DSE turnover up nearly 170%

The Dar Es Salaam Stock Exchange (DSE) has witnessed a remarkable surge in turnover, increasing by a staggering 168%. This significant uptick can be attributed to foreign investors showing keen interest in acquiring shares of CRDB Bank Plc and NMB Bank Plc. Princeley Mafunga, a seasoned Financial Analyst at Bankable, sheds light on this remarkable development and shares insights on the current investment landscape at the DSE. Mafunga highlights that the investor appetite has notably picked up, particularly in the second and third quarters. The exceptional performance of CRDB Bank and NMB Bank shares has captured the attention of investors, setting the stage for an intriguing future as third-quarter reports loom on the horizon. The anticipation is palpable as stakeholders eagerly await the upcoming Q3 reports, with expectations running high for these two banking giants. The prevailing sentiment suggests that the stellar performance showcased by CRDB and NMB is poised to extend into the third quarter, further fueling investor interest and driving market activity. Reflecting on the composition of investors participating in the DSE, Mafunga observes a notable shift in dynamics. While local investors have historically dominated the retail side of investments, foreign investors, mostly institutional players, have traditionally held a significant presence. However, there has been a discernible change in this pattern. Mafunga notes a shift in local investor behavior, with a greater focus on fixed-income instruments compared to equities. This shift can be attributed to the perceived safety and stability of fixed-income investments, with investors opting for government bonds over equities. Conversely, foreign investors, unable to directly access the fixed-income market, have redirected their attention towards equity investments. As a result, foreign investors have ramped up their trading activities in equities, seeking both income and potential capital gains. This strategic pivot in investment behavior has contributed to the surge in turnover at the DSE, marking a significant trend in the market's evolution. The evolving investor landscape at the DSE underscores the dynamic nature of the financial markets and the pivotal role played by both local and foreign investors in shaping market trends and driving liquidity. With CRDB Bank and NMB Bank emerging as key attractions for investors, the DSE is poised for continued growth and heightened investor interest in the months ahead.