30 million Stanbic shares on demand

By David Mugabe

The forthcoming full year dividend and financial performance announcement is driving strong demand for Stanbic shares.

On Thursday, investors sought 31 million Stanbic shares in one of its strongest days in the first days of the new year.

Market analysts have attributed this to the dividend expectations. Listed companies are expected to post their full year financial statements by the end of April according to statutory requirements.

“Institutions want to start buying now to be on the register,” said Joseph Kibuuka from Crested Stocks and Securities research team.

Analysts have also observed that supply for Stanbic shares is low as most shareholders are holding onto their shares.

“They (shareholders) do that to maximize, some who want to sell today want to sell with a hidden dividend,” said Kibuuka.

Stanbic to-date remains the most liquid stock on the Uganda Securities Exchange after its entry in 2007 in a hugely successfully public offer.

In the last week of December 2013, Stanbic Bank dominated the market contributing 99.9% in the week’s turnover with a volume of 897,933,592 shares.