TIB RASILIMALI DAILY MARKET UPDATE- 11/09/2017

Transcription

1 TIB RASILIMALI DAILY MARKET UPDATE- 11/09/2017 Equities- Daily highlights- prices as of market close 08/09/2017 Company Market Cap.(6th Closing Price Daily Price Turnover in Open BIDs Price Open Offers Price Last price vs 3 Last Price vs 6 Shares Issued Name June 2017) Tshs Change (%) TZS At t-1 Month Price Month Price (%) change (%) CRDB 522,367,716, ,449,050 65, ,047, ,611,838,584 DCB 26,792,019, No trades 578, ,827,897 DSE 30,375,000,000 1, ,566,000 10,085 1,480 2,550 1, ,250,000 MBP 8,780,534, No trades 12, ,634,224 MCB 30,912,460, ,100 84, ,824,920 MKCB 18,553,744, ,939,510 45, ,615,272 NMB 1,375,000,000,000 2,750 0 No trades 333,782 2, ,000,000 SWALA 49,977,233, No trades 131, ,954,467 SWISS 137,520,000,000 3,820 0 No trades 8,060 3,500 52,000 3, ,000,000 TBL 3,922,548,557,900 13, ,484,339, , ,928,463 TCC 1,310,000,000,000 13,100 0 No trades 53,537 11, ,000,000 ACA 2,333,386,489,310 5, No trades ,085,499 TCCL 86,592,621,200 1,360 0 No trades 24,481 1, ,671,045 TPCC 320,263,118,000 1, ,906,620 5,930 1,540 24,606 1, ,923,100 YETU 7,267,736, No trades 5, ,112,894 TOL 43,551,682, No trades 38, ,835,490 0 MUCOBA 3,262,569, No trades 48, ,156,423 PAL 75,420,806, No trades 25, ,469,800 TTP 12,127,215, No trades ,657,254 NMG 381,798,129,960 2, No trades ,118,572

2 EABL 3,555,189,708,850 5, No trades ,978,630 JHL 373,680,000,000 10, No trades ,000,000 KA 46,161,548, No trades ,615,484 KCB 1,995,999,999, No trades ,217,777,777 USL 21,234,129, No trades ,426,614 VODA 504,000, No trades 3 384, ,000 EPS: CRDB 28.34, NMB -312, TBL - 771, TCC- 687, TPCC -221, SWISS , TCCL- 68 DCB ** **Earning per share (EPS) is interim. Earning per share of other companies are annual audited. MARKET COMMENTARY AS OF 11 TH OF SEPTEMBER, Last week the market activities fell compared to the previous week, there was a big rise in overall market activity with Equity turnover going from previously week to 7, last week with most of the activity in TBL, which is normal given the share tends to be the most liquid, followed by TOL due to their good financial results in the second quarter of the year, CRDB counter had 8,190shares traded at weighted average price of TZS 175pershare. DSE counter had 1,052 shares traded at weighted average price of TZS 1,500 per share. MCB counter had 30 shares traded at weighted average price of TZS 470 per share. MKCB counter had 5,549 shares traded at weighted average price of TZS 890 per share. TBL counter had24,850 shares traded at weighted average price of TZS 13,500 per share. TPCC counter had 8,198 shares traded at weighted average price of TZS 1,570pershare. DSE shares tend to perform better in the market due to dividend declared about TZS 42 per cent share for the month of August period (July 2016 to March 2017). DSE shares trade cumdividend until 28th August Tanzania Portland Cement Company Limited (TPCC) has declared dividend. Despite drops in results the Directors declare an interim dividend of TZS Sh 120 per share (2016:TZS 120 per share) which will be paid on or about 31 October The register of the Members will close on 25 September 2017.The last day of trading cum dividend will be 20 September Period Week ending 08/09 Week ending 31/08 Market Cap (TZS BN) 20, , Turnover (TZS MN) 7,

