By Samuel Sanya and Claire Nakaayi
COMPANIES have recorded improved half year financial results in the share markets boosting demand and share prices.
The All Share index closed at sh1527 on Tuesday from sh1523 as Stanbic, UMEME and DFCU bank released half year profits for the period ended 30th June 2013.
Umeme recorded a massive 52.9% growth in half year results due to lower financing costs, and control over the operating costs. The company registered half year after tax profits of sh47b from sh30b.
Patrick Bitature, the Umeme board chairman noted that the company is lining up a $170m (sh442b) financing package to partly fund its $440m capital investment program for 2013.
The company intends to refurbish and expand its distribution network and boost safety. Energy losses have been cut to 24.9% in last six months from 26.1% last year.
“The Umeme share price briefly went up to sh365 due to institutional investors. Retail investors have still stuck to the s30 per share price,” said Arthur Nsiko of African Alliance Securities Uganda.
Stanbic bank has announced a special dividend of 0.586 per share despite a 1.7% decline in half year profits at the end of June. The company posted after tax profits of sh225b down from sh251b in June 2012.
The company is selling at sh25 per share. There are outstanding bids for 45 million shares at sh20 per share against 18 million outstanding offers at sh25 per share. dfcu bank posted a 17% rise in half year after tax profit of sh18.6b. This momentarily pushed demand for the company’s stock.
“Much as dfcu has made profit, liquidity in the banking sector is still low and there is no dividend,” Nsiko pointed out.
dfcu bank was trading at sh1035 per share on Tuesday with outstanding bids for 1,514 shares.
British American Tobacco Uganda (BATU) has released a profit warning indicating that profits for the current year are likely to dip significantly from last year.
The company’s after tax profit fell 45% to sh12b at the end of 2012 largely due to illicit cigarrete trade. Despite that shareholders enjoyed an interim dividend of sh141 per share down from sh309 the year before.
Some 18,000 shares were sold on the counter for sh48m on Tuesday at sh2,600 per share.
There are outstanding bids for 2,000 shares. Uganda Clays will hold their Annual General Meeting on August 30 2013 at Sheraton Kampala, the company is still being headed by an interim managing director and board member Martin Kasekende after the departure of Charles Rubaijaniza.
A total sh186m was made from the sale of 430,000 shares as the Local Share Index climbed to sh229 from sh228 a day before.