CRDB share rallies to four-year high

CRDB's Bujumbura
The share price of CRDB Bank has appreciated by 46.42 per cent since the beginning of this year to reach almost a four-year high price level of 205/- a unit by Wednesday.

The share opened the year at 140/- but due to high demand pushed by good results in the first quarter, the share rebounded to the 2009 share price level and prospects are positively.

Orbit Securities Heads of Operations and Dealings, Juventus Simon, said the demand of the share has been steamed up by first quarter good results and speculation of the same in the second half.

“The bank’s NPLs non performing loans have descended well since last year’s fourth quarter encouraging investors to increase demand figuring the trend will continue,” Mr Simon said. 

He said the demand was experienced from both locals and foreigners’ buyers while supply dwindled as strategic investors are holding their shares.

“There is a very limited supply of CRDB’s shares as the market depends (solely) to individual sellers,” the head of dealings said, “and it seems their stocks are diminishing.”

The Tanzania Securities’ Investment Office, Lawrence Sangawe, said the current rally was the outcome of investors rushing to beat cum-dividend line following a good dividend of 12/- a share the bank offered. 

“The demand will continue to remain high as speculators are running out of stocks… (while) foreigners who a long time investors are holding them,” Mr Sangwe said.

The investment officer said at the moment the share price would stuck at around 200/- and continue to climb gradually but descending back to 110/- seems to be a thing of past. 

The Tanzania Securities Daily Market report shows that the bank’s share was the second most appreciated share on the Dar es Salaam Stock Exchange (DSE) in the last five months.

The report shows that the most gained share at the bourse by Tuesday was Tanzania Tea Packers (TaTePa) gained by 50 per cent to 600/-, while the third was TCC that went up by 43.81 per cent to 6,040/- followed by NMB 41.07 per cent to 1,580/-.

The most depreciated share in the last five months was DCB bank that slides by 17.74 per cent to 510/- a share. 

The share rally assisted the bourse both indices edged up, with the DSE all share Index (DSEI) closing at 1,551.50 or a gain of 1.23 points and Tanzania Share Index (TSI) at 1,708.99 which was an appreciation of 5.18 points.
Source: The Daily News, reported from Dar es Salaam
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