THE week that ended on 16th April 2021 was an eventful week which saw the major indices go in different directions.
The Tanzania Share Index (TSI) dropped by 14.61 points after a movement on five counters with the bear having an upper hand. The prices of DSE and NICOL went up by 3.77 per cent and 2.63 per cent to close the week at 1,100/- and 195/- respectively.
The price of NICOL is probably reacting to prospects of a handsome dividend from NMB despite the cloud of uncertainty surrounding banks’ eligibility to issue dividends. Falling counters were led by CRDB which dropped by 6.52 per cent and closing the week at 215/- from 230/- during the end of the previous week.
The decline comes after CRDB missed the scheduled dividend announcement which was to be latest at 13th April 2021, according to the bank’s own calendar for FY2021.
It is uncertain the bank shall issue dividends within the normal timeframe considering the circular issued earlier during the year, by the Bank of Tanzania, for banks to maintain NPL less than 5 per cent and cost to income ratio less than 55 per cent to be able to issue dividends and bonuses.
Until the latest financial results for December 2020, CRDB had a cost to income ratio of 61 per cent and NPL of 4.2 per cent. The bear visited the JATU counter, dragging it down by 5.95 per cent to close the week at 1,580/- while Tanga Cement (TCCL) closed down by 1.23 per cent.
TCCL trading down is a good sign showing increased interest in the company following the firm’s loss reduction by more than 80 per cent. Following the prices’ movement, the domestic market capitalization dropped by 0.42 per cent to a total of TZS 9,210.37bln ($3.99bln) while the TSI closed the week at 3,503.06 points.
The All Share Index (DSEI) gained 26.65 points to close the week at 1,895.48 points following a 1.43 per cent climb of the total market capitalization. On top of domestic gainers, the cross listed giants were the biggest positive influence on DSEI after KCB went up 4.65 per cent, followed by East African Breweries which went up by 4.57 per cent.
Jubilee Holdings (JHL) also gained 3.36 per cent further feeding the bull on the total capitalization. The total market cap closed the week at TZS 15,747.84bln ($6.8bln). The total equity turnover went up by 13.5 per cent after […]
