The Acacia Chief Executive officer, Mr. Brad Gordon has in the meantime announced his corporation is upbeat and will be paying taxes to the Tanzania Government in advance to the tune of USD 20 Million in corporate tax, in addition to another $100 million in royalties and other taxes. Dividends will be paid in the range of 15% -30%.
ACACIA Chief Executive Officer Brad Gordon
By TZ Business News Staff
The equities market at the Dar es Salaam Stock Exchange (DSE) is still in trouble since we last reported problems in July. Most portfolios have continued to either fall or remain stagnant, with the exception of ACACIA gold stocks whose value has risen 85.5% between June 3, 2016 and August 1, 2016.
ACACIA shares were sold at Tsh. 19,510 on August 1, 2016, up from Tsh. 10,520 per share on June 3, 2016.
Effort seems to have been made, however, to at least keep one particular portfolio breathing—that of the National Microfinance Bank (NMB)–the bank with the largest network in the nation, and one which the Tanzania Government uses to distribute salaries to its servants across the country.
NMB shares fell in their value by 13.6% during the month of June from Tsh. 1910 down to Tsh 1650 per share. The shares traded at Tsh. 2710 August 1, 2016, a 64% appreciation in value, but the rest of portfolios have either remained stagnant of fallen further in their value.
An insider tells this website foreigners control above 60% of the trade at the DSE, meaning that it is there sentiment which dictates the direction of the bourse. In this case, the insider says, the rush toward gold is directly linked to events in the UK, where the devaluation of the Sterling Pound has made Acacia shares attractive.
CRDB bank share have remained at their July 7, 2016 level, which was Tsh. 295 per share. This has been the level since its deep from its June 2016 price at Tsh. 370. TBL shares have fallen further. The brewer’s shares fell from Tsh. 13850 at the beginning of June, 2016 to Tsh. 13760 at the beginning of July, 2016. The Shares traded at Tsh. 13750 August 1, 2016.
East African Breweries shares have climbed 2.3% during the two-month period from Tsh 6010 per share at the beginning of June to Tsh. 6,150 per share August 1, 2016. The current EABL share price compares to Tsh. 5910 at the beginning of July, 2016. JHL shares have dropped by 4.7%, KCB shares have dropped 13.75% while Nation Media Group shares have dropped by 28.53%. Stagnant shares include YETU shares, SWALA energy shares and Kenya Airways shares.
Acacia Mining, the London Stock Exchange gold miner which is cross-listed on the Dar es Salaam Stock Exchange has seen its shares appreciate in Tanzania in a ripple effect of investor sentiment after the UK voted to exit from European Union.
The Acacia Chief Executive officer, Mr. Brad Gordon has in the meantime announced his corporation is upbeat and will be paying taxes to the Tanzania Government in advance to the tune of USD 20 Million in corporate tax, in addition to another $100 million in royalties and other taxes. Dividends will be paid in the range of 15% -30%.
British media said continued clouds of uncertainty unnerved investors and sent the British pound tumbling whilst economists fretted over global growth and the potential ripple effects of Brexit.
The British pound fell below the post-Brexit extreme lows of 1.8001 versus the Australian dollar for instance, proving the spike lower in sterling had not just been a knee-jerk overreaction but possibly a more damaging event with wider ramifications, both for the UK economy and the rest of the world.
Speaking on his weekly update video, Chief FX Strategist John Kicklighter, of DailyFX.com said the event would almost certainly lead to a major shift away from riskier assets, substantial deleveraging and a possible slow-down on a global economic scale.
At its core, he suggested, Brexit had revealed a growing, underlying , trend towards ‘protectionism’ in world politics which would have divisive and probably negative effects for global growth.
Barclay’s Capital’s David Fernandez said in a note that he was revising his previous recommendation that the RBA would stay on hold for 2016 due to the ripple effects of Brexit impacting on Aussie GDP:
“With the UK voting to leave the EU at the referendum, our revised global growth forecasts highlight a negative impact most notably in UK and Europe, but also look for global growth repercussions to be felt in many countries, including China and the US (Global Economics Weekly: A ‘Leave’ into uncertainty, 24 June 2016)”.
