By Aloysious Kasoma

Umeme and Stanbic were the most traded counters on the Uganda
Securities Exchange (USE) at the end of November 2020 according to Crested Market Research Report ending November 27th.

Umeme traded 75 million shares worth sh17b, taking up 64.8% of total
turnover, and 22% of total traded volumes.

Whereas Stanbic bank traded 256 million shares worth sh6.3b which was
74.5% of the total volume of shares on the bourse, and 24.3% of total
turnover. Paul Bwiso, the USE chief executive officer noted that
bourse closed November with total turnover worth sh26b from 343.5
million shares traded.

“There was a decline in the number of new accounts opened. Due to the
impact of the lockdown, we had the lowest ever level of activity in
July. There was one day when we did not trade due to internet
connectivity issues,” Bwiso said at the issuers’ webinar.

He added that the USE is looking to improve its game in the area of
private placements.

Keith Kalyegira, the Capital Markets Authority (CMA) Chief Executive
Officer noted that governments treasury bonds of the longest tenures
in Uganda, such as those of 10 years and 15 years are mostly illiquid.
Furthermore, he noted that the market for treasury bonds is mostly at
short end, with 80% of bonds actively traded are 2 years and shorter
tenures. “There is the illiquidity of government bonds which affects
the liquidity of corporate bonds,” Kalyegira said.

He said that since traders were unable to travel to China during the
lockdown, the amount of wealth in the hands of the business community
has grown. He said that traders will need to place that wealth in
instruments that preserve their capital.

“We need a whole new degree of innovation. This calls for a lot of
ingenuity and creativity. Capital preservation is the name of the
game,” he said.

Others that saw better performance were CiplaQCiL which moved Ugx1.47Mn ($398) and Bank of Baroda Uganda traded Ugx534,600 ($145) on 4,455 shares. Only CiplaQCiL’s stock gained in the period rising by 3.96% to Ugx105 among the local counters, the others were flat from last week.

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