recorded in Oct 2022

TANZANIA'S INFLATION RATE AT A STEADY LEVEL, COMPARED TO OTHER EAST AFRICAN NATIONS

2,617,413 shares were transacted last week with CRDB, TICL & NMB shares comprising 90%, 4% & 2% of the total shares traded.

The All Share Index (DSEI) closed at TZS 1,868.58 on last week's Thursday.
Market capitalization closed at TZS 15,572.90 billion on last week's Thursday from TZS 15,474.83billion on last week's Monday, an increase of 0.63%.


The most traded Treasury bonds were the 20-year Treasury bonds offering a coupon rate of 12.10% and 15.49% respectively.

Most of the 12.10% 20-year Treasury bond transactions were executed at average par prices except the transactions executed on Monday, December 05th and Wednesday, December 07th 2022 that were executed at average discount and premium prices of TZS 99.7823 and TZS 101.500 respectively.

All the 15.49% 20-year Treasury bond transactions were executed at average premium prices and the most expensive transactions executed were at an average price of TZS 125.6263 on Wednesday, December 07th 2022.

Total volume of shares traded last week was 2,617,413 shares.

The most traded Treasuries were the 20-year Treasury bonds with a coupon rate of 12.10% & 15.49% respectively.

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DSE Weekly Update 5-8 December, 2022.mp4

Pursuant to powers conferred upon the Bank of Tanzania (BoT) under Section 56 (1)(g)(i) & (iii) of the Banking and Financial Institutions Act, 2006, the BoT has effective from today, Monday, 12th December 2022, taken over and placed Yetu Microfinance Bank Plc under statutory administration

Following the bank's failure to comply with regulatory criteria involving liquidity and capital adequacy, the decision was made to take over and place Yetu Microfinance Bank Plc into statutory administration. Therefore, allowing Yetu Microfinance Bank Plc to carry on with banking operations while experiencing a liquidity and capital shortage would be adverse to depositor interests and represent a systemic risk to the stability of the financial system.

The BoT has suspended its Board of Directors and Management and appointed a Statutory Manager to manage the affairs of Yetu Microfinance Bank Plc. Thus, Yetu Microfinance Bank Plc will not be open for normal business for a period not exceeding 90 days during which the BoT will determine an appropriate resolution option.

Therefore, the BoT announcement may have a negative effect on the DSE-listed company since from the investors’ perspective the announcement reveals an underperformance of the bank’s operations, in turn, it may lead to a decline in its stock price in the near future. Yetu Plc's share price, however, has been constant at TZS 510 from October 3rd to November 8th, 2022.




Due to the Bank’s failure to comply with liquidity & capital adequacy requirements, BoT intervenes for immediate remedy

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YETU MICROFINANCE BANK PLC UNDER TEMPORARY STATUTORY ADMINISTRATION OF BoT

The Christmas and New Year holidays had a negative impact on the Dar es Salaam Stock Exchange's (DSE) performance.

The bourse's performance increased by 4.0% to TZS 1.2bil as foreign participation fell due to investors pulled by end-of-year holiday obligations.

According to its weekly market analysis, the equity market had an underwhelming performance last week despite an increase in volume and turnover. This was due to the past week's negative price movement.

In the first week of this holiday month, the bourse posted a turnover of TZS 1.2 bil, 4% higher than the previous week’s TZS 1.14 bil. While foreign participation in buying and selling was almost zero except on Wednesday when selling clocked at 35.15%.

Cross-listed stocks like KCB, which concluded the week 1.4% down, and Jubilee Holdings (JHL), whose share price fell by 0.54%, played a significant part in dragging down the indices.

Total market capitalization, last week, decreased by 0.19% to TZS 15.572tri while domestic market capitalization decreased by 0.30% to TZS 10.202tri.

TOL was the top gainer last week, gaining 7.69% to TZS 700, followed by CRDB, which gained 1.32% to TZS 385.
Simba Cement lost 6.78% to close last week at TZS 1,100, followed by TICL, which went down by 5.88% to TZS 160, and NMB, which dropped 2.67% to TZS 2,920.

CRDB was the top market mover, recording 76.72% of total market turnover, followed by NMB with 10.18% and TPCC with 7.05%.

Banks, Finance, and Investment (BI) closed at 3286.75 points, 1.06% down. Industrial and Allied (IA) and Commercial Services (CS) posted a slight decline of 0.04% each to close at 5,023.30 points and 2,147.73 points, respectively.

However, the share price of DSE decreased by 5.88% to TZS 1600 on December 8, 2022, from TZS 1700 on November 1, 2022.
 


The exchange reported TZS 1.2 billion in turnover in the first week of the holiday season, 4% more than the TZS 1.14 billion reported in the week before. 

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 DSE ACTIVITY DECLINES AS THE HOLIDAYS APPROACH

Tanzania's foreign exchange reserves can only now, and for the first time in five years, cover 4.2 months of imports. This has been attributed by the Bank of Tanzania to the negative economic effects of the conflict in Ukraine.

