The Uganda Securities Exchange Ltd
Tel : +256 - 414 - 259-585 | Fax: +256 - 414 - 342-841
Email: info@use.or.ug | Website : www.use.or.ug
Location: Plot 71/73, Kampala Road, Prism Building, 4th Floor , Kampala, Uganda Address: P.O.Box 23552, Kampala, Uganda Contact: Mr.Joseph S. Kitamirike, Chief Executive  USE: Securities exchange market registers Shs10 billion drop The decline in equity prices at most counters saw Uganda Securities Exchange’s (USE) total market turnover falling by Shs10.8b in the second quarter of the year, a development which has hurt both the institutional and retail investors.Statistics by USE reveal that the market realised a total turnover of Shs41.5 billion from a volume of 305.6 million shares that were traded during the second quarter of the year compared to Shs52.3 billion realised from more than 202 million shares traded.The USE chief executive officer, Mr Paul Bwiso, told Daily Monitor in an interview that the decline was due to a fall in prices of shares as a result of low demand.“The lack of demand during the second quarter was caused by the issue of high interest charged on government securities; treasury bills and bonds. This development saw the investors shifting their investment from equities to government securities where they were getting higher returns and it was risk free investment to the investors,” he said. Read more ▪  USE: Declining stock market value costs NSSF Shs48 billion The declining stock market value on the Uganda Securities Exchange (USE) and Nairobi Securities Exchange (NSE) has affected the performance of National Social Security Fund (NSSF). The fund revealed a paper loss of Shs48b from a profit of Shs108.5b. NSSF booked this as a paper because it is the value of the assets that have fallen and the fund has not sold the shares at below market price.Mr Richard Byarugaba, the managing director NSSF told Daily Monitor that the unrealized loss was a result of their stock holding in listed companies declining in value.“This decline in the market value is captured as an unrealised loss on our portfolio. It must be understood that market movements are cyclical and as markets recover, the value of the portfolio increases,” Mr Byarugaba said, adding that the fund is in a strong financial position and will stay that way. Read more ▪ USE posts Shs12.8b The rush to make profit and active participation of institutional investors mainly from foreign economies have seen Uganda Securities Exchange (USE) realising a total turnover of Shs12.798 billion of trading.Computed statistics at the bourse show the total number of shares traded stood at 24,571,245. The USE All Shares Index (ALSI) increased by 644.58 basis points.In an interview with Daily Monitor, USE chief executive officer Paul Bwiso said the stock exchange indeed opened on a high note. “This is a very significant trading activity, we have managed to realise a turnover of Shs12 billion. This is quite impressive when we had a turnover of Shs17 billion,” he said. Read more ▪ USE: Stock market registers growth Uganda Securities Exchange has registered a growth of 500 per cent. This was supported by increased activities amid high equity prices at the stock exchange.This means shareholders are making profits out of their investments in company shares, while the high growth rate to the exchange means the market is expanding.In an interview with Daily Monitor after presenting Bank of Baroda’s results for the financial year, the chief executive officer of Uganda Securities, Mr Paul Bwiso, said: “USE turnover was Shs64 billion compared to Shs17 billion. This represents a growth rate of 500 per cent.” Read more ▪  USE: Automated stock market to start trading in May A new securities exchange, ALTX Uganda, will start trading, company officials have revealed. The new automated exchange, a competitor to Uganda Securities Exchange (USE), will have the task of attracting Ugandan Small and Medium Enterprises (SMEs) to list shares and participate in borrowing money using the stock exchange. Mr Joseph Kitamirike, a co-founder and chief executive officer ALTX Uganda, told reporters that they are testing the automated platform, and expect to launch. ALTX were issued a licence by the Capital Markets Authority (CMA) but had to fulfil some requirements before they could start facilitating transactions. Read more ▪ Does USE really need cross-lists? A number of Kenyan listed firms aggressively enter the Ugandan market prompted by investors’ growing appetite to invest in shares beyond the boundaries of one’s home country. As a result, eight of the 16 listed companies on the Uganda Securities Exchange (USE) are cross-lists. These include East African Breweries Limited, Kenya Airways, Nation Media Group, Kenya Commercial Bank, Centum Investment Company Limited, Jubilee Holdings Limited, Uchumi and Equity Bank Limited. Firms cross-list shares on other markets to, among others, afford accessibility of the stock to investors. It is also used it as a marketing tool for the cross-listed companies to increase brand visibility. It should, however, be noted that for the case of firms cross-listed on the USE, the latter has been fully maximised, but the former still seems to be challenged. Read more ▪ USE registers Shs201 billion turnover drop in third quarter Slowdown in equity market activities in the number of shares being offloaded from the market, has seen Uganda Securities Exchange (USE) register a drop in its total turnover of Shs201 billion.USE trade statistics show the bourse realised a total turnover of Shs42 billion from 192 million shares traded during which the Exchange’s