CRDB Bank share price dropped to four weeks low after losing 8.82 per cent of its value last week as big part foreigners halting inflows.
The stock, which rallied in the first two months of the year to 205/-, plunged to 155/-per share last Friday.
Orbit Securities, Head of Research and Analytics, Imani Muhingo attributed the price dropping to global developments where foreign investors’ participation has significantly fallen.
“… [This] causing even locals to downsize on and others materialize the capital gains realised,” Mr Muhingo told the “africa-press”.
He said some investors are ‘cocking their guns’, waiting to get back in when the lender’s price hits the floor with hopes of a capital gain in cum-dividend period.
“Although it wasn’t the reason CRDB began falling, but it’s a big part of non-recovery going forward, and a big part foreigners are halting inflows,” Mr Muhingo said.
For the week ending last Friday CRDB dominated the market share by 56.96 per cent of the total turnover followed by NMB at 18.54 and TWIGA at 13.46 per cent.
The lender price movement to south did not affect Tanzania Share Index (TSI) only but also Bank, Finance and Investment Index (BFI).
According to Zan Securities the TSI closed at 3,498.94 points, 0.43 per cent down while B&F Index lost 2.23 per cent to close at 2,199.59 points.
Tanzania Securities Senior Investment Analyst, Ombeni Uhuru said the main CRDB dropping cause was due to lower demand amid high supply of share at the bourse.
“There is no demand currently in the market that’s make price decrease…,” Mr Uhuru said.
The country has yet to report any case of the deadly coronavirus but the virus is contagious to global markets.
Orbit Securities Weekly Synopsis report said yesterday All Share Index (DSEI) was not spared as well after losing 67.32 points and closing the week at 1,988.62 points.
