Dar es Salaam. CRDB Bank Plc’s total market capitalization at the Dar es Salaam Stock Exchange (DSE) dwindled by Sh104.48 billion in a period of seven months, reports show.
DSE daily reports have indicated that the bank’s market capitalization was Sh522.37 billion on February 06, this year before reaching Sh417.89 billion last Friday.
This went along with the bank share price which went down by 20 per cent cut to Sh160 from Sh200 recorded in February this year.
However compare with that of January 2, this year the bank has managed to maintain its market capitalization and share price at Sh417.89 billion and Sh160 respectively.
The increase in share prices and market capitalization on February 06 resulted from an increase in share price from Sh195 on February 5, to Sh200 when a company traded a total of 686,441 shares value Sh136.35 million on that day.
TEG consultancy managing partner Mazengo Kasilati attributed the decrease in share price and market capitalization in the starts of the year because many shareholders want cash at that period so they sell their shares even at lower prices due to high supply.
He then added that, “during the period when a company is about to issue dividend many people want to buy shares which makes their prices higher”.
According to him, the market forces of demand and supply are what cause the movement in market capitalization and share price.