NICOL records best return in 2023

NICOL and NMB Bank stocks have outshined the rest on Dar es Salaam Stock Exchange (DSE) by recording the best return of over 50 per cent last year.

NICOL, according to Orbit Securities’ weekly synopsis, a closed-end fund heavily invested in NMB shares, outshone the rest, recording a total return of 67 per cent.

“…NMB itself emerged as another significant performer, securing a total return of 58 per cent,” Orbit said.

NICOL and NMB contributed immensely to push the banking, finance, and investment stocks and thus witnessed an average weighted return of 34 per cent as indicated by the Banking, Finance and Investment Index last year.

Additionally, Orbit Securities, said in a surprising move, TICL, a closed-end fund, conducted a rights issue, capturing considerable attention as one of the most actively traded counters, especially in the fourth quarter of last year.

“Investors who had established positions earlier in the year reaped the rewards with a 31 per cent return,” the synopsis said.

CRDB, a leading bank in the country and the most liquid stock on the exchange, garnered a 28 per cent total return, while the self-listed DSE posted a 13per cent return throughout the last year.

The Manufacturing Index surged by 3.0 per cent, primarily driven by Tanga cement, which soared impressively by 93 per cent, securing the top-performing stock title for the year.

Another standout was Twiga cement, offering a commendable performance with a 28 per cent total return for its investors throughout the year.

Additionally, TOL Gases experienced a modest 3.0 per cent increase, whereas popular manufacturing stocks like TBL and TCC remained flat.

Contrarily, the Services Index disappointed, dropping by 0.23 per cent. Among the domestic stocks in this index, Swissport was the sole standout, generating a 3.0 per cent total return.

“In summary,” Orbit said, “ an investor who opted to invest blindly across all domestically listed stocks on the exchange, without selectively choosing any, managed to secure an 11  per cent return by the year’s end as indicated by the performance of the Tanzania Share Index.”

On a weekly basis to last Friday, Vertex International Securities said in its weekly market report, that NICO’s share price increased by 6.38 per cent, which was significant compared to other companies.

Last week was shortened by the Christmas holidays to just three trading days. The equities market observed a decrease in turnover by 89.49 per cent, descending from 11.07bn/- in the preceding week to a mere 1.16 billion.

Additionally, according to Vertex, the volume of shares traded saw a drastic drop of 90.62 per cent from 20.4 million to merely 1.9 million.

Notably, this included 1.0 million CRDB shares and 57,296 NMB shares that were part of pre-arranged block trades.

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