According to the weekly market commentary by the Tanzania Securities Limited (TSL) the improvement of the activity levels was caused by the sale of 1,718,318 Tatepa (TTP) shares to foreign investors in a pre-arranged deal. However, the Tanzania Breweries Limited (TBL) lost 5.7 per cent and CRDB 6.6 per cent during the week even though most counters remained flat.
The loss of 6.6 per cent of its value by CRDB is an indication that its dividends announcement failed to register investor’s support. Also, its decision to write off 50bn/- nonperforming loans as part of books cleaning exercise could have been a contributing factor.
Likewise, the 5.7 per cent loss of value by the TBL is a sign that the dividend hype is cooling off after a cum dividend trading period of the past few weeks. The cum dividend occurs when a buyer of a security is entitled to receive a dividend that has been declared, but not paid.
“Even though TBL closed their books last month investors did not demonstrate expectation for further dividends announcements during the week,” said Mr Magabe Maasa, the TSL analyst. Consequently, both the Dar es Salaam Stock Exchange All Share Index (DSEI) and the Tanzania Share Index (TSI) surged downward, showed the report.
The DSEI slightly dropped to 1,327.29, a 0.5 per cent decline while the TSI settled at 1,241.97, a 2.3 per cent down. During the week, investors were holding on NMB in anticipation of its dividends announcement which was not done. The NMB and CRDB counters however, traded 42,148 shares.
Twiga Cement had 20,513 shares traded at 2,400/- per shares, while Swissport had 3,671 shares traded at 1,000/- per share with the counters continuing to record significant local support as investors’ book gains in dividends.