Umeme, MTN dominate trading activity at USE 

The USE has in the last two years struggled to recover from the impact of Covid-19. Photo / File 

What you need to know:

  • The Shs9.2b, according to Uganda Securities Exchange, was achieved from only 10 counters during the period 

Umeme and MTN dominated trading in the 2022 third quarter, accounting for more than 60 percent of activity at the Uganda Securities Exchange (USE). 

During the period, according to data from USE, equity market activity increased with total turnover growing by Shs2b. 

The growth, which saw turnover increase to Shs9.2b compared to Shs7.2b in the same period last year, indicates a steady pick up in the market activities despite difficult economic conditions.

Other active counters included Bank of Baroda, Stanbic Bank, Uganda Clays, and Centum, among others.  

Higher turnover in equity markets reflects better liquidity and eases sell of stocks.  

However, on a quarter-to-quarter basis data indicates that turnover for the third quarter was lower than the Shs13.4b posted in the 2022 second quarter. 

Mr Andrew Mwima, the USE manager trading and research, said in terms of quarterly turnover performance per counter, USE turnover was realised on 10 counters, among which included Umeme, Bank of Baroda, Stanbic Bank, Uganda Clays, and Centum, among others. 

Umeme posted the largest turnover valued at Shss2.8b, which accounted for 30.67 percent of the Shs9.2b. 

Umeme was followed by MTN with a percentage turnover of 30.04 percent while Bank of Baroda and Stanbic Bank contributed 29.78 percent and 7.83 percent, respectively. 

Uganda Clays and Centum accounted for 1.03 percent, and 0.34 percent respectively while the rest of the counters, among which included NIC, Cipla, Dfcu and New Vision had a combined turnover of Shs27.2m. 

However, in terms of traded volumes, Stanbic Bank dominated activity, trading 34.4 million shares, which represented 33.31 percent. Bank of Baroda contributed 31.15 percent of traded volume, which represented 32.2 million shares.

MTN and Umeme traded 14.5 million and 14.1 million, accounting for 14.05 percent and 13.70 percent, respectively. 

Uganda Clays and NIC traded 5.8 million and 1.9 million shares, contributing 5.68 percent and 1.88 percent, respectively. 

Cipla, Centum, New Vision and Dfcu recorded marginal positions.

Mr Mwmia said there were 846 deals closed in 65 trading days compared to 1,849 deals closed in 66 trading days in the same period in 2021. 

The All Share index opened at 1296.43 declining slightly to 1280.14 in August and decreased gradually to close at 1259.05, which represents a 1.65 per cent decline. 

Mr Mwima said this trend was due to changes in different market prices of cross listed companies, many of which were held back by anxiety due to the Kenyan election, which also affected the exchange rate.

The Local Share Index slightly decreased from 273.35 to 273.01 in August and further decreased to close at 271.39, which was also a 0.60 per cent decline.

Bond listings

Fixed income activity for bond listings, Mr Mwima said five treasury bonds re-opened in the quarter with a value of Shs1.100 trillion while two new bonds with a value of Shs550b were listed. 

The current total value of government bonds listed on the bourse stands at Shs25.6 trillion while the corporate bond market recorded no activity. 

Kakira Sugar Limited remains the only active corporate bond.

Impact of Covid-19. The USE has in the last two years struggled to recover from the impact of Covid-19. Photo / File