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Tuesday 13 September 2016

INVESTORS SNAP UP TANZANIA BREWERIES SHARES

Dar es salaam - The Dar es salaam Stock Exchange (DSE) turn-over rose by 133.79 per cent last week as foreign investors' appetite for Tanzania Breweries Limited (TBL) shares rose, market data shows.

Investors believe the prevailing market price for the prevailing market price for the brewer's share is lower than the company'c current and prospective profit thus raising the demand for its stocks, analysts say.

The DSE's week on week turn-over rose from Sh 3.879 billion during the week ending September 9 while the number of transacted shares increased rose by 49 per cent.

Last week, the maker of Safari Lager transacted 588,139 shares at average weighted prices of Sh 13,000/ share and 12,990/ share to garner a total of Sh. 7.6444 billion.

That amount was equivalent to 84.29 per cent of the week's Sh 9.07 billion turnover.

"Basically investors beleieve that the prevailing price for TBL's share is lower than what it should be...if such a feeling is combined with the firm's recently republished financial statements, it sends the right message to investors and the outcomes are what we see on the DSE" Zan Securities Limited CEO Raphael Masumbuko told the Citizen yesterday.

Late last month TBL Group a subsidiary of SABMiller published its financial statements, indicating that it posted a six per cent profit increase to Sh 228.98 billion for the year ending March 2016 compared with Sh 216.55 billion registered during the same period, driven by volume growth mainly due to price stability as the government decided to move slowly on excise duty rates adjustments.

Throughout July, the TBL share exchanged hands at prices that ranged between Sh 13,740 and 13,880 but it started losing in August when it closed the month at 12,440 before it started picking again in September to reach its current level. Looking forward, Mr Masumbuko is hopeful that with the global situation normalising after the UK voted to leave the European Union during the June 24, 2016 Brexit vote.

"We are now hopeful that prices for various stocks will also start picking up as the global situation returns to normal" he said.

The Citizen

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