Mwalimu Bank leads DSE with strong surge
DAR ES SALAAM: MWALIMU Commercial Bank (MCB) has led the Dar es Salaam Stock Exchange (DSE) with a 17.05 per cent surge, reflecting selective investor appetite for financial-sector counters even as overall liquidity remains subdued.
The rally, experienced last week, was driven partly by renewed investor interest following MCB’s announcement of a 3:1 Rights Issue aimed at strengthening its capital base.
The rally extended the bank’s strong momentum after an 18.92 per cent gain the previous week, underscoring renewed appetite for financialsector counters. Alpha Capital Chief Executive Gerase Kamugisha said the week’s outcomes show a combination of selective risk-taking and cautious portfolio positioning.
“…This environment signals that while equity capital-raising remains feasible, pockets of liquidity risk may apply and thus issues should be clearly anchored in underlying fundamentals or clear dividend prospects,” he told the ‘Daily News’ yesterday.
He added that the preference for financial-sector counters is a sign that investors are prioritising predictable dividends and strong balance sheets.
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“The modest index movement and relatively thin liquidity suggest a cautious market,” he said.
Despite the sharp movement in a few stocks, broader market activity remained muted. The DSE All-Share Index closed slightly lower at 2,567.89 points, while the Tanzania Share Index ended the week at 5,136.35 points—both easing by just 0.03 per cent.
Total market capitalisation inched up 0.88 per cent to 22.01tri/-, supported by marginal advances across selected large caps. Domestic market capitalisation also rose modestly to 13.60tri/-.
Liquidity stayed thin, with only a handful of active counters. The Banking, Finance and Investment Index rose 0.33 per cent to 9,408.61 points, continuing to outperform other segments.
The Industrial and Allied Index was flat at 4,057.60 points, while consumer counters declined slightly. Losers for the week included DCB Bank, which fell 10 per cent, Precision Air (PAL), down 13.79 per cent and Maendeleo Bank Plc, which slipped 15.71 per cent despite reporting improved year-to-date results.
“Investors appear to be favouring established financialservices counters, while caution persists around other sectors,” Mr Kamugisha said.
Zan Securities Advisory and Research Manager Isaac Lubeja said the equity activity has improved last week with significant selective liquidity from several banking sector and industrial counters, with investor participation improving.
“Looking ahead,” Mr Lubeja said, “we expect a period of mild improvement in both the equity…as investors still maintain a selective sentiment towards certain counters in the stock market, and investors seeking better yield options in the
