Market liquidity slumps despite valuation growth

TANZANIA: TRADING activity cooled sharply last week following the previous week’s exceptionally high volumes, although market valuations continued to strengthen.

Total turnover plunged 85.74 per cent to 25.25bn/-, while traded volume fell 88.69 per cent to 7.23 million shares.

Despite the slowdown, foreign investor sentiment turned positive. Net foreign flows reversed from an outflow of 4.17bn/- in the previous week to an inflow of 124.86m/-, representing a 102.99 per cent rebound.

Broad market valuations remained resilient. Total market capitalisation rose 1.27 per cent to 36.17tri/-, domestic market capitalisation increased 0.71 per cent to 24.44tri/-, while ETF market capitalisation edged up 0.32 per cent to 197.29bn/-.

Top Movers: Trading remained concentrated in five counters.

TBL led with turnover of 7.89bn/-, accounting for 31.25 per cent of total market turnover. CRDB followed with 7.66bn/- (30.34 per cent), while NMB recorded 5.37bn/- (21.28 per cent). TCCL generated 1.76bn/- (6.98 per cent) and VODA completed the top five with 742.54m/- (2.94 per cent).

Top Gainers: KA topped the gainers, surging 56.52 per cent to close at 180.

USL gained 20.00 per cent to 30, TTP advanced 5.62 per cent to 470, DCB rose 5.56 per cent to 475 and TBL climbed 3.35 per cent to close at 10,170.

Top Losers: MCB recorded the steepest decline, falling 20.48 per cent to 660.

PAL lost 7.69 per cent to 360, MUCOBA dropped 5.10 per cent to 465, TCCL declined 4.97 per cent to 3,250 and MKCB slipped 4.78 per cent to 3,980.

IFC celebrates first Tanzanian shilling bond issuance

The International Finance Corporation (IFC) marked its inaugural Tanzanian shilling bond issuance at the London Stock Exchange.

The 262.5bn/- (100 million US dollars equivalent) five-year bond is the largest Tanzanian shilling-denominated issuance in international capital markets. It carries a 7.60 per cent coupon and was placed with European institutional investors, with Goldman Sachs International acting as dealer.

The proceeds will finance a 100 million US dollars equivalent Tanzanian shilling loan to NMB Bank Plc to expand lending to micro, small and medium-sized enterprises (MSMEs), with 20 per cent earmarked for womenowned businesses.

The financing is expected to improve access to long-term local currency funding, reduce foreign exchange risk and support business investment, growth and job creation.

CMSA approves NMB share split

The Capital Markets and Securities Authority (CMSA) approved a 1-for-10 share split for NMB Bank Plc ordinary shares on July 24, 2026, with the public announcement issued on July 27.

Under the corporate action, every issued and paid-up share will be subdivided into 10 ordinary shares, increasing the bank’s listed shares on the Dar es Salaam Stock Exchange (DSE) from 500 million to five billion.

The move is intended to improve affordability, enhance liquidity and broaden retail investor participation. Shares entered the cum-split trading period on July 27, with the last cum-split trading day scheduled for August 19.

Trading will be suspended from August 20 to August 21 ahead of the August 21 record date, while post-split trading will commence on August 24.

Treasury bond records strong demand

On July 22, 2026, the Bank of Tanzania offered 146.32bn/- through a 10-year Treasury bond carrying an annual coupon of 11.25 per cent.

The auction attracted bids worth 360.45bn/-, representing an oversubscription rate of 246.34 per cent. The central bank accepted bids worth the targeted 146.32bn/-.

This was the fourth auction of the 10-year Treasury bond this year and marked a strong recovery from the undersubscribed June auction. The increase in the coupon rate from 10.50 per cent to 11.25 per cent appears to have strengthened investor appetite.

The minimum successful price rose to 95.6988 but remained below par, indicating the bond was still issued at a discount.

Meanwhile, the weighted average yield increased by 48.34 basis points to 10.8747 per cent from 10.3913 per cent in the previous auction, suggesting investors continue to seek higher compensation for holding longer-term government securities.

Secondary bond market

For the week ended July 24, 2026, the secondary bond market recorded turnover of 105.42bn/- across 255 deals, down 20.18 per cent from 132.07bn/- traded in 273 deals the previous week.

Activity remained concentrated in long-term government securities, although corporate bonds also recorded notable participation.

The 15-year 10.75 per cent Treasury bond registered a single trade worth 9.61bn/- at a yield of 10.67 per cent.

On the ultra-long end, 25- year bonds contributed a combined 6.49bn/- across 42 deals, led by the 25-year 15.95 per cent paper, which generated 3.40bn/- in 17 deals.

Outlook

The sharp decline in equity turnover appears to reflect a normalisation following the exceptionally active previous week rather than weakening market fundamentals.

Growth in total and domestic market capitalisation, together with gains across benchmark indices, indicates that investor confidence remains resilient despite lower trading volumes. Market activity is therefore expected to stabilise in the coming weeks, with institutional investors likely to remain the primary drivers of turnover.

Attention is expected to shift toward NMB Bank following the announcement of its upcoming 1-for-10 share split. As the market progresses through the cum-split trading period, retail investor participation is likely to strengthen ahead of the record date.

Historically, share splits have improved liquidity and broadened shareholder participation by making stocks more affordable. NMB is therefore expected to remain one of the market’s most actively traded counters over the coming weeks.

Foreign investor sentiment also warrants close monitoring after returning to net inflows. Although the inflow was modest, the reversal from the previous week’s sizeable outflow may signal renewed confidence from offshore investors. Continued foreign participation, particularly in large-cap banking and consumer stocks, would provide additional support to market liquidity and valuations.

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On the fixed-income side, the strong oversubscription of the latest 10-year Treasury bond highlights robust institutional demand for government securities following the upward adjustment in coupon rates.

While this reflects ample liquidity within the financial system, higher bond yields could continue competing with equities for institutional capital, encouraging investors to remain selective. Overall, the market outlook remains constructive but selective.

Blue-chip counters such as CRDB, NMB and TBL are expected to continue underpinning market activity due to their strong liquidity, resilient fundamentals and sustained institutional interest.

Investors should also monitor corporate announcements, the progress of the NMB share split and developments in foreign investor participation, as these are likely to remain the key catalysts shaping market direction in the near term.