Domestic market cap soars to 14.4tri/-

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) closed the week with market activity showing a modest decline in activity compared to the previous trading week.

Total turnover for the week decreased to 24.822bn/-, representing a 17.32 per cent decrease from the prior week’s turnover of 30.023bn/-.

TCCL emerged as the dominant player, contributing 53.59 per cent of the total market turnover, attributed to several per-arranged block trades on the counter.

Close behind was CRDB, which accounted for 38.23 per cent, TBL and NMB contributed 3.02 per cent and 2.35 per cent of the total turnover, respectively, reinforcing their positions as notable movers in the week’s trading session.

On the price movement front, MBP stood out as the week’s top gainer. Its share price appreciated by 28.57 per cent, closing at 675/- per share.

NICO followed closely, recording a 27.44 per cent increase, closing the week at 2,090/- per share.

On the loser’s side PAL recorded a steep decline, with its share price falling by 13.46 per cent to TZS 225.

It was followed by TBL, which shed 5.7 per cent to close at 8,610/- per share and MUCOBA which shed 2.44 per cent to close at 400/- per share.

In terms of market valuation, the exchange registered growth in both total and domestic market capitalisation. Total market capitalisation rose by 2.82 per cent, to 21.741tri/-.

Similarly, domestic market capitalisation rose by 4.18 per cent, closing the week at 14.42tri/-.

Key benchmark indices

• All Share Index (DSEI) closed at 2,536.39 points increasing by 2.82 per cent.

• Tanzania Share Index (TSI) closed at 5,447.23 points increasing by 4.18 per cent.

Sector Indices

• Industrial & Allied Index (IA) closed at 4,776.03 points, down by 1.07 per cent.

• Bank, Finance & Investment Index closed at 8,763.56 points, up by 6.2 per cent.

• Commercial Services Index closed at 1,585.01 points, up by 3.2 per cent.

Highlights: Debt Market

15.00 per cent -25-year Treasury bond no: 675 On Wednesday 6th August 2025, the central bank was in the market offering 264.310bn/- to investors for the 25-Year Treasury bond offering a 15.00 per cent coupon rate annually.

The auction was subscribed by 464.85 per cent- the auction received bids totalling 1.228655tri/- and accepted bids worth 264.310bn/-.

This auction marks the first issuance of the 25-year Treasury bond in the 2025/26 fiscal year, following the release of the updated auction calendar for the first half of the year.

The Bank of Tanzania offered 264.310bn/-, slightly higher than the 247.970bn/- offered in the previous auction.

The minimum successful price dropped significantly to 103/3100 from 111/9348 in the June expectations auction.

Although the coupon rate was reduced from 15.75 per cent to 15 per cent, this adjustment did not dampen investor appetite.

The bond attracted over 1.2tri/- in bids – a record high for this instrument demonstrating strong demand despite the lower coupon.

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The weighted average yield declined by 37.39 basis points, falling from 14.7978 per cent to 14.4239 per cent.

This continues the downward trend in yields observed since January 2025. Investor participation remained robust, with the auction posting a high subscription rate of 464.85 per cent.

Nevertheless, the Bank of Tanzania accepted only 21.51 per cent of the bids received, allotting exactly the amount initially offered. A significant number of bids were unsuccessful due to high bank’s cut-off level unlike investors.

Secondary market activity The secondary bond market posted a turnover of 79.07bn/-, up from 13.49bn/- in the previous week—an increase of 486 per cent.

Activity was primarily concentrated in the long-term bonds; 20-year and 25-year bonds.

Market outlook Despite softer weekly equity turnover, rising market capitalisation supports selective bullishness in banks and industrials.

The 25-year auction on 6 Aug was heavily oversubscribed and tightened yields to 14.4239 per cent, signalling strong demand for long-dated paper.

Expect selective equity upside and continued appetite for long bonds. The market has largely rebounded from the temporary price dip observed following the implementation of the new trading rules in June.

Going forward, we anticipate continued bullish momentum, particularly on selected banking and industrial counters.