Africa-Press – Tanzania. JATU, the newly listed agri-based firm, is believed to rally as investors seem to fight to attain membership that enables one to also participate in the firm’s farming project.
Jatu share opened the week with another 9.27 per cent rally to reach 1,580/- as the stock near the one month anniversary since listing on Dar es Salaam Stock Exchange (DSE).
The share of the agri-based firm startup as since listed on DSE, appreciated by 242.86 per cent and the sky is the limit.
Orbit Securities, a leading stock brokerage firm, said in a report on Tuesday that the mystery of the sharp rise in the price of Jatu was mostly due to two main factors.
“One is the membership requirement to own at least 200 shares to be eligible to participate in the farming project. “With a limited number of shares, the requirement raises the counter’s price with a consideration that only 110 is enough to alter the counter’s price,” Orbit said on its weekly Market Synopsis report.
The firm also said the second factor was the sharp rise itself which sets a momentum of speculators to vie on the shares.
“Jatu was the top gainer similar to the last three weeks following the rising demand of the counter,” Orbit report showed.
An independent valuation included in the Information Memorandum used during listing, values the counter between 410/- and 430/- compared to the market price of 1,580/- on Monday.
Tanzania Securities said on Monday that the shares also are appreciating since the demand outpacing supply to further push up prices.
“The market turnover and volume increased [Monday] while the price of Jatu is still appreciating with low supply,” Tanzania Securities said.
At the closing of the market on Monday, Jatu managed to move 500 shares compared to outstanding bid of 31,166 shares.
Thus Zan Securities envision that the new listed firm set to see its share continued to appreciate as demand exceed supply.
“…We envision Jatu, the new counter to continue climbing [this week]…,” Zan said in its weekly market wrap-ups report.
The agricultural based start-up company at its nascent stage has already created some 10,600 jobs and is the latest entrant to the bourse after almost two years.
Since the company deals with empowering Tanzanians in the agriculture sector, and improving the value chain in the sector, registering on the DSE would now be able turning small scale farmers into investors by buying shares.
