Kenya shilling appreciation raises USE shares value
Posted Thursday, July 24 2014 at 01:00
Stance attributed to positive half year financial results of Kenyan firms
The development in the foreign exchange market, which led to appreciation of the Kenyan shilling in the recent past has positively contributed to the increase in market capitalisation at Uganda Securities Exchange (USE).
Market capitalisation is market value of a company’s outstanding shares or an indication of how much that company is worth on the open market.
At the close of the trading session on Monday, USE total market capitalisation closed at Shs24.012.84 billion, the highest since the year began.
This means there has been increase of Shs2.460.84 billion since the month of July began. At the close of quarter two which runs from April to June 2014, USE closed at Shs21.552 billion.
The pick-up in USE is also linked to price appreciation of some locally listed company shares due to high demand for their shares.
The appreciation in the stock prices means that shareholders in companies whose prices have gained in the recent past are making profits from their investments.
In an interview with the Daily Monitor on Monday, Mr Andrew Mwima Manager Trading USE said a strong Kenyan shilling has had a positive impact on the return and prices of the 8 cross listed stocks.
The increase in USE market capitalization was also attributed to positive half year company financial results of the Kenyan companies which are cross-listed on USE.
Mr Mwima said: “These four companies posted very strong half year results which also contributed to the gains in their prices. The Centum price appreciated 27 per cent, Equity bank 48 per cent and Jubilee 42 per cent.”