Securities turnover soars to sh17b
Jul 24, 2007
BUOYED by increased trading especially on the Stanbic Bank counter, turnover at the Uganda Securities Exchange (USE) hit a record high of sh17.5b in the second quarter of this year.
By Peter Kaujju
BUOYED by increased trading especially on the Stanbic Bank counter, turnover at the Uganda Securities Exchange (USE) hit a record high of sh17.5b in the second quarter of this year.
“While quarterly volumes dropped by 26% to 113.2 million shares at sh17.5b, the turnover is almost double what the bourse traded in its first five years,†a quarterly bulletin for April to June from the exchange said.
The average daily turnover is about sh500m. Stanbic Bank, whose Initial Public Offer was over-subscribed by over 200%, dominated trading, accounting for 92.4% of turnover, while Bank of Baroda accounted for 3.33%. Dfcu’s share was 3.09% while The New Vision and Uganda Clays accounted for 0.6% and 0.44% respectively.
Mixed reactions from the market as most listed companies released their end-of-year results resulted into peaks and lows on the all share index, which is the performance indicator of the exchange.
On the Fixed Income securities section, turnover of sh97.9b was recorded on the Government bonds counter, while the East African Development Bank’s bond dominated activity on the corporate bond counter with sh29m turnover. There was no activity on the Standard Chartered Bank and uganda telecom bonds.
“This positive reaction from the market should spur other firms to consider listing. It is feasible for the companies operating in East Africa to tap cheap money for expansion,†the report recommended.
The report said countries should take advantage of the excess liquidity in the markets.
It said money can be mobilised from the public to fund infrastructure gaps in housing and energy.
The eight-counter bourse has six local listings and three cross-listed from Kenya.
The report said foreign and local investors were increasing their interest in the market.
“In Kenya, pension reform has played a major role in increasing liquidity of the capital markets. The vital point to note is the importance of deeper financial systems, better run companies and more disciplined macro-economic policies.â€
BUOYED by increased trading especially on the Stanbic Bank counter, turnover at the Uganda Securities Exchange (USE) hit a record high of sh17.5b in the second quarter of this year.
“While quarterly volumes dropped by 26% to 113.2 million shares at sh17.5b, the turnover is almost double what the bourse traded in its first five years,†a quarterly bulletin for April to June from the exchange said.
The average daily turnover is about sh500m. Stanbic Bank, whose Initial Public Offer was over-subscribed by over 200%, dominated trading, accounting for 92.4% of turnover, while Bank of Baroda accounted for 3.33%. Dfcu’s share was 3.09% while The New Vision and Uganda Clays accounted for 0.6% and 0.44% respectively.
Mixed reactions from the market as most listed companies released their end-of-year results resulted into peaks and lows on the all share index, which is the performance indicator of the exchange.
On the Fixed Income securities section, turnover of sh97.9b was recorded on the Government bonds counter, while the East African Development Bank’s bond dominated activity on the corporate bond counter with sh29m turnover. There was no activity on the Standard Chartered Bank and uganda telecom bonds.
“This positive reaction from the market should spur other firms to consider listing. It is feasible for the companies operating in East Africa to tap cheap money for expansion,†the report recommended.
The report said countries should take advantage of the excess liquidity in the markets.
It said money can be mobilised from the public to fund infrastructure gaps in housing and energy.
The eight-counter bourse has six local listings and three cross-listed from Kenya.
The report said foreign and local investors were increasing their interest in the market.
“In Kenya, pension reform has played a major role in increasing liquidity of the capital markets. The vital point to note is the importance of deeper financial systems, better run companies and more disciplined macro-economic policies.â€