Dar es Salaam. Investors, who injected their money in seven domestically-listed equities on January 3, this year and sold the same on June 30, this year yielded lucratively due to an improvement in prices amid a bullish outlook of the companies’ performance.
The companies include NMB Bank Plc, DSE Plc, CRDB Bank Plc, Tanga Cement Company Limited (TCCL), Swissport, Nicol and Tanzania Portland Cement Company (TPCC).
An analysis of market data shows that a share of NMB Bank Plc appreciated by 56 percent by the end of the first half to Sh3,120 from a price of Sh2,000 per share as traded in January. That means an investor who invested Sh100 million in buying NMB Bank Plc shares on January 3 and sold the same on June 30, earned a profit of Sh56 million.
The lender’s encouraging traction came with no surprise as it reported a record breaking Sh290 billion annual profits for 2021 and also sustained the momentum during the first quarter with a Sh101.2 billion net profit.
Self-listed DSE Plc also joined the parade with a 53.8 percent increase in its share value as its stocks currently trades at Sh2,000/share from Sh1, 300 of January. CRDB Bank Plc came third as its stock price gained by 42.9 percent.
“There is a flock of new investors and those who step aside during the critical times of Covid-19 pandemic but as the market stabilises and the economy recovers we see a gain of confidence from the investors,” said Zan Securities Limited’s chief executive Raphael Masumbuko.
He said although there was an increased financial awareness, the 2021 results also facilitated participation as it provided investors with a good trajectory for 2022, in the case of CRDB Bank which also reported record profitability of Sh267.56 billion in 2021.
The ongoing acquisition deal proceeding also influenced some activities at the Tanga Cement’s counter which saw the firm gain by 32.7 percent, while the return of international travelling and aviation industry saw ground handling company Swissport improve its stock value by 18 percent. Other gainers include Nicol and Twiga cement which rose by 10 and 9.4 percent respectively.
“Nicol is an investment company which owns a considerable stake in NMB Bank Plc. Its performance can be tied to NMB Bank’s profitability,” said the head of research and analytics from a brokerage firm, Alpha Capital, Mr Imani Muhingo.
“The equities market also had a strong first half because of the rising prices in the bond market which inversely affected yields and pushed more investors into other venues such as buying stocks,” said Mr Muhingo.
While domestic listed companies experienced the upsurge in H1, most of the cross listed firms saw their stock prices decline to reflect the impact of global tension on their primary markets.
Kenya-based firms, Jubilee Holdings Limited lost 21.7 percent of its value to sell shares at Sh5,050 in June 30 this year from Sh6,450, while East African Breweries Limited (EABL) fell to Sh2,660 from Sh3,360 a share during the same period.
KCB Group and media giant company Nation Media Group (NMG) lost 17.4 percent and 18.5 percent respectively.
“Kenya’s Nairobi Securities Exchange (NSE) has reflected the woes inflicted by the global political tensions and economic fluctuations, affecting its performance is also the risks associated with the general election slated for this year,” said Mr Muhingo.
Local companies that posted decline in share prices include Jatu Plc by 19.5 percent, TCCIA Investment by 18.6 percent, Swala by 8.2 percent and TOL gases by 3.5 percent.
Moreover analysts have stated the outlook for the remaining half of 2022 is remaining positive as demand drivers are intact and many companies may offer decent upside from the current levels.
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