Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) exhibited a promising trajectory in 2024, underscoring growth and resilience across key market segments despite notable shifts in dynamics, according to new report released on Monday, January 20, 2025.
The report released by the DSE said last year saw remarkable performance in equities, steady gains in market indices, and a notable evolution in new listings, contrasting with a decline in bond market activity.
Equity market show stellar growth in capitalization and liquidity
The equity segment of the DSE in 2024 was marked by significant growth in market capitalization.
The domestic market capitalization rose by 7.38 percent, reaching Sh12,243.37 billion compared to Sh11,401.41 billion in 2023.
“When cross-listed companies are factored in, total market capitalization surged by an impressive 22.29 percent, from Sh14,611 billion in 2023 to Sh17,868.17 billion in 2024,” the DSE says.
Key contributors to this robust growth included the appreciation of domestic companies’ share prices and strong performance in cross-listed stocks.
The upward trend reflected improving economic conditions, heightened investor confidence, and the market’s recovery momentum.
Equity trading activity also showcased resilience, with turnover reaching Sh228.64 billion, representing a 1.52 percent increase from Sh225 billion in 2023.
Excluding the Sh106 billion one-off transaction of Tanga Cement in 2023, the adjusted turnover reflected an exceptional 91.5 percent growth.
A total of 228 million shares were traded, a 21.28 percent increase compared to 188 million shares in 2023.
Innovative mobile trading platforms, rising local and foreign investor participation, and strong performance by listed companies were instrumental in driving this surge.
Indices
Key indices demonstrated remarkable growth, with the Tanzania Share Index (TSI) climbing 7.30 percent year-on-year to close at 4,618.78 points, driven by price appreciations in domestic stocks such as NMB Bank, CRDB Bank, and AFRIPRISE.
The All-Share Index (DSEI) surged by 22.22 percent, ending the year at 2,139.73 points, buoyed by gains in both domestic and cross-listed companies, including KCB, EABL, and JHL.
These trends underscored a robust market-wide recovery and increasing investor confidence.
Declining liquidity in bond market amid policy shifts
In contrast, the bond market experienced a decline in turnover, which fell by 13.6 percent to Sh3,150 billion, down from Sh3,648 billion in 2023.
This contraction was primarily driven by a preference for Bank of Tanzania’s (BoT) re-opened primary auctions and declining secondary market prices, particularly for low-rate bonds.
A reserved pace in equity and bond activity
The equity market witnessed pivotal milestones, including Mkombozi Commercial Bank PLC’s transition from the Enterprise Growth Market (EGM) to the Main Investment Market Segment (MIMS), marking a significant growth milestone.
In December 2024, DCB Commercial Bank PLC successfully concluded a Rights Issue involving 97.6 million shares at Sh110 per share.
Conversely, the bond market saw limited activity, with only one corporate bond, a sub-national bond by Tanga UWASA, being listed in 2024, compared to three corporate bonds in 2023.
Government bond activity was dominated by re-openings, with no new government bonds listed during the year.
Outlook
The DSE’s performance in 2024 reflects a dynamic interplay of growth opportunities and evolving market conditions.
While equities surged on the back of improved investor sentiment and market innovation, the bond market faced headwinds driven by policy changes and price dynamics.
These trends highlight the importance of strategic innovation and adaptive policy measures to sustain growth and attract broader participation in the coming years.
