Bank shares show mixed trend on DSE

Banks shares at Dar es Salaam Stock Exchange (DSE) both markets are showing a mixed trend, being top gainers in the main market and the other way round on the alternative window.

The banks are shining on DSE’s main market by dominating price appreciation after gaining between 10 and 25 per cent while on alternative market the loss of between negative 20 and zero per cent.

Orbit Securities General Manager Juventus Simon told ‘Daily News’ that the trend based on the fact that investors are confident to go for listed stocks on the main market.

“The opening of the capital market also boosted share appreciation on the main market,” Mr Simon said.

He said National Microfinance Bank and CRDB are the biggest banks in the country that automatically attract investors from within or outside the country.

On other hand, banks on Enterprise Growth Market (EGM), Mr Simon said, were listed in less than a year meaning investors are still analyzing them properly before making firm decisions.

“On top of that EGM listed stocks are still demanded by local investorsÉ unlike main market items that are demanded by both domestic and foreign investors,” Mr Simon said.

Tanzania Securities Limited on Tuesday daily report shows that DCB bank is leading after it gained by 20.83 per cent since January to 870/- a piece -- to become the top appreciating share on bank segment.

The report showed that DCB is followed closely by NMB that appreciated by 13.71 per cent to 3,980/-. However, CRDB dropped by negative 6.98 per cent to 400/-.

CRDB share price has been on the gain and loss in the last ten weeks since January. On EGM Mkombozi Commercial Bank (MKCB) is the biggest loser after its share price went down by 16.67 per cent to close the Tuesday session at 1,250/-.

Mr Simon said MKCB despite making a good profit last year close to 2.0bn/-, the prices have been dogged by its newest listing on EGM.

MKCB made profit in the last consecutive three years and if the trends continue has reason to graduate to the main market in the next few years.

One of the main stipulations of listing at main market is a profit of three years in a row. Another bank, Maendeleo, which was listed early, last year, has yet to break even but its share price stagnated at 600/- since listed on the bourse.

Overall, Swissport, the ground handling firm, is the top gainer for the domestic listed companies on DSE, after climbing up by 26.27 per cent to 6,440/- on Tuesday.

MKCB is the top loser after depreciating by 16.67 per cent to close the Tuesday session at 1,250/-.
Source: Daily News, reported from Dar es Salaam, Tanzania

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