Overall trading value at the Uganda Securities Exchange slowed down to sh2.7m from last week’s sh41m, while total shares sold also declined sharply to 9,777 from 141,689 shares.
Uganda Securities Exchange (USE)
At macro level, headline inflation rate for July 2013 rose to 5.1% from 3.6% in June, largely because of the prevailing drought that has affected the price of major food crops.
But market analysts foresee no immediate reaction on the trading market following the upward surge in inflation, although inflation usually wipes out investment value.
Joseph Domingo from Crested Stocks Securities explains that the only reaction should be from the Central Bank strengthening its policy to stimulate a reduction of lending rates.
“It is a lot for companies (even) yet these are the ones expected to impact the economy,” said Domingo.
On the market, dfcu Bank sold 1,289 shares, a rise from the 501 shares sold in the past week, which was the highest trading volume of the day. The bank got turnover of sh1.3m from sh518,535. The average trading price remained at sh1,035.
Umeme remained active, selling 2,622 shares, although it was a major drop from the previous comparative session of 110, 000 shares.
Umeme’s turnover on Tuesday was sh943,920 compared to the sh39m in the past session.
Stanbic Bank remains in pole position with the counter attracting the biggest demand for several weeks running now, although there was no actual trading on Tuesday.
There were bids for over 27 million Stanbic shares, with an unmatched 13 million offers.
Analysts are predicting good deals going forward should demand and supply find middle ground. In the past comparative trading session, there were bids for 23 million Stanbic shares.
New Vision, Uganda’s largest multimedia house, sold 363 shares at an average price of sh605 to realise sh219,615 in turnover.
National Insurance Corporation also remained active, selling 5,503 shares and realising sh192,605 in turnover. Last week, the insurer sold 11,188 shares to pick total turnover of sh391.590.
There was no activity on BATU and Uganda Clays, that were active last week.
By David Mugabe, The New Vision
