CRDB bank share price slumped by over 36 per cent to lead in share-lost-price index in the last one year, despite CRDB being among the leading profitable banks in the country.
CRDB, according to Dar es Salaam Stock Exchange data, leads in the list of three domestic firms whose share prices plummeted in the last 12 months to date.
The Tanzania Securities Chief Executive Officer,Mr Moremi Marwa, said the share price hit the rock bottom point ever of 110/- since listing about four years ago."The price level is the lowest point...it's actually below the primary offer of 150/- a share," Mr Marwa said.
The CEO of the brokerage firm said the share prices are plummeting despite the bank's good performance, which, however, was against investors' anticipation, "Complex issues are behind the price slumping but mainly due to bad debts and category of investors the bank has."
He said before listing at Dar es Salaam Stock Exchange (DSE) CRDB split and diluted its shares, leading to an increase of share number. A studyby Dhow Financial shows that the bank shares are trading below book value and its actual value stands at 260/-. The report indicates that price is also affected by type of investors most of whom are dividend driven.
According to Tanzania Securities Daily Market report of yesterday, the second in line of price sliding was Tanzania Tea Packers (TaTePa) whose share price dwindled by 31/5 to settle at 325/-. Analysts said that TaTePa price was affected by the recent decision of one of the key shareholder CDC, an investing arm of commonwealth that controlled almost half of the stake, to sell its stake at agreed lower price.
The latest bourse entrant, Precision Air, was the third after its prices dwindled by 7.4 per cent from 475/- of IPO to 440/- of yesterday. However, on other front Swissportstole the show with its price increasing by 46.3 per cent in the last one year to close the market yesterday at 1,200/-. TBL trailed second, with 20.5 per cent gain to 2,540/-, followed by Twiga Cement's 2,440/- and NMB's 930/-.