Tanzania Daily News (Dar es Salaam)

Tanzania: Leading Taxpayers Top Performers At DSE

THREE leading taxpaying companies are the top performer at the Dar es Salaam Stock Exchange (DSE) after rallying to over 100 per cent in 2013 to all time highs.

The TBL is the number one after its shares appreciated by 166.66 per cent from 3,000/- of January 2013 to 8,000/- of last December, meaning a share value increased by 5000/- in the last 12 months.

The second top performer is National Microfinance Bank (NMB) which its shares rallied by 126.79 per cent to end the year at 2,620/- from 1,200/- of January last year.

The third in the row is the Tanzania Cigarette Company whose shares have gone up by 104.76 per cent to 8,600/- from 4,200/-, to become the most expensive stock in 2013.

The Orbit Securities Head of Operations and Dealings Juventus Simon said the share gain is driven by the solid performance and management of the firms since listed.

He said the solid performance pushes the demand for the most profitable listing firms' stocks with limited supply, naturally, the prices skyrocket."

Speaking about NMB he said "the bank (NMB) maintains a solid balance sheet and kept its NPLs (non performing loans) at reasonable low ratio."

"This (share appreciation) is a barometer that the (companies) are doing very well to increase demand on the shares," the Head of Operations said.

CRDB bank was the fourth in line after her share rallies by 100 per cent to close the year at 280/- compared to the opening price of 140/- in January. CRDB share, however, reaches all time high in 2013 level of 295/-.

He said a share price under normal circumstances follows the financial progress of the institutions--the higher the share appreciation the better the firm perform financially.

Analysts have it that NMB was poised to continue to perform good in the next few years to dominate the banking sector market, especially after embarking now on the long term lending.

"But there is a risk attached to exposure on long term loaning," analysts said adding "though the higher the risk the higher the return."

On other hand two poor performers at the bourse in 2013 are DCB Commercial Bank and Tanga (Simba) Cement whose shares slid to the negative.

The bank share went down by 17.35 per cent from 620/- of January 2013to 490/- by December 2013, while Simba cement stocks also registered a decline of 16.67 per cent to close the year at 2020/- Other listed companies registered a price appreciation.

Tanzania Tea Parkers share increased by 62.5 per cent to 650/-, Swissport 55 per cent to 2680/-, TOL gases 19.23 per cent to 310/-, Precision Air by 3.26 per cent to 475/- and Twiga Cement by 2.31 per cent 2,660/-. The newly listed Maendeleo Bank price at EGM share price stagnated at 600/-.

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