Shares of banks continue to glitter at Dar bourse

 

Written by DAILY NEWS Reporter

EQUITIES of banks have appreciated most in term of price since the year began eight weeks ago becoming the best performers on Dar es Salaam Stock Exchange (DSE).

The Tanzania Securities Limited analysis shows that at the end of eight week, on Wednesday two banks(DCB and NMB) share prices increased by over 20 per cent.

However on the second market Enterprises Growth Market (EGM), the banks shares depreciated most by 10 per cent in the first eight weeks of this year, Mkombozi Commercial Bank (MKCB) led the pack.

NMB, the top most bank in the country, is the best gainer after appreciating by 22.86 per cent to 4,300/-, followed by DCB that rose by 23.61 per cent to 890/- in the first eight weeks.

CDRB bank, the second largest bank, share price gain by 2.33 per cent to 440/-. On other hand, on EGM, MKCB is the most loser after the share price went down by 13.33 per cent to 1,300/- to become the second loser after Swala that depreciated by 14.29 per cent to 600/-.

The Tanzania Securities analysis shows that the most loser stocks are those listed at EGM, the second market, after tumbling by over 10 per cent. Zan Securities Chief Executive Officer Raphael Masumbuko said the stock prices set to appreciated as the year progressing as investors purchasing power is increasing.

“We are heading toward a period of stocks investing as people are out of early year obligations,” Mr Masumbuko said.

The CEO said the trend will be starting to be noticed after the end of this month. Also at the end of first quarter companies are announcing their financials us dividends to propel investing appetite for buying stocks cum-dividend.

Last year was also a good year for manufacturing sector. The Bank of Tanzania’s recently Monetary Policy Report (MPS) shows that the manufacturing was the only sector that its exports increased to contribute positively on the current account.

The sector’s exports, between July and November last year, increased by almost 14 per cent while gold decreased by 26.4 per cent to rake in 615.6million US dollars and 504 million US dollar respectively.

Confederation of Tanzania Industries (CTI), Director of Policy and Advocacy, Mr Hussein Kamote, told “Daily News” that the availability of relatively stable electricity was the reason behind good output and exports.

“Stable power availability dominated the good period of last year this plus GDP (Gross Domestic Products) growth poises as the reason behind,” Mr Kamote said.

He added: “Last year cement manufacturers produced at almost 85 per cent of the installed capacity, this is a big output.” The banking sector also posted good profits.

NMB announces over 150bn/- profit while CRDB posted a slightly less than 100bn/- profit. MKCB posted a pretax profit of over 2.0bn/-.

Other share prices appreciated up to 6.0 per cent with exception of Twiga and Precision Air share prices depreciated by 5 per cent, 1.05 per cent to 3,890/-, and 470/- respectively.

Maendeleo Bank, TOL and TaTePa share stagnated. The Tanzania all share index (TSI) appreciated by 6.39 per cent to 4,967.76 points as the results of mainly banks segment share price increment.