Africa-Press – Tanzania. CRDB Bank share price has clutched into a rally-mode after the lender proposed 22/- dividend per share.
The dividend proposed in the bank annual report for 2020, is however, subject to approval by the Annual General Meeting (AGM) this weekend. CRDB, one of the largest lenders in the country, paid 17/- a share as dividend in 2019.
Orbit Securities said in its weekly Market Synopsis that the price of CRDB went up 6.52per cent to close the week at 245/- after the bank proposed a dividend share in a released annual report.
“The domestic market had three gainers and one loser as CRDB leads the charging bull” for a week ending last Friday, Orbit said, adding: “At the current price, the dividend yield for the bank stands at 8.98per cent.” Vertex International Securities said in its weekly market report that the market echoed their sentiments after recorded positive results in terms of prices, turnover and volume. “The market validated our last week expectations as performance improved.
We expect this momentum to continue next week as investors anticipate dividend announcements,” Vertex report showed.
CRDB is expecting to hold its AGM this Saturday in Arusha, and among other things, approve dividing pay-out of 22/- a share.
Bank of Tanzania (BoT) issued a new circular with immediate effect that banks are allowed to offer bonuses and dividends after maintaining cost to income ratio (CIR) below 55 per cent and NPLs not exceeding 5.0 per cent. Zan Securities said Dar es Salaam Stock Exchange (DSE) that equity market continues its bullish streak and they noticed an increase of investors’ confidence.
“We anticipate this trend to continue for this […] week,” Zan said in its weekly Market Wrap-ups. CRDB broke its 2015 record when its net profit jumped to 153bn/- last year from 123bn/- in 2019. In 2015 the lender recorded a net profit of 129bn/-.
Several brokerage firms’ reports last week showed that Twiga Cement share price appreciated by 5.0 per cent to close off the week at 2,940/- and NICOL also gained 2.5 percent to close at 205/- per share.
“The gain on NICOL may be associated with the performance and expected dividend payout from NMB Bank,” Orbit Securities said.
On the other hand, Jatu was the only domestic loser, with the counter’s price falling by 10.96 per cent to close the week at 1,300/- per share.
On top of the domestic gainers, EABL went up by a slight 0.54 per cent on a weekly basis while Jubilee Holdings (JHL) and KCB Bank dropped by 3.28 per cent and 1.1 per cent respectively.
“EABL was the cross listed gainer that helped push the DSE All Share Index (DSEI) higher, despite two cross listed losers during the week,” Orbit said.
DSEI was also on the up rise, after gaining 4.33 points following a 0.22 per cent growth of the total market capitalization.
The DSEI and total market closed the week at 1,915.90 points and 15.93tri/- .
“The total equity turnover grew by almost four times while the volume of shares traded went up more than sixteen times due to a block transaction on the CRDB counter,” Orbit said.
The top mover during the week was CRDB, which accounted for 92.6 per cent of the total equity turnover for the week.
CRDB saw a prearranged block transaction involving 5.0 million shares at a price 230/- per share.
