NATIONAL Investment Company Limited (NICOL) share has gained by 3.03 per cent despite decline in company annual profit.
The share price gained to 170/-and after moving 8,000 shares for the week ending last Friday while the mutual fund profit sunk 67 percent to almost 650m/-for year ending last December.
Orbit Securities said the mutual fund financials reported a total comprehensive loss due to a 1.64 per cent decline in the fair value of financial assets, especially equities.
“…The Company noted an expropriation of the company’s 51 per cent stake in Tanzania Meat Company (TMCL) by the Ministry of Livestock and Fisheries.
“The company is to take legal steps to protect shareholders’ interests,” Orbit said. NICOL’s shareholding register has further been updated to match the register which previously existed at the exchange.
The total number of shares as at the end of last December was 69.16million shares.
The company total investment income dropped to 2.8bn/-for the year ending last December from 3.7bn/-of previous period under review.
While, total expenses increased to 1.97bn/-from 1.68bn/-. Last week, Tanzania Share Index (TSI) slipped by a marginal 0.05 point to close the week at 3,491.87 points following a slight deceleration of the price of DCB Bank.
Also the domestic market capitalization followed suit after a marginal loss of 0.001 per cent equivalent to 120m/-. The domestic market cap closed the week at 9.17tri/-.
“Due to its lower weight,” Orbit said, “the appreciation of NICOL was not enough to offset the deceleration on the DCB counter, resulting on a slight shed on the TSI.”
Last December the government retook Dodoma abattoir, and tasked NICOL to pay all debts. Following the cancellation, NICOL is required to repay 9.7bn/-and settle all debts of TMCL over 5.2bn/-.
The Dodoma abattoir was built by the government in early 2000s and was privatised in 2008 to NICOL and National Ranch Corporation (NARCO) to form TMCL.