There has been a rebound in trading activity on Uganda Securities Exchange (USE) due to the return of foreign and international investors that had sat out, fearing election related tension that had been building up in the first quarter of 2021.
USE Chief Executive Officer Paul Bwiso says most locally listed companies had registered better than projected performance for the year end 2020, which in turn had encouraged demand for shares as investors sought to share into the profitability.
He said in the period ended June, turnover tremendously increased, growing to Shs5.9b, which represented a pickup of 74 per cent, compared to Shs3.4b registered in the quarter ended March.
Mr Bwiso explained that Uganda Clays and Stanbic Bank dominated trading activity at the Uganda Securities Exchange (USE) in the quarter ended June.
During the period, Uganda Clays traded 85.4 million shares, accounting for 56.79 per cent of traded volumes while Stanbic accounted for 25.3 per cent of traded volumes or 38.1 million shares.
Mr Andrew Mwima, the USE trade manager, added that there has been a noticeable improvement in retail participation, contributing more than 85 per cent of the recorded deals.
“There has been a rebound in the economy due to the conclusion of the election season and phased easing of the lockdown which saw increased participation of foreign and institutional investors,” he said.