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46 million Stanbic shares on demand

By Vision Reporter

Added 20th February 2014

Stanbic Bank returned to the fore of activity, selling 1,064,500 shares on Tuesday with turnover of sh32m after trading ended at an average price of sh30 per share

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Stanbic Bank returned to the fore of activity, selling 1,064,500 shares on Tuesday with turnover of sh32m after trading ended at an average price of sh30 per share.

This was 85% of the day’s total traded value.

There, however, remains overwhelming demand on the Stanbic counter, reaching 45.6 million shares on Tuesday. Demand is rising by the week as the bank is close to announcing its annual results alongside all listed companies as part of statutory requirements.

Investors have, according to analysts, positioned to cash in on the post announcement dividend, a situation which has driven up the demand, although current shareholders are reluctant to give away their positions, creating the price mismatch.

The New Vision traded at a high of sh605 and realised turnover of sh396,275, with 655 shares traded. The all share index, which is a barometer that compares the trading, closed at 1383.72 points.

Four companies traded on Tuesday.  Overall, 1,080,164 shares exchanged hands with turnover at sh37.6m.
Umeme sold 14,500 shares, picking sh5.2m in turnover. The utility company traded at an average of sh365 per share.
Uganda Clays sold 509 shares at an average price of sh25, with turnover at a low sh12,725.

Banking remains attractive as listed banks maintain a steady level of liquidity in a market where liquidity has, to a large extent, dried up while trading volumes are quite low.

Commercial banks are, however, still grappling with restoring the uptake of commercial loans that dried up and continues to recover slowly following the double digit inflation that peaked over 30% about two years ago.

The inflation pushed up borrowing rates.

 

46 million Stanbic shares on demand

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