Gainers and laggards at DSE
Dar es Salaam Stock Exchange's CEO, Mr Moremi
What you need to know:
Companies listed at the Dar es Salaam Stock Exchange (DSE) faced turbulences from the market due to shortages of liquidity, unpredictable business environment and reduced consumption of goods and services during this year. The market report shows that the majority of listed companies saw their share prices dipping down, with only three firms recorded a share price gain.
Dar es Salaam. Only three of the 28 companies listed on the Dar es Salaam Stock Exchange (DSE) registered share price increases between January 2 and December 24 this year.
DSE reports show that Tanzania Portland Cement Company Limited (TPCCL) shares gained the most after a 41 per cent price increase from Sh1,460 on the first day of trading this year to Sh2,060 on December 24.
DSE shares rose by 22 percent to Sh1,400 from Sh1,140 during the same period, followed by Tanzania Cigarette Company (TCC) stocks, whose price increased by 1.1 per cent to Sh17,000 from Sh16,800.
Analysts say the market experienced some turbulence this year caused by a liquidity crunch, a tight monetary policy, low profits among local listed companies and economic challenges caused by both internal and external factors. Zan Securities Limited chief executive Raphael Masumbuko said prices of the shares of most listed firms declined in the first three quarters due to liquidity challenges.
“The performances of most listed companies were adversely affected during the first three quarters. This prompted investors to sell shares in large numbers, something which drove prices down after supply exceeded demand,” he said.
TEG Consultancy managing partner Mazengo Kasilati said demand for shares of cross-listed and local firms alike fell, leading to price decreases as investors desperately sought to offload all or part of the stocks they were holding.
“Demand is seasonal and is based on a variety of factors such as dividends, market liquidity and the performance of other segments of the finance sector such as government bonds,” he said.
According to market reports, the share prices of only three entities – Mwalimu Commercial Bank (MCB), Yetu Microfinance (YETU) and Mufindi Community Bank (MUCOBA) – remained unchanged throughout the year.
During the period, Tanzania Tea Packaging Company (TTP) and cross-listed Kenya Airways (KA) devalued their stocks, leading to a dramatic fall in share prices.
KA stocks closed on Sh180 on December 24 from Sh395 recorded on January 2, while the TTP share price dipped to Sh120 from Sh600 during the same period.
Reports show that the remaining 22 companies all registered a drop in share prices.
As a result, total market capitalisation fell by nearly Sh4 trillion to Sh19.2 trillion as of December 24 from Sh23.1 trillion recorded on January 2.
Acacia Mining (ACA) shares fell to Sh5,280 from Sh5,630, while CRDB Bank and DCB Commercial Bank saw their shares fall to Sh150 and Sh340 from Sh160 and Sh380, respectively.
East African Breweries (EABL) and Jubilee Holdings Limited stocks dropped to Sh3,670 and Sh8,730 from Sh5,400 and Sh10,340, respectively.
KBC Limited, Maendeleo Bank (MBP) and Mkombozi Commercial Bank (MKCB) share prices fell to Sh850, Sh500 and Sh800 from Sh950, Sh600 and Sh890, respectively.
NMB Bank share price went down to Sh2,340 from Sh2,750, while Nation Media Group (NMG) and Precision Airways (PAL) fell to Sh1,430 and Sh400 from Sh2,550 and Sh470, respectively.
Swissport, Tanzania Breweries Limited (TBL) and Tanga Cement Company (TCCL) saw their share prices drop to Sh2,660, Sh12,900 and Sh640 from Sh3,500, Sh14,000 and Sh1,200, respectively.
Other decreases were TOL Gases (Sh600 from Sh780), Vodacom Tanzania (Sh800 from Sh850) and Swala Oil and Gas (Sh490 from Sh500 ).
