DSE major indices close September in green

Tanzania's main equity indices closed the month of September on a positive note, with the Tanzania Share Index rising 2.8 per cent to 4,280.33 points, and the All-Share Index adding 7.4 points or 0.4 percent to 1,782.75 points. The major movers on the Dar es Salaam Stock Exchange (DSE) included Tanzania Breweries, CRDB Bank, NMB Bank, and Tanzania Cigarette Company. These companies saw significant investor interest and positive performances, leading to a green month for the Tanzanian stock market. CNBC Africa's Julius Bizimungu spoke to Peter Nalitolela, Director of Markets at NBC Tanzania, to gain deeper insights into the reasons behind the market movements and investor behavior. One of the key themes highlighted in the interview was the impact of annual statements and dividend payments on investor sentiment. Companies like Tanzania Breweries Limited (TBL) saw increased demand from both local and offshore investors due to revenue growth, cost reductions, and dividend increments. The company's strong market position and ongoing expansion efforts further fueled investor interest, leading to large block transactions and a significant contribution to the total turnover on the DSE. Furthermore, the performance and outlook of CRDB Bank PLC were also discussed, with the bank's regional expansion plans and green bond issuance playing a key role in driving investor confidence and trading activity. NMB Bank's recent launch of a green bond further added to the positive sentiment surrounding the company, as investors showed interest in sustainable investment opportunities. Despite the positive performances of these key companies, the interview also touched upon the trend of foreign investor outflows in the Tanzanian market. Global economic uncertainties and interest rate hikes by the Federal Reserve have led to reduced liquidity and increased anxiety among foreign investors, prompting some to exit or reduce their positions in emerging and frontier markets like Tanzania. The ongoing foreign investor outflows are part of a broader trend affecting markets across the region, and will continue to impact market dynamics in the coming months. Overall, the Tanzanian stock market's green September highlights the resilience of key sectors and companies, as well as the challenges posed by global market forces and investor sentiments.