Dar es Salaam Stock Exchange turnover jumps 149%

The turnover at the Dar es Salaam Stock Exchange advanced by 148.9 per cent last week, thanks largely to the increased participation by foreign investors. A total turnover of about Sh11.66 billion was realized last week. This was a huge improvement compared to Sh4.68 billion that was recorded in the week that ended on February 4. Salum Awadh, CEO at SSC Capital joined CNBC Africa for more.

Wed, 16 Feb 2022 14:55:47 GMT

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AI Generated Summary

The Dar es Salaam Stock Exchange experienced a significant uptick in turnover, with a 148.9% increase attributed to heightened foreign investor involvement.
Key counters such as NMB and TBL drove market activity, with TBL emerging as the most traded counter due to its strong performance and future prospects in the manufacturing sector.
Despite a recent dip in share trading volumes, foreign investors continue to dominate market activities, signaling sustained market liquidity and turnover. The bond market remains buoyant, reflecting favorable macroeconomic conditions in Tanzania.

The Dar es Salaam Stock Exchange saw a significant surge in turnover last week, with a 148.9% increase largely attributed to the heightened participation of foreign investors. The total turnover reached approximately 11.66 billion Tanzanian shillings, a substantial improvement from the 4.68 billion Tanzanian shillings recorded in the previous week. Salum Awadh, CEO at SSC Capital, shed light on the recent developments at the stock exchange, highlighting the positive trajectory the market has been on since January. In recent months, the market has shown positive growth, with the turnover increasing by over 150% in the past week alone. The domestic market curve also experienced a 1% growth, propelled by notable performances from key counters such as NMB and TBL. NMB, which recently announced record profits, saw an increase in stock prices, contributing to the overall market curve improvement. Tanzania Breweries PLC (TBL) emerged as the most traded counter, accounting for 85.72% of market activity. Investors showed keen interest in TBL due to its consistent performance, dividend payouts, and promising future prospects in the manufacturing sector. While TBL thrived, CRDB Bank, another prominent player in the financial sector, witnessed subdued investor interest in recent days. However, Awadh anticipates increased activity on the CRDB Bank counter following recent business expansions and financial performance disclosures. Despite a decline in the volume of shares traded last week, market experts remain optimistic about the ongoing foreign investor interest in the market. Foreign investors continued to dominate market activities, showcasing interest in both selling and buying opportunities. This sustained interest is expected to boost market liquidity and turnover, especially in equities. Additionally, the bond market has shown stability and attractiveness, with the 20 and 25-year bonds performing well compared to the 10-year bond. A promising outlook for market activities in the coming weeks includes potential revitalization of JATU shares, which have shown fluctuating performance recently. The bond market's buoyancy reflects the favorable macroeconomic fundamentals in Tanzania, with single-digit inflation and solid economic growth rates. As inflation remains in check at 4.2% and economic growth steadily increasing, the bond market is set to remain a magnet for investors. Moving forward, market observers recommend monitoring counters like NMB, CRDB, and JATU for potential trading opportunities and market movements. Awadh singles out JATU as a growth stock with untapped potential, urging investors to keep a close watch on its performance in the market.