DSE sees 1.06% increase in turnover

The Dar es Salaam Stock Exchange (DSE) has witnessed a significant uptick in its turnover, experiencing a 1.06% increase last week, with a notable contribution from foreign investors. In an exclusive interview with CNBC Africa, Moremi Marwa, the CEO of DSE, shed light on the recent market trends and the factors driving this resurgence. Marwa highlighted the surge in market activity and liquidity during July, noting a rise in participants across both the equity and bond markets. Compared to the second quarter of 2020, equity liquidity tripled, while bond transactions rose by 50%. This uptrend signifies a recovery from the setbacks inflicted by the COVID-19 pandemic in the previous year. Marwa expressed optimism about the continuation of this positive trajectory, citing promising economic fundamentals. Tanzania's GDP is anticipated to grow by 5.5%, surpassing the growth forecasts of many other markets and economies. Key sectors like infrastructure, transport, telecommunications, financial services, and mining are showing signs of revitalization. Marwa reaffirmed the confidence of investors in the country's economic outlook, manifested through heightened market activities. The CEO also attributed Tanzania's relative success in weathering the pandemic to the early resumption of social and economic activities in the country. While many nations in the region faced restrictions, Tanzania's swift return to normalcy has set it apart. Despite an initial projection of a 6.9% economic growth rate for 2020-2021, the impact of COVID-19 is expected to reduce this figure to 5.5%, still outperforming neighboring economies. Marwa emphasized the favorable response of investors to Tanzania's handling of the pandemic and the positive growth outlook. The market's resurgence has exceeded expectations, with indices and market capitalization showing notable improvements year to date. Domestic listed companies have seen a 0.5% increase in their index, contrasting with negative trends in other markets. Notably, the bond market witnessed unprecedented trading volumes in Q3, with transactions reaching 700 billion Tanzanian shillings. Equally impressive was the equity side, with a turnover surge of over 50% compared to the previous quarter. Overall, trading activities in 2021 have doubled on the fixed income side, underscoring the market's buoyancy. Marwa underlined the considerable growth in turnover and market size, signaling a robust rebound from the challenges encountered in the first two quarters. Investors' growing confidence in the Tanzanian economy, coupled with the optimistic performance outlook of key sectors, continues to drive the market's resurgence.