Tanga Cement PLC, renowned for its Simba cement, has witnessed an unprecedented surge in its stock value, registering an impressive 82% increase in just 11 months of this year. This astounding growth, among the highest in the history of the stock exchange, is primarily attributed to the acquisition deal initiated between Scancem and Afrisam two years ago.
The Simba cement share price has been on a relentless rally, notably skyrocketing from 1,100/- to 2,000/- at the onset of this year. Mr. Godsaviour Christopher from the Centre for Banking and Financial Services Research (CBFSR) at the University of Dar es Salaam Business School affirmed that Tanga Cement was a top performer in the first quarter of the previous year, showcasing an identical 82% appreciation in price.
Christopher emphasized, "This remarkable growth underscores the company’s strategic positioning and adaptability to market dynamics."
In the recently finalized deal, Tanga Cement transferred 43 million shares from Afrisam Mauritius to Scancem International D.A. at 2,440/-. This transaction, valued at 106bn/-, marks a pivotal step in Scancem's objective to fully acquire Tanga Cement. The impending offer to retail shareholders by Scancem in the first quarter of the upcoming year, at the same share price offered to Afrisam, has augmented investors' interest in Tanga Cement.
Mr. Imani Muhingo, Head of Research and Analytics at Alpha Capital, highlighted the resulting surge in investor appetite and attributed the cement manufacturer's price surge to speculative investors.
The year has witnessed several other companies making substantial progress, indicating the resilience and potential of Tanzania's economic landscape. NMB Bank Plc emerged as the second top performer with a 49% increase in stock prices, reflecting its robust financial performance and bullish trend since July.
National Investment Company Limited (NICOL) and TCCIA Investment Company Limited (TICL) showcased significant growth, marking a 40% and 32% increase in stock prices, respectively, highlighting diverse opportunities within Tanzania's stock market across different sectors.
In the manufacturing and construction domain, Tanzania Portland Cement Company (TPCC) exhibited a commendable 16% rise in stock prices, indicating a positive outlook for the construction industry.
CRDB Bank Plc displayed a 15% surge in stock prices, underscoring the stability and resilience of the banking industry. Additionally, the Dar es Salaam Stock Exchange (DSE) and Swissport contributed to the market's buoyancy with respectable gains of 9.0%.
Mr. Christopher emphasized that these stock market successes not only showcase the resilience of Tanzania's economy but also present enticing prospects for potential investors seeking wealth creation opportunities. The upward trajectory of these stocks signifies the promising nature of Tanzania's stock market for investors seeking potential avenues for investment and wealth generation.