DSE turnover slumps as block trades ease
DAR ES SALAAM: DURING the trading week ending May 30th, the Dar es Salaam Stock Exchange (DSE) recorded a decline in turnover compared to the previous week. Total market turnover dropped to 2.714bn/-, representing a 92.85 per cent decrease from the previous week’s 37.98bn/-. This significant drop reflects a normalisation in trading activity following the …
DAR ES SALAAM: DURING the trading week ending May 30th, the Dar es Salaam Stock Exchange (DSE) recorded a decline in turnover compared to the previous week.
Total market turnover dropped to 2.714bn/-, representing a 92.85 per cent decrease from the previous week’s 37.98bn/-.
This significant drop reflects a normalisation in trading activity following the unusually high turnover driven by block trades in the TCC and TBL counters during the prior week.
Throughout the week, CRDB dominated trading activities, representing 58.48 per cent of the total market turnover, followed by TCC at 15.09 per cent and VODA at 8.95 per cent, followed by NMB at 4.98 per cent, followed by TPCC at 3.68 per cent.
MKCB was the top gainer appreciating by 33.90 per cent reaching 790/- per share, DSE appreciated by 15.71 per cent reaching 3,240/- per share while DCB Bank gained 8.0 per cent during the week to conclude at 135/- per share.
TPCC was the top loser with the share price of 4,400/- per share down by 20.72 per cent, followed by MCB with a share price of 290/- per share down by 6.45 per cent.
CRDB maintained a share price of 790/- per share. In terms of market capitalisation, total market capitalisation decreased by -0.015 per cent to 19.711tri/- by the week’s end.
However, domestic market capitalisation increased by 0.126 per cent, reaching 13.250tri/-.
Key benchmark indices
• All Share Index (DSEI) closed at 2,359.91 points decreasing by 0.03 per cent
• Tanzania Share Index (TSI) closed at 4,996.99 points decreasing by 1.56 per cent.
Sector Indices
• Industrial & Allied Index (IA) closed at 5,171.4 points, down by 2.35 per cent
• Bank, Finance & Investment Index closed at 6,835.69 points, down by 2.925 per cent
• Commercial Services Index closed at 2,157.01 points, down by 0.0778 per cent. Highlights: Debt Market Treasury Auction Outlook On May 28th, 2025, the central bank was in the market to offer treasury bills to investors.
The offerings included 900m/- for the 35-day maturity Treasury bill, 1.9bn/- for the 91-day T-bill, 2.9bn/- for the 182-day T-bill and 102.8bn/- for the 364-day T-bill.
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In this auction, there was low demand for the 35-day and 91-day Treasury bills, as they did not receive any subscriptions.
The 182-day bill, however, was oversubscribed by 237.93 per cent, marking the third time this year it has been oversubscribed out of ten auctions.
The 364-day bill was also oversubscribed, with a subscription rate of 214.59 per cent, although the Bank of Tanzania accepted 23 per cent of the bids received.
The 182-day bill recorded a decline in its weighted average yield, falling from 8.3284 per cent in the previous auction held in mid-May to 8.1447 per cent.
The 364-day bill also saw a decrease in its yield, falling by 41.37 basis points from 9.1304 per cent to 8.7167 per cent.
The price floor was slightly adjusted to 91/95 from 90/81 in the previous auction and the central bank allotted exactly what was offered.
The inflation rate stood at 3.2 per cent in April 2025.
Secondary market
During the week ending May 30th, market activities showed a strong rebound in both turnover and trading frequency compared to the previous week.
Total turnover surged by 85.45 per cent, rising from 65.5bn/- to 121.5bn/-, while the number of trades decreased from 134 to 107.
Trading activity remained concentrated on the long end of the yield curve, with the 20-year and 25-year Treasury bonds dominating the week’s performance.
The 20- year bonds accounted for a combined turnover of 49.8942bn/- across 44 trades, while the 25-year bonds followed closely with a combined turnover of 19.0527bn/- across 29 trades.
The 5-year bond at 13.00 per cent also saw notable activity, contributing 27.815bn/- across four trades. In the corporate bond segment, the SAM2025/30 T1 bond led with 20 trades totalling 353m/- at an average price of 99/975, yielding 13.04 per cent.
The CRDB-2023/28 T1 bond recorded one trade worth 100m/- at an average price of 84/-, yielding 17.04 per cent, while the NMB-2023/28 T1 bond registered one trade worth 24 million at an average price of 90/-, with a notably higher yield of 20/88 per cent.
Outlook:
In the weeks ahead, we maintain a positive outlook for the equity market, supported by renewed investor interest and dividend-driven momentum. MKCB led the gains with a 33.90 per cent surge following its dividend announcement, while Kenya Airways (KA), DSE and JHL also posted strong double-digit growth.
CRDB dominated trading activity, with notable block trades in TCC and VODA contributing to turnover. In the fixed income market, activity remained concentrated on longtenor government bonds, particularly the 20 and 25-year papers.
Corporate bonds also saw increased traction, led by the SAM2025/30 T1 bond. Investor appetite continues to favour high-yield instruments, especially in longer durations, supporting steady demand across both segments.
Overall, we expect continued momentum in equities driven by dividend themes, while the bond market remains steady amid selective demand for longer tenors.