3 Top News Petra Diamonds suspends Tanzania mine as govt seizes consignment. Reuters. 11 September Petra Diamonds has halted operations at one of its mines in Tanzania after the government seized a consignment and questioned some of its personnel as part of a crackdown on the mining sector. Shares in the London-listed company sank 25 percent in early trading, but by 0756 GMT had clawed back much of the losses to trade 6 percent lower at 84 pence. The diamonds were seized at the main airport in Tanzania s commercial capital Dar Es Salaam on Aug. 31 as they were being exported by Williamson Diamonds Ltd to Antwerp, Belgium. The Tanzanian government said on Saturday it planned to nationalize the diamonds, whose value it put at $29.5 million, after it accused the miner of under-declaring its mineral exports. Tanzanian President John Magufuli last week ordered a review of a Petra contract and asked public officials to resign over the outcome of an investigation into the mining sector. The president s actions are a continuation of a crackdown in a mining sector that accounts for about 4 percent of Tanzania s gross domestic product. Magufuli also said he had ordered law enforcement agencies to investigate allegations of under-declared diamond exports. Tanzania has passed new laws to increase mining taxes, to force companies to renegotiate their contracts and to allow the state to own up to 50 percent of shares in mining companies. A parliamentary committee said on Thursday there were gross irregularities in the manner in which the Tanzanian government diluted its shareholding in Williamson from an initial 50 percent to the current 25 percent. The mine is held 75 percent by Petra and 25 percent by the Tanzanian government. Operations at Williamson have temporarily been stopped for safety and security reasons, Petra said. The company said it had not been told the reason for the action, adding that it conducted all operations related to the Williamson mine in a transparent manner and in full compliance with legislations. Acacia Mining, majority owned by Barrick Gold Corp, said last week that it would stop underground work at its flagship Tanzanian gold mine and cut its production guidance in the face of a confrontation between the industry and the government. Self-assured investors snap up TBL shares. The Citizen 11 September Investors snapped up Tanzania Breweries Limited (TBL) shares on Friday as they exhibit their solid confidence in the beer maker s future despite its recently announced drop annual profit. On Thursday, TBL Group which consists of TBL, Tanzania Distilleries Limited (TDL) and Darbrew announced that its profit dropped by 29 per cent during the year ending March 31, 2017 compared to a similar period last year, attributing the fall to the government s recent ban on importation, manufacturing, selling and consumption of alcohol contained in sachets and an overall challenging economic environment. It registered a profit of TZS Sh billion during the year ending March that was registered during a similar period last year. As a result, the beer make s shareholders will now pocket TZS S350 in dividend per share, down from Sh600 that was issued out during the year ending March 31, ``TBL Group of companies has companies has experienced tough trading conditions driven by a soft Marco environment and industry specific challenges that include a banning of sachet packaging in our spirits business and noticeable shift towards affordable beer products, the company said in a statement on Thursday. But that notwithstanding TBL transacted a total of TZS Sh554,464 shares at the Dar es Salaam Stock Exchange(DSE) at a weighted average price of Sh13,500 per share on Friday in what analysts believe is an indication that investors still maintain a bullish outlook for the company s performance going forward. This suggests that TBL alone contributed a cool Sh7.485 billion or 99.7 per cent of the day s (Friday s) Sh7.505 billion turnover. TBL Group is now a subsidiary of Anheuser Busch InBev SA/NV (AB-InBev) is a Belgian-Brazilian beverage and brewing company with global headquarters in Leuven, Belgium. This follows last year s acquisition by AB-InBev of SABMiller s operations globally in a USD$100 billion deal that resulted into the creation of the world s largest beer company. Airtel s Timiza unsecured loan scheme benefitting 80 pc of subscribers. The Citizen 11 September Airtel Money said yesterday that more than 80 per cent of its customers can now access formal loans through its micro loans through its micro loans service known as Airtel Timiza. The companies managing Director, Mr Sunil Colaso said during the weekend that service which was launched in November 2014, is currently disbursing more than 10,000 loans per day across the country. According to the Managing Director Mr Sunil Colaso,80 per cent of Airtel Money customers today had never accessed a formal loan before, a strong indicator of how Tanzanians are being rapidly included through the digital financial ecosystem. ``A recently study found that working capital and other asset building strategies was the fastest growing use of the loans amongst 25 per cent of the customer base. It is encouraging to see the positive way in which our customers use financials tools available to them through Airtel Money, he said.he said Airtel Money was committed to increase access to next generation products which help people manage and grow their small business. ``Micro enterprises are the backbone of Tanzania s economy and empowerment for this segment is important, he said. He said before Airtel Timiza, most Tanzania s only option to obtain credit was through informal agreements with friends and family, or through even riskier channels, an undesirable option with potentially high costs.

