TZ banks fuel equity rally as African markets diverge
DAR ES SALAAM: TANZANIA led African equity markets last week as banking shares surged, underscoring investors’ appetite for mid-tier financial stocks across the region, the African Market website said.
The Dar es Salaam Stock Exchange All Share Index gained 4.0 per cent, driven by sharp advances in Mkombozi Bank, which jumped 37.0 per cent, DCB Bank (+32.3 per cent) and CRDB Bank (+19.6 per cent).
“The strength in Tanzanian banks reflects growing investor conviction that sector reforms and balance sheet resilience can deliver above-average returns,” the African Market website said. Rwanda also delivered standout gains, with the Rwanda Stock Exchange (RSE) All Share Index soaring 13.2 per cent as KCB Group rocketed 52.4 per cent.
Malawi extended its world-leading year-to-date surge past 160 per cent, climbing another 5.7 per cent on strong banking momentum.
Standard Bank Malawi and NICO Holdings both advanced 15.0 per cent. In Kenya, equities rose 2.8 per cent after the central bank cut its benchmark rate for the seventh time, lowering it to 9.50 per cent.
Analysts highlighted that liquidity support combined with Nairobi Securities Exchange’s ‘one-share minimum’ trading rule boosted retail flows. Eveready rallied 52.8 per cent, Car & General gained 29.7 per cent and HF Group climbed 26.3 per cent.
“Kenya’s monetary easing has given equities further oxygen, with smaller counters in particular benefitting from the retail participation rule,” the African Market website said. Zambia also gained 2.8 per cent, supported by British American Tobacco Zambia (+23.5 per cent) and Airtel (+10.0 per cent).
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Ghana (+0.4 per cent) and Morocco (+0.1 per cent) steadied following strong earlier rallies, while the BRVM rose 0.9 per cent as Bernabé Côte d’Ivoire added 13.5 per cent and Vivo Energy Côte d’Ivoire climbed 10.2 per cent.
South Africa was up 1.1 per cent, aided by financials and stable domestic conditions. Among laggards, Nigeria slipped 0.8 per cent after three weeks of gains, pressured by Greenwich Alpha ETF (-24.6 per cent), UPDC (-17.7 per cent) and Berger Paints (-14.7 per cent).
The pullback came as regulators raised minimum capital requirements for insurers with a one-year deadline, while exchange operator FMDQ announced plans to launch an equity market. Egypt fell 0.7 per cent despite unveiling its first stock exchange mobile app. Zimbabwe lost 1.2 per cent as FBC Holdings dropped 15.6 per cent, extending a recent correction.
Tunisia eased 0.2 per cent amid a cautious response to BNA Assurances’ main market debut on August 14. In monetary policy, Uganda’s central bank kept its rate steady at 9.75 per cent, while Kenya’s cut reinforced liquidity support across the region.
Corporate actions also influenced sentiment, led by Bosquet Investments’ purchase of a 21.2 per cent stake in Ecobank from Nedbank. “The cross-border acquisition highlights how strategic investors continue to view African finance as a growth frontier,” the African Market website said.
