Massive demand for Stanbic as foreign cash flows in

 

 

On Tuesday, the bank traded just 132,000 shares at an average price of sh25. But there were bids for over 31 million shares, while there was demand for over 16.7 million shares.

 

Market observers have intimated that there has been entry of foreign funds into the market even when the bank’s book closure date passed, meaning investors who had not bought Stanbic shares by the book closure date cannot benefit from the dividend offer. But this has not dissuaded interest.

 

“The market is stuck at sh30, while real demand is at sh25 right now,” said Joseph Kibuuka, the business development manager at Crested Stocks and Securities.

 

Analysts are also of the view that the price may not fall to sh20, but the demand and offer price matching is considered a big jump for investors.

 

“Sh25 and sh30 are close, but the spread is high. Sh5 is like 20% and institutions will look at it as high,” said Kibuuka.

New Vision, Uganda’s largest multimedia house, traded at an average of sh605 per share, selling 500 shares and gaining sh302,500 in turnover.

 

The Umeme counter also saw suppressed activity with only 1,450 shares traded, although there were over one million shares on offer. The power distributor traded at an average of sh345, with a turnover of sh500,250. 

 

There was no activity on the dfcu counter, with analysts saying the price at sh1,040 is considered high. BATU sold just 582 shares, with the price not picking even after the tobacco company announced some changes in its operations.

 

There were bids for over 400,000 Uganda Clays shares. The clay maker sold 66,118 shares at sh30 per share. Turnover was sh1.9m.

The day’s total turnover was sh8m out of 216,524 shares traded.