According to DSE, the number climbed by 32.38 per cent in July and the trend has remained unchanged until the first week of this month, compared to a mere 1.06 per cent between July and September, last year.
The foreign investors' participation has reduced the local involvement at the bourse trading to 67.62 from 98.94 per cent under the period under review. According to the Head of Corporate and Research with Orbit Securities Company, Mr Fortius Rutabingwa, foreign firms also helped to boost DSE all share index (DSEI).
"Always the movement of the index is due to foreigners trading as local institutions in the recent days and this is also attributed by the fact that they have reduced their participation bid," Mr Ruta said.
Since July, this year, the DSEI surged up from 1,171.15 points to 1,176.86 as of last week trading. The bourse was closed on Friday to enable investors cerebrate the ending of Muslims' fasting month of Ramadhan.
The low trading turnover of local institutions may be explained by local firms' switch their attention to other investments, especially in real estate development such as the construction of Dodoma University and the planned Kigamboni Bridge.
Traditionally, investments by commercial banks trading at DSE as well as the pension schemes have big impact on the movement of DSEI points. Foreign firms' main interest has always been on buying banks stocks - CRDB and National Microfinance Bank (NMB).
