UMEME tops number of deals on the share markets

Umeme has topped the number of closed deals in the first quarter of the year 2013, contributing more than 37% (sh14b) to the share market.

The counter share price has steadily risen in recent months to the current highs of sh345 from its opening rate of sh275 in November 2012 after a well-received Initial Public Offer.

Information from the Uganda Securities Exchange (USE) indicates that of the total turnover for the 1st three months of the year, 76.97% arose from the UMEME counter; SBU, BOBU and DFCU counters each contributed 15.08%, 4.64% and 2.32% respectively of the total turnover during the period.

The UMEME counter had the largest number of deals in the period with 37.8% while SBU had 36.93% of the total deals.

The All Share Index rose steadily during the quarter opening at 1203.42 in January and closing at 1531.04 in March representing a 27% growth in the period.

This was mainly attributed to the strengthening of the Kenyan shilling, also most cross listed counters posted appreciations in their share prices.  UMEME, BOBU and DFCU also appreciated significantly during this period.

Most listed companies posted sound financial growth compared to the previous financial year. This good performance was reported in the financial results that were released during this period driving share prices on the USE upwards.

The UMEME share price has exponentially as 2012 profits rose on the back of an efficient prepayment metering system, mobile money payment options and electronic billing.

Revenues inched up to Ugx 860 bilion  from Ugx. 457 billion  a year before as connections doubled to 513,000 since the company’s 20 year concession started in the year 2005.

The company directors have agreed on a dividend of Ugx.15 per share, a total Ugx. 24.4 billion  is to be paid to shareholders on the 24th of June 2013 with the shareholders register closing a month earlier.

Stanbic bank Uganda’s before tax profits hit Ugx.178 billion , increasing 9% at the end of the year 2012 due to higher interest on deposits and placements, loans and advances, and gains on trading securities. The banks’ profits grew from Ugx. 164b, a year before. The Stanbic bank share price rose sh5 in recent days to sh30 per share from Ugx.25.

Equity trading statistics January – March 2013

MONTH JAN FEB MAR TOTAL
Volume 66,882,225 91,365,020 16,319,162 174,566,407
Turnover 13,945,003,650 4,234,181,850 1,256,246,670 19,435,432,170
Daily avg t/over 664,047,793 235,232,325 66,118,246 321,799,455
Trades 514 498 369 1,381
Daily avg trade 24 28 19 24
Trading days 21 18 19 58
ISSUER DEALS TURNOVER % TURNOVER
UCL 74 1,598,118 55,711,725 0.29
DFCU 65 440,697 451,339,740 2.32
EBL 1 8,205 6,851,175 0.04
BOBU 119 3,489,134 902,761,735 4.64
UMEME 522 50,178,704 14,959,095,080 76.97
BATU 18 39,070 88,344,550 0.45
NIC 49 781,504 27,352,640 0.14
SBU 510 118,010,324 2,930,114,925 15.08
NVL 22 20,451 12,270,600 0.06
NMG 1 200 1,590,000 0.01

Commentary:  The tables above provide a summary of the actual trading that took place on the bourse in the first quarter of 2013. Of the total turnover, 76.97% arose from the UMEME counter; SBU, BOBU and DFCU counters each contributed 15.08%, 4.64% and 2.32% respectively of the total turnover during the period. The UMEME counter had the largest number of deals in the period with 37.8% while SBU had 36.93% of the total deals.

Market developments:

Market outreach: The USE is undertaking a sensitization drive to educate masses about the different investment and financing options available on the bourse, some of the target audience includes universities, business communities and corporate institutions. During this quarter, two universities Makerere University Business School and Makerere University were visited by the USE and SCD accounts were opened for all student participants. The exchange visited several business entities that qualify to be listed on the Growth Enterprise Market Segment, and during those visits presentations were made on how the companies can benefit from the different financing options available in our capital markets.

Bond listings: Three treasury bonds with a total value of Ugx 300bn were listed on the bourse, although secondary market trading was mainly effected by the primary dealers.

USE Index performance: The Index rose steadily during the quarter opening at 1203.42 in January and closing at 1531.04 in March representing a 27% growth in the period. This was mainly attributed to the strengthening of the Kenyan shilling, also most cross listed counters posted appreciations in their share prices.  UMEME, BOBU and DFCU also appreciated significantly during this period.

Also note that most listed companies posted sound financial growth compared to the previous financial year, this good performance was reported in the financial results that were released during this period driving share prices on the USE upwards.

Corporate Bond Secondary Market Activity

There was no activity recorded on the Corporate Bond segment during the quarter and as such no turnover was recorded.

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