TSL Discusses Significant Growth in Stock Market for Q1 2024

Tanzania Security Limited (TSL) has reported a notable rise in the stock market for the first quarter of 2024, attributing the growth to increased public investment, particularly in infrastructure, which has facilitated the overall sector growth.

Speaking during the Dar es Salaam Stock Exchange (DSE) Market Quarterly Review meeting, hosted virtually recently, TSL’s Chief Executive Officer, George Shumbusho, acknowledged the positive performance while suggesting room for improvement considering the longstanding presence of the Dar es Salaam Stock Exchange. “We are supposed to be much ahead as compared to where we are,” commented Mr. Shumbusho during the webinar.

The webinar analyzing the performance of the DSE market for the first quarter of FY 2024 was attended by panelist Emmanuel Nyalali, the Ag. Director Business Development at DSE and a guest speaker Ronny Chokaa, Senior Research Analyst at AIB-AXYS Africa who provided an overview of the Nairobi Stock Exchange’s performance in connection with the DSE.

A Valley Hill Growth

TSL’s Head of Marketing and Research, Acley Mbilinyi, presented the performance details, noting that the All Share Index, a gauge of all listed companies in DSE, experienced a growth of nearly 2.1%. However, this was less than the Tanzania Share Index growth due to the price drop of some cross-listed companies primarily listed in the Nairobi Securities Exchange.

“The All Share Index grew by almost 2.1%, which was less compared to the Tanzania Share Index. This is because some cross-listed companies primarily listed in the Nairobi Securities Exchange dropped in prices,” stated Mbilinyi.

Significantly, the Tanzania Share Index rose by 3.9%, up from 4,295 points. This growth highlights the key market segments, with Banking and Investment (BI) leading, followed by Industrial and Allied (IA), and Commercial Services (CS).

Market Turnover and Key Contributors

The market turnover for the first quarter amounted to 57.6 billion Tanzanian Shillings, with a capital outflow of 19.9 billion Tanzanian Shillings due to the withdrawal of foreign investors. CRDB was the major contributor for January, February, and March, accounting for 62.5%, 69.6%, and 50.7% of the total monthly turnover, respectively.

Concluding the webinar, Mr. Shumbusho emphasized the need for increased investor engagement and collaboration to energize the Dar es Salaam Stock Exchange. He urged the creation of awareness and training for Tanzanians on investment auctions and investments as a strategy to strengthen the DSE market.