Dar es Salaam — The banking sector continues to sit at the heart of the Dar es Salaam Stock Exchange (DSE), shaping overall market performance, investor sentiment, and liquidity trends. Listed banks dominate market capitalisation and trading activity, making their financial results a key barometer for the wider capital market.
For both equity and bond market participants, bank balance sheets have become the primary lens through which opportunity and risk are assessed.
“The banking sector remains the single most powerful stream on the DSE,” said Mr Geresa Kamugisha, Chief Executive Officer of Alpha Capitals. “When banks perform well, confidence spreads across the market. When pressures emerge, they are felt almost immediately.”
This influence is further strengthened by the close link between banks and the government securities market. Treasury bonds remain the most actively traded instruments on the exchange, anchoring the yield curve and shaping how investors price risk across asset classes.
“Government securities act as the market’s reference point,” Mr Kamugisha noted. “They quietly guide pricing and behaviour across the capital market.”
Banks Dominate Trading Activity
Beyond the banking and bond markets, structural reforms are gradually reshaping how the DSE operates. Improvements in trading rules, price discovery mechanisms, and post-trade processes have enhanced transparency and brought the market closer to international best practices.
According to Mr Isaac Lubeja, Advisory and Research Manager at Zan Securities, trading activity continues to be driven largely by banking stocks.
“CRDB accounted for 61.16 per cent of total market turnover, while NMB followed with a 15.82 per cent contribution,” Mr Lubeja said. “Although overall equity turnover was slightly slower compared to the previous week, activity remained elevated.”
Price Movers: Gainers and Laggards
On the price performance front, MUCOBA emerged as the week’s top gainer, with its share price rising by 16.67 per cent to 630/- per share.
Mwalimu Commercial Bank (MCB) advanced by 9.49 per cent to 750/-, while NMB recorded a strong gain of 8.79 per cent.
On the downside, Maendeleo Bank Plc (MBP) was the week’s top laggard, shedding 36.18 per cent to 1,940/-, while Mkombozi Commercial Bank (MKCB) declined by 24.75 per cent to 3,710/-.
“The Bank, Finance and Investment Index, which posted a weekly gain of 1.05 per cent, is expected to remain in focus,” Mr Lubeja said, citing sustained investor interest in tier-one banking stocks. Counters such as CRDB and NMB are likely to continue anchoring market activity due to their dominant turnover contribution and positive price momentum.
Retail Investors and Market Evolution
Retail investors have become an increasingly defining feature of the current market cycle. The expansion of digital trading platforms and mobile-based access has broadened participation, adding depth to daily trading while strengthening demand for dividend-paying stocks.
However, this growing retail base has also increased market sensitivity to sentiment, particularly in less liquid stocks where confidence can quickly influence prices.
Product diversification is also gaining traction. The gradual introduction of exchange-traded funds (ETFs), thematic investment products, and innovative bond structures signals a maturing market, even as progress remains measured.
Risks Remain on the Horizon
Despite the positive undercurrents, the DSE’s outlook is not without risk. Political and policy developments, global economic conditions, liquidity constraints, and regulatory enforcement remain potential pressure points.
“In this environment, success on the DSE is about understanding the underlying currents, not reacting to daily noise,” Mr Kamugisha said. “The foundations are visible, but vigilance remains the price of confidence.”
Source: Daily News
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