Appetite for Vodacom shares continues to dip, reports show

Wednesday May 1 2019

Stockbrokers busy at the Dar bourse whose total

Stockbrokers busy at the Dar bourse whose total market capitalisation fell to Sh19.38 trillion on an opening day of this week, down from Sh19.6 trillion during the last trading day on Thursday of last week. PHOTO | FILE 

By The Citizen Reporters @TheCitizenTz news@tz.nationmedia.com

Dar es Salaam. Vodacom Tanzania investors have continued to sell their shares at a loss.

Recent equity trading reports show that some sold them at Sh680, below an initial public offering of Sh850.

The price was also Sh120 lower than the current value of the share price at Sh800.

A Dar es Salaam Stock Exchange (DSE) daily market report shows that 140 shares were traded on Wednesday this week in one deal at Sh680 each.

Analysts attribute the situation to poor demand and fears that they might fall.

However, it is believed that the fears are unjustifiable as the company was doing well and had the largest market share in the mobile telecommunications market.

However, the company’s market capitalisation shrank by Sh400 billion since it was listed on the bourse in August 2017.

Meanwhile, the DSE total market capitalisation fell in one day to Sh19.38 trillion on an opening day of this week, down from Sh19.6 trillion recorded during the last trading of last week held on Thursday.

The decrease in the market capitalisation was a result of the depreciation of share prices among cross-listed companies.

Acacia’s share price fell to Sh4,220 on Monday this week from Sh4,770 on Thursday last week.

That of Nation Media Group dipped to Sh1,300 from Sh1,320.

The DSE All Share Index decreased to 1,967.51 points from 2,033.89 points during the same period. The report shows that the total turnover of Sh311.90 million was recorded on Monday this week from transacting 214,915 shares in 37 deals.

Foreign investors dominated the buying-side by injecting Sh251.57 million, which accounted for 80.66 per cent of the total turnover.