DSE starts week on wrong foot

A DSE broker trading
Dar es Salaam Stock Exchange (DSE) indices on Monday started the week badly after slumping by over 5 per cent, pulled down by declining of shares prices of the three firms. 

The DSE All Share Index dropped by 2.09 points to close the day at 1431.51 points while Tanzania Share Index (TSI) suffered a heavy blow slip to 1180.23 points after losing 8.82 points in a single trading.

DSE daily market report attributed the bourse indices slid to CRDB Bank, Twiga Cement and TBL.

According to the report CRDB shares, which its prices fluctuated mostly in the recently past, saw its prices declined by 2.44 per cent to close at 120/- a stock. This is merely hours after it appreciated last week to 123/- a piece.

TBL was the second hit after its shares closed the session at 2280/- being a drop of 1.6 per cent. The brewer stock gained last Friday by 20/- to 2300/- to loss again on the same amount yesterday.

Twiga, the manufacture of Portland cement, which in the recently past experienced a price gain, its share decreased by 0.87 per cent to 2400/-. 

CRDB and TBL share prices in the recently days have been fluctuating mostly because the market is glutted with the two firms’ stocks to suppress down its share prices.

CRDB share depreciated despite its shareholders approving a 9/- for last year dividends. The dividend announced is an increase of 1/- from 8/- of 2010. 

Stockbrokers said the bank share depreciation is the results of diluting its shares before listing them at the bourse to give a relative big bonus to shareholders. In return, investors want to sell them at a go hence flooding the bourse and pushed the price down.

In this quarter, Dhow Financial made CRDB share price valuation that showed a fair value of the stock at 260/- a piece after a number of stimulation.
Source: http://tzexchange.blogspot.com 
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