COLUMN: WEEKLY INVESTMENT TALK. Between the numbers: A look at November’s performance at the DSE
DAR ES SALAAM: NOVEMBER 2024 has been an eventful month for the Dar es Salaam Stock Exchange (DSE), reflecting a mix of market activity and valuation shifts. A total of 28 million shares were traded, realising 37bn/- in turnover.
Despite this activity, the total market capitalisation dropped by 2.0 per cent, from 18.45tri/- to 18.1tri/-. Similarly, domestic market capitalisation declined by 1.0 per cent, settling at 12.2tri/- from 12.3tri/-. The Industrial and Allied sector, along with the Commercial Services sector, remained steady throughout the month. However, the Banks, Finance and Investment sector experienced a 2.0 per cent decline, with its index dropping from 5,865 points to 5,732 points.
Meanwhile, the fixed-income market continues to be dominated by 20- and 25-year government bonds, which account for over 80 per cent of activity in this segment.
As 2024 draws to a close, the DSE presents a unique opportunity for investors. With new innovative products entering the market and increasing digitisation efforts spearheaded by mobile network providers and the banking sector, the process of buying and selling stocks is becoming more accessible than ever. For potential investors, the convergence of these technological advancements and market developments signals the right time to dive into Tanzania’s growing capital market.
A closer analysis of key performers reveals exciting growth stories. CRDB Bank has been a standout, with its stock price surging by 40 per cent this year, from 460/- at the start of 2024 to 650/- by November. CRDB not only leads in price appreciation but also in turnover and trading volumes, cementing its position as a favorite among investors.
Similarly, AFRIPRIDE (formerly TICL) has captured investor attention since its rebranding, showcasing the potential for renewed confidence and interest in select stocks.
For seasoned investors and newcomers alike, this is the time to reassess and rebalance portfolios while setting clear financial goals for 2025. The market’s performance underscores the importance of staying informed and capitalising on opportunities presented by strong performers and innovative market trends.
While the DSE’s numbers paint a mixed picture of gains and declines, they also highlight the resilience and dynamism of Tanzania’s capital markets. November’s data serves as a reminder that behind every figure lies a narrative of market forces, investor sentiment and emerging opportunities.
ALSO READ: DSE turnover jumps 164pc in one week
As the year draws to a close, the first week of December ending on December 6, 2024, highlighted significant activity at the Dar es Salaam Stock Exchange (DSE). Turnover surged by an impressive 161.43 per cent, reaching 19.01bn/- compared to 7.27bn/- in the previous week. This growth was bolstered by a remarkable 591.23 per cent increase in the volume of shares traded, totalling over 18.44 million shares. Foreign purchases also experienced a sharp rise, climbing from 0.05 per cent to 0.31 per cent—a 491.02 per cent increase—demonstrating renewed interest from international investors.
However, total market capitalisation declined slightly by 0.79 per cent, falling from 18.09tri/- to 17.94tri/-. In contrast, domestic market capitalisation showed modest growth, edging up by 0.12 per cent to 12.22tri/-. These mixed results underscore the dynamic opportunities present at the DSE as the year concludes.
For investors, this is a pivotal moment to strategically position themselves for 2025. By diversifying portfolios, exploring innovative investment products, or leveraging digital platforms for seamless trading, the DSE provides a gateway to capitalise on market opportunities. Those ready to act can harness the market’s potential to achieve their financial goals in the year ahead.