4 Regulator likely to hold key rate at MPC meeting. Business Daily 11 September Nairobi-The Central Bank of Kenya (CBK) advisory committee meets next week with analysts projecting it will leave the benchmark lending rate unchanged. Ahead of the Monetary Policy Committee (MPC), analysts interviewed forecast the rate to remain steady as the shilling shows signs of resilience, with the country s foreign reserves rising gradually. The inter-bank rate is also showing stability. I expect the Central Bank MPC to stay on the sidelines and leave interest rates unchanged, said Nairobibased independent analyst Aly Khan Satchu.In the previous meeting held on July 17, the maximum cost of loans remained unchanged providing relief for millions of borrowers.the MPC maintained the benchmark rate at 10 per cent, saying the current monetary policy stance had reduced the threat of money-driven inflation. My projection is for the rate to remain unchanged. There has been no major changes in the macro-economic space since the last meeting inflation is steady, currency volatility low and market liquidity within good range, said Francis Mwangi, head of research at Standard Investment Bank on the September 18 meeting.kenya s annual inflation rose to 8.04 per cent last month from 7.47 per cent in July, above the government s preferred band of 2.5 to 7 per cent. The higher rate of inflation in August was attributed to an increase of 1.04 per cent in the food and non-alcoholic drinks index compared with July. Excluding food inflation confirms that we do not have an inflation problem. The currency remains outstandingly well-behaved and its performance an affirmation of the central bank s bona fides in this regard, said Mr Satchu.Banks though continue to shy away from lending due to caps on borrowing rates. Mr Satchu said while the economy is slowing down, with private sector credit growth at a standstill, interest rate caps have interfered with monetary transmission and a rate cut to stimulate the economy is likely to get muddied. Growth of credit to the private sector fell for the eighth straight month in May following the introduction of the law capping rates in September last year. South Africa Market Review. 11 September South African markets closed in the red on Friday, amid mounting tensions about potential development in North Korea. Financial sector stocks, Peregrine Holdings and MMI Holdings eased 2.1% and 1.7%, respectively. Peer, RMB Holdings lost 0.6%. The company reported a 6.0% rise in its FY17 diluted EPS. On the upside, retailers, Truworths International, Woolworths Holdings and Massmart Holdings gained 1.9%, 0.6% and 0.4%, respectively. Meanwhile, Shoprite Holdings eased 0.1%. Property sector stocks, Capital & Regional gained 3.2%, while Murray & Roberts Holdings and Liberty Two Degrees advanced 2.8% each. The JSE All Share index declined 0.3% to close at 55, UK Market Review. 11 September UK markets finished in negative territory on Friday, amid a decline in mining sector stocks. Mining giants, BHP Billiton, Antofagasta and Anglo American declined 3.8%, 3.7% and 3.4%, respectively, following disappointing economic data from China. Energy companies, Royal Dutch Shell and BP eased 0.9% and 0.8%, respectively. Retailers, Kingfisher and Marks & Spencer Group eased 3.6% and 1.8%, respectively. Property sector stocks, Persimmon and British Land shed 1.9% and 0.3%, respectively. On the bright side, lenders, Barclays and Royal Bank of Scotland Group gained 2.0% and 1.3%, respectively. The FTSE 100 index declined 0.3% to close at 7, US Market Review. 11 September US markets ended mostly lower on Friday, led by rising geopolitical tensions from North Korea and following arrival of Hurricane Irma. Equifax dropped 13.7%, after it revealed that mn Americans personal information had been hacked. Energy majors, Chesapeake Energy and Marathon Oil declined 5.9% and 4.0%, respectively. Retailer, Target lost 2.0%, after it announced that it has lowered prices of several products. On the upside, insurance sector stocks, XL Group and Everest Re Group jumped 5.8% and 5.0%, respectively, despite the sector facing potential losses due to recent hurricanes. The S&P 500 index fell 0.2% to settle at 2,461.43, while the DJIA index advanced 0.1% to close at 21, The NASDAQ index eased 0.6% to end the trading session at 6, cements V Exchange Announcements Vodacom Tanzania PL Vodacom Tanzania PLC has announced their preliminary results for the year ended 31 st March Highlights of the results are as follows: Value TZS Billion % Increase since previous Revenue M-Pesa revenue Operating profit Net profit Earnings Before Interest Tax Depreciation and Amortisation (EBITDA)