Despite being below the East African Community (EAC) and Southern African Development Community (SADC) convergence requirements of at least 4.5 and six months, respectively, the import cover is still within the country's baseline of four months.

An international financial obligation, such as a sovereign or commercial debt, can be satisfied by using foreign exchange reserves, which are assets held in reserve by a central bank in foreign currencies. These reserves can also be used to finance imports.

When gross official reserves were around $4.35 billion at the end of February 2017, the last time foreign exchange reserves dropped below 4.2 months, it happened.

Tanzania has the largest level of foreign exchange reserves in nearly 17 years in October 2021, with $6.7 billion, enough to cover imports for seven months.

As a result of President Samia Suluhu Hassan's economic diplomacy efforts, funding from development partners, notably Special Drawing Rights (SDR) and an interest-free loan from the International Monetary Fund (IMF), were partially responsible for this milestone.
The Russian invasion of Ukraine in February 2022, which resulted in rising energy prices, sharp increases in commodity prices, and major harm to global value chains, however, brought about a tide of change at the beginning of 2022.

Tanzania's foreign reserves thus decreased by 15.31%, from $5.85 billion at the end of February 2022 to $4.96 billion at the end of September 2022.At its November 28, 2022 meeting,

Although the nation's foreign exchange reserves were constant, the BoT's Monetary Policy Committee (MPC) noted that rising import prices posed a significant obstacle.

Part of the statement from MPC states, "The external sector of the economy remained sustainable, but continued to be hampered by global supply-side shocks, including increased import costs and tightening financial conditions."

Generally, many countries have learned the value of independence and robust domestic manufacturing capacity as a result of the geopolitical crisis between Russia and Ukraine and its repercussions. The war has significantly impacted both foreign exchange and global trade.






Tanzania's foreign reserves thus decreased by 15.31%, from $5.85 bil at the end of Feb 2022 to $4.96 billion at the end of Sept 2022

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A FIVE-YEAR LOW FOR TANZANIA’S FOREIGN EXCHANGE RESERVES

The Dar es Salaam Stock Exchange's (DSE) equity market performance has defied expectations in spite of inflation and rising interest rates.

Domestic equity prices maintained last week's recovery trend, with most indices closing in the green despite inflation reaching 4.9%, the highest in five years.

The total market capitalization increased by 0.16% to TZS 15.603t, and the domestic market capitalization increased by 0.36% to TZS 10.196t.

NMB's share price increased by 2.74% to TZS 3,000, making it the week's top gainer, followed by NICOL's share price increasing by 1.54% to TZS 330, and Swissport's share price decreasing by 6.94% to TZS 1,340.
However, the price of Swissport shares is still 44% up since the beginning of the year, following investors’ excitement about the company’s recovery after the pandemic.

The weighted average coupon yield of the 20-year Treasury bond that was auctioned a fortnight ago went up by 11.5 basis points from 12.1059% to 12.2209%, while the central bank accepted all 286 bids, including the lowest bid price of 93.7684 compared to the minimum successful price of 98.5224 during the previous 20-year Treasury bond auction.

For the fiscal year ending in October, headline inflation reached a five-year high of 4.9%. Food inflation hit 9.1% as the price of rice reached a record high, according to reports by the central bank, while energy, fuel, and utility prices hit 8.7%.
Rising food prices are caused by the shortage of food in the East African region, which faces the driest period in the last 40 years, according to FAO.

However, the market recorded a weekly turnover increase of 3.7% to TZS 1.14 billion from TZS 2.01 million shares traded.

The top mover for the last week was CRDB Bank, which accounted for 58% of the total equity turnover for the week, followed by TBL and NMB, which accounted for 21% and 14%, respectively.

However, the share price of DSE decreased by 5.88% to TZS 1600 on December 5, 2022, from TZS 1700 on November 1, 2022.
 
 



With 4.9% for the year ended in October, headline inflation reached a five-year high

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DSE OPPOSE INFLATION AND UNUSUAL INTEREST RATE

2,009,235 shares were transacted last week with CRDB, TICL & NMB shares comprising 86%, 7% & 3% of the total shares traded.

The All Share Index (DSEI) closed at TZS 1,872.22 on last week's Friday.
Market capitalization closed at TZS 15,603.29 billion on last week's Friday from TZS 15,560.25 billion on last week's Monday, an increase of 0.28%.


The most traded Treasury bonds were the 20-year Treasury bond offering a coupon rate of 12.10% and the 25-year Treasury bond offering a coupon rate 15.95%.

Most of the 20-year Treasury bond transactions were executed at average discount prices except the transactions executed on Monday, November 28th and Friday, December 2nd 2022 that were executed at average premium prices of TZS 100.1062 and TZS 102.5960.

The 25-year Treasury bond transactions were all executed at average premium prices and the most expensive transactions executed were at an average price of TZS 131.0939 on Thursday, December 1st 2022.

Total volume of shares traded last week was 2,009,235 shares.

The most traded Treasuries were the 20-year & 25-year Treasury bonds with a coupon rate of 12.10% & 15.95% respectively.

