Tanzania market performance review
The Dar es Salaam Stock Exchange (DSE) is experiencing significant fluctuations in both share and bond trading volumes, prompting key questions about the market’s underlying dynamics. Ahmed Nganya, Manager in Advisory & Capital Markets at Vertex International Securities Limited, joins CNBC Africa to delve deeper into these trends.
Thu, 13 Mar 2025 09:51:40 GMT
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AI Generated Summary
- Differences in buyer and seller behavior contribute to the significant disparity in trading volumes between the bond and equity markets.
- The rise of technology-driven platforms has attracted a new wave of retail investors, particularly young Tanzanians, resulting in a surge of account openings and increased market accessibility.
- Anticipation of liquidity shifting from bonds to equities indicates potential positive momentum in trading activity on the DSE.
The Dar es Salaam Stock Exchange (DSE) has been witnessing significant fluctuations in both share and bond trading volumes, sparking questions about the underlying dynamics of the market. Ahmed Nganya, Manager in Advisory & Capital Markets at Vertex International Securities Limited, shed light on these trends during a recent interview with CNBC Africa. Nganya highlighted various factors contributing to the market's volatility, citing differences in buyer and seller behavior between the bond and equity markets as a key driver. While the economy has shown stability with inflation rates below the country's threshold, the disparity in trading volumes reflects the varying preferences of institutional investors. Commercial banks and insurance companies are more active in the bond market, while individual investors are increasingly participating in equities through technology-driven platforms. The rise in retail investors, particularly young Tanzanians below the age of 40, has been facilitated by mobile trading apps and network operators, enhancing market accessibility and driving account openings. Looking ahead, Nganya expressed optimism about liquidity shifting from bonds to equities and anticipated a potential uptick in trading activity.
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