Despite the usual slowdown in activities towards the end of the year, the Dar es Salaam Stock Exchange (DSE) saw a remarkable rally in recent days. Turnover on the bourse surged from 3.74 billion Tanzanian shillings to 11.07 billion Tanzanian shillings in just seven days, driven mainly by a pre-arranged block trade of 2.5 million shares of TICL. This increase in turnover was accompanied by a significant rise in the volume of shares traded, which saw a staggering 139.28% jump from 8.55 million to 20.45 million shares.
In its weekly market review, Vertex International Securities expressed optimism about the market’s performance, stating that despite being in the last month of 2023, the DSE still appeared promising. The report highlighted the dominance of CRDB Bank, NMB Bank, and TICL regarding both turnover and volume. It predicted that TICL and NICO would continue their resilient performance the following week.
CRDB Bank emerged as the market leader with the highest turnover, accounting for 44.89% of the total turnover and the highest volume, representing 53.3% of the shares traded. NMB Bank closely followed, contributing 32.58% to the total turnover. TICL also made a noteworthy impact, generating a significant turnover of 1.58 billion Tanzanian shillings, equivalent to 14.29%.
Regarding price movements, Maendeleo Bank Plc (MBP) experienced a notable increase of 8.93%, with its stock price rising from 280 Tanzanian shillings to 305 Tanzanian shillings. NICO also saw a positive movement, with a 3.30% increase, closing at 470 Tanzanian shillings compared to an opening of 455 Tanzanian shillings.
READ MORE: The Dar es Salaam Stock Exchange: A Catalyst for Tanzania’s Financial Transformation.
On the other hand, TICL suffered the most significant price drop, declining by 7.32% to close at 190 Tanzanian shillings from an opening of 205 Tanzanian shillings. Furthermore, the DSE experienced a decrease of 2.15%, closing at 1,820 Tanzanian shillings from a gap of 1,860 Tanzanian shillings.
Despite these price fluctuations, the total market capitalization of the DSE saw a slight increase of 1.0%, reaching 14.6 trillion Tanzanian shillings from 14.5 trillion Tanzanian shillings. However, the domestic market capitalization experienced a slight decrease of 0.21%.
Tanga Cement stood out in the manufacturing sector with a significant % stock price surge of 90% over the past twelve months. This price rise was attributed to investor speculation surrounding the company’s acquisition deal, finalized in the fourth quarter. However, due to ongoing financial losses, Tanga Cement did not declare dividends this year.
Another solid performer in the sector was Twiga Cement, which saw a 15% increase in its stock price and rewarded investors with a 390 Tanzanian shillings per share dividend. Orbit Securities noted that Twiga Cement remained one of the most stable stocks on the exchange.
Meanwhile, other manufacturing stocks, such as TBL and TCC, remained relatively stagnant, while TOL Gases experienced a decline of 4.0% despite paying a dividend of 50 Tanzanian shillings per share. Shifting the focus to the service sector, which includes companies like Vodacom, Swissport, and Precision Air, there was minimal movement in their share prices as they largely remained unchanged, according to the Orbit report.
The Dar es Salaam Stock Exchange’s remarkable performance with a turnover of 11.07 billion Tanzanian shillings, despite the usual slowdown in year-end activities, is a testament to the strength and resilience of the market. The significant increase in turnover and volume of shares traded reflects investors’ continued interest and confidence.
As the DSE maintains its positive momentum and with promising performances from key players in the market, it sets a positive tone for the upcoming weeks and further reinforces the potential of the stock exchange.