Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) experienced a surge in turnover during the trading week ending February 7, 2025, buoyed by impressive earnings reports from the banking sector.
In the past two weeks, trading activities have approached Sh7 billion.
According to an analysis by Zan Securities Limited, total market turnover rose to Sh6.936 billion last week, reflecting a 0.27 percent increase from the previous week’s Sh6.918 billion.
The pre-arranged board saw block trades in key stocks, including NMB Bank PLC, CRDB Bank PLC, Tanzania Breweries Limited (TBL), and Tanzania Cigarette Company (TCC), significantly contributing to overall market activity.
CRDB dominated trading, accounting for 43.96 percent of total market turnover, followed by TCC at 28.89 percent and NMB at 21.14 percent.
Zan Securities Advisory and Research Manager Isaac Lubeja attributed this uptick to recent bank performances, stating, “Positive earnings announcements typically drive stock prices higher as investors adjust their valuations based on expected future dividends, making them more willing to buy at a premium.”
He anticipates continued upward momentum, particularly as the dividend declaration period approaches in May.
Investor confidence surged following strong financial performances from major banks, particularly NMB Bank and CRDB Group.
NMB Bank made history by surpassing a one-billion-dollar market valuation, doubling its market capitalization from Sh1.4 trillion four years ago to over Sh2.6 trillion ($1 billion) today.
NMB led the sector with a net profit of Sh643.8 billion in 2024, up from Sh545.2 billion in 2023.
CRDB Group, the largest bank by assets, posted a record net profit of Sh550.8 billion in 2024, a substantial increase from Sh408.6 billion in 2023, with its subsidiary contributing Sh529 billion to the overall earnings.
Primary market and bond performance
On February 5, 2025, the Bank of Tanzania (BoT) offered a Sh73.87 billion two-year Treasury bond with a 12.5 percent coupon rate.
However, the auction was undersubscribed, receiving bids worth Sh64.43 billion, resulting in a subscription rate of 87.2 percent, with Sh24.61 billion accepted (38.19 percent acceptance rate).
Despite increased coupon rates, Mr Lubeja noted that demand for the bond remained weak as investors favored longer-dated tenures available in the secondary market.
The secondary bond market saw a decrease in turnover, with total transactions falling 66.21 percent from Sh105.10 billion to Sh35.51 billion, primarily driven by long-term 20-year and 25-year bonds.
In the corporate bond market, activity increased, with NMB’s corporate bond recording six trades totaling Sh252 million, at an average price of 88.95/100.
