THE two major indices went on different directions during the week that ended on 18th December 2020 after counters seeing mixed movements. The All Share Index (DSEI) was on the red after most cross listed counters decelerated while CRDB and JATU pulled the Tanzania Share Index (TSI) up.
Twiga Cement dropped by 0.78 per cent and was offset by the appreciation of CRDB and JATU. The TSI went up 4.03 points following a 0.116 per cent increase of the domestic market capitalization. JATU was the top gainer similar to the last three weeks after jumping by a staggering 56.5 per cent following the rising demand of the counter.
JATU is up more than 240 per cent since it was listed less than a month ago. CRDB was another gainer which went up by 2.63 per cent to close the week at a price of 195/- per share. The TSI closed the week at 3,486.95 points while the domestic market cap stood at TZS 9,158.17bln ($3.97bln).
The mystery of the sharp rise in the price of JATU is mostly due to two main factors. One is the membership requirement to own at least 200 shares to be eligible to participate in the farming project. With a limited number of shares, the requirement raises the counter’s price with a consideration that only 110 is enough to alter the counter’s price.
The second factor is the sharp rise itself which sets a momentum of speculators to vie on the shares. An independent valuation included in the Information Memorandum used during listing, values the counter between 410/- and 430/- compared to the market price of 1,440/- at the end of the week under review.
The total market capitalization dropped by 0.42 per cent and as a result the DSEI went down by 7.5 points. Despite the climb on CRDB and JATU, East African Breweries (EABL) and KCB Bank (KCB) dropped enough to tilt the balance to a net deceleration on the index.
EABL dropped by 3.13 per cent while KCB dropped by 0.66 per cent. Jubilee Holdings (JHL) went up by 5.22 per cent but was not enough to pull up the effect of the giants. The total equity turnover rose by 9.6 per cent to a total of TZS 958.16mln ($0.41mln) while the volume of shares traded went up by 37.7 per cent.
The total volume of shares mounted to 2.82mln traded in 167 deals. CRDB recouped the top […]