NICOL, NMB post over 50% returns to drive Dar banking index

Daba Finance/NICOL, NMB post over 50% returns

AFRICAN STOCKS AND FINANCEJanuary 3, 2024 at 9:06 PM UTC

In the Dar es Salaam Stock Exchange (DSE), NICOL (National Investments Company Limited) and NMB Bank stocks emerged as top performers, recording the best return of over 50% in the past year. NICOL, which is a closed-end fund heavily invested in NMB shares, outshone others with a total return of 67%, according to Orbit Securities' weekly synopsis.

The strong performance of NICOL and NMB significantly contributed to the positive momentum in the banking, finance, and investment stocks. This sector witnessed an average weighted return of 34%, as indicated by the Banking, Finance, and Investment Index for the past year.

In a surprising move, TICL (Tanzania International Container Terminal Services Limited), a closed-end fund, conducted a rights issue, drawing considerable attention and becoming one of the most actively traded counters, especially in the fourth quarter of the previous year, as reported by Orbit Securities.

Key Takeaways

The Tanzanian stock market exhibited dynamic movements despite the shortened trading week due to the Christmas holidays. Last week, which comprised only three trading days, saw a substantial decrease in turnover, plummeting by 89.49% from 11.07 billion Tanzanian shillings in the previous week to a modest 1.16 billion. In addition, there was a significant drop in the volume of shares traded, experiencing a decline of 90.62% from 20.4 million to merely 1.9 million. It's worth noting that this figure includes 1.0 million CRDB shares and 57,296 NMB shares that were part of pre-arranged block trades. Despite the reduced trading activity during the holiday-shortened week, the Tanzanian stock market displayed notable dynamics, reflecting the impact of various factors on market activities during this period.

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