DCB Bank shares climb to two-month high

The DCB Commercial bank share price has made a suddenly U-turn and starting climbing up to rally to two months high after slumped to all-time low level.

The share started the year trading at 620/-, but plummeted to 400/- at the early week of June, due to what stockbrokers terming as the effect of bonus shares offered to shareholders and the right issues to raise additional capital. But since the beginning of this month the share started to climb up to close the last week trading session at 500/-, being the highest since early June this year.

Zan Securities Chief Executive Officer Raphael Masumbuko said the DCB shares are quickly closing the gap as investors have seen the potential of the bank that graduated from community to commercial.

“The prospects of DCB looks good, as the bank is on expansion mode like any other commercial banks, this encourages investors to buy envisage good days ahead. 

“The share price equilibrium was distorted after the bonus offers and right issue…what we are seeing is that the shares are looking at market’s actual price,” Mr Masumbuko said over the weekend.

The CEO said the demand for DCB share was now on after a long period of stagnating period where buyers and sellers were reluctant to exchange shares. 

“Remember DCB is no longer a community rather a commercial bank, therefore its now regarded (by investors) as commercial banks with a lot of potential to grow,” Mr Masumbuko said.

Tanzania Securities daily market report shows that on Wednesday, the last trading day before long public holidays, the DCB share appreciated by 5.26 per cent to 500/-.

The stockbrokerage firm shows that since January to date the community-turned-commercial bank share went down by 19.35 per cent. 

DCB, the first financial institution in the East African region to list on the stock market, said they are targeting to generate 3bn/- profit after tax by December this year. In 2012 the bank posted a net profit of 1.9bn/-.

At the end of this year the bank wants to increase its branches from six to nine and also launches “DCB Jirani”, an initiative which would allow bank’s customers to access banking service through agencies. 

DCB has already pinpointed 500 agencies across the country.
Source: The Daily News, reported from Dar es Salaam, Tanzania
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