By Samuel Sanya

OVERWHELMING pressure on the supply side of the Stanbic Bank counter has finally broken a two week deadlock at the sh20 per share. 

This has rejuvenated activity on the Uganda Securities Exchange as only two counters recorded activity by the close of business on Friday.

The all share index has continued a steady ascent, despite lack of activity on the bourse from Monday through to Wednesday as Uganda celebrated 50 years of independence.

“Volumes traded on the Stanbic counter have gone up significantly in the past week since there were many willing buyers at sh20 per share as opposed to the prior sh25 per share level,” said Arthur Nsiko, a securities trader at the African Alliance Securities.

“Despite a fall in the outstanding offers, I do not see the (Stanbic) share price hitting sh25 again in the short term,” he added.

Outstanding offers on the bankers counter reduced to 13.7m shares from a prior high of 45.8m shares with a total sh70.9m being made at the reduced share price.

An analysis by Crested Stocks securities, a brokerage firm indicates that the All Share Index had steadily grown to sh1,140 by the end of September 2012 from sh840 in October 2011 as stock prices start to resurge from months of high inflation.

Nsiko attributes the rise in the index to a strong performance by cross-listed stock such as British American Tobacco Uganda (BATU), Baroda, DFCU, Stanbic, and the New Vision recorded impressive balance sheets growth in 2011.

BATU’s share price has hit sh2,170 almost double the sh1,300 level a year ago, Baroda and DFCU stock have all gone up after positive end of year results.

Demand on the New Vision counter had grown to 7,156 shares possibly from a single investor after Uganda’s leading daily increased her profits by a strong 28%.

Only Stanbic and Uganda Clays counters recorded trades by close of business on Friday with all other counters recording zero movement.

Yields on all tenors of government treasury bills have largely fallen on the primary market though the secondary market rates remain steady indicating strong demand.

There is a very small gap between the asking price for two-year treasury bonds at 18.51% and the offering price of 18.38% as demand and supply remain closely matched.

A similar situation exists for three-year, five-year and 10- year bonds where the spread remains at 0.13 points.