DSE sees surge in local investor activity

Dar es Salaam. Local investors emerged as key players as the stock market recorded a 183 percent increase in total turnover during the first quarter of 2024.

According to the Dar es Salaam Stock Exchange (DSE) chief executive, Mr Mary Mniwasa, in Q1 of 2023, the bourse recorded Sh20.36 billion in total turnover.

It, however, rose to Sh57.58 billion during the first quarter of 2024. “Due to the ongoing geopolitical tensions, we have seen a low level of foreigners’ participation; however, local investors’ activities have improved,” she said.

Speaking to the press, Ms Mniwas also revealed that local lender CRDB Bank Plc emerged as the as the top trading counter at the equities market during the first quarter of 2024, contributing over 54 percent of the total turnover.

“The bank was followed by TBL Plc, which contributed 16.83 percent, NMB Bank Plc, which contributed 10.31 percent, and Twiga (Tanzania Portland Cement Company Ltd.), which contributed 9.98 percent,” she said.

 In terms of the majority of shares sold on the market, CRDB Bank also contributed the most, with 85.37 percent of shares sold, followed by TCCIA Investment Bank, which contributed 5.14 percent. Turnover at the secondary bond market had also been positive, recording Sh952.10 billion by the end of Q1, which is 15 percent higher than the value of bond sales for the same period in 2023, where bond turnover was Sh827.92 billion.

“This was highly influenced by the listing of Kijani Bonds from CRDB Bank and the Jamii Bond by NMB,” she said.

 Kijani Bond by CRDB was launched in August 2023 to boost environmental, social, and sustainability projects in the country and was successfully listed at the DSE on November 7, 2023.

 The Jamii Bond was listed at the DSE in December 2023 to raise funds to finance eligible climate, social, and environment-focused projects that positively impact resilience against climate change, achieve sustainable infrastructure, and promote efficient and sustainable use of natural resources.

 Ms Mniwasa said the reopening of the long-term Treasury bonds, such as the 20-year bonds and the 25-year bonds, had also contributed significantly.

“The net value of Treasury bonds issued by the government for the first quarter of 2024 amounted to Sh20.87 trillion, compared to the first quarter of 2023, where bonds valued at Sh17.59 trillion were issued,” she said.

 The participation and accessibility of the market continue to improve, as during the first quarter, investors using the digital application ‘Hisa Kiganjani’ conducted transactions totalling Sh2.72 billion, compared to Sh326 million during the same period in 2023, marking an increase of 734.36 percent.

“DSE continues to enhance the functionality of the app to enable more Tanzanians to access it through various networks and mobile banking applications. Additionally, DSE plans to improve the payment system to allow Tanzanians living abroad (diaspora) to use it from anywhere in the world,” said the DSE boss.