AfricaPress-Tanzania: Jatu share, agri-industry based startup firm, has returned to a bullish trend after a cusp on a price movement in recent weeks.
The share price on Wednesday climbed 9.09 per cent to close the session at 1,440/-, a piece from 1,320/- on Tuesday.
The rally trend, according to Orbit Securities, between last Monday and Thursday, share closed up by 9.0 per cent to start the week at 1,200/-.
“On a weekly basis the price of Jatu has risen by 44.58 per cent to 1,200/- from the previous week’s 830/-,” Orbit said in its Weekly Synopsis.
Tanzania Securities said Jatu was one of the counters expected to transact in this week others are TBL, Twiga, Nicol Swissport and Dar es Salaam Stock Exchange (DSE).
“We have witnessed share price movement at local counters which amplifies that there is demand in the market that will drive market activities (this) week,” Tanzania Securities said.
The firm’s share dropped from 3,260/- at the beginning of the year to 830/- fortnight ago to end a two-month and half-rally since listed late last November.
The share bullish trend after listing was puzzling stock, analysts saying the start-up had totally defied business fundamentals to register not only the Santa Claus rally, but also to determine the value of the company.
Jatu stock analysts had it that, it might use different fundamentals from the company’s book to determine the value of the firm.
There has been no fundamental ground on Jatu’s share price increase or a technical factor that justifies the same,” Tanzania Securities’ Jatu Equity Research report said.
The report, however, said lack of supply had been the main reason for share price appreciation. Jatu, for about three years, posted a net profit of about 6.0m/- to 40m/-.
“The rally originated from the surprise that persists at the Jatu counter where company fundamentals are being totally defied…Or rather different fundamentals from the company’s books are being used to determine the value of the company,” Orbit Securities said in Weekly Market Synopsis.
Jatu, which was listed last November its share rallied from 420/- to almost 4,000/- in a month, but started to nose-dive since the beginning of the year.
The company has only one class of ordinary shares authorised and issued. There are no preferential shares.
Currently, it has a total authorised share capital of 125bn/-, consisting of 250 million ordinary shares at a nominal value of 500/- per share.
The total issued and paid share capital amounts to 1.082bn/-.
Jatu runs and manages various agricultural projects in collaboration with its members.
Agriculture is the main foundation and pillar of the company, where Jatu seeks areas/farms and researches them technically and legally.
So far Jatu, in collaboration with members, has successfully owned three large-scale farms located in Manyara, Morogoro and Tanga.
