Local investors’ appetite for stocks at the bourse pushes turnover

Local investors’ appetite for stocks at the bourse pushes turnover

According to Orbit Securities Market Report, a total of 2,165,352 shares were traded during the five days trading session last week. “Local investors accounted for the majority of transactions on both the buying and selling sides. They accounted for 66.8 percent of all the buying activities in the market and 57.6 percent on the selling counter,” the report said.

It added that foreign investors on the other hand accounted for 33.1 percent of the shares bought and 42.3 percent. “The net foreign outflow for the week however declined to 106.2m/- as compared to the 120.8m/- recorded the previous week.

The report however noted that the All Share Index (DSEI) lost 19.30 points in value as EABL and NMG share prices declined by 1.7 and 4.4 percentage points respectively. The Tanzania Share Index (TSI) on the other hand, lost 46.9 points as NMB Bank Plc, JATU Plc and CRDB Bank Plc share prices dropped by 9.3, 7.3 and 4.0 percentage points respectively despite a positive performance by DSE Plc and TC Plc counters.

Meanwhile, Scancem International, a subsidiary of Heidelberg Cement, last week announced that it had concluded discussions with Afrisam of Mauritius Investment Holdings Limited on the acquisition of the 68.33 percent of the issued share capital of Tanga Cement Plc.

The two companies said in a joint statement that the indicative price per share to be paid by Scancem International to Afrisam Mauritius is 3,157/-. “The acquisition price is subject to adjustments related to debt, working capital, other expenses and other potential adjustments post the closing of the acquisition,” the statement said.

The statement noted that some key conditions that must be fulfilled for closing of the deal include but is not limited to: approval by Tanzanian Fair Competition Commission, Tanzania Mining Commission and shareholders of Tanga Cement to be obtained by way of a special resolution passed at a shareholders meeting.

Meanwhile, the Bank of Tanzania’s 15-year T-Bond auction aimed at raising 136bn/- last was week was oversubscribed by 21.8bn/- as investors’ tendered 157.8bn/- through 205 bids. In a related development, the secondary bond market generated a total of 41.2bn/- turnover, being a 49 percent increase from the 27.6bn/- turnover that was generated the previous week.

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