total turnover stood at Shs243 billion from the trading of 816 million shares.However, USE explains that the market has been relatively stable, with both the retail and institutional investors actively participating in the stock market. Statistics show Umeme had the largest turnover accounting for 53.3 per cent of the total, followed by dfcu Bank at 33.71 per cent, Stanbic Bank at 7.5 per cent and Bank of Baroda at 4.13 per cent. Read more ▪ New trade rules push up USE market value by Shs2.5 trillion The change in trade rules has seen Uganda Securities Exchange (USE) register increased market capitalisation to Shs26 trillion.Market capitalisation refers to the total market value of all of a company’s outstanding shares.Before the implementation of the new trading rules, USE’s market capitalisation was Shs23.5 trillion . USE implemented the new trading rule which allows shares prices to fall or to increase by one shilling instead of five shillings to bring about improved liquidity in the stock market.Trade manager of USE Andrew Mwima told Daily Monitor in an interview that the increase in market capitalisation is partly supported by the large market activity on counters like Stanbic, Umeme and Bank of Baroda; which allowed investors to transact at favourable prices that were not attainable using the previous five shilling spread. Read more ▪ Uganda Securities Exchange (USE) recorded one of its best half-year performances since inception for the last six months and our outlook remains positive for the short six months to the end of this year and early next year. The stock market recorded a total turnover of Shs141 billion in the first half compared to a turnover of Shs72 billion, reflecting good performance for the past three half years. However, in comparison to the half year performances, the immediate past three half year performances are excellent. The stock market recorded a turnover of only Shs19.5 billion and Shs20.4 billion in the first and second half, respectively.The performance is due to the corporate actions among which was the listing of Umeme on the USE, increased foreign investor participation in the market and recovery of economies locally, regionally and globally.Read more ▪ USE registers expansion with Shs800 billion turnover 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 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. Read more ▪ Kenya shilling appreciation raises USE shares value 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, 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. 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. Read more ▪ The Uganda Securities Exchange (USE) wants government to offer a series of incentives to grow the capital markets that has somewhat stagnated with the listing of mainly government firms.Innocent Dankaine, the acting chief executive officer of Uganda Securities Exchange, says a favourable tax regime would help boost the industry attracting private sector that have largely shied away from listing.“We want incentives. If you compare with Kenya, which is at 10% withholding tax on dividend income, we are at 5%. Also for corporation tax for companies listing, in Kenya, they have tax holiday for five years where they pay 20% instead of 30%. It would stimulate more companies to list,” says Dankaine. In Uganda corporation tax is 30%.“The idea is to facilitate the market. We also hope transactions can be exempt from capital gains tax,” noted Dankaine ahead of the budget reading.It remains to be seen on whether the Government would consider such proposals, although it appears late for 2013/14 inclusion in the budget if it is already not there. Read more ▪ USE: Uganda’s first reinsurance company launched Uganda’s first reinsurance company has been launched amidst plans to list on the Uganda Securities Exchange (USE) within the first two years of the company’s existence. All 22 licensed insurance companies are required to cede at least 15% of their reinsurance business to a local re-insurance firm according to the insurance (amendment) Act 2011. Samson Muwanguzi, the Uganda Reinsurance (Uganda Re) chairman says the company intends to raise its paid share capital to sh10b by September 2014 and to list on the stock exchange in the immediate future. Read more ▪ USE registers decline in first quarter equity performance Uganda Securities Exchange (USE) registered a decline of Shs2.5 billion in turnover in the first quarter of 2014, blamed on lack of major corporate activities like new listings on the stock exchange.The decline was also attributed to investors’ activity which in a way slowed down activities in the stock exchange as most investors decided to wait and see whether listed companies made profits in 2013 financial results. Statistics at USE indicate that in the first quarter of 2014, the volume of shares traded in the period stood at 158,108,931, which resulted into a total turnover of Shs16.8 billion.Read more ▪ USE: 2.4 billion shares changed hands in 2013 The stock market concluded deals worth over sh245 billion in 2013, a massive improvement from the previous year, a report indicates. The Uganda Securities Exchange report showed a marked rise from the sh26b obtained in 2012. 