Equity investments dominate 2012-survey
Jun 21, 2013
Total equity consisted of sh8.8 trillion, out of the total sh12.3 trillion, while other capital accounted for just sh3.4 trillion, including external long and short-term debts.
By David Mugabe
A 2012 survey by three agencies shows that most of the investments in 2011 were in equity (shares).
The Private Sector Investments Survey (PSIS) conducted by the Central Bank, Uganda Bureau of Statistics and Uganda Investment Authority indicates that the stock of foreign direct investment (FDI) increased from sh10.3 trillion at the end of 2010 to sh12.3 trillion in 2011.
Total equity consisted of sh8.8 trillion, out of the total sh12.3 trillion, while other capital accounted for just sh3.4 trillion, including external long and short-term debts. The total equity capital consists of share capital and retained earnings among others.
“A total of the sh1.1 trillion of the new FDI received during 2011 was on account of equity investments, while other capital accounted for sh643b in the same period,” read the PSIS report released early this week.
The change in the stock during 2011 was due to new resources amounting to sh1,791b and valuation gains amounting to sh231b respectively.
On the stock market this Tuesday, Umeme sold over 1.4 million shares, picking sh528m in turnover, trading at an average price of sh360.
Umeme’s trade was 99.3% of the total value that the market traded on Tuesday.
Overall, there were 1,591,450 shares sold on Tuesday, a day in which three other companies traded.
There continues to be a mismatch in prices on the Stanbic counter, which has hitherto remained the most liquid company. There were bids for over 40 million shares and although the supply side offered a respectable 15 million, both sets of counters did not match up.
The much sought after Stanbic Bank has maintained high levels of demand and supply, although sealed deals have been smaller.
Only 42,000 Stanbic shares were sold, resulting in sh1m in turnover. The bank traded at an average of sh25 per share.
Meanwhile, Uganda Clays sold 81,000 shares, turning in sh2.4 million in value. dfcu Bank that acquired new shareholders recently sold just 200 shares to realise sh206,000 in turnover. The bank traded at an average of sh1,030.