By David Mugabe
National Insurance Corporation (NIC) is seeking to cross list on the Nairobi stock market. This is one of the recommendations to be decided by the share - holders on June 26, 2014 during the company’s annual general meeting (AGM) in Kampala.
The company is seeking that the directors be allowed to initiate the cross listing process. If successful, the local insurer will be among the few Ugandan entities that have moved across borders. Power distributor Umeme has also cross listed on the Nairobi stock exchange.
Cross-listing would allow for more involvement of other potential investors from the more liquid stock market in Kenya. Andrew Muhimbise, an investor, believes it is a good move and more local entities seek movement across borders.
Listed companies last week rushed to file their full year results as the mandatory first quarter period ended.
NIC and Uganda Clays (UCL) posted their results yesterday, showing a mixed bag of fortunes. Generally, all listed sectors have posted a reduction in profits from banking, insurance and media. NIC posted lower profits of sh2b after tax from the sh3.5b earned in 2012.
The insurer, however, registered gross premiums of sh9.5b up from sh7.8b. Cash and bank balances remained strong at sh2.7b from sh1.4b in 2012. Shareholders will decide whether sh4.1b can be transferred from the revenue reserves to finance the bonus share offer during the AGM.
Uganda Clays, the other listed firm, saw sales revenue drop by 12%, attributed to increased competition and instability in south Sudan. A long standing loan taken in part to finance the Kamonkoli project in eastern Uganda has been a stranglehold on the neck of the clay maker.
“The payment of the bank loan is expected to end by October 2014, this will reduce the finance charge significantly,” says UCL.
Stanbic Bank sold 2,316,780 to realise sh69.5m in turnover on Tuesday. Demand remained high above for over 40 million Stanbic shares. Total turnover was sh71m from 2.3 million shares sold.