DSE declines amid mixed performers

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

Total turnover for the week decreased to 12.269bn/- from 15.66bn/- , representing a 21.66 per cent decrease.

CRDB emerged as the dominant player, contributing 63.31 per cent of the total market turnover.

Close behind was TCC, which accounted for 10.60 per cent, NMB contributed 6.42 per cent of the total turnover, reinforcing their positions as notable movers in the week’s trading session. On the price movement front, PAL stood out as the week’s top gainer.

Its share price appreciated by 20 per cent, closing at 210/- per share. Tanzania Tea Packers (TTP) followed, recording a 19.7 per cent increase, closing the week at 395/- per share.

On the loser’s side CRDB recorded a decline, with its share price falling by 9.38 per cent to 1,160/- .

It was followed by NICO, which shed 6.08 per cent to close at 1,390/- per share and VODA which shed 2.52 per cent to close at 580/- per share.

In terms of market valuation, the exchange registered a decrease in both total and domestic market capitalisation.

Total market capitalisation is down by 1.5767 per cent, to 21.414tri/-. Similarly, domestic market capitalisation is down by 2.477 per cent, closing the week at 13.505tri/-.

Key benchmark indices

All Share Index (DSEI) closed at 2,498.25 points down by 1.5767 per cent. Tanzania Share Index (TSI) closed at 5,101.60 points down by 2.4769 per cent.

Sector indices

Industrial & Allied Index (IA) closed at 4,100.54 points, up by 0.5488 per cent. Bank, Finance & Investment Index closed at 9,235.16 points, down by 4.4 per cent.

Commercial Services Index closed at 1,648.00 points, down by 1.96 per cent.

ALSO READ: DSE investors’ bullish ahead of Q3 earnings

Market news round

Tanzania stocks face foreign sell-off as domestic investors take charge.

Tanzania’s equity market experienced a notable pullback in foreign investor interest in the third quarter of 2025, with offshore investors increasing their stock sales by 41.9 per cent, as global yields rose and the US Federal Reserve maintained elevated interest rates.

Market data shows turnover from shares sold by foreign investors rose to 114.9bn/- in the third quarter, July to September 2025, from 80.9bn/- that they sold in the second quarter, between April to June 2025.

According to the Dar es Salaam Stock Exchange (DSE), the surge in foreign selling reflects both global monetary tightening and domestic portfolio adjustments rather than a loss of confidence in the market.

DSE’s chief executive officer, Mr Peter Nalitolela, said the rise in foreign selling signals reduced foreign participation and potential portfolio rebalancing.

“It reflects a combination of domestic market dynamics, macroeconomic adjustment and global yield dynamics rather than a loss of confidence in the Tanzania Market,”.

DSE investors’ bullish ahead of Q3 earnings

Investor’s optimism is building across the Dar es Salaam Stock Exchange (DSE) as the market enters the final stretch before the release of third-quarter (Q3) earnings reports.

With a number of listed banks expected to announce results later this month, traders are repositioning portfolios in anticipation of the updates.

The current trading pattern suggests that investors are selectively positioning ahead of the results season, with several counters showing renewed momentum.

As we move into mid-October, we expect a period of mild volatility across the equity market as listed companies prepare to release their quarter three (Q3) earnings.

Highlights: Debt market

10 per cent -2-year Treasury bond no: 687 On Wednesday October 15th, 2025, the Central Bank was in the market offering 107.270bn/- in the competitive window and 11.920bn/- in the non-competitive to investors for a new 2-Year Treasury bond offering a 10 per cent coupon rate annually.

The auction was oversubscribed by 18.22 per cent – the auction received bids totalling 126.810bn/- and accepted bids worth 107.110bn/-.

This auction marks the second issuance of the 2-year Treasury bond under the new calendar for the first half of the 2025/26 fiscal year.

In this round, the Bank of Tanzania increased the amount on offer to 107.270bn/-, slightly higher than the 105.350bn/- offered in the previous auction.

Investor demand strengthened, with the auction recording an oversubscription rate of 118.22 per cent.

The Bank accepted bids slightly above the amount offered, resulting in an acceptance rate of 84.46 per cent.

Notably, strong demand persisted despite a reduction in the coupon rate from 12 per cent to 10 per cent.

The weighted average yield declined by 212.14 basis points to 10.0481 per cent, down from 12.1695 per cent in the previous auction, aligning with the lower coupon rate.

Meanwhile, the minimum successful price decreased to a discounted level of 97/4954 from 101/1500 in the July auction.

The inflation rate for August 2025 stood at 3.4 per cent.

Secondary market activity

The secondary bond market posted a turnover of 72.3263bn/- down from 386.51bn/- in the previous week—a decrease of 81.29 per cent.

Activity was primarily concentrated in the medium-term and long-term bonds; 15-year and 25-year bonds.

Market outlook

Equity activity has declined this week with significant sell-offs from several banking sector and commercial services counters, while the bond market activity has also decreased significantly during the week.

Looking ahead, we expect the trend of consolidation in the equity prices in a handful of banking counters as investors brace for quarter three performance results, as for the fixed-income market we expect an increasing turnover as market sentiment improves to better yield options.