DSE share prices walk to normal after dividends

Dar es Salaam Stock Exchange (DSE) is anticipated to return to equilibrium for the equity prices after the dividend payments period ends.

The bourse saw the escalation of share prices following stellar performance demonstrated by some companies last year.

Zan Securities CEO Raphael Masumbuko said investors are expected to shift their attention to the debt market, especially the coming 25 years Treasury bond.

“We anticipated an imminent slight rebound in equities as the market stabilizes following dividend payments,” Mr Masumbuko said in the firm’s weekly market wrap-up, “which will facilitate inflows into certain stocks”.

The CEO said on Monday, in the short term, they are expecting a shift in investor preferences towards fixed-income securities, driven by the upcoming 25-year Treasury bond auction scheduled tomorrow.

“This transition is likely to gain momentum, particularly due to the central bank’s adoption of a less accommodating monetary policy, leading to an upward trajectory in fixed income yields,” Mr Masumbuko said.

Source: Daily News