Tanzania’s stock market concluded April on a positive trajectory, driven by strong corporate earnings reports to post a 22.5% increase in equity turnover to 5.66bn/-as compared to 4.62bn/- posted the previous month.
According to available data from the Dar es Salaam Stock Exchange (DSE), the Tanzania Share Index (TSI) experienced its best month since January 2023, with a 1.62% increase, while the DSEI fell by 1.09%.
But according to the Alpha Capital Monthly Report for April 2023, local investors continued to dominate the market in both investment and disinvestment sides of the market.
“Foreign investment improved to 43.93% of total market turnover from 12.21% in March 2023 while foreign disinvestments similarly rose from 16.42% in March 2023 to 36.67% in April, resulting to a net foreign inflow of 410.94m/-,” the Alpha Capital Head of Research and Analytics, Imani Muhingo said.
Winners and Losers
CRDB shares during April soared by 13.68% due to anticipated dividend announcements and its stock peaked at 550/-, then retreated to 540/- following the release of quarterly results that indicated a marginal 0.2% decline in net earnings after tax compared to the previous year.
DCB shares also gained 8.82% during the month, closing at 185/- as investors began expressing confidence in the company’s future prospects following the release of its full-year report for 2022, which revealed an impressive profit growth of 146.3% to 1.966 billion.
TCCIA Investment (TICL) shares climbed 7.14% to TZS 150/- after TCC declared a final dividend of 370/- per share and 45/- per share for CRDB plc; given that TICL owns a 0.3% stake in TCC, shareholders anticipate improved forthcoming dividends due to strong company performance.
NICO shares also surged by 5.00% for similar reasons. In the final week of the month, DSE shares (DSE) ascended by 4.65% as a result of Q1, 2023 reported increase in net earnings by 23.8% YoY to 52/- per share and an 11.6% YoY revenue growth.
Twiga Cement (TPCC) shares experienced a modest rise of 1.49% on the first trading day of the month and held steady for the remainder of that time frame; this increase was attributed to standard market fluctuations, while Q1 results had little impact on price movement due to heightened production costs.
Following a rally in March 2023, Swissport Tanzania (SWIS) shares posted a marginal gain of 1.23% during the month, influenced by regular market movement. Although the company announced a dividend of 42/- per share with a yield of 2.56% at the current market price of 1,640/-, this did not prompt any notable price movement in the market, primarily due to the low yield.
NMB Bank shares declined by 0.57% to close the month at 3,480/-; despite reaching a four-year high of 3,560/- within the month, share prices receded to 3,480/- as a result of standard market fluctuations. Shareholders are keen waiting for a dividend announcement from NMB, which we forecast to be between 280/- and 285/- per share.
Tanga Cement (TCCL) shares faced turbulence following increased negative sentiment surrounding the proposed acquisition deal between Afrisam and Scancem DA; consequently, share prices plummeted by 12.5%.