By David Mugabe

Capital Markets Authority (CMA) chief Japheth Kato has said falling inflation, going forward would revive the damp mood at the stock market.

Inflation has now fallen to 25.7% in January, from 27% in December 2011.

Kato said this would also woo investors back on the market which has faced huge decline in volumes and value trade in the past one year.

Kato said any corporate action on the stock exchange in the second-half of the year would be a big boost.

He said CMA had in the past asked the Government to let go of most of their stake in Kinyara Sugar Works in a public listing, a move that would strengthen the capital markets further.

There has been talk of some fresh corporate action in 2012, but nothing seems to have been finalised.

The most anticipated are Umeme and Kinyara. Reports indicated that preparations of Umeme’s listing were ongoing.

“If you give us a good prospectus, we move on it,” said Kato of the Umeme anticipated listing.

On the stock market on Tuesday, Stanbic Bank traded value dropped to sh128m from sh658m, while volumes fell to 1.2 million from over 6.5 million shares last week.

Stanbic’s traded at sh99 per share price from sh100. Demand, however, remained strong on the Stanbic counter with over two million shares sought.

Uganda Clays realised sh40.5m in turnover, trading at an average sh40 per share. Bank of Baroda also sold 21,973 shares to realise sh4.3m in turnover.

Total turnover on Tuesday was sh173m, while the total number of shares sold was 2.3m.

The All Share Index was 817.46.