21 September 2017

Tanzania: Vodacom Shares Extend Bearish Run

VODACOM shares at the Dar es Salaam Stock Exchange have gone down by almost 9.41 per cent to trade below the initial public offering price barely two months since it listed at the market.

The share prices appreciated at day one of listing from 850/- during initial offering to 900/- but the gain was short lived after it dropped to 770/- as of Tuesday.

Zan Securities Chief Executive Officer Raphael Masumbuko said that the decline of Vocacom share prices was partly being caused by a rush of investors to sell when the prices appreciated.

"As Voda said most of the individual investors participated for the first time, I think they anticipated price to gain after listing and reap big deal. But seeing price gaining to 900/- and stuck there, they rush to cash in the minute difference to glut the bourse," Mr Masumbuko told the 'Daily News' yesterday.

According to Vodacom, more than 40 000 Tanzanians, many of them first time participants in the capital market, have subscribed for shares in the IPO.

Stockbrokers believed most wanted to cash in when the price gain after listing to DSE and once this failed, they rushed to sell. "This is seen at the pace of share supply volumes which mostly was coming in a lot of between 200,000 and 300,000.

This demonstrates retail selling trend," Mr Masumbuko said. Meanwhile Vodacom's M-PESA users will be earning some money as the telco giant shares 6.0bn/- to them as a bonus for using the money transfer platform.

This is another round of distribution of earnings from M-Pesa Trust accounts covering the period between April 1st and June 30th 2017, according to a statement. The distribution will benefit seven million active M-Pesa users country wide, according to Vodacom.

The quarterly exercise will see M-Pesa customers, agents, super agents, banks, businesses, and merchants receiving their share of the bonus earned as a benefit from using the service

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