TOL rallies, bond jump before auction

DAR ES SALAAM: INVESTORS repositioned ahead of the country’s longterm bond sale as equities showed mixed sentiment, said Tanzania Securities in its weekly market wrap-up issued Tuesday.

Liquidity on the Dar es Salaam Stock Exchange (DSE) improved notably, with contrasting movements in key stocks and a sharp rise in bond activity, reflecting diverging investor sentiment and anticipation of government debt issuance.

TOL Gases led equity gainers, climbing 9.0 per cent to 730/- on the day, while Vodacom Tanzania (VODA) dipped by 4.5 per cent to 735/-. Both stocks demonstrated improved market liquidity, highlighting ongoing momentum in price discovery across select counters.

The market’s total capitalisation edged up by 0.019 per cent to 19.69tri/-, a modest gain underpinned by sectoral resilience.

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However, overall turnover declined by 14.7 per cent to close at 740m/-, suggesting a more concentrated investor focus rather than broad-based trading activity.

All three major sector indices ended in positive territory. The Banks, Finance & Investment (BI) index advanced by 1.05 per cent, supported by stability in key financial counters.

The Commercial Services (CS) index added 0.64 per cent, while the Industrial & Allied (IA) index gained a marginal 0.065 per cent. On the fixed-income side, bond market activity surged ahead of Wednesday’s 25- year Treasury bond auction by the Bank of Tanzania (BoT).

Turnover reached 50.41m/-, marking a 45.0 per cent increase in liquidity, as investors adjusted positions in response to expected yields on the long-tenure instrument.

The increased appetite for government paper comes amid broader efforts to anchor inflation and manage public debt through longer dated instruments. While auction results were not yet public at the time of the market wrap, preauction movements suggest strong institutional interest in long-term securities.

Analysts expect continued demand in the bond market, particularly from pension funds and commercial banks seeking duration and yield in an environment of moderated inflation and stable policy direction.