Tanzania:Stock to watch in second-half: TOL Gases

TOL Gases is the stock to watch for the rest of year after it appreciated significantly in the first half by nearly 20 per cent, thank to good performance for three consecutive years.

TOL continues to shine at Dar es Salaam Stock Exchange (DSE) in the last ten days after gaining by 15/- to close the Monday session at 650/- a share at a time when the demand picks up.
Cumulative in the first half of this year, the stock have gained by 18.18 per cent to become the second top performer after Swissport that surged by 47.06 per cent to Monday’s 7,500/-.

The TOL share appreciation comes some three years ago after years of routine stomach-churning volatility that saw the stock plummeted to 200/- well below the primary offer price of 500/-.

Zan Securities Chief Executive Officer Mr Raphael Masumbuko said in a weekly Wrap-Up note that up to last Friday TOL was among the top gainers at the bourse.

“There weren’t many top gainers with local listed companies this week compared to last week other than TOL Gases,” Mr Masumbuko said.

The CEO added: “It is time to begin staging in purchasing the best-quality stocks that have been beaten down”. 

TOL net profit jumped from 998m/- in 2013 to 2.0bn/- in 2014 this follows good performance for three consecutive years. However, it has yet to issue dividends since listed in 1998.

It is the first listed company at DSE. The larger industrial gases company attributed the increase in profit to completion of the first round of the rehabilitation of its Aspen plant.

The completion improved reliability and efficiency. On average the plant is producing at 80 to 90 per cent efficiency. 

“Total power consumption per cubic metre of gas produced has gone down by 43 per cent.

“The plant now can produce crude argon and it is expected that the plant will be in a position to produce pure argon in the second phase of repairs expected in the last quarter of 2015,” TOL said in latest report.

The increase of gases mulls TOL to start selling its products to Kenya, Zambia and Zimbabwe. 

Meanwhile, last week top gainer for cross listed companies was dominated by National Media Group (NMG) with 3.93 per cent or 150/- closing at 3,970/-.
Source: Daily News, reported from Dar es Salaam, Tanzania

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