When the World Health Organisation declared the coronavirus a pandemic, the announcement was met with dipping of share prices across the world markets, with total turnover at the Dar es Salaam Stock Exchange (DSE) from January to March recorded $40.479 million (Tsh94.161 billion).
This is two times higher than total turnover of $ 16.042 million (Tsh 37.315 billion) achieved in January to March last year last year.
However, cross-listed firms at the DSE felt the heat of the pandemic as share prices plunged after Tanzania announced two more Covid-19 cases on March 18.
Share prices of East African Breweries Ltd, Kenya Airways, Jubilee Holdings Ltd and KCB Group recorded a sharp decrease late Tuesday.
KQ, which is already grappling with losses and reduced flights to China and Europe, saw its share price drop by 12.50 per cent to Tsh35 ($0.01) from Tsh40 ($0.02) per one share while Jubilee Holdings had its share fall by 10.07 per cent to Tsh6,700 ($2.88) from Tsh7,450 ($3.20). EABL share price recorded a drop by 6.54 per cent to $1.72 (Tsh4000) from Tsh4,280 ($1.84) previous closing price.
DSE chief executive Moremi Marwa said: “In recent weeks, global equity markets have experienced the worst performance in recent history. As we know these are the results of one of the impact and fears emanating from the Covid-19 pandemic and the significant drop in world oil prices. Because of these two major global events and the uncertainties related to them, investors are selling off their investments as a result sending markets in turmoil all across.”
He added that when the current pandemic has been dealt with and global oil prices stabilise, there will be increased opportunities for the so called value investors.
DSE closed Tuesday with a total turnover of $5,124.39 (Tsh11.92 million) from 58,720 shares traded in 17 deals from the top movers being CRDB Bank, the Bourse DSE, Tanzania Portland Cement Company Ltd and Telecom firm Vodacom Tanzania Plc.
CRDB counter had 55,110 shares traded at weighted average price of $ 0.06 (Tsh155) per share in 12 deals. While DSE counter had 3,480 shares traded at weighted average price of $ 0.38 (Tsh900) per share in three deals.
TPCC counter had 100 shares traded at weighted average price of $0.95 (Tsh2,220) per share in one deals and Vodacom trading as Vodacom counter had 30 shares traded at weighted average price of Tsh810 ($0. 34) per share in 1 deal.
“In the world of business, investment, financing and trade, they say whenever there are crisis and chaotic situations as well as the downside that accompany it, there is also an opportunity of the upside,” said Mr Marwa.
Meanwhile, Reuters reported oil prices recovered further on Friday after US President Donald Trump hinted he may intervene in the price war between Saudi Arabia and Russia at an “appropriate time.”