Business
NIC seeks to cross list on Nairobi Stock Exchange
Publish Date: May 04, 2014
NIC seeks to cross list on Nairobi Stock Exchange
  • mail
  • img
newvision

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.

 

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
Oil prices resume downward trajectory
World oil prices have resumed their downward trajectory following comments from key Middle Eastern oil producers that they have no plans to cut output....
20 firms probed over money laundering
The Police are probing 20 companies and individuals suspected to be involved in money laundering....
Transport fares rise as Christmas draws nearer
Tis the season once again and as is with festive period, public transport fares have risen around the country....
Inflation rises to 1.4%
Consumers paid sh1.4 more for manufactured goods in October compared to the same period in 2013 as the sector struggled to recover from the lag-effects of the 2011 economic challenges, amid volatilities in foreign exchange....
Kukustar: New vaccine against newcastle to empower farmers
It was the welcoming smiles. Not the long distance from Mbale town. Not the shrubby path to Mary Goretti Mboizi’s humble home in Bunamwera village, Kibuku district that struck me as I settled down to listen to her story....
Uganda is debt sustainable, says finance ministry
By March, China had lent Uganda over $336m (8% of the total debt) while India had lent over $50m (under 2%)....
Do you agree with the ban on the export of maids?
Yes
No
Can't Say
follow us
subscribe to our news letter