THE Dar es Salaam Stock Exchange (DSE) recorded a weekly turnover of 2.148bn/- from 2,448,596 shares traded last week, a decrease of 12.89 percent compared to 2.466bn/- from 4,272,809 shares traded during the previous week.

At the close of Week, AFRIPRISE had the strongest weekly stock price gains for the third consecutive week, increasing by 8.89 percent compared to the previous week’s close. 

CRDB also showed strong weekly growth, rising by 7.27 percent.

On the downside, NMG was the biggest loser for the second consecutive week, with a decline of -8.11 percent.

The Tanzania Share Index (TSI), which tracks the performance of domestically listed companies, also maintained stability, reflecting a balanced sentiment in the domestic market.

The banking sector continued to show strong performance, particularly with banks such as NMB Bank and CRDB Bank maintaining their robust positions due to their solid financial fundamentals and attractive dividend yields. 

The commercial services sector remained flat, with no significant changes reported in stock prices.

There was a noticeable increase in both local and foreign investor participation. Local investors, in particular, have been more active, contributing significantly to the turnover. 

This trend aligns with the broader market movement seen throughout the first half of 2024, where local institutional investors like pension funds and mutual funds have shown increased interest in the equities market​.

Analysts say the DSE is expected to maintain its positive momentum in the coming weeks, driven by favorable economic conditions and ongoing efforts to attract more institutional investors. 

However, market watchers will keep an eye on global economic factors that could influence foreign investor behavior and overall market sentiment.

Foreign investor participation

Since the start of the current quarter, foreign investors have sold shares worth 402m/- or 7 percent of total value of shares sold and purchase shares valued 47m/- or 0.8 percent of total value of shares bought, which translates into 340m/- net outflows.

In the first half of 2024, foreign investors have shown a dynamic yet cautious engagement with the Dar es Salaam Stock Exchange (DSE).

Their participation has seen fluctuations in both the buying and selling activities, reflecting broader global economic trends.

Foreign investor purchases increased significantly during certain periods, driven by attractive valuations in specific sectors such as banking and industrials. 

For instance, the acquisition of shares in companies like CRDB Bank and Tanzania Portland Cement was notably higher, indicating confidence in these sectors' long-term growth prospects.

Conversely, the selling side also saw substantial activity, attributed to a mix of profit-taking strategies and global economic shifts, including rising interest rates in developed markets which prompted some investors to rebalance their portfolios away from emerging markets like Tanzania. 

This trend was particularly evident in February and March when foreign investor selling peaked, aligning with global market adjustments.

Despite the volatility, the net effect of foreign participation in the DSE has been largely positive, contributing to increased liquidity and market depth. 

Foreign turnover, which includes both buying and selling activities, has contributed significantly to the overall market turnover, albeit with occasional dips reflective of external economic pressures.

In summary, while foreign investors have played a critical role in the DSE’s activities in the first half of 2024, their participation has been marked by a strategic and responsive approach to both local opportunities and global economic signals.

Outlook

Looking ahead, the DSE is expected to continue its recovery trajectory, supported by strong local company performances and improving economic conditions. 

However, challenges such as reduced foreign investor participation and global economic uncertainties may temper growth. Analysts remain cautiously optimistic, highlighting the importance of continued efforts to attract local and institutional investors to sustain market momentum.

In summary, while the DSE has faced several challenges, the outlook for the rest of 2024 remains positive driven by local market strength and strategic efforts to enhance investor participation.

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