5 Capital expenditure Operating free cash flow Earnings per share (EPS) No of customers % Increase since previous Active-data customers up 6.5 million 19.4 Tanga Cement Company Limited (TCCL) has announced their audited financial results for the year ended 31 ST December Group Group Company Company Dec 2016 Dec 2015 Dec 2016 Dec 2015 TZS 000 TZS 000 TZS 000 TZS 000 Revenue 166,975, ,116, ,775, ,349,261 Cost of sales (112,553,046) (162,031,875) (101,865,441) (150,081,111) Gross profit 54,422,436 47,084,170 51,910,541 44,268,150 Operating profit 19,838,619 19,900,373 19,574,749 19,866,008 Net profit before 5,652,906 8,678,768 5,623,925 19,866,008 taxation Net profit for the year 4,261,484 8,241,683 5,623,925 8,874,050 Total Comprehensive 4,197,249 8,328,687 4,276,253 8,533,161 Income Earnings per share (Tzs) Dividends per share (Tzs) Dividend Subsequent to year-end, the Board of Tanga cement proposed and approved a final dividend for 2016 totalling Tzs billion (2015:Tzs bn) Being Tzs 25 per share (2015: Tzs 25 per share). This dividend was approved at the annual general meeting of shareholders on 5 May The total dividend proposed for the year amounts to Tzs billion (Tzs 80 per share) (2015: Tzs 5.094) (Tzs 80 per share). The dividend payment will be on or about 20 June 2017 Dar es Salaam Stock Exchange (DSE) PLC has published their quarter results for the period ended 30 th June 2017 st and 31 st March Summary of the results are as follows: DSE PLC Statement of Comprehensive Income for the quarter ended 30 th June Current Quarter Previous Quarter Comperative Quarter 30th June th March th June 2017 TZS TZS TZS Revenue Listing Fees 431,308, ,547, ,565,382 Transaction Fees 319,549, ,318, ,857,361 Registry & CSD Fees 190,917, ,370, ,037,108 Investment Income 129,149, ,357, ,630,281 Other Operating Income 71,429,572 47,999, ,274,068 Total Revenue 1,142,354,146 1,573,593,557 1,841,364,200 Total Expenses 854,247, ,907, ,607,412 Profit before Tax 288,106, ,686, ,756,789 Taxation Profit After Tax 288,106, ,686, ,756,789 Earnings Per Share N/A 34 46

6 National Microfinance Bank (NMB) announced their quarter one financial results. Summary of the results are as follows. Current Quarter Comparative Quarter Current Year Cumulative Comparative Year Cumulative Amounts in Million shillings Interest Income 145, , , ,393 Interest Expense (29,266) (20,375) (29,266) (20,375) Net Interest income 115, , , ,018 Impairment Losses on Loans (8,392) (5,498) (8,392) (5,498) and Advances Non-interest income 41,481 39,413 41,481 39,413 Non-interest expense (90,328) (83,819) (90,328) (83,819) Net Income/(Loss) after 40,913 39,280 40,913 39,280 income tax CRDB Bank Plc announced their Quarter one financial results. Summary of the results are as follows: Group current Group Comparative Bank Quarter Quarter current Quarter Bank Comparative Quarter Amounts in Million shillings 31/03/ /03/ /03/ /03/2016 Interest Income 137, , , ,345 Interest Expense (33,099) (32,273) (31,595) (30,691) Net Interest income 103, , , ,654 Impairment Losses on Loans (24,678) (19,537) (23,843) (19,442) and Advances Non-interest income 50,925 48,944 47,816 45,268 Non-interest expense (92,383) (81,852) (88,347) (80,505) Net Income/(Loss) after 26,303 37,478 26,188 34,282 income tax Mwalimu Commercial Bank Plc (MCB) announced their quarter one financial results. Summary of the results are as follows: Current Quarter Current Year Cummulative TZS M TZS M Interest Income Interest expenses (63) (63) Net Interest Income Non-interest income Non-interest expenses (2,133) (2,133) Operating income /(Loss) (1,259) (1,259) Net Profit/ (loss) after (1,259) (1,259) income tax Earnings per share (EPS) (20) (20) TOL Gases Ltd announced their audited financial results for the year ended 31 st December Summary of the results are as follows:

