DSE soars 22pc in nine months

The Dar es Salaam Stock Exchange (DSE) has experienced a remarkable 21.5 per cent surge in performance during the first nine months of this year, reflecting broader economic trends and positive investor sentiment.

The country’s stock market from January to September this year exhibited a notable increase in total market capitalisation, increasing from 14.61tri/- in January to 17.76tri/- at the end of last month as Q3 wraps up.

According to Vertex International Securities weekly article, the surge reflects improved investor confidence and positive economic sentiment, driven by strong performances in key sectors and stable macroeconomic conditions.

“Several companies recorded significant price movements from January to September, with notable gains in sectors such as banking, beverages, and insurance,” the report showed.

The domestic market cap grew by 7.0 per cent, reaching 12.18tri/- by September.

CRDB Bank, for instance, saw its stock price rise by 39.13 per cent from 460/- in January to 640/- in September, signifying its strong financial performance and robust demand for its shares.

In contrast, the industrial sector faced more mixed results, with companies like Tanga Cement and Twiga Cement showing declines.

Vertex International Securities’ Manager, Research and Analytics Mr Beatus Mlingi said the sector may be experiencing pressures from rising production costs and competitive forces.

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“Investors may need to adopt a selective approach when investing in industrial stocks, focusing on companies with strong fundamentals and competitive advantages.

“As we enter the fourth quarter of this year, the country’s stock market offers a mix of opportunities and risks for investors,” he said.

However, it remains a critical part of the country’s economic growth, particularly given the government’s focus on infrastructure development.

Similarly, EABL, a cross-listed company had an impressive price increase of 82.97 per cent rising from 1,820/- to 3,330/-.

Domestic companies like NICO also posted substantial gains, with its share price increasing by 50 per cent to 750/- from 500/-.

However, not all companies fared well during this period.

Swissport Tanzania saw its price decline by 16.67 per cent from 1,320/- to 1,100/- potentially due to increased competition in the aviation sector.

Generally, the country’s economic outlook remains positive, but market conditions could shift, making a well-diversified and strategic investment approach essential for navigating the final quarter of the year.

As Q3 ended, the Tanzania Share Index (TSI) saw a gain of 3.14 per cent, a significant improvement compared to the 0.3 per cent increase in Q2.

“We expect stronger earnings to be reported in Q3, which will further support this upward trend,” said Mr Raphael Masumbuko a CEO of Zan Securities.