TANGA: TANGA Cement Plc (TCCL) shares at the Dar es Salaam Stock Exchange declined by 5.88 per cent during the week ending last Friday pushed down by ongoing uncertainty and delays of its merger plans.
The falling has pushed the cement company in the Dar es Salaam Stock Exchange (DSE) to close the week at 1,600/- per share.
This decline was mainly due to the ongoing uncertainty and delays in an offer from Scancem International D.A to the TCCL’s retail shareholders, which was anticipated before the end of Q1 of this year.
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Since the delay, TCCL’s price has already declined by 24.5 per cent from the beginning of Q2-24.
On the contrary, the capital markets experienced several positive developments, including increased turnovers in both equities and fixed income securities, rising of equity prices and the launch of a new collective investment scheme.
Major indices saw gains, driven by a rally in CRDB Bank Plc following its substantially surprising profit growth in H1-24.
Equity turnover surged by 74 per cent during the week, reaching 6.37bn/-, primarily due to the block transaction on the TCC counter.
Turnover on the TCC counter alone amounted to 3.72bn/-, a significant increase from 1.94m/- in the previous week.
The NMB counter also saw a 33 per cent rise in turnover to 646.9m/-, while CRDB’s turnover declined by 45 per cent to 1.67bn/-.
The three counters collectively accounted for 95 per cent of the week’s total turnover, with TCC alone representing 58 per cent. Other counters that contributed to the indices’ gains included DCB Commercial Bank (DCB), which saw a 9.09 per cent price increase.
Also Maendeleo Bank Plc (MBP) was up 1.67 per cent following the announcement of a scrip dividend of 44/- per share, National Investment Company Ltd (NICOL), up 1.28 per cent and Twiga Cement Plc (TPCC), which gained 0.53 per cent.
The net foreign outflow for the week was 3.74bn/- (1.38 million US dollars), a sharp increase from 786.99m/- (0.29 million US dollars) the previous week, primarily due to the TCC block transaction between a foreign seller and a domestic buyer.
Foreign investors accounted for 63.24 per cent of total equity sales and 4.57 per cent of total equity purchases, with domestic investors covering the balance on both sides.