DSE’s Q2 market cap surges

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) recorded a 79.11 per cent rise in market capitalisation in the second quarter, driven by strong banking stocks, investor participation and active equity and debt markets.

Total market capitalisation of the 28 listed companies rose to 35.1tri/- by June 30, from 19.6tri/- a year earlier, reflecting stronger investor confidence and growing activity in Tanzania’s capital market.

DSE Chief Executive Officer Peter Nalitolela attributed the strong second-quarter market performance to improved corporate earnings, increased investor participation and growing confidence in listed companies, particularly banks.

In addition, the market capitalisation of the 22 domestic listed companies rose by 84.8 per cent to 23.7tri/- from 12.8tri/- in June last year, largely supported by higher valuations of listed financial institutions.

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The Banking, Finance and Investment Index emerged as the best-performing sector, surging by 174.05 per cent to 19,679.07 points from 7,179.70 points recorded a year earlier.

Likewise, the Tanzania Share Index (TSI), which measures the performance of domestic listed companies, advanced by 80.88 per cent to 8,777.10 points from 4,852.34 points over the same period.

Mr Nalitolela said the impressive gains were primarily driven by the strong share price performance of NMB Bank Plc, CRDB Bank Plc and KCB Bank Plc, which significantly lifted overall market performance. However, bond market activity fell 1.03 per cent to 1.44tri/- from 1.46tri/- in the same period last year, driven by lower trading in government securities, corporate bonds, sub-sovereign bonds and Sukuk.

Mr Nalitolela attributed the decline to investors shifting more of their portfolios towards equities, where returns have remained significantly stronger than in the fixed income market. Meanwhile, foreign currency-denominated corporate bonds and Sukuk rose 154.86 per cent to 186.05 million US dollars from 73 million US dollars a year earlier.

Equity market liquidity also strengthened considerably, with total turnover more than tripling to 496.7bn/- from 151.8bn/- in the second quarter of 2025, translating into an average daily equity turnover of 8.28bn/-.

During the quarter, the exchange admitted five new securities worth a combined 236.4bn/-, namely the Makazi Bond, EFTA Bond, Mapato Sukuk, Nyumba Bond and the iTrust Bond, further broadening investment opportunities in the domestic capital market.

Speaking on the growing trading activity of crosslisted shares, Central Securities Depository and Registry (CSDR)’s Chief Executive Officer Mr Benitho Kyando said improvements in the settlement infrastructure have enabled shares of companies primarily listed on the Nairobi Securities Exchange to be traded more efficiently on the DSE.

He said although six companies are cross-listed on the DSE, their primary listings remain in Nairobi, where the original share records have traditionally been maintained.

“This move allows investors to buy and sell the shares directly through the DSE, including via the DSE Kiganjani platform, making transactions faster, easier and more efficient.