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DSE Weekly Update_2 (Novemba 28-Disemba 02).mp4

National Microfinance Bank (NMB) share price up by 2.74% to close the market at TZS 3,000 on Wednesday from TZS 2,920 of Tuesday. On a month basis NMB rose by 6.38% from TZS 2,820 in October. The price movement is positively impacted by the Bank’s good performance according to 3rd Quarter results ended Sept, 2022, after the bank reported a 54% growth in net profit to TZS 324b from TZS 211b of same period last year. This is the highest price since 20th July, 2022 when market price was at TZS 3,040 before it fell to TZS 2,900 the following trading day.

Dar es Salaam Stock Exchange (DSE) ended November on Wednesday, 30th Nov, 2022, with total turnover of  TZS 174.91m up by 81.01% compared to the Tuesday total turnover of TZS 96.63m. This was due to rise in trading activities of the market as NMB was the most traded share with volume of  51,891  shares traded with turnover of 155.19m contributing 89% of the total turnover. CRDB was the second most traded share after 30,535 shares traded with a turnover of TZS 11.60m which contributing 6.6% of the total turnover. 

Total market capitalization up by 0.29% to TZS 15,637.58b on Wednesday compared to the Tuesday’s market capitalization of TZS 15,591.84b. All share index (DSEI) which measure overall performance of share prices also rose by 0.29% to 1,876.33 points on Wednesday from 1,870.84 points on Tuesday after NMB & EABL share prices rose to TZS 3,000 & TZS 3,130 respectively. Meanwhile, SWIS & JHL share prices fell to TZS 1,400 & TZS 3,770 respectively.

DSE market highlights (Monthly basis);
- Turnover: TZS 174.91m (Down by 52.3% compared to TZS 366.71m of Oct)
- Market cap: TZS 15,637.58b (Down by 0.001% compared to TZS 15,637.71b of Oct)
- DSEI: 1,876.33 points (Down by 0.001% compared to 1,876.34 points of Oct)

Foreign investors dominated buying activities by 85.67% equivalent to turnover of TZS 149.84m while Local investors dominated sale activities by 100%.

Source:
DSE

DSE market cap up by 0.29% to close at TZS 15,637.58b as Foreign investors led buying activities by 85.67%.

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NMB SHARE PRICE CLOSE NOVEMBER AT TZS 3,000 HIGHEST SINCE JULY 2022.

Dar es Salaam Stock Exchange (DSE) closed the market on Tuesday, 29th Nov, 2022, with total turnover of TZS 96.63m down by 80.76% compared to the Monday total turnover of TZS 502.35m. This was due to fall in trading activities of the market as CRDB was the most traded share with volume of 184,337 shares traded with turnover of 70.06m contributing 72.50% of the total turnover. TICL was the second most traded share after 140,501 shares traded with a turnover of TZS 23.89m which contributing 24.72% of the total turnover. 

Total market capitalization closed at TZS 15,591.84b up by 0.20% compared to the Monday’s market capitalization of TZS 15,560.25b. All share index (DSEI) which measure overall performance of share prices also rose by 0.20% from 1,867.05 points on Monday  to 1,870.84 points on Tuesday. This was due to rise in prices of Kenya Commercial bank (KCB) & National Media Group (NMG) shares to TZS 710 & TZS 310 respectively.

DSE Market report Highlights (Y-O-Y);
- Market cap: TZS 15,591.84b (Up by 1.31% from TZS 15,390.58b of 2021)
- All Share Index (DSEI): 1,870.84 points (Up by 1.32% from 1,846.47 of 2021)
- Tanzania Share Index (TSI): 3,857.55 points (Up by 9.72% from 3,515.74 of 2021)

Local investors dominated both buying & selling activities by 100%, there were no participation from foreign investors since the beginning of this week.

On Government bonds board, recorded a total turnover of TZS 15.19b compared to TZS 0.56b of Monday. 20-year (12.10%) bond was the most traded bond at average price of 99.5133% & average yield of 12.2952%. 25-year (12.56%) bond was the most second traded bond at average price of 100.0000% & average yield of 13.2320%.

Source:
DSE

Market cap closed at TZS 15,591.84b increased by 0.20% as cross listed shares gain.

DSE MARKET TURNOVER DIPPED BY 80.76% AS LOCAL INVESTORS CONTINUE TO DOMINATE THE MARKET

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Company	Opening	Closing	High	Low	Change (%)	Volume
TBL	10,900	10,900	0	0	0.00	380,000
DCB	185	185	190	185	0.00	80,632
CRDB	500	500	480	480	0.00	49,368
TCCL	1,780	1,900	1,900	1,900	6.74	15,000
NMB	3,480	3,480	3,600	3,560	0.00	6,830

Forex (TZS)	USD	GBP	EUR	KES	UGX	ZAR	TRY	CNY
Buying	2,305.17	2,869.01	2,491.43	16.76	0.60	118.98	116.41	329.07
Selling	2,328.22	2,898.63	2,517.27	16.91	0.63	120.16	117.52	332.27

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