Stock prices have gone up and analysts predict a cherry market ahead as the bourse register a rare trading phenomenon.
According to the analysts supply normally exceed demand in January leading to a drop in share prices as investors sell their shares to meet new year obligations including tax, school fees, and rent charges.
They said given the relative high demand at the first month of the year that has led to appreciation of some shares, share prices will further rise in March when registered companies will issue their financial statements.
Zan Securities Chief Executive Officer Raphael Masumbuko said investors seem to play ‘hide and seek’ game where they wait for prices to drop but that has not been the case. “It seems all (investors) waited prices to go down, but alas the unexpected change has occurred and pushed the prices up at the end,” Mr Masumbuko told the ‘Daily News’ in an interview.
He also attributed the unusual change to increased awareness among the people of trading activities and share price trend at the bourse.
They said given the relative high demand at the first month of the year that has led to appreciation of some shares, share prices will further rise in March when registered companies will issue their financial statements.
Zan Securities Chief Executive Officer Raphael Masumbuko said investors seem to play ‘hide and seek’ game where they wait for prices to drop but that has not been the case. “It seems all (investors) waited prices to go down, but alas the unexpected change has occurred and pushed the prices up at the end,” Mr Masumbuko told the ‘Daily News’ in an interview.
He also attributed the unusual change to increased awareness among the people of trading activities and share price trend at the bourse.
He said many people were becoming aware of the falling trend of share prices in January which makes an ideal time to buy shares at a discount rate.
However it seemed that the investors’ hide and seek game worked against their expectations and they had to rush to buy shares in speculation that the prices may go up further in March.
However it seemed that the investors’ hide and seek game worked against their expectations and they had to rush to buy shares in speculation that the prices may go up further in March.
Orbit Securities Head of Operations and Dealings Juventus Simon said unlike other years, this January, the bourse experienced more demand than supply, a new trend altogether.
“The demand is driven by the good market and economic performances of pervious year. It seems despite the end-year festival spending, people somehow save to invest on the stocks,” he said.
Mr Simon said at the moment, demand were registered at all counters, but National Microfinance Bank (NMB), CRDB Bank, and Tanga (Simba) Cement shares appreciated.
According to Tanzania Securities all stocks at the end of trading Monday stagnated or appreciated, except TBL share that slide by 1.23 per cent to 8,000/-.
The stockbrokerage firm daily report shows, Simba cement leads the list after its share prices appreciated by 16.83 per cent since the beginning of this month. It was followed by CRDB up by 5.36 per cent to 295/- , and NMB by 0.76 per cent to 2,640/-.
The remaining seven firms’ share price stagnated. The stocks appreciation in return pushed up the Tanzania Stock Index—that measures local listed company performance.
“The demand is driven by the good market and economic performances of pervious year. It seems despite the end-year festival spending, people somehow save to invest on the stocks,” he said.
Mr Simon said at the moment, demand were registered at all counters, but National Microfinance Bank (NMB), CRDB Bank, and Tanga (Simba) Cement shares appreciated.
According to Tanzania Securities all stocks at the end of trading Monday stagnated or appreciated, except TBL share that slide by 1.23 per cent to 8,000/-.
The stockbrokerage firm daily report shows, Simba cement leads the list after its share prices appreciated by 16.83 per cent since the beginning of this month. It was followed by CRDB up by 5.36 per cent to 295/- , and NMB by 0.76 per cent to 2,640/-.
The remaining seven firms’ share price stagnated. The stocks appreciation in return pushed up the Tanzania Stock Index—that measures local listed company performance.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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