Equity boom lifts DSE value past 33tri/-
DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) posted a strong rise in total equity market capitalisation in the first quarter ending March this year, signalling renewed investor confidence and a broad-based rally in share prices. The latest market performance report shows the bourse’s total market capitalisation climbed to 33.44tri/- at the end of March, up from 24tri/- recorded in the previous quarter, representing a 39.38 per cent increase.
DSE Chief Executive Officer Mr Peter Nalitolela said the continued expansion reflects growing confidence in country’s capital markets, supported by strong corporate performance, rising domestic participation and ongoing product innovation including the introduction of Exchange Traded Funds (ETFs).
“We have witnessed a significant rise in liquidity and trading activity during the period under review, with more investors accessing the market through digital platforms and taking advantage of new investment opportunities,” said Mr Nalitolela on Tuesday.
He said the introduction of ETFs For Instance, which include Vertex Securities ETF and iTrust EAC Large Cap ETF, continues to broaden the market’s product offering. The segment has already recorded a total market capitalisation of 183.5bn/-, signalling early traction following its recent debut.
The report further shows that domestic market capitalisation rose to 23tri/- at the end of the first quarter, up from 15.5tri/- recorded at the end of December last year, translating into a 47.65 per cent increase.
Banking stocks remained dominant, with CRDB and NMB emerging as the most capitalised counters, with a combined market value of 14.04tri/-.
Meanwhile, total equity turnover surged to 571.1bn/- during the period under review, up from 135.7bn/- in the previous quarter, an increase of 320.86 per cent.
Domestic equities accounted for the bulk of trading activity at 553.0bn/-, compared to 133.2bn/- in the preceding quarter, pointing to heightened local investor participation.
Top traded counters according to the reported mirrored the valuation leaders, with CRDB accounting for 356.99bn/- in turnover, followed by NMB 60.69bn/- and Tanzania Breweries Limited (TBL) with 46.93bn/-.
Moreover, the bullish sentiment was also reflected in the benchmark indices. The DSE All Share Index (DSEI) rose by 45.07 per cent quarter-on-quarter to close at 4,006.77 points, up from 2,761.93, while the Tanzania Share Index (TSI) gained 56.86 per cent to 9,034.38 points from 5,759.41.
The report also showed Investor participation continued to strengthen, with the number of Central Depository System (CDS) accounts rising to 815,838 from 723,691 recorded at the end of December, equivalent to a 12.73 per cent increase.
Notably, mobile-based trading through the ‘Hisa Kiganjani’ platform expanded rapidly, reaching 216,173 accounts by the end of the first quarter, up from 142,998 in the previous quarter.
Looking ahead, Mr Nalitolela said the exchange expects the number of investors to reach 1.1 million by the end of the year, driven by growing uptake of financial literacy initiatives and a continued increase in trading activity
