Uganda Clays shares steady after Rubaijaniza exit

May 17, 2013

Uganda Clays share price has not shifted from sh35 since Charles Rubaijaniza, the former top boss tendered in his resignation for reasons still unknown.

By Samuel Sanya
 
Uganda Clays share price has not shifted from sh35 since Charles Rubaijaniza, the former top boss tendered in his resignation for reasons still unknown. 
 
Rubaijaniza returned the firm to a sh2.8b profit in 2012 from two consecutive years of losses. Martin Kasekende, a board member, will hold fort as managing director until a substantive replacement is recruited. 
 
Analysts say shareholders and investors are yet to come to grips with the changes. 
There were offers for 384,918 shares with demand for just 97,694 shares at prices lower than sh35. The absence of a dividend for a fourth successive year further decreased appetite for the stock. 
 
“The management issues at the top have reduced traffic on the Uganda Clays counter,” said African Alliance’s Arthur Nsiko.  
A substantive managing director is likely to be announced before the annual general meeting later this year.  
 
Only two counters were active on Tuesday. Stanbic Bank moved 60,000 shares for sh1.8b. Outstanding demand on the counter has grown to 25 million shares against supply of just 12 million, throwing the shares on an upward price trajectory. 
 
Nsiko notes that shares of listed banks are likely to rally upwards as sector returns improve with a growing economy. 
Bank of Baroda moved 10,000 shares for sh1.3m. The sh130 per share price, which is below sh150 during a bonus issue last year, is attracting investors, according to analysts. 
 
Other counters were inactive with the All-share index etched up to close at sh1,641, from sh1,635. The local share index went up to sh253, from sh251. 
 
Quarterly reports indicate that sh19b was exchanged at the share markets between January and March for 174 million shares. 
 
Umeme contributed 76.97% of the total activity, with Stanbic Bank, Bank of Baroda and dfcu Bank counters each contributing 15.08%, 4.64% and 2.32% respectively of the total turnover during the period.
 
The Umeme counter had the largest number of deals in the period with 37.8%, while Stanbic Bank had 36.93% of the total deals.
Stanbic Bank will hold its annual general meeting on Monday to elect directors and approve the company’s financial results. Baroda will hold their annual general meeting on June 7. 

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