Tanga Cement (DSE:TCCL) is the most appreciated stock after gaining 82 per cent as a result of an acquisition deal in the first three months of this year.
The firm, trades as Simba, a bullish trend that started late last year after the acquisition announcement between Scancem and Afrisam.
Thus, at the end of quarter one, Simba share prices went up 82 per cent to 2,000/- from 1,100/- at the beginning of the year.
Dar es Salam Stock Exchange (DSE) CEO Moremi Marwa said that Simba was ahead of the second most appreciated by 10 per cent gap. Nicol gained by 72 per cent to 515/- in a similar period.
“The significant [increase] in prices…contributed to the increase in the total domestic market capitalization proportionately to the decrease in prices on some counters,” Mr Marwa said in CEO Quarterly Note issued Monday.
Tanga Cement Group yesterday reported a net profit of 3.5bn/- last year and walked out of the red of 2.1bn/- in 2020 to end almost four years of losses.
“The company did not declare interim or final dividends to shareholders in 2021 and 2020 respectively to remain prudent with available cash resources in order to remain sustainable through the global economic recovery post Covid-19,” the firm statement said.
The CEO Note showed that CRDB Bank share was the third most appreciated share after climbing up 39 per cent to 390/ , NMB Bank by 35 per cent to 2,700/-, Twiga cement by 21 to 4,100/-, DSE by 15 per cent 1,500/-and DCB Bank by 3.0 per cent 195/-.
On other hands, Jatu was the most depreciated share after going down by 51 per cent to 200/-, followed by Mwalimu Commercial Bank dropped by 21 per cent to 395/- and TOL Gases down by 2.0 per cent to 560/-.
“During quarter one,” Mr Marwa said, “the market experienced positive performance in all fronts—valuations, liquidity, and market size…in both segments of the market, equity and debt.”
The domestic market capitalization for the 22-domestic listed companies went up by 11 per cent from 9.43tri/- at end of last December to 10.23tri/- in March.
The Note also showed that total market capitalisation which covers all 28 listed equity securities recorded an increase of 2.1 per cent as of March this year compared to the previous quarter that ended last December.
The total market capitalization increased to 16.81tri/- this March from 16.14tri/- of last December.
“This follows the increases in prices for some of the domestic. The increase in prices of these counter outweighed the decrease in prices of cross-listed companies, and hence the increase in total market cap,” Mr Marwa said.
As of March, the weighted average market Price Earnings (PE) ratio for domestic listed companies was trailing at 14.21 times—excluding Vodacom which is an outlier—compared to PE ratio of 10.46 times as of last December.
“This increase was attributed to the increase in reported earnings by some of the listed companies during the quarter,” Mr Marwa said.
The trailing weighted average dividend yield increased to 4.4 per cent compared to 4.2 per cent that was reported at end of the last year’s fourth quarter in December.
