This means that the cigarette maker’s share price has fallen by 20 per cent between January 5, 2016 and Wednesday, April 6, 2016 in what analysts believe is an indication that the stock is still searching for its legitimate equilibrium price.
Dar es Salaam. The share price for Tanzania Cigarette Company (TCC) stabilised at Sh12,000 during the past two weeks at the Dar es Salaam Stock Exchange (DSE) as buyers opted for the wait-and-see-approach.
This means that the cigarette maker’s share price has fallen by 20 per cent between January 5, 2016 and Wednesday, April 6, 2016 in what analysts believe is an indication that the stock is still searching for its legitimate equilibrium price.
On January 5, 2016, TCC’s share fetched Sh15,010 on the 20-year old stock market but fell to Sh12,000 on Wednesday, April 6, 2016.
The price remained unchanged until Monday, April 11 when some 290 TCC stocks exchanged hands at a price of Sh12,000 per share.
“This simply means that suppliers are willing to sell their shares but buyers are reluctant as they predict that the price may fall further….the TCC equity is still fetching for its equilibrium price,” the Zan Securities Limited chief executive officer, Mr Raphael Masumbuko told The Citizen yesterday.
On the contrary, TBL, which had its share price fluctuating between January and late March, has improved during the past three weeks to settle on Sh13,800.
The beer brewer controlled a total of Sh1.457 billion or about 80 per cent of the Dar bourse’ Sh1.811 billion turnover for the week ending April 8, 2016.
And last week (ending April 15, 2016), the maker of Kilimanjaro Premium Lager took up an 88.1 per cent pie from an amplified week-on-week turnover of Sh3.73 billion, courtesy of a 54.25 per cent improvement in trading volume.
TBL and the National Microfinance Bank Plc (NMB) were last week’s top traded equities. NMB contributed 6.16 per cent.
The week’s top gainers were NMB and Tanzania Portland Cement Company (TPCC). The former’s stock price appreciated by 5 per cent to close the week at Sh2,100 per share while the Dar es Salaam-based cement maker (TPCC) experienced a 3.45 per cent increase to close this week at Sh2,700 per share. Looking forwards, analysts believe that the situation will improve in the near future.
“We are still optimistic for the market to be more vibrant especially from Industrial & Allied and Banks, Finance & Investment mainly from local listed companies,” reads a weekly analysis Zan Securities Limited.
