Business

USE registers expansion with Shs800 billion turnover

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Stockbrokers list prices on the stock exchange. The USE has recorded the highest income in the second quarter of 2014 . FILE PHOTO 

By MARTIN LUTHER OKETCH

Posted  Wednesday, July 30  2014 at  01:00

In Summary

Leader. Umeme had the largest number of deals at 58.62%.

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KAMPALA.

Uganda Securities Exchange (USE) has registered the highest turnover (revenue) in the second quarter of 2014 to Shs816,629,836 realised from trading of 243,879,916,645 shares.
This upward growth in USE’s turnover signifies that Uganda’s stock market is expanding and at the same time the investors are also benefiting from their investments in the stock exchange. This is the first time in USE’s 16 years of existence to register this impressive turnover in a single quarter and on an annual basis.
In the first quarter of 2014 volume of shares traded at the exchange was 158,108,93, which saw USE registering a turnover of Shs16,876,649,182.
USE trade manager Andrew Mwima told the Daily Monitor on Friday that of the total turnover, 97.16 per cent arose from the Umeme counter; Stanbic Bank Uganda, British American Tobacco Uganda (BATU), Dfcu and Bank of Baroda Uganda (BOBU) counters each contributed 1.44 per cent, 0.82 per cent, 0.46 per cent and 0.09 per cent respectively of the total turnover during the period.
Mr Mwima said in total, there were 2,095 deals recorded during the period compared to 1276 deals recorded during the first quarter.
He said that during the period; Uganda Clays had 56 deals, Dfcu 87 deals, BOBU had 63, BATU 24, SBU 544, National Insurance Corporation 82, New Vision 10 and Nation Media Group, one deal.
Computed statistics show that USE All Shares Index (ALSI) performance was relatively strong. The ALSI Index opened at 1503.54 at the beginning of the quarter, rose to 1587.75 in the middle of the period and closed at 1696.84 realising an overall 12.86 per cent growth.
“This outperformed major global indices that track frontier markets like the Morgan Stanley Capital Index series; MSCI EMEA that tracks frontier markets in Europe, Middle East and Africa which had a growth of 5.41 per cent and MSCI Africa that had a growth of 5.63 per cent during the same period,” Mr Mwima explained.
For the Local Securities Index (LSI), Mr Mwima said the LSI Index was firm and steady most of the period; it opened at 270.79, dropped slightly to 270.22 and rose to 276.04 realising a modest growth of 2 per cent period during the period.

moketch@ug.nationmedia.com