2013 was mainly boosted by corporate action including the opening trading sessions after Umeme’s initial public offer, DFCU share sell as well as major deals on the Stanbic counter.There were 5205 deals with a total of sh245 billion deals after a total of over 2.4 billion shares were sold.The biggest deal was in May 2013 when turnover peaked sh139b after 524m shares were sold. Stanbic bank had 2339 deals overall- the most among all the 12 listed companies at the exchange followed by Bank of Baroda. Read more ▪   Explain trading of shares - minister Kiwanuka Finance minister Maria Kiwanuka has asked the leaders of the Capital Markets Authority and the Uganda Securities Exchange to demystify the trading of shares and bonds for Ugandans to gain interest in the business.The minister was speaking at a farewell function for Japheth Kato, who retired as chief executive officer for the Capital Markets Authority after 16 years of service at Speke Resort Hotel Munyonyo. Kiwanuka commended Kato for setting the right foundation for capital markets in Uganda and asked the new leadership to bring the market closer to Ugandans.The minister said more local companies should be encouraged to list on the Uganda Securities Exchange.“Uganda Securities Exchange must be a normal thing to Ugandans. Capital markets should be like mobile phones which are found in everyone’s house. We should make capital markets an everyday thing,” she said.Kiwanuka urged the private sector to take charge of capital markets saying the emerging petroleum sector, the liberalisation of the pension sector and the regional integration will present many opportunities. Read more ▪  Expert calls for investment bank licensing in Uganda Regulators in the financial market have been urged to consider licensing investment banks to support corporate actions in capital development.The chief executive officer of Crested Stocks & Securities, Mr Robert H Baldwin, said the importance of having a Ugandan investment bank would help in building the expertise of local citizens as well as provision of jobs internally instead of relying on investment banks from outside Uganda to do investment banking services for stock market brokers who do the technical work of corporate listing of shares or issuing corporate bonds.He said investment banking helps companies and governments and their agents to raise money by issuing and selling securities/shares in the markets.One outstanding importance of investment banks services is that they provide corporate finance and advisory work, normally in connection with new issues of securities for raising finance, take-overs, merges and acquisitions. Read more There is good reason to cheer over what is happening in Uganda's capital markets at the moment.Uchumi, the Kenyan supermarket chain, listed on the Uganda Securities Exchange. National Insurance Corporation's notice to issue a Rights Issue. Rights issues allow shareholders to buy more equity into the company. Read more ▪   Uganda’s fund managers face low returns as inflation falls Fund managers in Uganda are expected to report lower returns this year, caused by depressed earnings from their bond holdings amid a continued drop in interest rates. “Many fund managers are likely to earn windfall incomes tied to government bonds and fixed deposits locked in during 2011. Lower rates on fixed deposits and government bonds however could affect industry earnings for 2013,” said Paul Bwiso, general manager at Dyer and Blair Uganda Ltd. Read more ▪   Sudhir sells BATU shares to British investors City business Mogul, Sudhir Ruparelia has sold all his shares in British American Tobacco Uganda (BATU) for nearly twice their market value to British THS Kingsway fund. Sudhir made sh11.8b from the sale of 2,985,726 shares for sh4, 000 per share. The shares were selling at sh2, 600 on two days before. The deal comes hot on the heels of a profit warning by BATU. The company’s financial books indicate a fall in half year after tax profits to sh4.9b from sh8.1b. "The profit warning is a short term thing, the British investors are looking at the long term,” a source privy to the deal said. This is the second biggest deal closed on the Uganda Securities Exchange since the sale of dfcu bank shares to Dutch investors for sh111.9b in May. Read more ▪  Uchumi to cross-list at Uganda bourse this year Current and potential investors on the Uganda Securities Exchange are set to have more investment options to choose from now that Uchumi Supermarkets is in advanced stages of acquiring approvals to cross-list on the local bourse. Read more ▪ Uganda bourse to automate and review ownership rules The Uganda Securities Exchange (USE) plans to review its membership and trading rules to allow for electronic trading and demutualisation in the biggest legal change since its inception. The Kampala bourse, which started its operations in 1998, has been using rules similar to those the Nairobi Securities Exchange (NSE) had for a long time. However, the NSE has been regularly reviewing its laws. Read more ▪ UAP given green light on Unit Trust management The Capital Markets Authority (CMA) has approved UAP financial services to operate as a Unit Trust Manager, to open more room for innovation and competition in the financial markets. The move will allow the company and other players to develop unit trust funds that will enable investors access alternative financial instruments with competitive returns. According to Mr Patrick Ndonye, the UAP general manager: “Unit Trust Funds will provide the much needed boost in the market by increasing demand for shares which will ultimately result in better prices and returns for investors.” Read more ▪  Massive demand for Stanbic as foreign cash flows in Stanbic Bank shares are attracting huge demand post dividend announcement, restoring the bank to its status as the most sought after company since listing. On Tuesday (16 Jul 2013), 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. Read more ▪ | Uganda Securities Exchange  |