Foreign investors recorded a 3.9bn/- shares selloff at the Dar es Salaam Stock Exchange (DSE) last week, the amount which is equivalent to 50 percent of total shares they have sold since the start of the current quarter, which were all bought by local investors.

The DSE market reports show that all the selloff deals were conducted during the last three days of the week, involving block trade pre-arranged market board on Tanzania Breweries Limited (TBL) and CRDB Bank counters.

Since the start of the current quarter, foreign investors have so far sold shares valued 7.8bn/-, which is equivalent to 43.45 percent of total value of shares sold and more than 100 percent of total value of shares they sold during the last quarter.

The Wednesday’s market report shows foreign investors sold shares valued 1.3bn/-, which was equivalent to 58.79 percent of total value of shares sold, which involved both TBL and CRDB counters through block trade deals.

On Thursday, the report shows that foreign investors also appeared into the market by selling shares valued 1.06bn/-, which was equivalent to 72.86 percent of total value of shares sold, which also involved block trade on CRDB Bank and TBL counters.

During the last day of the week, the daily report shows that foreign investors participated the market by selling shares valued 1.48bn/- or 90.89 percent of total value of shares sold, on TBL counter through block trade pre-arranged market board.

However, the report shows foreign investors also participated through buying shares on Monday valued 88.8m/-.

Analysts say the market outlook for the Dar es Salaam Stock Exchange (DSE) will largely hinge on the economic environment, influenced by factors like the Central Bank of Tanzania’s monetary policy stance, currency stability, and investor sentiment both locally and regionally. 

Key sectors to monitor include banking, telecommunications, and manufacturing, especially considering ongoing interest rate trends and demand shifts in consumer goods.

After the Central Bank decided to maintain the Central Bank Rate at 6 percent during the fourth quarter, analysts say this could spur greater activity in banking and finance stocks as borrowing costs stabilize, possibly increasing investment in equity markets. 

The banking sector has exhibited significant activity, with institutions like CRDB Bank and NMB Bank being pivotal in market movements.

However, if inflation remains a concern, further monetary tightening could impact liquidity, potentially slowing down trading volumes.

“Tanzania's economy has demonstrated robust performance, with the Bank of Tanzania projecting a 5.4 percent growth for the year, supported by steady increases in public and private sector investments, as well as export growth . This economic stability is likely to foster a favorable environment for the stock market,” says an analyst.

The outlook will also be shaped by investor reactions to Q4 earnings, where strong performances could bolster confidence in DSE-listed firms.

Recent data indicates a cautiously optimistic outlook for Tanzania's equity market as of mid-October 2024, with the Dar es Salaam Stock Exchange All Share Index (DSEI) showing gains, spurred by cross-listed firms.

Additionally, foreign investors began Q4 with net inflows of 940m/- into the DSE, signaling growing confidence in the market.