Market turnover rises as DSE recovers

DAR ES SALAAM: DAR ES SALAAM Stock Exchange (DSE) is entering a period of steady recovery as liquidity and investor participation begin to normalise across equities and government securities.

Zan Securities analyst Isaac Lubeja said activity has strengthened in selected banking and industrial counters, while the debt market continues to draw investors seeking more attractive yields in the secondary market.

“Looking ahead, we expect a period of mild improvement in both the equity and debt market, as investors still maintain a selective sentiment towards certain counters in the stock market and investors seeking better yield options in the secondary debt market,” Mr Lubeja said.

Weekly performance data from the bourse, ended last Friday, shows that total turnover rose to 5.604bn/- from 5.104bn/- in the previous week, a 9.79 per cent increase that reflects growing investor appetite after a period of subdued activity.

Equity activity improved last week with significant selective liquidity from several banking sector and industrial counters.

“With investor participation improving and market sentiment returning to normal, bond market activity also increased significantly during the week,” he said.

CRDB Bank remained the dominant driver of the week’s trades, accounting for 44.95 per cent of market turnover. DSE followed with 20.15 per cent, while AFRIPRISE contributed 12.75 per cent, marking them as the most active counters of the week.

On price movement, Mwalimu Commercial Bank (MCB) led the gainers after its share price rose by 17.57 per cent to 435/- per share. Tanzania Tea Parkers (TaTePa) added 11.11 per cent to close at 500/- per share.

On the losing side, Mkombozi Commercial Bank (MKCB) fell by 11.83 per cent to 2,460/-, followed by Precision Air (PW), which shed 9.09 per cent to 300/- and Tanzania Cigarette Company (TCC), which declined 7.51 per cent to 9,970/-.

Alpha Capital Chief Executive, Mugisha Kamugisha said overall, the last week’s developments point to a market that is recalibrating smoothly after the election cycle, with domestic liquidity acting as a stabilising anchor across asset classes.

“Banking sector earnings have reinforced investor confidence, fixed income markets continue to absorb liquidity efficiently and the long end of the yield curve remains the dominant destination for risk-averse capital,” Mr Kamugisha said.

Market valuation also strengthened, with total market capitalisation rising by 1.56 per cent to 21.819tri/- while domestic market capitalisation inched up by 0.06 per cent to 13.582tri/-.

Benchmark indices reflected a similar pattern: The DSE All Share Index gained 1.06 per cent to close at 2,545.41 points, while the Tanzania Share Index edged up by 0.06 per cent to 5,130.88 points.

Sector performance was mixed. The Industrial & Allied Index rose 0.8 per cent, while the Banking, Finance & Investment Index dipped 0.25 per cent. The Commercial Services Index slipped 0.66 per cent.

On the debt side, secondary market activity surged, with turnover rising to 70.6308bn/- from 44.7174bn/-, a 57.95 per cent increase. Trading remained concentrated in long-term and medium-term maturities, especially the 25-year, 20-year and 5-year bonds.

The strong appetite follows an oversubscribed 15-year Treasury bond auction where bids reached 552.92 per cent of the amount offered, despite a reduction in coupon rates.

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Mr Lubeja said the combination of selective equity liquidity and strong bond-market demand suggests improving sentiment, adding that investors are gradually positioning for stability as market conditions normalise.

While Mr Kamugisha said, with monetary conditions still accommodative and economic indicators trending favourably, “the outlook remains constructive, though selective, across both equities and fixed income as we move into the final quarter of the year”.