15 January 2013

Tanzania: CRDB Bank Shares Appreciate At DSE

The CRDB Bank share have started the year on the right foot after appreciated handsomely to climb to 170/- a piece, the highest price in the last ten months.

The bank's shares have been traded at an average of 120/- a share, but made a U-turn recently driven by what money market experts said was due to regional expansion and attracted more foreign investors.

According to Dar es Salaam Stock Exchange (DSE) data, CRDB share price increased by 21.43 per cent from 140/- to 170/- in the last two weeks, being the only share that have appreciated since the beginning of this year.

Tanzania Securities Chief Executive Officer Moremi Marwa said the regional expansion, in Burundi, has been perceived as 'a good move by investors" to drive up share price. "Despite dividend yield of between 5 and 6 per cent to be regarded low by locals, it is still a good return to foreigners as their markets pay less than that," Mr Marwa told the 'Daily News'.

He added that the demand was mainly pushed by foreigners' investors who still get a good investment yield compared to their markets. Also foreigners have limited portfolio windows due to firm ownership limit imposed by the regulator.

Zan Securities Chief Executive Officer, Raphael Masumbuko said yesterday that the bourse experienced a three-month consecutive demand that dried up supply to push up the price. "The opening of Burundi branch may contribute well on the share positive results," Mr Masumbuko said, "(also) growth and expected good dividends are contributing."

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