TBL, Swissport stocks bounce back after election uncertainty
Swissport Tanzania chief executive officer, Mr Gaudence Temu speaks at a past event. PHOTO|FILE
What you need to know:
Like other counters, shares of the two firms dropped dramatically between April and May before they started picking up again in June, as investors decided to buy time and see equity prices correcting themselves ahead of the electioneering period.
Dar es Salaam. Tanzania Breweries Limited (TBL) and Swisssport shareholders, who sold their equities last week, yielded good returns as the Dar es Salaam Stock Exchange (DSE) corrects itself from recent price falls.
Like other counters, shares of the two firms dropped dramatically between April and May before they started picking up again in June, as investors decided to buy time and see equity prices correcting themselves ahead of the electioneering period.
The beer brewer’s shares traded at a weighted average price of Sh14,500 for the good part of April and May while Swissport’s equity went for as low as Sh5,500 during the same period before picking up to Sh6,000 and Sh7,000 levels between June and October, while TBL came back to its Sh15,000 level during the period.
And last week, the two firms emerged as top gainers, with a TBL share adding Sh40 more to close the week with a price per share of Sh15,010 while Swissport improved by Sh40 to settle comfortably at Sh7,340 on Friday, November 6, 2015.
“Apart from the mouth-watering financial results posted by the two firms in their recent past announcements, price changes also signify the fact that the market is correcting itself from the past volatilities….prices are coming back to the levels where the equities really belong,” Zan Securities chief executive officer Mr Raphael Masumbuko, told The Citizen yesterday.
Early last month, shareholders of TBL Group approved Sh151.7 billion as dividend after recording an impressive financial performance in the year ending March 31, 2015. That translated into Sh500 per share compared with Sh450 per share paid in the previous year, an increase of 11 per cent, according to the company’s chairman Mr Cleopa Msuya.
The company, a subsidiary of South Breweries (SABMiller), also announced change of its logo from TBL to TBL Group to reflect its other stakes in Tanzania Distilleries Ltd (TDL) and Dar Brew (Chibuku).
The maker of Kilimanjaro Premium Lager recorded a Sh216.5 billion profit after tax for the year ending March 31, 2015 compared with Sh203.7 billion recorded during the previous year.
Similarly, Swissport Tanzania – the ground handler at the country’s major airports - achieved a 73 per cent net profit gain during the entire 2014 calendar year.
Net profits went up by 73 per cent to reach Sh12.937 billion in 2014 from Sh7.496 billion in 2013, according to the financial results that were published in April 2015.
And last week, Tanzania Cigarette Company (TCC) emerged as the top loser, having shed Sh30 to close at Sh16,300 per share. Overall, week-on-week turnover dropped by 55 per cent to reach Sh12.55 billion from Sh28.11 billion registered during the preceding week.
