USE calls for opening of electronic accounts

Dec 09, 2011

The Uganda Securities Exchange (USE) is urging all shareholders on the stock market to open electronic accounts, which is now mandatory for anybody to trade on the bourse.

By david mugabe


The Uganda Securities Exchange (USE) is urging all shareholders on the stock market to open electronic accounts, which is now mandatory for anybody to trade on the bourse.

The latest corporate action, the listing of Stanbic Bank bonus shares on November 23, resulted into some accounts not being credited.

A USE statement said a delay “in reconciling the account opening records with the electronic record, led to staying in crediting the accounts.” This takes place between the share registrar and the USE share depository.

The bourse wants to automate trading to be at par with the region, especially Kenya, which beams its trading to the world. But investors have responded slowly. By December 5, out of the 1,370 accounts affected by the reconciliation, 123 had not been confirmed.

On the stock market on Tuesday, Stanbic Bank and Uganda Clays dominated activity, with sh21m and sh25m in turnover. The two firms’ overall traded value constituted over 92% of market activity. Stanbic’s share price closed at an average sh94 while UCL sold at sh45 per share price.

BATU sold 1,500 shares to fetch sh2.4m, while dfcu Bank collected sh740,000 in turnover. Total turnover was sh50.1m.
The New Vision counter got over one million offers.

Activity is largely muted, with the All Share Index falling to 771 points from the week’s opening 779 points. Meanwhile, at the Nairobi Stock Exchange, turnover declined to Ksh133m, from the previous session’s Ksh186m.

The number of shares traded stood at 13 million on Tuesday against 19 million posted the previous day. The Nairobi All Share Index eased 0.13 points to stand at 65.23. The telecom and technology had 7.4 million shares and represented 53.61% of the day’s volume. Safaricom moved 7.3 million shares and closed at Ksh2.80.

The NSE 20 Share Index shed 2.01 points to stand at 3,070.36. The banking sector sold 4.2 million shares, accounting for 30.60% of the day’s traded volume. Equity Bank traded 2.2 million shares at between sh17.20 and sh17.50, while KCB moved 1.4 million shares and closed at shs.15.10.

The Nairobi All Share Index (NASI) eased 0.13 points to stand at 65.23.



 

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