The Dar es Salaam Stock Exchange (DSE) recorded a turnover of 2bn/- last week, with local investors dominating trading activity, as the market approaches the close of the third quarter.

Market reports indicate that foreign investors returned to the market, engaging in both buying and selling, primarily on the Tanzania Breweries Limited (TBL) counter. 

Shares worth 275m/- were traded through the block trade pre-arranged market board.

On Monday, the DSE recorded a turnover of 922m/- from 425,394 shares traded across 305 deals. 

This included 100,000 shares on the NMB counter and 33,366 shares on the Tanzania Cigarette Company (TCC) counter, both transacted through block trades. 

CRDB Bank was the top mover, with 278,664 shares traded at an average price of 650/- per share in 217 deals.

Tuesday saw a turnover of 446.7m/- from 254,238 shares traded in 309 deals, including 50,200 TBL shares transacted via block trades. 

Foreign investors dominated the TBL counter, accounting for 61 percent of the total value of shares traded. 

CRDB Bank once again led the market, with 184,487 shares valued at 120m/- traded at prices ranging between 640/- and 660/- per share in 209 deals.

On Wednesday, the market recorded a turnover of 284.5m/- from 179,941 shares traded in 311 deals. 

Foreign investors purchased shares worth 60.5m/- from local investors. 

Thursday followed with a turnover of 142.99m/- from 215,206 shares traded in 301 deals, with foreign investors buying shares worth 11m/-.

The week ended on Friday with a turnover of 214.86m/- from 323,515 shares traded across 308 deals. Foreign investors purchased shares valued at 10.7m/-.

As the quarter nears its close, the DSE has recorded a total turnover of 30.7m/-, surpassing the 30.6m/- registered during the same period last year. 

Foreign investors have so far purchased shares worth 2.3bn/-, representing 7.58 percent of the total value of shares bought. 

This marks an increase from the 936.8m/- purchased in the third quarter of last year.

Foreign investors have sold shares valued at 7.1bn/-, accounting for 23.18 percent of the total value of shares sold. This is a decline from the 14.6bn/- in shares sold during the same period last year.

The total market capitalization rose to 17.7trn/- at the end of last week, up from 14.8trn/- recorded a year ago. This growth is attributed to an increase in both cross-listed and locally listed shares. Meanwhile, the domestic market capitalization expanded to 12.1trn/- from 11.3trn/- over the same period.

The performance in Q3, 2024 suggests a resilient market with growth in both local and cross-listed counters, although foreign participation is yet to fully recover compared to previous years.

Analysts say the outlook for the Dar es Salaam Stock Exchange (DSE) in October 2024 is expected to be influenced by several key factors, both domestic and global

Foreign investor participation

As foreign investor activity showed signs of recovery in Q3 2024, this trend is expected to continue into October. 

With improving global market conditions and Tanzania's stable economic outlook, more foreign funds might be drawn to the DSE, especially in high-performing counters like TBL and CRDB Bank.

Impact of global economic trends

The global economic environment, including interest rate decisions by major central banks and commodity price fluctuations, could impact foreign investor confidence. 

A strong US dollar or tighter global liquidity could reduce foreign inflows, while easing conditions would boost foreign participation.