DSE gains despite foreign exits

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) recorded a strong increase in trading activity during the week ended 19 June 2026, with equity market turnover rising sharply by 243.1 per cent to 47.43bn/- from 13.83bn/- recorded in the previous week.

Despite the heightened market activity, foreign investors remained net sellers, with the market registering a net foreign outflow of 12.11bn/-, widening from a net outflow of 3.22bn/- recorded the previous week.

This suggests that a substantial portion of the week’s liquidity was driven by foreign investor exits, although domestic investors continued to provide support on the buy side.

Market capitalisation increased by 1.35 per cent to 34.23tri/-, while domestic market capitalisation rose by 0.63 per cent to 23.40tri/-.

The improvement reflects positive price movements in several large-cap counters, particularly within the banking sector, which helped offset declines in selected industrial and consumer stocks.

Trading was heavily concentrated in a few counters, with NMB dominating market turnover. NMB accounted for 65.37 per cent of total market turnover, recording trades worth 32.03bn/- .

The counter was followed by CRDB, which contributed 30.10 per cent of weekly turnover with transactions valued at 14.75bn/-.

Collectively, NMB and CRDB represented over 95 per cent of total market turnover during the week, underscoring continued investor preference for the banking sector due to its strong earnings profile, attractive dividend yields, and liquidity.

Market sentiment was broadly positive across several counters, with AFRIPRISE emerging as the week’s best-performing stock after gaining 11.57 per cent to close at 675/- per share.

Other notable gainers included: EABL, which advanced 9.90 per cent to 5,550/- per share.

Also, NMB, which appreciated 7.03 per cent to close at 15,990/- per share, supported by strong investor demand and high trading volumes. TCCL, which gained 3.58 per cent to 3,180/- per share.

NMG, which rose 1.89 per cent to close at 270/- per share. On the downside, TOL Gases Plc led the decliners, falling 12.41 per cent to 1,270/- per share, DCB Bank declined 10.28 per cent to 480/- per share.

MBP shed 8.21 per cent to 1,900/- per share. MKCB fell 5.65 per cent to 4,010/- per share. Kenya Airways (KA) declined 4.17 per cent to close the week at 115/- per share.

Key benchmark indices

All Share Index (DSEI) closed at 3940.49 points up by 1.35 per cent Tanzania Share Index (TSI) closed at 8,648.52 points up by 0.63 per cent.

Sector Indices Industrial & Allied Index (IA) closed at 5,063.71 points down by 0.55 per cent Bank, Finance & Investment Index closed at 19,251.52 points, up by 1.41 per cent.

Commercial Services Index closed at 2,114.58 points, down by 1.85 per cent.

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Highlights: Debt Market

On June 17th, 2026, central bank was in the market offering treasury bills to investors.

The offerings included 49.9bn/- for the 35-day maturity Treasury bill, 69.9bn/- for the 91-day T-bill, 79.9bn/- for the 182-day T-bill, and 75.2bn/- for the 364-day bill.

Investor demand in this auction was relatively strong across most maturities, with the 35-day, 91-day, and 182-day all recording oversubscription.

The 35-day bill attracted strong interest, posting a subscription rate of 316.63 per cent, followed by the 91-day bill at 203.1 per cent and the 182-day bill at 281.60 per cent.

Also, the 364-day bill was oversubscribed, recording a subscription rate of 302.80 per cent.

The Bank of Tanzania (BoT) allotted exactly the amounts initially offered for all maturities except the 364-day bill where BoT allotted more than what was intended.

Yields continued to decline for the 35-day, 91-day, and 182-day tenors, reflecting sustained investor appetite and ample liquidity in the market.

The 364-day Treasury bill, however, moved in the opposite direction, with its weighted average yield increasing to 6.9219 per cent from 6.3808 per cent recorded in the early June auction an increase of 54.11 basis points.

There was very slight increase in the minimum successful price, which increased to 91.7722 from 91.7655 in the previous auction.

Overall, the auction results indicate continued strong demand for government securities despite the increase in amounts offered across all maturities and the broader downward trend in yields.

Secondary Market Activity The secondary market witnessed a significant increase in activity during the trading week of June 15th to June 19th. Total turnover rose from a previous baseline of 50.744 billion to a total of 173.661 billion.

This represents an absolute growth of 122.917 billion, marking a 242.23 per cent rise in market volume over the period.

The upward momentum was supported by a total of 93 executed deals, with trading volume heavily concentrated in specific midto-long term tenors.

The primary drivers of this turnover were the 15-year bonds at a 13.5 per cent coupon, which generated 40.6202 billion across four deals, alongside the 5-year 10.25 per cent and 10- year 13.5 per cent terms, which each contributed exactly 30.0000 billion to the aggregate total.

The 10-year 14 per cent paper also accounted for a substantial portion of the volume, posting 28.1959 billion in a single transaction.

In contrast, corporate and shorter-term retail papers saw minimal turnover, despite registering several trades.

Weighted average yields varied noticeably depending on the maturity profile, ranging from a low of 6.32 per cent for the 2-year 12 per cent bond to a high of 33.86 per cent for the NMB Jamii paper.

This distribution highlights a distinct market focus on longer-term government sovereign debt rather than corporate alternatives during this trading window.

Market Outlook

The DSE is expected to maintain a positive trajectory in the near term, supported by continued domestic investor participation, strong performance from banking counters, and improving market liquidity.

The dominance of banking stocks reflects continued investor confidence in the sector, supported by strong earnings performance, attractive dividend prospects and improved liquidity in leading counters.

Going forward, market direction is likely to be influenced by the ability of domestic institutional investors to absorb continued foreign investor selling pressure. Foreign participation remained a key area of focus.

While foreign selling has created short-term pressure on selected counters, sustained domestic demand has provided support, allowing the DSE All Share Index (DSEI) and Tanzania Share Index (TSI) to advance by 1.35 per cent and 0.63 per cent, respectively.

Overall, the market outlook remains constructive, supported by improving liquidity, positive domestic investor sentiment, and strong fundamentals among leading listed companies.

However, investors will continue to monitor foreign fund flows, valuation levels in key counters, and evolving interest rate conditions in the fixed income market as factors that may influence market performance in the coming weeks.