Ugandan market watch

The Uganda Securities Exchange recently traded at $1,031 in turnover with 25,443 shares across three counters. Among them, UMEME Limited dealt $992 from 16,347 shares, Stanbic Uganda traded $25 from 3,396 shares, and Uganda Clays moved $14 from 5,700 shares. Oscar Emasu, a Research Analyst at Crested Capital, shed light on the current market scenario in Uganda amidst the ongoing COVID-19 pandemic. Emasu shared insights on the impact of the virus on the market, the lackluster performance of equities, the liquidity surge in fixed income securities, and the recent developments in the market landscape. Speaking about the broader context, Emasu highlighted that the challenges faced in Uganda were not unique and echoed the situation in many other African countries grappling with the waves of the virus. Emasu emphasized the need for countries to adapt and learn to coexist with the virus through subsequent waves. He noted the subdued market activity in the current period, usually characterized by dividend-driven trends. However, due to delays in dividend declarations by banks, investor interest has waned, dampening market movement. The banking sector, a key player in the market, is expected to clarify its dividend position later in the year, potentially influencing market sentiment. Furthermore, Emasu pointed out the contrasting dynamics between equity and fixed income securities, with the latter experiencing heightened liquidity following the start of a new calendar month. Notable market news included the National Media Group's debut bond listing and the Central African franchise's plans to acquire a 10% stake, an indicator of evolving market dynamics. Emasu also addressed the performance of cross-listed companies, highlighting the notable price increase of one such company in Uganda compared to its primary listing in Kenya. Despite the lack of trading activity for certain counters, Stanbic Holdings Group stood out with price movements attributed to outcomes from its recent annual general meeting. Emasu highlighted shareholder expectations for dividend payments amid the turbulence, underscoring the importance of corporate resilience during challenging times. As the market cautiously navigates the uncertainties brought by the virus, Emasu expressed optimism that sustained awareness and adaptation could stimulate renewed market activity in the future. Discussing the government's recent approval of supportive COVID-19 treatments and plans for domestic vaccine manufacturing, Emasu outlined potential positive impacts on the market. While no immediate market responses to the developments were evident, Emasu indicated potential future opportunities for listed pharmaceutical companies once official collaborations or advancements materialize. Emasu emphasized the significance of accessible and tested treatments in combating the virus and restoring public confidence in the market's stability.