Banks fuel DSE rally

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) continued to register elevated activity in the equities market, with a higher turnover compared to the previous week.

Equity turnover amounted to 58.6bn/-.

On a week-on-week basis, total market turnover increased by 32.93 per cent, rising from 44bn/- recorded in the prior week.

Trading activity was largely driven by CRDB, which accounted for 50.1 per cent of total market turnover.

TBL followed with a 22.73 per cent contribution, while NMB and TCC represented 7.61 per cent and 6.85 per cent of total turnover, respectively.

On the price performance front, Banks dominated gains during the week, MCB leading with a sharp increase to reach 930/- per share equal to a 46.46 per cent increase, MCKB recorded a 43.51 per cent increase in price to reach 5,310/- price per share, MBP and NMB reported gains as well reporting 40.49 per cent and 10.22 gains respectively closing the week at 2,290/- and 12,730/-.

Conversely, TTP was the week’s top laggard, shedding 16.46 per cent to close at 330/- per share. AFRIPRISE declined by 3.91 per cent to 860/-, while TCC fell by 1.66 per cent to close at 12,410/-.

DSE also recorded a notable decline of 0.99 per cent, ending the week at 6,980/-per share. SWISS ended the week at 2,690/- per share equal to a drop of 0.37 per cent From a valuation perspective, the exchange recorded gains in both total and domestic market capitalisation.

Total market capitalisation edged up 5.9 per cent to 32.6tri/-, while domestic market capitalisation increased by 7.19 per cent to close the week at 22.7tri/-.

Key benchmark indices

All Share Index (DSEI) closed at 3,756.82 points up by 5.9 per cent. Tanzania Share Index (TSI) closed at 8,421.38 points up by 7.19 per cent.

Sector Indices

Industrial & Allied Index (IA) closed at 5,093.67 points up by 2.26 per cent.

Bank, Finance & Investment Index closed at 18,066.11 points, up by 10.06 per cent Commercial Services Index closed at 2,469.63 points, up by 3.31 per cent.

Highlights: Debt Market

Treasury bill auction no: 1192 On February 11, 2026, central bank was in the market offering Treasury bills to investors.

The offerings included 29.9bn/- for the 35-day maturity Treasury bill, 39.9bn/- for the 91-day Tbill, 59.9bn/- for the 182-day Tbill, and 85.2bn/- for the 364-day T-bill.

Investor demand in this auction was relatively strong across all maturities, with all Treasury bills recording oversubscription.

The 35-day bill achieved a subscription rate of 439.80 per cent, the 91-day bill 297.4 per cent, the 182-day bill 218.70 per cent, and the 364-day bill also attracted solid interest, posting a subscription rate of 213.28 per cent.

Despite the higher demand across all maturities, acceptance rates were generally slightly lower, as the Bank of Tanzania allotted exactly the amounts offered for each maturity.

The 364-day Treasury bill registered a marginal decline in its weighted average yield, easing from 6.2321 per cent in the late January auction to 6.2295 per cent in the current auction a decrease of 0.26 basis points.

This slight drop in yield was supported by an increase in the minimum successful price, which rose to 94.0005 from 93.303 in the previous auction.

Meanwhile, the inflation rate for January 2026 stood at 3.3 per cent.

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Secondary Market Activity

The secondary bond market posted a turnover of 105.4341bn/- from 258.6bn/- in the previous week a decrease of 59 per cent.

Activity was primarily concentrated on 20-year and 25-year bonds.

Market Outlook: Equity Market

Following a strong week that saw the DSEI rise by 5.9 per cent and the TSI gain 7.19 per cent, market momentum remains firmly positive.

The rally was largely driven by banking counters, particularly CRDB and NMB, alongside significant price appreciation in MCB, MKCB, and MBP.

With the Bank, Finance & Investment Index up 10.06 per cent, we expect continued investor focus on tier-one banks.

Strong earnings momentum especially from NMB’s recently announced robust pre-tax profit could sustain buying interest, although short-term profit-taking may emerge after sharp price run-ups.

Given last week’s sharp gains in select counters (MCB +46 per cent, MKCB +43 per cent, MBP +40 per cent), mild corrections are likely as traders lock in gains. However, underlying sentiment remains constructive.

Despite strong turnover growth (+32.9 per cent WoW), net foreign outflows widened significantly. If foreign selling persists, upside momentum could moderate.

Domestic institutional participation will be key in absorbing supply. Broader participation beyond banks particularly in industrial and consumer names such as TBL and TCC—will determine whether the rally broadens or remains sector-concentrated.

We expect the equities market to maintain a bullish but more selective tone, with banking stocks remaining in focus while volatility increases in recently overheated counters.

Fixed Income Market Treasury Bills

The recent auction demonstrated strong investor appetite, with subscription rates exceeding 200 per cent across all maturities.

The slight decline in the 364-day yield (to 6.2295 per cent) signals: Sustained liquidity in the system.

Anchored inflation expectations (January inflation at 3.3 per cent) Continued demand for short-dated government paper.

We expect yields to remain relatively stable in the near term, with a mild downward bias if liquidity conditions persist.

Investors may continue favouring short- to medium-term instruments for liquidity management.