Dar es Salaam. Investors’ appetite for government securities surged last week as the Bank of Tanzania (BoT) successfully auctioned a 15-year Treasury bond, which saw an oversubscription rate of 186.1 percent.
Analysts attribute this to the recent increase in coupon rate by one percentage point, making the bond more attractive to investors.
According to a brokerage firm Zan Securities Limited, the central bank auction, held on March 5, 2025, attracted bids totalling Sh262.433 billion, far exceeding the Sh141.018 billion offered.
In the end, Sh141.491 billion in bids were accepted.
“The strong oversubscription in this auction is largely driven by the upward adjustment in coupon rates from 13.5 percent to 14.5 percent, enhancing the bond’s attractiveness to investors,” said Mr Isaac Lubeja, Advisory and Research Manager at Zan Securities Ltd.
This marks a notable shift from previous auctions, which had seen under-subscription in late 2024.
With rising investor confidence in both equities and fixed-income securities, analysts expect continued momentum in DSE trading activity and Treasury bond demand.
The firm analysis suggests that the recent adjustment in interest rates has stimulated buying interest, and further capital inflows into the market are anticipated in the coming months.
Equities market
Tanzania Breweries PLC (TBL) emerged as the top active counter at the Dar es Salaam Stock Exchange (DSE) last week, driving a significant surge in market turnover.
The brewery accounted for 65.99 percent of total market activity, trading shares worth Sh5.68 billion.
This contributed to a 70.34 percent increase in total market turnover, which rose to Sh8.612 billion, up from Sh5.056 billion the previous week.
Following TBL, CRDB Bank recorded Sh2.64 billion in trades, representing 30.71 percent of total turnover, while NMB Bank contributed 1.62 percent, trading Sh139.37 million worth of shares.
Among the week’s gainers, Maendeleo Bank appreciated by 3.03 percent, closing at Sh340 per share, while CRDB gained 2.7 percent, settling at Sh760 per share.
AFRIPRISE also saw positive movement, increasing 2.33 percent to Sh220 per share.
On the losing side, DCB declined by 3.7 percent, closing at Sh130 per share, making it the worst performer of the week.
The self-listed DSE stock itself dropped by 0.85 percent, closing at Sh2,320 per share.
The overall market size expanded, with total market capitalisation rising by 1.11 percent to Sh19.36 trillion.
Similarly, domestic market capitalisation grew by 0.41 percent, reaching Sh12.81 trillion.
“The domestic equity market maintained its bullish momentum, driven by gains in three counters. As a result, domestic market capitalization grew by Sh51 billion over the week, marking three consecutive weeks of appreciation,” Mr Lubeja commented.
