Shares rally, yet market value drops

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

Total turnover for the week decreased to 6.339bn/- from 17.76bn/- , representing a 64.32 per cent decrease.

CRDB emerged as the dominant player, contributing 79.7 per cent of the total market turnover.

Close behind was NMB, which accounted for 4.4 per cent, DCB contributed 2.97 per cent of the total turnover, 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 7.83 per cent, closing at 895/- per share.

DSE followed closely, recording a 7.55 per cent increase, closing the week at 6,410/- per share. On the loser’s side NICO recorded a decline, with its share price falling by 9.19 per cent to 1,680/-.

It was followed by MKCB, which shed 8.58 per cent to close at 2,450/- per share and TPCC which shed 6.73 per cent to close at 5,130/- 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 0.43 per cent, to 22.014tri/- . Similarly, domestic market capitalisation down by 0.66 per cent, closing the week at 14.253tri/-.

Key benchmark indices

• All Share Index (DSEI) closed at 2,568.26 points down by 0.43 per cent

• Tanzania Share Index (TSI) closed at 5,384.05 points down by 0.66 per cent Sector Indices

• Industrial & Allied Index (IA) closed at 4,169.82 points, down by 2.8791 per cent

• Bank, Finance & Investment Index closed at 10,034.46 points, up by 0.3994 per cent

• Commercial Services Index closed at 1,682.03 points, up by 0.9373 per cent

ALSO READ: DSE surges 89pc, NICO tops gains

Market news round

Why investors flock to collective schemes and corporate bonds While equities still account for the largest share of investors in Tanzania, data shows government securities and collective investment schemes are drawing in new money at a pace not seen in years.

Data from the Bank of Tanzania and the Capital Markets and Securities Authority (CMSA) show that between 2022 and 2024, the number of investors has soared from 806,857 in 2022 to 1.06 million, with collective investment schemes (CIS) and bonds at the forefront of this surge.

The number of investors in CIS nearly doubled to 420,682, while those in government securities jumped by more than 70 per cent to 19,049.

Corporate bonds, traditionally a niche space, recorded an even sharper climb from 2,339 to almost 10,000 in just two years.

By contrast, equities – still the largest single class with more than 610,000 participants – expanded by a modest seven percent.

The appeal is twofold: higher returns and lower entry barriers. Investors who once needed millions to buy into bonds or equities can now contribute modest amounts and still enjoy access to professionally managed portfolios.

With equities posting solid gains this year, many CIS participants have reaped benefits without the stress of direct trading.

Highlights: Debt Market 14 per cent -20-year Treasury bond no: 678 On Wednesday September 03, 2025, the Central Bank was in the market offering 244.008bn/- to investors for the 20-Year Treasury bond offering a 14 per cent coupon rate annually.

This auction was catered for investors with more preference for long-term papers.

The auction was oversubscribed, receiving 339.94 per cent subscription rate, the auction received bids totalling 829.484bn/- and accepted bids worth 244.008bn/-.

This marks the first auction of the 20-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 244.008bn/-.

Investor demand was exceptionally strong, with bids totalling 829.484bn/-, up sharply from 282.351bn/- in the previous 20-year auction.

Despite this surge in demand, the Bank allotted only the amount offered.

The minimum successful price declined to 103/0356, compared to the higher price in the previous auction, which had been influenced by accrued interest.

Meanwhile, the weighted average yield fell by 94.9 basis points, dropping from 14.5 per cent to 13.5510 per cent.

Notably, this auction recorded the highest subscription rate in the history of 20-year bond issuances, reflecting continued strong investor appetite for longer-term maturities, even with the coupon reduced from 15.25 per cent to 14 per cent.

Inflation for July stood at 3.3 per cent.  Secondary Market Activity The secondary bond market posted a turnover of 251.95bn/-, up from 54.5845bn/- in the previous week a increase of 361.58 per cent.

Activity was primarily concentrated in the long-term bonds; 7-year and 15-year bonds.

Market Outlook Equity activity has had mixed performance during the week, while the bond market activity has increased significantly during the week.

Looking ahead, we expect a continued consolidation period in the equity prices in banking and a handful of industrial names, as for the fixed-income market, there will be a 5-year treasury bond auction reopening on 10th September 2025, with a coupon rate of 12.75 per cent.