Exchange increases trading days

Kampala

Starting today, the Uganda Securities Exchange will commence a five-day trading week up from three days, Mr Joseph Kitamirike the CEO of the exchange said on Friday.

This means that the trading floor will be open for the selling and buying of shares from Monday to Friday, apart from public holidays. “This development will offer investors maximum opportunity to execute investment decisions and respond promptly to market changes,” he told Daily Monitor in a statement.

In an interview late last year, Mr Kitamirike said the push factors for the move were; the increasing demand for company shares at the exchange, regional integration and the desire to ease trading for investors. “It’s just to give an opportunity for people to trade. People sometimes make their decisions on Tuesday but they have to wait until Thursday to trade,” he said.

The extension in trading days is also meant to upgrade the USE to the level of the Nairobi Stock Exchange and the Dar es Salaam Stock Exchange with a bee-hive of investment activities compared to the domestic market. “We cannot keep our market closed on days when we can be trading across the border. If your market is closed and the other markets are open then investors who come through your market don’t have access to others,” he said.

Similar regulations
The four stock markets including the Rwanda Stock Exchange (RSE) are operating in the East African Community (EAC) Common Market and are set to have similar regulations and operational procedures as they integrate.
The Common Market came into effect on July 1, 2010, giving way to the free movement of capital, labour, goods and services.

Although this has largely remained a theory for most businesses, the USE and RSE have witnessed cross listings of shares of firms like the Nation Media Group, and Kenya Commercial Bank which are listed on the NSE.

Through the collaboration and integration of the four markets, Mr Kitamirike said the USE is trying to enable local investors to trade across the border.