Dar es Salaam, 16 February 2026 – Equity markets closed the week on a strong note as banking stocks led a broad-based rally on the Dar es Salaam Stock Exchange (DSE), underscoring renewed investor confidence in the financial sector.
Indices Post Strong Gains
The DSE’s key indices recorded solid advances:
- DSEI rose by 5.9% to close at 3,756.82 points
- TSI gained 7.19% to 8,421.38 points
- The Bank, Finance & Investment Index climbed an impressive 10.06% to 18,066.11 points
The parallel appreciation of both the DSEI and TSI suggests that the rally was not confined to a handful of counters but reflected broader market participation.
Market analysts noted that the upward momentum was largely driven by sustained demand for tier-one banking stocks.
Banking Counters Take Centre Stage
Performance was led by:
- CRDB Bank Plc
- NMB Bank Plc
- Maendeleo Bank Plc (MCB)
- Mkombozi Commercial Bank Plc (MKCB)
- Mwalimu Commercial Bank Plc (MBP)
Among the standout performers:
- MCB surged 46.46% to 930/-
- MKCB jumped 43.51% to 5,310/-
- MBP rose 40.49% to 2,290/-
- NMB gained 10.22%, closing at 12,730/-
The rally was supported by strong earnings sentiment, particularly following NMB’s recently announced pre-tax profit performance. Analysts note that robust profitability across tier-one banks has reinforced investor appetite for banking counters.
However, after such sharp gains, short-term price adjustments may occur as some investors move to lock in profits.
Mixed Performance in Other Counters
While banking stocks dominated the week, some counters recorded declines:
- Tanzania Tea Packers Ltd (TTP) fell 16.46% to 330/-
- Afriprise Investment Ltd declined 3.91% to 860/-
- Tanzania Cigarette Company Plc dropped 1.66% to 12,410/-
- DSE Plc eased 0.99% to 6,980/-
- Swissport Tanzania Plc slipped 0.37% to 2,690/-
The divergence highlights that while financial stocks surged, performance across industrial and consumer counters remained mixed.
What Is Driving the Rally?
Market analysts attribute the structural repricing of equities to several key factors:
- Improved corporate earnings, particularly in the banking sector
- Stable macroeconomic conditions
- Attractive equity valuations relative to fixed-income instruments
The week also recorded a 32.9% increase in market turnover, reflecting heightened trading activity. However, this was accompanied by widening net foreign outflows, a trend that could moderate further upside if sustained.
Should foreign selling persist, domestic institutional investors may need to absorb supply to maintain market stability.
Outlook: Positive but Selective
Looking ahead, the equities market is expected to maintain a positive but selective tone.
Banking stocks are likely to remain in focus, although increased volatility may emerge in counters that have experienced sharp price appreciation. Broader participation—particularly from industrial and consumer stocks such as Tanzania Breweries Limited and TCC—will be key in determining whether the rally broadens beyond the financial sector.
For now, the banking sector continues to anchor market direction, reinforcing its dominant role in shaping performance at the Dar es Salaam Stock Exchange.
Source: Daily News
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