7 Change % TZS M TZS M Revenue 16,116 14, % Cost of sales 9,235 9, % Gross profit 6,881 5, % Other Income Operating expenses 3,838 3, Operating profit 4,006 3, Finance costs 898 1, Profit before tax 3,108 2, Income tax expense (347) Profit for the year 2,761 2, Basic and diluted earnings per share (TZS) Kenya Airways Plc (KA) announced their audited group results for the year ended 31 st March Summary of the results are as follows: Change Kshs M Kshs M % Revenue 106, , Operating costs (105,380) (120,251) 12.4 Operating profit/(loss) 897 (4,093) -78 Loss before income tax (10,202) (26,099) -139 Income tax charge (5) (126) -96 Loss after tax (10,207) (26,225) -61 Other comprehensive 959 (3,479) -128 income/(loss) for the year Total Comprehensive (9,248) (29,704) -131 loss for the year Loss per share (Kshs) (6.82) (17.23) -60 Tanzania Portland Cement Company Limited (TWIGA) announced their audited results for the year ended 31 June Summary of the results are as follows: Change TZS 000 TZS 000 % Revenue 119,605, ,354, % Cost of sales (82,573,256) (89,157,602) 82.34% Gross profit 37,032,376 53,196, Operating profit 17,012,882 30,624, Profit before tax 17,875,937 32,662, Taxes on income (5,525,020) (9,942,463) 44.44% Profit for the year 12,350,917 22,719, Earnings per share Dividends Despite drops in results the Directors declare an interim dividend of TZS Sh 120 per share (2016:TZS 120 per share) which will be paid on or about 31 October The register of the Members will close on 25 September 2017.The last day of trading cum dividend will be 20 September 2017.

8 Government Securities and Bonds -Bills/Bonds Treasury Bills Auction No /September Days 91 Days 182 Days 364 Days TOTAL No. of Bids Successful Bids Highest Bid/ Lowest Bid/ Minimum Successful Price/100 Weighted Average Price (WAP) for successful Bid Weighted Average Yield (WAY) % per Annum Amount Offered TZS 1,000 3,000 65, , ,000 (000,000) Total Tendered TZS , , , (000,000) Undersubscribed(+) , , , , Oversubscribed(-) TZS(000,000) Successful , , , Bids TZS(000,000) T-Bonds Auction No.1 Held On 30/Aug/ Y 7Y 2Y 15Y 5Y Auction Date 10/05/ /05/ /07/ /08/ /Jun2017 Redemption date 11/05/ /05/ /07/ /08/ /Jun/2022 Minimum successful Price WAP for successful bid WAY to maturity WA Coupon Yield Amount Offered 128, ,960 84, , , TZS(000,000) Amount Tendered 313, , , , , TZS(000,000) Successful Amount 128, ,460 84, , , TZS(000,000)

9 The BOT released it s monthly economic review for the month of June, 2017, for the report click here: Future Bond Auctions* Auction Date Bond Tenure Coupon Rate 02/08/ yrs 10.08% 16/08/ yrs 11.44% 30/08/ yrs 9.18% 13/09/ yrs 13.50% 27/09/ yrs 7.82% Exchange rates* Currency Buying Selling EUR 2,677 2,704 USD 2,223 2,245 KES GBP 2,935 2,966 *All these data are obtained from Bank of Tanzania (BOT) About TIB Rasilimali: TIB Rasilimali Limited is a registered Broker Dealer, member of the Dar es Salaam Stock Exchange since 1997, the firm is the only Government owned Stockbroker and a member of the TIB Development Banking group. TIB Rasilimali Limited offers services of dealing in listed securities, Corporate Finance advisory and M&A. Address: th 7th Floor Samora Tower Corner of Bridge Street and Samora Avenue PO Box 9154 Dar es Salaam Tel Invest@rasilimali.tib.co.tz Disclaimer The information contained in this newsletter is provided by TIB Rasilimali Limited as a service to its stakeholders. All information in this newsletter is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Although all prudence has been taken in preparation of this newsletter, it is not a solicitation of business or should be read as being advice to transact. The views expressed herein are of the author and do not represent any form of research and are presented for information purposes only. We do not represent that the use of the information contained in this newsletter does not infringe upon the rights of third parties. Any opinion expressed in this Newsletter is subject to change without notice. TIB Rasilimali Limited is under no obligation to update or keep current the information contained herein. TIB Rasilimali Limited accepts no liability whatsoever for the actions of third parties in the redistribution of this material. In no event will TIB Rasilimali Limited or any of its Group or affiliate be liable to you or any third party for any decision made or action taken in reliance on the information in this newsletter or for any consequential, special or similar damages, even if advised of the possibility of such TIB Rasilimali 2016