Dyer and Blair has been licensed to operate an investment bank. Peter Kaujju spoke to Njoroge Nganga, the general manager, about the market prospects.
QUESTION: Would you tell us about Dyer and Blair?
ANSWER: Dyer and Blair is the largest investment bank in East Africa.
We are involved in buying and selling shares on the Uganda Stock Exchange (USE) and on the Nairobi Stock Exchange.
We also trade fixed income securities like bonds and provide advisory services. Many may not be aware but we are founder members of the USE and we were advisors for the Stanbic and DFCU initial public offerings (IPOs).
We are not new in town but feel the time is now ripe to deepen our presence particularly with the upcoming Safaricom IPO which starts on December 10.
Q- What are your plans for the market?
A- Investing in stocks has become a major source of savings and wealth creation for individuals and for companies all over the world.
Our role will, therefore, be to continue to assist individuals to buy and sell shares and for businesses to improve their investment portfolios through advisory services and research.We will also source affordable money for companies to meet their growth and profit targets, while assisting companies to issue shares to the public.
Q- How would you rate Ugandaâ€™s capital markets sector?
A- The USE is one of the best performing in the continent although there are few company stocks traded, the potential is very encouraging. You can imagine if you invested in Stanbic shares less than a year ago at sh70.
The price is now sh200. So if you spent sh70,000 to buy 1,000 shares, they are now worth sh200,000.
That is good return. If you bought 100 Uganda Clays shares two years ago at sh8,000 for 80,000, you now have 1,000 shares at sh5,100 worth sh510,000. Itâ€™s the same story with New Vision and DFCU.
However, investors should be aware that prices can rise, but they can also fall.
The important thing is to be a consistent investor and to rely on advice provided by experts in the market such as Dyer and Blair.
Q- Do you think the public is aware of the services you provide?
A- Not entirely, but the same applies in many countries. We shall work hard with the regulators, CMA, the USE and other brokerage firms to create awareness of the services.
The public have a lot to gain and can use stocks to save for school fees, university fees, retirement, and for medical emergencies and during difficult times of unemployment.
Through seminars, discontacts, and through the success stories of those who have benefited.
These are growing daily. We will try and show that if you invest and trade consistently and with a plan, you can be highly successful.
Q- How do you see the future of capital markets in Uganda?
A- There are signs already that the capital markets may become the biggest financial services in the country. This has happened in developed countries like the US, the UK, the Far East countries like Japan, Hong Kong, India and China.
Kenya has witnessed tremendous growth in the capital markets with the entry of local corporate giants, such as KENGEN, Kenya Airways, and SAFARICOM.
We are also keen to set up a branch in the Rwanda Stock Exchange, where we played a role in advising on its establishment.
We see the Uganda capital markets taking a huge leap forward when a good percentage of Ugandans are able to take advantage of the investment opportunities provided by the exchange. We also need to see more companies either through the privatisation of government shareholding or private Ugandan companies seeking capital for expansion or growing their value through listing on the stock exchange.
Dyer & Blair to start bank