Business
Corporate deals to stir dull market
Publish Date: Nov 07, 2012
Corporate deals to stir dull market
UMEME MD Charles Chapman shares a moment with Charles Mbiire of Uganda Securities Exchange during launch of UMEME IPO at Serena Hotel last month
  • mail
  • img
newvision

By David Mugabe

The stock market should see better days ahead with anticipated major corporate activities  expected towards year end and beginning of new year.

The biggest is the Umeme initial public offer (IPO) and listing scheduled for November 30, 2012. Umeme’s offer at sh275 should stir up the market that is devoid of activity even though analysts viewed the price offer as being high for an IPO.

The other is Kenya supermarket chain Uchumi which has indicated it will cross-list in Uganda and also do the same in Tanzania and Rwanda in December. 

According to reports quoting Uchumi chief executive Jonathan Ciano , once they receive a go ahead from the regulator, they will register and cross-list on Uganda, Tanzania and Rwanda stock exchanges over the counter market. Should this be achieved, this will give the market a major push.

The other corporate action is the National Insurance Corporation (NIC) rights issue that the insurer wants to undertake to shore up its working capital as required by the Central Bank. NIC is also awaiting regulatory approvals following the resolution passed by the shareholders last week.

The above three activities should light up a market that on Tuesday recorded no single trade.

“There should be some upturn and activity towards year-end, but we wait to see whether this can be sustained,” said one market analyst.

On the market, despite a whooping offer of more than 3m Stanbic shares, this was not marched by the 2.9m shares bidding shares citing a price mismatch. Stanbic is trading at an attractive sh20 per share.

There were also other offers of over 100,000 shares on the NIC counter and another 122,000 on the Uganda Clays (UCL)counter that were not taken up. The rest of the companiescounters remained mute with neither demand nor supply. 

There are currently 14 local and cross-listed companies on the stock exchange and should Umeme and Uchumi enter the 14 year old bourse would be a more diverse market but still struggling with liquidity and a failure to attract the mid-level companies especially the small and medium sized enterprises.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Digital migration: Pay TV service providers rush to cash in as deadline looms
As the June 30, 2015 global digital migration deadlines nears, pay television services providers are rushing to cash in from the members of the public who would want to do last minute purchases....
MTN changes loading, checking balance codes
In an effort to improve the user experience of our customers, MTN has implemented the standard industry codes for loading airtime and checking balance for all Mobile voice customers in Uganda....
Seven tips every startup needs to follow in 2015
Did you know that in 2014 the world hit 52% of its entrepreneurial capacity? That’s according to the Global Entrepreneurship Index, which hosted last year’s 2014 Global Entrepreneurship Summit in Morocco....
Shilling slide expected to go on
The Uganda shilling dropped close to 1% against the dollar in the week, trading a few points off the record level of 2905 closing 2885/95 compared to the previous level 2865/75....
Look out for opportunities, Museveni tells youth
President Museveni calls Ugandan youth to have initiative and also take advantage of the available opportunities in the various sectors of the economy....
Mbale Municipality closes over 50 sub-standard schools
Mbale Municipality on Thursday closed over 50 schools for operating below the minimum required standards...
Do you think government is doing enough to contain the typhoid out break?
Yes
No
Can't Say
follow us
subscribe to our news letter