NMB Bank’s share split fuels Dar stock market rally as turnover jumps 277 percent
NMB Bank PLC Board chairman, David Nchimbi (centre), and the bank’s Chief Executive Officer, Ruth Zaipuna (second left), display the 2025 Annual Report during the bank’s 26th Annual General Meeting in Dar es Salaam yesterday. Shareholders approved a record dividend and key strategic resolutions to support the bank’s next phase of growth and regional expansion. Also pictured are Chief Finance Officer Juma Kimori (left), director of Legal and Company Secretary Farija Pendo Ghikas (second right), and director of Investor Relations, Sustainability and Corporate Communications Innocent Yonazi (right). PHOTO | COURTESY
Dar es Salaam. A recent decision by NMB Bank Plc shareholders to approve a share split drove activity at the Dar es Salaam Stock Exchange (DSE) last week, with investors rushing to acquire the lender’s shares and pushing market turnover sharply higher.
A stock market update issued by Tanzania Securities Limited (TSL) shows that equity market turnover surged by 277.4 percent to Sh185.07 billion during the week ending Friday, June 26, 2026.
Trading activity was largely dominated by NMB shares, whose turnover jumped by 431.5 percent from Sh32.03 billion recorded during the previous week to Sh170.23 billion.
The performance meant NMB alone accounted for 92.5 percent of the total market turnover during the week.
The bank’s share price rose marginally from Sh15,990 in the previous week to Sh16,110.
Market analysts attribute the surge in trading to investor optimism following the recent approval of NMB’s 10-for-1 share split, which is expected to make the stock more affordable and accessible to a wider pool of investors.
Under the arrangement, every existing share will be split into ten shares. Although the overall value of shareholders’ investments remains unchanged, the move increases the number of shares in circulation while proportionately reducing the price per share.
NMB, with a market capitalisation of Sh7.49 trillion, remains the most valuable listed company on the DSE.
The share split also coincides with the bank’s dividend announcement. Shareholders approved an ordinary dividend of Sh504.26 per share amounting to Sh252 billion, alongside a special dividend of Sh105.89 per share valued at Sh52.95 billion, bringing total payouts to nearly Sh305 billion.
Zan Securities chief executive officer Raphael Masumbuko said the share split and attractive dividend package were among the main drivers of market activity.
“So it is my view that these are the two major reasons behind what happened on the DSE last week,” he said.
The split would increase authorised shares from 625 million to 6.25 billion and listed shares from 500 million to five billion, potentially improving liquidity and encouraging more participation in the market.
Mr Masumbuko said institutional investors often operate under portfolio allocation limits and risk exposure thresholds, forcing them to rebalance their holdings when share prices rise significantly.
“With rising prices, some investors may take profits while others who previously struggled to access the shares enter the market. This creates both supply and demand,” he said.
TSL said market activity last week was concentrated around a few highly traded counters.
“Performance was broadly positive, with strong gains led by KCB and TOL, alongside DCB, TCCL and MKCB, indicating renewed buying interest across financial and industrial sectors,” the report stated.
Meanwhile, activity in the bond market eased, with turnover declining by 22.4 percent to Sh134.74 billion, reflecting a slowdown after previously elevated trading levels.
