AfricaPress-Tanzania: CRDB Bank share price and activities are tipped to appreciate despite coronavirus threat should the lender stick to its calendar for announcing dividend mid-next month.
Analysts have it that in the midst of coronavirus spread the largest lender in the land-share price may appreciated since it’s highly moved by local investors.
Orbit Securities Head of Research and Analytic, Imani Muhingo said CRDB is highly moved by locals and the latter is highly influenced by dividends and sentiments.
“We may see increased activities and appreciation on CRDB if the bank sticks to its calendar and announces dividend mid-April. “Unless corona gets pretty serious domestically, we expect locals to get excited with CRDB dividends,” Mr Muhingo told ‘Daily News’ on Thursday.
The lender share price rose to almost 20 months high of 180/-mid last month dropped to 155/-of yesterday, seems to be affected by coronavirus’ market contagion.
The most active counter is CRDB which its market capitalisation climbed to above 1.0tri/-in 2015 and successfully corrected over time to drop to 404.83bn/-yesterday.
The market cap currently appreciated by more than 60 per cent since the beginning of the year thanks to advantages of free movement.
Also Tanzania Share Index (TSI) which tracks only domestic equities climbed 1.86 per cent, mostly from movements on DSE and CRDB which was significantly “Our market being more than 85 per cent foreign driven…,” Mr Muhingo said adding despite that the market was already affected following the global financial markets meltdown.
For instance, DSE All Share Index (DSEI) dropped 10.5 per cent during the meltdown it is mostly dragged by the six cross listed equities from Nairobi.
“I believe our turning point was when an isolated case was registered in the US, because this is when alarm bells rang for global investors,” he said.
As of locals, there was already a large clout of selling pressure from locals, especially retailers, even after the corona saga.
Going forward, the analyst said they expect a dull market in the next few weeks or months until corona is containable and its impact fully assessed.
“We may have some few sizeable off-market transactions but the general view is still gloomy,” Mr Muhingo said.
