DAR ES SALAAM: NMB Bank share experienced a significant rally during the first week of this month at the Dar es Salaam Stock Exchange (DSE) appreciating by 9.9 per cent driven by the bank’s impressive results for the first six months this year.
The bank appreciated 11.6 per cent in the entire of last month.
However, the Head of Research and Analytics from Alpha Capital Mr Imani Muhingo noted that the rally appears to have cooled off towards the end of the review week as outstanding offers were priced at 4,220/- per share when the market closed last week.
The NMB’s performance lifted the Tanzania Share Index (TSI) and the All Share Index (DSEI) by 1.8 per cent and 0.8 per cent respectively.
Another notable gainer was TOL Gases, which saw a 4.84 per cent increase, closing the week at a price of 650/- per share.
The primary driver of TOL’s price increase was the announcement of a 50/- per share dividend yielding 7.7 per cent based on the current market price.
This dividend marks a 25 per cent growth from the 40/- per share dividend paid last year.
In the stock exchange arena, equity turnovers witnessed significant surge in activities during the week ending on September 8th.
The prearranged block transactions involving TBL and TCC counters led to a more than 500 per cent increase in the weekly equity turnover.
The TBL traded one million shares at a prearranged discounted price of 6,000/- per share, resulting in a turnover of 6bn/-.
TCC also traded 212,970 shares at the same price, generating a turnover of 1.28bn/-.
In total, the weekly turnover reached 8.22bn/- with TBL and TCC contributing 73 per cent and 16 per cent of the total turnover, respectively.
Foreign investors were responsible for selling blocks of shares on these two counters, while local investors were buyers, resulting in a continued foreign outflow.
The net foreign outflow during the week amounted to 7.35bn/-(2.88 million US dollars), with foreign investors accounting for 89.44 per cent of all divestments and a mere 0.08 per cent of all investments.
In terms of market performance, NMB emerged as the top-performing stock for three consecutive weeks, recording a 10 per cent gain.
According to market synopsis, investors have been enthusiastic buyers of NMB shares following solid fundamental results.
The TOL also stood out with a 5 per cent increase, driven by positive investor reaction to the 50/- per share dividend payout. Nicol gained 1 per cent closing at 490/- per share on Friday.
However, some stocks experienced downward trends last week, with DCB (-3.4%), TICL (-7%), and Mkombozi Bank (-9%) facing declines in their share prices.