Investors snap up NMB Bank shares after dividend notice
Chief Executive Officer of NMB Bank Plc., Ruth Zaipuna.
What you need to know:
- The bank’s board of directors is proposing a dividend per share of Sh193, pending its approval at the 22nd Annual General Meeting (AGM) which is slated for Friday this week.
Dar es Salaam. NMB Bank Plc stole the show at the Dar es Salaam Stock Exchange (DSE) last week as investors want to cash in on the lender’s record dividend.
The bank’s board of directors is proposing a dividend per share of Sh193, pending its approval at the 22nd Annual General Meeting (AGM) which is slated for Friday this week.
The amount, which translates into a total dividend of Sh96.728 billion, is an increase of 41 percent compared to the dividend per share of Sh137 that the bank’s shareholders shared last year (2021) from the 2020 profit.
In a statement, signed by Company Secretary, Ms Lilian Komwihangiro, NMB Bank Plc said last week that the trading of shares-cum dividend began on may 13, 2022 and that tomorrow (June 1, 2022), is the last day of the share-cum dividend trading.
Apparently encouraged by the dividend proposal, investors snapped up NMB Bank Plc shares at the DSE last week, with the lender accounting for 77 percent of the week’s turnover.
Besides, its price rose by 4.14 percent to reach Sh3,020 per share on week-on-week basis, according to an analysis by Vertex International Securities Limited.
“The increase in prices could not inspire more trading and therefore volume and turnover decreased. The market recorded a weekly turnover of Sh3.68 billion from 2.36 million shares traded, down from a turnover of Sh6.3 billion recorded in the preceding week,” said Vertex’s capital market manager, Mr Ahmed Nganya.
Nicol emerged as the top market gainer, posting 4.92 percent gain to close at Sh320. Nicol, which is a collective investment firm, owns a 6.6 percent stake in NMB Bank Plc. DCB gained 2.7 percent to close at Sh190.
Stock market players are also optimistic that the recent decision to open Tanzania’s capital and financial account to the Southern African Development Community (Sadc) would deepen trading in securities across the bloc.
This is contained in the Foreign Exchange Regulations, 2022, which were published on Friday last week (Wednesday, May 13, 2022).
The regulations allow a person who resides in Tanzania to purchase, issue, sell or transfer to a resident securities, coupon or participatory rights in a collective investment scheme to someone in the East African Community (EAC) or in Sadc.
