DAR ES SALAM: In September, the Dar es Salaam Stock Exchange experienced a significant upswing in market activities, primarily propelled by a series of prearranged block transactions, notably on the TBL counter.
The total equity turnover for September witnessed an astounding 340% increase on a monthly basis, soaring to TZS 20.75 billion compared to the previous month's TZS 4.71 billion. Notably, Tanzania Breweries Ltd (DSE: TBL) played a pivotal role in this surge, with two major block transactions. The first, executed in the initial week, involved trading one million shares at TZS 6,000/-. The second, occurring in the third week, involved the same number of shares traded at TZS 6,500/-. Consequently, TBL's turnover reached TZS 12.5 billion for the month, making it the top mover, contributing 60% to the total turnover.
CRDB Bank Plc (DSE: CRDB) followed as the second top mover, engaging in both prearranged and market transactions. CRDB accounted for 19% of the total turnover, amounting to TZS 3.84 billion by the end of September. Other significant contributors were Tanzania Cigarette Company (DSE: TCC) and NMB Bank Plc (DSE: NMB), collectively constituting 15% of the total turnover.
Foreign participation remained noteworthy, with 55% of divestments originating from foreign investors. However, only 0.73% of investments during the month came from foreign sources, resulting in a net foreign outflow of TZS 11.25 billion ($4.41 million) in September, significantly higher than the previous month's TZS 466.6 million ($0.18 million).
Market indices reflected this positive trend, primarily due to NMB Bank's robust performance. The Tanzania Share Index (TSI) saw a growth of 118.04 points, closing at 4,280.33 points, equivalent to a 2.84% monthly growth in the domestic market capitalization, which reached TZS 11.32 trillion. The All Share Index (DSEI) rose by 7.4 points to 1,782.75 points, spurred by a 0.42% growth in the total market capitalization, concluding the month at TZS 14.87 trillion.
NMB Bank remained the top gainer for the second consecutive month, with its price rising from TZS 3,860/- at the end of August to TZS 4,600/- at the end of September. This surge was primarily attributed to the bank's impressive half-year performance, featuring a 26% growth in net profit compared to the previous year. In addition, NMB registered a medium note program, planning to raise TZS 75 billion through the NMB Jamii Bond, with anchor investors including the World Bank's IFC and British International Investment (BII).
Despite a few declines in share prices, the overall market trend remained positive. Maendeleo Bank Plc (DSE: MBP) and Mkombozi Commercial Bank Plc (DSE: MKCB) were the leading losers, falling by 9.52% and 8.70%, respectively. Tanga Cement Plc (DSE: TCCL) dropped by 4.44%, while CRDB Bank faced a 4.35% decrease due to a mere 3% half-year profit growth, down from the previous year's 96% growth.
DCB Commercial Bank Plc (DSE: DCB) and Dar es Salaam Stock Exchange (DSE: DSE) also experienced losses, dropping by 3.45% and 3.30%, respectively. DCB's decline was attributed to investors' realization of its ineligibility to pay dividends for the year 2022. DSE's price movement appeared anomalous and likely resulted from market volatility.
The month's activities demonstrated the resilience of the Tanzanian stock market, showcasing notable gains, strategic investments, and strong investor confidence, painting a promising picture for the future.