Africa-Press – Tanzania. EQUITY indices have advanced as banking stocks powered market gains, with activity in tier-one lenders driving momentum across the Dar es Salaam Stock Exchange (DSE). Last week, the DSEI rose by 5.9 per cent to 3,756.82 points while the TSI gained 7.19 per cent to 8,421.38 points, reflecting sustained investor interest in banking counters, closed at up by 5.9 per cent.
Performance was led by CRDB and NMB, alongside sharp price increases in MCB, MKCB and MBP. The Bank, Finance & Investment Index climbed 10.06 per cent to 18,066.11 points, reinforcing the sector’s influence on overall market direction. Zan Securities Advisory and Research Manager Isaac Lubeja told the Daily News yesterday that banking stocks remained at the centre of investor attention.
“The rally was largely supported by strong demand for banking counters, particularly tier-one banks, following notable price appreciation and improved earnings sentiment,” Mr Lubeja said.
The Bank, Finance & Investment Index rose by 10.06 per cent during the week, reinforcing the sector’s dominance in driving overall market performance. According to Mr Lubeja, earnings momentum continued to support investor confidence.
“Strong profitability, especially NMB’s recently announced pre-tax profit performance, has continued to attract buying interest, although some profit-taking may emerge after the recent sharp gains,” he said.
MCB gained 46.46 per cent reaching 930/- per share during the week, MKCB rose by 43.51 per cent to 5,310/- price per share, while MBP advanced by 40.49 per cent to 2,290/- and NMB up by 10.22 closing the week at 12,730/-, raising the likelihood of short-term price adjustments as investors lock in gains.
Conversely, Tanzania Tea Packers (TTP) was the week’s top laggard, shedding 16.46 per cent to close at 330/- per share. AFRIPRISE declined by 3.91 per cent to 860/-, while TCC fell by 1.66 per cent to close at 12,410/-.
DSE also recorded a notable decline of 0.99 per cent, ending the week at 6,980/-per share. SWISS ended the week at 2,690/- per share equal to a drop of 0.37 per cent. Alpha Capital Executive Director Gerase Kamugisha said that the parallel appreciation of both the DSEI and TSI indices suggests that the rally was broad-based rather than driven by isolated counters.
“The broad participation indicates strengthening investor confidence rather than short-term speculative trading,” Mr Kamugisha said.
Market analysts attribute this structural repricing to improved corporate earnings, particularly within the banking sector, stable macroeconomic conditions and relatively attractive equity valuations compared to fixed-income instruments.
Despite the positive price action, market turnover growth of 32.9 per cent week-on-week was accompanied by widening net foreign outflows, which could temper upside momentum if sustained.
“If foreign selling continues, domestic institutional investors will play an important role in absorbing supply and supporting market stability,” Mr Lubeja said.
He added that the sustainability of the rally would depend on broader sector participation.
“Activity beyond banking stocks, particularly in industrial and consumer counters such as TBL and TCC, will determine whether the market advance broadens or remains concentrated within the financial sector,” he said.
Looking ahead, Mr Lubeja said the equities market was likely to retain a positive but selective tone, with banking stocks remaining in focus amid rising volatility in counters that have record
