27 November 2012

Tanzania: Brewery's Profit Annoucement Boosts Trading

TANZANIA Breweries Limited's (TBL) announcement on half year profit and dividend last week has impacted positively on the Dar es Salaam Stock Exchange trading, with the brewing firm accounting for 88 and 44 per cent of the total market turnover and volume, respectively.

Tanzania Securities Limited (TSL) weekly market report shows that the bourse turnover increased to 3.24bn/-, over five times the 601m/- generated in the previous trading. "The week's increase in turnover and volume was mainly supported by TBL counter that accounted for 88 and 44 per cent of total turnover and volume, respectively," stated the report.

Shares traded rose to 2,309,437, almost three times the preceding period's 780,885. TBL counter generated turnover of 2.84bn/- from 1,013,054 shares that exchanged hands during the week, supported mainly by foreign investors who purchased 1,000,000 shares in a pre- arranged deal at 3,000/- per share, at premium of 14 per cent.

TBL financial statements show that the company managed to post substantial half year profit before tax of 115.23bn/-, equivalent to 8 per cent growth over 107.14bn/- generated in the similar period last year. Similarly, earnings per share increased by 8 per cent to 256/- from 238/- of the corresponding period last year.

During the week, the outstanding market performance of the Dar bourse resulted into the DSE Index to close at 0.82 points, a 0.52 per cent gains, higher at 1,472.58 points. Also the Tanzania Share Index (TSI) made significant upbeat to close the week at 1,353.88 points, up by 3.47 points, a 2.43 per cent increase supported by gains made in both Industrial and Banking segments.

The banking segment Index strengthened by 1.31 per cent to close the week at 1,080.81 points supported by CRDB's gain of 4.26 per cent. Likewise in the Industrial sector, the Index increased on the backdrop of gains posted on the TBL and Twiga counters.

The counters gained by 6.87 per cent and 0.80 per cent to close the week at 2,800/- and 2,520/- per share respectively. The banking sector moved 7 per cent of total turnover and 50 per cent of the market activity. Foreign investors' participation on the banking industry was 3 per cent of the week's turnover supporting the CRDB counter that moved a volume of 916,201, which is 324 per cent gain compared to the previous period of 216,104 stocks which exchanged hands.

The NMB accounted for 71 per cent of the banking index market share, as measured by turnover. The counter maintained its price at 1,100/- per share where 247,530 stocks were moved during the week. TATEPA counter moved 58,600 shares during the week, a 247 gain from 16,900 shares exchanged hands with its price remaining flat.

Swissport traded 35,711 shares at 1,700/-, Twiga counter traded 36,341 shares at 2,520/- per share during the week and Simba traded 2,000 shares at 2,400/- per share. The Tanzania Cigarette Company (TCC), Precision Air Services (PAL) and Tanzania Oxygen Limited (TOL) counters remained idle.

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