The Dar ALSI edged up 71bps to 1,310.3. The most actively traded stocks were NMB, Tanzania Breweries (+13.2% to 2,400) and CRDB Bank. The week’s top and only gainer was Tanzania Breweries. All other counters remained flat.
On the economic front, Tanzania’s year-on-year inflation rate for the month of January came in at 19.7%. This barely a relief from the inflation rate of 19.8% for the month of December. Easing of inflationary pressure in the country as has been seen in the other East African countries may come much slower, with an expected rise in electricity costs of about 40%.
In company news, gold production in Tanzania by Africa Barrick Gold (ABG) fell by 2% in 2011 to 688,000 ounces. According to the company’s management the cost of production went up by 22% to USD 692 per ounce on the back of higher energy and labour costs. ABG projects gold production in 2012 to come in at between 675,000-725,000 ounces. The company is also considering investments in West and Northeast Africa through mergers and acquisition.
Source: African Alliance