THE week ending 25 July 2025 offered investors a mixed tapestry of signals, a pullback in market turnover, a rise in share volumes, divergent performance in equities and fixed income markets continuing their downward re-pricing cycle in response to Tanzania’s shifting monetary policy stance.
Total equity turnover for the week declined by 16.98 per cent, falling to 20.60bn/- from 24.84bn/- in the previous week.
This contraction in total value traded occurred despite an increase in the number of shares exchanged, signalling that trading activity was skewed toward counters with relatively lower absolute prices. Peeling back the layers, CRDB Bank Plc remained the undisputed market anchor.
The counter accounted for 63.47 per cent of total equity turnover, amounting to 13.09bn/-. More strikingly, CRDB was responsible for 4,385 of the 7,113 total trades, nearly 62 per cent of all market transactions.
The next most active stock by transaction count was Afriprise, with just 810 trades, underscoring the gravitational pull CRDB exerts on retail participation.
This divergence reveals that while institutional flows dominated counters like TBL and possibly CRDB as well, retail enthusiasm remains heavily tilted toward CRDB, a stock informally dubbed “the retailer’s favourite” by others.
The sustained high-frequency trading activity suggests persistent optimism among smaller investors, potentially fuelled by momentum-chasing behaviour, dividend anticipation and rising financial inclusion.
On the institutional front, Tanzania Breweries Limited (TBL) was the second-largest contributor to turnover, registering 5.04bn/-, or 24.41 per cent of total equity activity.
Institutional block trades for the counter were executed on Monday, Tuesday and Friday, suggesting sustained demand from large portfolios seeking exposure to a defensive, dividend generating counter with a strong brand moat and pricing power. Beyond CRDB and TBL, only a few other counters saw meaningful flows:
• NMB (TZS 873.60 million)
• NICO (TZS 659.95 million)
• KCB (TZS 303 million)
Collectively, the top five counters accounted for 96.79 per cent of all market turnover, while the remaining 14 active counters together made up just 3.21 per cent.
This heavy counter-concentration risk continues to define Tanzania’s equity market structure, raising questions about liquidity distribution and portfolio diversification opportunities for both retail and institutional investors.
On the gainers’ board, the Dar es Salaam Stock Exchange (DSE) itself led with a 15 per cent price increase, closing at 3,450/- per share amid strong demand, perhaps driven by investor enthusiasm over continued listing reforms and trading rule amendments that are deepening market access and transparency.
Other notable gainers included:
• DCB (+10.71 per cent)
• Afriprise (+8.97 per cent)—likely buoyed by its recent dividend proposal.
• TOL (+5.26 per cent)
• SWISSPORT (+4.67 per cent)
• MBP (+2.08 per cent)
• Tanga Cement (TCCL) (+2.06 per cent)
• KCB (+1.00 per cent) On the losers’ side, Precision Air (PAL) fell sharply by -14.75 per cent, closing the week at 260/- per share, a potential reflection of ongoing balance sheet concerns or investor disappointment over unresolved structural issues.
Other declines included:
• NICO (-2.04 per cent)
•TCC (-1.98 per cent)
• TNL (-1.96 per cent)
• TPCC (-0.93 per cent)
• Vodacom (-0.93 per cent) Vodacom’s decline, notably coming post-dividend declaration and financials release, suggests that the results may have underwhelmed market expectations.
However, liquidity on the counter has improved dramatically, thanks to regulatory reforms, potentially positioning VODA as a rising candidate for institutional interest and investment fund allocations.
Vodacom Tanzania announced a dividend of 20.20/- per share, to be paid on 15 October 2025. The cum-dividend window is open until 12 August 2025, after which the stock will trade ex-dividend. Though modest in relative terms, the timing and liquidity improvements could drive demand from income-seeking investors.
Afriprise, too, announced a proposed dividend of 18/- per share, subject to shareholder approval at the upcoming AGM. The announcement was well received, as evidenced by the nearly 9 per cent rise in share price during the week.
Dividend yields remain a critical metric for valuation amidst declining interest rates. Meanwhile, Tanga Cement (TCCL) resumed trading following a three-week suspension related to Scancem International’s public offer to acquire minority shares. Market participants will be closely monitoring developments, especially given the valuation premium implied by the offer price of 2,273/- versus the current market price.
Fixed Income Side: On the fixed income side, the Bank of Tanzania held a Treasury Bills auction for the 364-day tenor, offering 75.57bn/-.
The auction was significantly oversubscribed, receiving 163.45bn/- in bids, with 82bn/- accepted. The key takeaway, however, was the continued decline in the Weighted Average Yield (WAY), which dropped from 8.4152 per cent (2 July) to 7.8482 per cent (23 July), a signal of growing investor alignment with the central bank’s rate path.
This trend aligns with the BoT’s policy rate cut to 5.75 per cent earlier this month and its directive to anchor 7-day interbank rates within a 3.75 to 7.75 per cent corridor.
Encouragingly, the interbank market has complied, with average rates softening to remain well within this range, despite increased transaction volumes.
The key insight here is alignment; the market appears to be buying into the central bank’s signalling. As such, continued downward pressure on shortterm yields is likely to persist, and as yields continue to drop, discount rates decline, the equity landscape is being reshaped, equity valuations are naturally being re-rated upward.
Lower rates reduce the present value hurdle for future cash flows, making risky assets, particularly equities with durable growth potential, more attractive relative to their fixed income counterparts.
