The Dar es Salaam Stock Exchange recorded a 32 per cent fall in liquidity during the second quarter of 2019, compared with Quarter 1 data.
The bourse’s quarterly note issued this week shows that its equity trading turnover decreased from Tsh37.31 billion ($16,188,700) transacted in the quarter ending March 2019 to Tsh25.88 billion ($11.229 million) traded over the three months to June.
Only three counters accounted for the DSE’s second quarter liquidity: Tanzania Breweries, which contributed 79 per cent of the total turnover, CRDB Bank (9 per cent) and Vodacom (7 per cent). “All other counters together contributed just 5 per cent — some of them showed zero deals most of the time,” said DSE chief executive officer Moremi Marwa.
The bourse also experienced a one per cent fall in cumulative market size during the second quarter, mainly due to share price drops in six counters. The cumulative market size for the 21 domestic listed companies, as measured by market capitalisation, declined by Tsh66.97 billion ($29 million) compared with the first quarter ended March 31.
Total domestic market capitalisation decreased to Tsh9.082 trillion ($3.941 billion) during the second quarter, one per cent lower than the Tsh9.148 trillion ($3.969 billion) from the first quarter.
“This was largely a result of the decrease in share prices for six out of 21 counters following the selling off pressure from investors in most counters,” Mr Marwa said.
The six domestic companies that dragged down market capitalisation during the quarter were CRDB Bank, whose share price fell by 12 per cent during the second quarter, Yetu Microfinance (8 per cent decline), and the DSE Bourse itself, whose own shares plunged by eight per cent during the quarter.
The others were TOL Gases Ltd and Swissport, losing six per cent each, and Twiga Cement with a five per cent decline.