Tanzania | DSE

The stock market recorded significant activity in the third quarter where market turnover closed by 30.70 billion. This primarily resulted from many block trades traded during the period. Total market capitalization decreased by 0.96% moving to TZS 14,866.12 billion in the end of this quarter while domestic market capitalization increased by 4.61%. This conflicting trend resulted from decrease in prices of cross listed counters and increase in prices of local counters.

The stock market recorded a steady performance in the month of April. Total market capitalization declined by 1.09% moving to TZS 15,570.27 billion by the end month. Conversely, Domestic market capitalization increased by 1.99% in the same period.

TCC successfully owns 90% of the local market share. Their value is based on offering product quality, maintaining brand awareness, innovation, packaging, and competitive pricing. Popular brands include as Embassy, Portsman, Sweet Menthol, Camel, Winston, and Crescent. The company works on providing products at different price points ranging from value to premium price segment. TCC also has a supply network that ensures the availability of its products throughout the country. It has 16 branches across the country and ensures distribution using wholesalers.

The Dar es Salaam Stock Exchange (DSE) experienced a significant increase in turnover during the first quarter of 2023. The turnover increased by 10% from 18.5 billion in the last quarter of 2022 to 20.4 billion in the quarter that ended on March 31, 2023. During this quarter, a few counters dominated the equity market turnover. CRDB, NMB, TPCC, TCCL, and NICO were the most traded counters, accounting for 97.3% of the total equity market turnover. This indicates that these companies are in high demand among investors. The local investors continued to increase their investments in stocks, bonds and other securities during the first quarter of 2023, this was evidenced by the fact that they accounted for 83% of total investments and 68% of total divestments in the Dar es Salaam Stock Exchange.

TBL recorded a net profit growth of 7.8% to TZS 149.2Bln during the year 2022, while the total revenue from sales of beer and spirits rose by 12.2% to TZS 1.14Trn. Net income margin slightly dropped by 20bps to 13.1% largely due to the 96.3% increase in tax expenses. Increased revenue lifted the gross margin from 38% in 2021 to 40% in 2022. In the last five years, TBL's profit has grown by 12%, from TZS 133Bln in 2018 to TZS 149Bln in 2022, while revenue has grown by 5.6% during the same period.

The NMB divided growth led to a 22% growth in dividend income for the year 2022. As a result of the diversification away from the bank, dividend from NMB as income to NICOL only grew by 24% compared to 41% growth of the bank’s dividend payout. During the year 2021, NICOL disposed 20% of their NMB holdings at the time and reinvested the proceeds into Treasury bonds. As a result, interest income grew by 121% during the year 2022, leading to an aggregate investment income growth of 46%. Dividend income accounted for 64% of investment income, down from 77% in 2021.