DSE stock value up by 68pc

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DAR ES SALAAM: THE stock value in the Dar es Salaam Stock Exchange (DSE) increased by 68 per cent last year, thanks to supportive government monetary policy and enhanced financial inclusion.

The stock value rose to 225tri/- in 2023 from 134bn/- recorded in the previous year, marking a robust performance and resilience in the stock market.

Additionally, the value of bonds also increased by 42 per cent to 3.65tri/- compared to 2.56tri/- in the prior year.

This increase can be attributed to various factors, including proper government monetary policy that encourages more investment in the stock market.

Another contributing factor is increased financial inclusion, which allows direct participation in the market through the DSE mobile platform ‘DSE Hisa Kisangani’ without the need for stockbrokers.

Emmanuel Nyalali, DSE’s Director of Trading and Markets, stated that the performance reflects the company’s initiatives to enhance the investment mindset through investment career programs, leading to positive results.

“The significant growth in the listing of new securities on the market, along with the sales of securities and a significant increase in income compared to the previous year, demonstrates the stability and attractiveness of the market to investors,” Nyalali told reporters yesterday.

He also mentioned that last year, the market experienced a positive trend in sales and attractive growth in the value of government bonds (treasury bonds) and corporate bonds, indicating investor confidence in the financial sector as a whole and the capital markets.

Despite the healthy performance of shares in the DSE last year, no new companies were listed on the market. However, the Tanzania Chambers of Commerce, Industry, and Agriculture (TCCIA) Investment Company listed its new shares through a ‘right issue,’ increasing its capital by selling shares to its shareholders.

Through this, the TCCIA investment managed to register a capital worth 10.58 billion TZS last year.

Nyalali informed reporters that DSE listed three new corporate bonds worth 579.42bn/- in the market.

Block-trading drought affects DSE turnover

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DAR ES SALAAM: DAR ES SALAAM Stock Exchange (DSE) market turnover has declined by 23 per cent notably due to reduced activities in the pre-arranged boards.

The bourse turnover went down to 1.4bn/- for the seven days ending last Friday from 1.82bn/- of the previous week.

Zan Securities said in its weekly market wrap-up report that the market activities dropped, notably due to reduced activities in the pre-arranged boards as investors held positions in anticipation of upcoming earnings results.

“As the earnings season kicks in, traders and investors are keenly watching for the [last year’s] fourth-quarter results of CRDB and NMB, scheduled for release in the week beginning [today],” it said in the report.

Orbit Securities said in its weekly synopsis that at the moment there was no significant fundamental news influencing the market.

“However,” the report said, “the [this] week may bring changes, especially as banking stocks are anticipated to release their 2023 financial results,” Orbit report said.

As a result, the market capitalisation exhibited a mixed performance, witnessing a 2.28 per cent drop in total market capitalisation and a marginal 0.002 per cent increase in domestic market capitalisation.

Zan said the counters that drove significant trading activity throughout the week included CRDB, NMB and TCCL/Simba cement contributing 49.6 per cent, 33.18 per cent, and 7.16 per cent to the total market turnover, respectively.

“Domestic stocks showed a bullish trend, with two counters experiencing positive price movements, DCB Bank gained the most,” Zan said.

DCB ended the trading week up by 3.85 per cent to 135/- per share. DSE increased by 1.11 per cent closing the week at 1,820/- per share.

On the flip side, TICL was the sole domestic counter to experience a decline dropped by 2.50 per cent to 195/- per share.

In terms of market capitalisation, there was a significant decrease of 2.28 per cent in the total market capitalisation to settle at 14.215tri/-. Conversely, the domestic market capitalisation recorded a slight increase of 0.002 per cent to 11.361tri/-.

“Domestic stocks experienced an upswing, contributing to the growth in domestic market capitalisation,” Zan’s report said.

However, a sell-off in cross-listed stocks like EABL, JHL, NMG and KCB led to a substantial 2.28 per cent decline in total market capitalisation.