- The brewer transacted 2,787,884 shares on pre-arranged basis to contribute Sh37.636 billion on Thursday as investors maintain a bullish outlook for the company’s profitability prospects despite its recently announced drop in annual profit.
Foreign investors snapped up Tanzania Breweries Limited (TBL) shares last week to send the weekly turnover at the Dar es Salaam Stock Exchange (DSE) to a record performance for the year 2017.
The brewer transacted 2,787,884 shares on pre-arranged basis to contribute Sh37.636 billion on Thursday as investors maintain a bullish outlook for the company’s profitability prospects despite its recently announced drop in annual profit.
That was after foreign investors also snapped up a total of 1,138,720 shares for TBL on both pre-arranged and normal market boards to contribute a cool Sh15.373 billion to Wednesday’s turnover. Data compiled by Zan Securities Limited show that the weekly turnover of Sh53.53 billion for last week was a record performance for the DSE in 2017. It rose from Sh5.46 billion during the week ending September 15, 2017.
Recently TBL Group – which consists of TBL, Tanzania Distilleries Limited (TDL) and Darbrew – announced that its profit shrank by 29 per cent to Sh161.44 billion during the year ending March 31, 2017 compared to a similar period last year.
The company attributed the fall to the government’s recent ban on importation, manufacturing, selling and consumption of alcohol contained in sachets and an overall challenging economic environment.
That notwithstanding, the company accounted for 99 per cent of the total turnover at the DSE last week.
Last week, a total of 4.4 million shares were traded, well above the previous week’s 2 million shares, with TBL accounting for 2.5 million shares. Top gainer during the period was TBL ticker, appreciating in value by 0.75 percent to close off the week at Sh13, 400 per share.
Orbit Securities General manager Simon Juventus said TBL’s good performance was largely contributed by long term buyers in view that the company would in the future perform better.
“Potential buyers who invest in long –term doesn’t not think of today but tomorrow with the hope that business environments will change,” noted Mr Juventus.
Total market capitalization increased 1.45 percent, closing this week at Sh20.5 trillion. Domestic market capitalization increased by 0.29 percent, closing this week at Sh9.67 trillion.
The increase, according to DSE, was significantly contributed by increase in share prices for Kenya Airways, USL and KCB by 20 per cent, 12.5 per cent and 9 per cent respectively.
Domestic market capitalization increased by Sh27 million to Sh9.67 trillion partly due to a 0.75 per cent increase in TBL share price.