CRDB bank share up 16pc in three weeks

CRDB bank share price has made an abrupt U-turn after appreciating by 16 per cent in the last three weeks.

The share opened the month trading at 180/- a piece but closed the market at 210/-yesterday as brokers terming the trajectory as relocating to proper price.

However, the largest back still has ways before reaching the beginning of the year price of 250/- a share. Zan Securities Chief Executive Officer Raphael Masumbuko said CRDB share price was “very low” compared to its real value and was moving to appropriate price.

“The share was underpriced. At least are now walking to a real proper price,” Mr Masumbuko told ‘Daily News’ yesterday. Last May, CRDB share exchanged hands at 400/- to be the all-time high price.

However, due to tight liquidity the share went into bearish mode depreciating to this year low of 180/-. During initial primary offer (IPO) the shares were sold at 170/-. Mr Masumbuko said investors have a breathing space after Vodacom IPO that comes to an end this Friday.

“Most stock buyers wanted to buy Vodacom since the beginning of the year, now the pressure is off investors are looking for new items,” Mr Masumbuko said. In the first quarter of this year the economy experienced a lowest ever money in circulation forcing many sellers.

The trend resulted into shares glut and many, almost across the board, prices plummeted to lowest rate in years.

For instance CRDB share plunged 16 per cent to 210 since January. The worst performing share at the bourse since January was Swissport that went down 30 per cent to close yester-trading at 3,820/-.

It was followed by Twiga Cement that plunged 22 per cent to 1,780/-. On the other hand Dar es Salaam Stock Exchange (DSE) stock was the best performer so far after appreciated 18 per cent to 1,180/- yesterday.

The second best performer stock was TBL that went up 8.0 per cent to close at 13,000/- as of yesterday.