TANGA Cement PLC stock has appreciated the most in the 11 months of this year, pushed by the acquisition deal between Scancem and Afrisam started two years ago.
Tanga, the manufacturer of Simba cement, emerged as a standout performer, with an impressive 82 per cent increase—one of the highest per year in the bourse history.
The Simba cement share price has rallied since 2021, but at the beginning of this year went up from 1,100/- then to 2,000/- last Friday.
Mr Godsaviour Christopher, a researcher at the Centre for Banking and Financial Services Research (CBFSR), said the share was a top performer in last year’s first quarter,recording the same 82 per cent appreciation in price.
“This remarkable growth underscores the company’s strategic positioning and adaptability to market dynamics,” Mr Christopher told the ‘Daily News’ in a statement yesterday. The CBFSR is part of the Unversity of Dar es Salaam Business School (UDBS).
Under the deal finalised last week, Tanga Cement transfered 43 million shares from Afrisam Mauritius to Scancem International D.A at 2,440/-. The total value of the transaction was 106bn/-.
Alpha Capital Head of Research and Analytics, Mr Imani Muhingo, said Scancem plans to fully acquire Tanga Cement and is expected to make an offer to retail shareholders in next year’s first quarter, at the same price that was offered to Afrisam.
“As a result investors’ appetite for Tanga Cement has risen while the cement manufacturer’s price rises along with speculative investors,” Mr Muhingo said.
This year has seen several companies making significant strides, reflecting the resilience and potential of the nation’s economic landscape.
The second top performer stock was NMB Bank Plc, one of the leading lenders in the country, after registering a 49 per cent increase in stock prices.
The lender stock soared from 3,020/- to 4,500/- during the year. Since July, the stock has indicated a bullish trend, supported by the continuous outstanding financial performance.
National Investment Company Limited (NICOL) and TCCIA Investment Company Limited (TICL) both experienced substantial growth, marking a 40 per cent and 32 per cent increase in stock prices, respectively.
“These results highlight the diverse opportunities available across different sectors in the Tanzanian stock market,” Mr Christopher said.
In the realm of manufacturing and construction, Tanzania Portland Cement Company (TPCC), Twiga cement, exhibited a commendable 16 per cent rise in stock prices, “reflecting the positive outlook for the construction industry”, he said.
CRDB Bank Plc (CRDB), another largest bank in the country, also demonstrated robust performance with a 15 per cent surge in stock prices, emphasising the stability and resilience of the banking industry.
Additionally, the Dar es Salaam Stock Exchange (DSE) and Swissport posted respectable gains of 9.0 per cent, further contributing to the overall buoyancy in the stock market.
“As investors reflect on the past year’s market performances, it becomes evident that the Tanzanian stock market holds promising prospects for those seeking investment opportunities,” Mr Christopher said.
The upward trajectory of these stocks not only underscores the resilience of the country’s economy but also beckons potential investors to consider the stock market as a viable avenue for wealth creation.