In Summary
  • The National Investment Company Ltd (Nicol) lost 41.7 per cent of its share price in its first eight months after it was relisted in the Dar es Salaam Stock Exchange (DSE) on June 7,2018. Stakeholders are on the view that historic background of the company is what affect its share prices as many investors are now releasing their shares.

Dar es Salaam. The National Investments Company Ltd (Nicol) lost 41.7 per cent of its share price in its first eight months after it was relisted on the Dar es Salaam Stock Exchange (DSE) on June 7, 2018.

A DSE report shows that on January 8, 2019 company shareholders were selling their shares at Sh175, down from Sh300 on June 7,2018.

The price decline has also led to a Sh8.64-billion shrinkage in the company’s market capitalisation.

According to the report, until Friday last week Nicol’s market capitalisation was Sh12.11 billion, down from Sh20.75 billion on June 7, 2018.

Zan Securities official Raphael Masumbuko told The Citizen: “When the company got relisted last year, most small investors started to sell their shares. At first it was all okay as the demand permitted their actions, but as the supply-side kept on increasing, it surpassed the demand and the price started to decline.”

TEG Consultancy managing partner Mazengo Kasilati said according to the market trend, most companies’ share prices rise when the firms provide dividends to their members, and the case is different for Nicol.

“Nicol has not provided dividends to its shareholders for a long time so most investors want to release their shares even at lower prices,” he explained.

Nicol was first listed on DSE on July 15, 2008 but it failed to observe Continuous Listing Obligations and was delisted on July 6, 2011.

Nicol was removed from the bourse for seven years due to its failure to meet regulatory requirements.

In 2008, Nicol listed all its 1.6 billion shares on the bourse. Nicol also holds 6.6 per cent of NMB Bank and a stake in a local microfinance institution.

Nicol, also, has stakes in two active subsidiaries: Tanzania Fisheries Development Company and Tanzania Meat Company Limited.