Jatu share price plummeted 23.15 per cent in one week ending last Friday as investors’ appetite faded for once darling stock after listing two and half months ago.
The agro-based starter-up firm opened last week at a 1,080/-, then closed at 830/- last Friday after hitting 760/- last Thursday.
Orbit Securities said on Monday in its Weekly Market Synopsis that despite a change of the tide on the last trading session, Jatu still managed to trivially suppress the Tanzania Share Index (TSI).
“Interest on the counter seems to have regrouped after closing with outstanding bids of 6,890 at the session’s highest price of 830/- while the counter had zero offers,” Orbit said.
The domestic equity market performance slowed down last week as the turnover and volume declined.
“Zan Securities said, however, said the bourse expected to rebound this week on the back of central bank’s directive on bank bonuses and dividends.”
“We expect a rebound next week as the importance of the Bank of Tanzania directives to financial institutions is factored into prices,” Zan said in its Weekly Market Wrap-Ups.
TSI, thus, went down by a 0.2-point due to a pull-down by Jatu to close the week at 3,522.13 points.
Correspondingly, the domestic market capitalisation dropped by 0.006 per cent to 9.26tri/-.
Total market capitalisation, on the other hand, appreciated by 2.33per cent to a high of 15.219tri/- and as a result the All Share Index (DSEI) climbed by 41.76 points to 1,831.94 points.
The climb of the DSEI was a result of the cross listed giants, EABL and KCB Bank which climbed by 11.2 per cent and 4.05 per cent respectively.National Media Group ( NMG ) and Jubilee Holdings ( JHL ) both fell by 12.9 per cent and 2.56 per cent respectively.Uchumi Supermarket ( USL ) remained stationary, while Kenya Airways ( KQ ) remained suspended from trading due to the undergoing acquisition process by the government of Kenya.The total equity turnover fell by 32.1 per cent, while the volume of shares traded dropped by 89.6 per cent due to a slowdown of activities on the CRDB Bank counter while concentrating on high prices counters, TCC and TBL .The total turnover during the week amounted to 2.95bn/-, while the volume of shares amounted to 0.75m/- traded in 256 deals.The top mover of the week was Tanzania Cigarette Company (TCC), which accounted for 56.9 per cent of the total realised turnover.TCC traded 280,000 shares at a price of […]