DSE market cap sees strong growth in 2024

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) witnessed significant growth in market capitalisation in 2024, reaching 17.86tri/- by year-end.

This marked a 22.3 per cent increase from 14.61tri/- in 2023, reflecting heightened investor confidence and favourable market conditions.

This positive trend underscores the increasing stability and potential of the exchange, positioning it as a key player in the country financial landscape.

According to the DSE’s Annual Performance report for 2024 market capitalisation climbed by 22.3 per cent to 17.86tri/- in a year to December from 14.61tri/- in the same period the previous year. DSE Chief Executive Officer Peter Nalitolela attributed the growth to sustained investor trust and improved market performance.

“The remarkable growth reflects sustained investor confidence and the strong performance of listed companies, underscoring the resilience and attractiveness of our capital market,” Mr Nalitolela told reporters yesterday.

The domestic market capitalisation also saw a notable 7.38 per cent increase to 12.24tri/- from 11.40tri/-, spurred by rising share prices of domestic companies.

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Equity trading turnover rose by 1.52 per cent to 228.64bn/- at the end of last year from 225bn/- posted on the preceding year.

This growth, according to DSE, was attributed to increased participation by local and foreign investors, strong corporate performance and enhanced mobile trading platforms. A significant contributor to last year’s turnover was a oneoff transaction on the Tanga Cement (Simba Cement) counter valued at 106bn/-.

Additionally, the volume of traded shares also surged by 21.28 per cent, with 228 million shares exchanged by the end of 2024, compared to 188 million in the prior year. Despite the equity market’s positive performance, the bond market saw a decline.

Total turnover in the bond market fell by 13.6 per cent, dropping to 3.15bn/- from 3.64bn/- posted in a prior year.

This was driven by declining market prices for low-rate bonds and the reopening of Bank of Tanzania (BoT) auctions, which shifted investor focus from the secondary market to the primary market.

The Tanzania Share Index (TSI) rose to 4,618.78 points, up from 4,304.4 points in 2023, indicating steady growth in domestic companies.

Meanwhile, the All-Share Index (DSEI) climbed to 2,139.73 points, a significant increase from 1,750.63 points, reflecting broad market growth and improved investor confidence.

The DSE’s Mobile Trading Platform (MTP) experienced notable growth, with quarter four (Q4) turnover increasing to 5.18bn/- from 4.77bn/- in Q3.

Trade volumes also grew, with 7.74 million shares traded in Q4 compared to 7.65 million in Q3. The platform’s popularity continues to grow, driven by enhancements that make it more accessible to users. The report noted a slowdown in new listings within the bond and equity markets.

Only one corporate bond, a sub-national bond by Tanga UWASA, was listed at the end of last year compared to three listed on 2023. No new government bonds were listed during the year.

Despite these challenges, the overall market performance demonstrates a positive trajectory, with strong investor confidence and improved technological adoption shaping the future of the DSE.