PARTICIPATION OF LOCAL INVESTORS AT DSE INCREASES

Participation of local investors at DSE has substantially increased this quarter compared to the second quarter of this year due to lots of demand...

Participation of local investors at Dar es Salaam Stock Exchange (DSE) has substantially increased

this quarter compared to the second quarter of this year due to lots of demand and good shares offered at the market.

“Both local and foreign have continued to buy shares at the counter but locals are more active at National Microfinance Bank (NMB) and CRDB,” Orbit Securities Chief Executive officer, Mr. Laurean Malauri said.

Mr. Malauri said that Tanzania Breweries limited (TBL), Tanzania Cigarette Company (TCC) Twiga cement, Swiss port and other Cement companies are very active at the counter.

However, he said some counters had no sales although there is much demand for instance TCC which is currently trading at Tshs. 8,600 ($ 5.3) per share.

He explained that local and foreign investors are active at the counter due to good shares at the bourse.

“We have witnessed a few block trades in the past three months both local and foreign but local participation is dominant,” Mr. Malauri said.

According to Mr. Malauri the performance of the banks particularly NMB and CRDB is very good as per the latest financial reports released for the third quarter.

CRDB’s mid-year financial results saw it clinch the second spot in profitability levels after generating Tshs 20.09 billion ($ 12 million). The first was National Microfinance Bank (NMB), which made Tshs 33.14 billion ($ 20 million). Both banks are listed on the Dar es Salaam Stock Exchange (DSE).

CRDB has generated a net profit of Tshs 20.09 billion from Tshs 16.51 billion in three months ending June. Total assets growth slowed down slightly to Tshs 3.128 trillion in June from Tshs 3.175 trillion. Deposits also shrunk to Tshs 2.629 trillion ($ 1.6 billion) from Tshs 2.636 trillion ($ 1.6 billion).

Earlier, after the results were out, Orbit Securities Head of Dealings and Operations, Juventus Simon projected that the rally might come to an end and either slightly going down or stagnated at Tshs 270 ($ 0.1). The share opened the year at Tshs 140 ($ 0.08) and closed at Tshs 270 ($ 0.1).

The Tshs 270 ($ 0.1) might be a new CRDB’s share benchmark,” Mr. Simon said, “NPLs (non performing loans) have descended slightly by one percentage point to discourage further rally.”

He added that the share depreciation could be linked to the bank’s second quarter which was not as impressive as previous thus pushing speculators to sell fearing further fall.

“They (CRDB) made a good profit, but the NPLs rose slightly by one percent, earning per share went up by Tshs 1 ($ 0.006) to Tshs 9 ($ 0.065)…this discouraged further demand from speculators,” Mr. Simon said.
From: http://www.corporate-digest.com