Investors’ appetite for TBL share rise despite drop in profit

Dar es Salaam. Tanzania Breweries Limited (TBL) stole the show at the Dar es Salaam Stock Exchange (DSE) last week as investors maintain a bullish outlook for the beer maker’s future despite its recently reported profit drop.

The maker of Kilimanjaro Premium Lager bagged Sh7.8 billion to contribute a cool 92 per cent to last week’s Sh8.5 billion turnover, market data show.

Similarly, the company – whose share closed Thursday, August 31 at a weighted average price of Sh13,000 – rose last week to close at a weighted average price of Sh13,500.

“This simply means that investors believe the company will do well going forward,” the Core Securities Limited chief executive officer, Mr George Fumbuka, told The Citizen yesterday.

On Thursday last week, TBL Group – which consists of TBL, Tanzania Distilleries Limited (TDL) and Darbrew – announced that its profit dropped by 29 per cent during the year ending March 31, 2017 compared to a similar period last year, attributing 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.

On weekly basis, the equity market weakened by 21 per cent, closing with a turnover of Sh8.52 billion compared to Sh10.75 billion posted the preceding week, according to calculations conducted by Zan Securities Limited.

The self-listed DSE Plc emerged as the top gainer last week, with its share price appreciating in value by 2.74 per cent to close at Sh1,500.

Total market capitalization decreased by 0.36 per cent to close at Sh20.67 trillion.

Domestic market capitalization increased by 0.01 per cent, closing this week at Sh10 trillion.

Comparatively, key benchmark indices were in the green territory, with the Tanzania Share Index (TSI) capping at 3,842.20 points while the All Share Index (DSEI) closed at 2,149.19 points, 0.36 per cent lower than that of the preceding week.