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Investors snap up bank stocks on good financial results
Dar es Salaam. Investors’ appetite for the banking sector’s stocks was high at the Dar es Salaam Stock Exchange (DSE) last week as they seek to cash in on the recently released financial results.
With financial results for the third quarter of the current calendar year showing a further improvement in banks’ profitability, investors snapped up CRDB Bank Plc shares last week, exchanging stocks worth Sh1.29 billion.
An analysis by the brokerage firm, Vertex International Securities Ltd, shows CRDB Bank Plc was the top market mover, dominating the market by 70.2 percent as the weekly turnover stood at Sh2.26 billion by the end of the trading session on Friday.
Another top lender, NMB Bank Plc, also had a substantial turnover of Sh390 million, accounting for 17.23 percent of the total turnover.
On Tuesday last week, CRDB Bank Plc local investors traded a block of one million shares while NMB traded a block of 50,000 shares, both at pre-arranged market board.
At the last trading session on Friday CRDB, did its major deal of the week trading a block of 1,180,000 shares in a pre-arranged agreement, sold by foreigners and purchased by the locals.
The two lenders are the top profitable banks as per the recently issued third-quarter financials. CRDB and NMB reported a net profit of Sh280.45 billion and Sh398.41 billion respectively by the end of September 2023.
The markets expect more activities as a response to the released third quarter financial results, especially from the financial counter according to Vertex’s capital market manager Mr Ahmed Nganya.
“The momentum at the financial counters is expected to continue to dominate to the forthcoming week,” he said.
In the price movements, the price for a stock of Tanga Cement rose by 7.53 percent from Sh1,860 to Sh2,000 at the end of the week while that of the self-listed DSE Plc increased by 4.55 percent, closing at Sh1,840.
The price for a share of the cross-listed lender, KCB decreased by 12.9 percent to close the week at Sh270 from Sh310.
In the fixed-income market, the bond market recorded 50 deals with a combined turnover of Sh27.77 billion.
The bonds traded during the week ranged from 15 to 25 years. The corporate segment saw four deals executed for the NMB’s 3-year bond accumulating a turnover of Sh37.5 million.
