In a noteworthy development, the Dar es Salaam Stock Exchange (DSE) experienced a substantial surge in monthly equity turnover in February, marking the highest figure in four years since January 2020. The significant upswing is attributed to the active participation of domestic investors, maintaining an upward trajectory in the market.
February's equity turnover soared by an impressive 98 percent, reaching 26.22 billion Tanzanian Shillings compared to January. Remarkably, nearly 99.5 percent of the total equity purchases during the month were initiated by domestic investors.
Five counters in the stock market emerged as gainers during the month, playing a pivotal role in the domestic capitalization uplift, while three counters experienced a decline. The impact of the decliners, however, was mitigated by the weight of the gainers.
Leading the gainers during the month was CRDB, exhibiting a remarkable price gain of 13 percent and closing at 520 Tanzanian Shillings, up from 460 Shillings at the end of January. CRDB dominated the market in February, accounting for 56 percent of the total equity turnover for the month. The surge in CRDB's price can be attributed to the impressive annual performance results released in early February, showcasing a 21 percent growth in the bank's net profit.
Investors are particularly optimistic about a high dividend yield from CRDB, drawing increased interest in the counter. Despite a substantial supply from foreign shareholders at the beginning of February, the prevailing high demand ultimately lifted the price.
Following closely as another top gainer was National Investment Company Ltd (NICOL), recording an 11.5 percent monthly price gain and a 16 percent gain since the beginning of the year. NICOL's performance is influenced by the impressive annual performance of NMB, which saw a 26 percent growth in annual profit.
DCB Commercial Bank also witnessed an 11 percent price increase, attributed to the overall banking sector performance and market volatility. Despite facing volatility since the previous year, the bank's stock prices remained in the range of 130 to 150 Tanzanian Shillings. However, it's worth noting that the bank recorded a loss of 3.65 billion Shillings last year, a significant shift from the net profit of 890.25 million Shillings in the preceding year.
Additionally, Tanzania Breweries Ltd (TBL) experienced notable activity with prearranged block transactions amounting to 4.6 billion Shillings, making it the second top mover and accounting for 18 percent of the total turnover.
Twiga Cement, despite announcing unimpressive annual results, secured a 6.9 percent price gain during the month. The cement manufacturer's total revenue experienced a slight decline, and a prearranged block transaction in the last week of the month contributed to the counter accounting for 11 percent of the turnover.
The All Share Index (DSEI) in the market gained 47.09 points, reflecting a 2.73 percent increase in the total market capitalization, which reached 14.78 trillion Shillings by the end of the month. Similarly, the domestic market capitalization rose by 2.5 percent, closing the month at 11.66 trillion Shillings.
However, it's worth noting that the cost of sales witnessed a 1.6 percent increase, potentially due to rising energy expenses and power cuts experienced during the year 2023. Consequently, the gross margin dropped to 31.9 percent, experiencing a 169 basis points decrease. The operating margin, on the other hand, only dropped by 40 basis points to 27.1 percent, supported by a substantial increase in other operating income, while other operating expenses fell by 45 percent.