DSE CEO on Q1'25 market performance update & new EAE 20 Share Index

Tanzania's capital markets have experienced a mix of fluctuations and gains as Q1 of 2025 comes to a close, leaving investors pondering over the state of confidence in the market. The launch of the EAE 20 Share Index, introduced by the East Africa Stock Exchange Association, has brought fresh opportunities for regional integration. In an exclusive interview with Peter Nalitolela, CEO of the Dar es Salaam Stock Exchange (DSE), CNBC Africa delved into the insights regarding Tanzania's market performance and the potential impact of the newly introduced index on the economic landscape of the region. Nalitolela commenced the discussion by highlighting the market movements seen in the first quarter of the year. Comparing the performance of Q1 2025 to the previous quarter and the same period in 2024, he noted a percentage increase in both the Tanzania Share Index and the DSEI index. The CEO attributed these fluctuations to several factors, including the excitement generated by companies releasing their Q4 results at the beginning of the year. Particularly, the banking sector's discipline in publishing their financials played a significant role in shaping the market's performance. Additionally, the introduction of a mobile trading platform has sparked increased activity, offering investors more accessibility to trade throughout the day, potentially leading to more stable market movements. Addressing the dominance of CRDB in the DSE, Nalitolela praised the bank for its exceptional performance across key financial metrics, reflecting a stable and growing entity. He credited CRDB's expansion initiatives, both locally and regionally, for attracting investor interest and driving the bank's continued success. Moreover, the strategic choice of multiple stock splits by CRDB has made its shares more attractive to investors, propelling its outperformance compared to competitors. Shifting focus to the bond market and the inception of the EAE 20 share index, Nalitolela elucidated on the collaborative effort of the East Africa Stock Exchange Association in forming the index comprising the top 20 performing counters from member markets. The inclusion of prominent Tanzanian issuers like NMB, CIDB, Tanzania Breweries, Tanzania Portland Cement, and Tanzania Cigarette Company in the index elevates their visibility regionally and globally. This enhanced exposure not only incentivizes the included companies to maintain their performance but also provides investors with a diversified avenue to access regional stocks through a singular investment in the index. The EAE 20 Share Index signifies a step towards greater market integration and accessibility for investors across East Africa. As the index evolves over time, it is poised to offer a holistic view of the regional stock performance, opening up new avenues for investment and collaboration among member exchanges. With the potential to streamline investment opportunities and enhance market transparency, the index holds the promise of fostering a robust economic environment across the East African region.