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Tanzania: Jatu Enigmatic Bullish Trend Projected to Continue

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Tanzania: Jatu Enigmatic Bullish Trend Projected to Continue

JATU, the newly listed firm, is projected to continue with its bullish trend this week after rallying to a historical price last week.

The agri-industrial firm was listed on Dar es Salaam Stock Exchange (DSE) less than a month ago, but its share climbed from 420/- to close last week at 920/-, a gain of almost 120 per cent since listed. Jatu becomes a second EGM listed firm after Swala Energy to skyrocketing soon after the list-day.

Swala rallied from 500/- when listed to 2,000/- after a couple of weeks. But later it dropped to 500/- and stagnated to date. Zan Securities Chief Executive Officer Raphael Masumbuko said at the weekend that Jatu and CRDB Bank’s performance surged domestic market capitalisation.

“We expect the momentum to continue next week as we envision Jatu, the new counter to continue climbing and block trades to continue,” Mr Masumbuko said in the brokerage firm’s Weekly Market Wrap-ups.

Total market capitalisation recorded a slight increase of 0.08 per cent to 14.85tri/- and domestic market cap followed suit by 0.15 per cent to 9.14tri/-.

The week ending last Friday saw Jatu jumping 29.58 per cent to close at 920/-, while CRDB Bank increased by 2.70 per cent to close at 190/-. Tanzania Securities said in its Weekly Market Blast that Jatu was projected to remain active this week despite analysts to be buffed by what was behind its demand.

“Even though it remains enigmatic to justify Jatu’s demand at the bourse, it is likely that it may remain active for some coming trading sessions,” Tanzania Securities said. Orbit Securities said in its Weekly Market Synopsis that the gaining of Jatu and CRDB Bank was enough to offset the impact of DSE share drop from 890/- to 880/- to bourse indices.

“Tanzania Share Index (TSI) has been consistently rising in the past few weeks, mostly as a result of a push from CRDB Bank and the newly listed Jatu which has more than doubled in less than a month,” Orbit said.

However, despite Jatu and CRDB Bank to post positive price performance, the equities market recorded a turnover drop by 35per cent to 874.49m/- from 1.34bn/-. “The equity market recorded positive performance in terms of price increase despite a decrease in turnover,” Mr Masumbuko said.

TBL continued moving the market albeit with a small margin. The counter recorded 30.84 per cent of the total turnover, followed by Twiga Cement with 29.91per cent and CRDB Bank with 28.06 per cent.