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Uganda Securities Exchange

Summary

The Uganda Securities Exchange (USE) is the principal stock exchange of Uganda. It was founded in June 1997. The USE is operated under the jurisdiction of Uganda's Capital Markets Authority, which in turn reports to the Bank of Uganda, Uganda's central bank.[2]

Uganda Securities Exchange
Company typeStock Exchange
IndustryFinance
Founded1997; 27 years ago (1997)
HeadquartersKampala, Uganda
Key people
Charles Mbire
Chairman
Paul Bwiso
Chief Executive Officer[1]
ProductsSecurities
Websitewww.use.or.ug

The exchange opened to trading in January 1998. At that time, the exchange had just one listing, a bond issued by the East African Development Bank. Trading was limited to only a handful of trades per week.[3]

As of July 2014, the USE traded 16 listed local and East African companies and had started the trading of fixed income instruments.[4] The exchange is a member of the African Stock Exchanges Association.[5]

The USE operates in close association with the Dar es Salaam Stock Exchange in Tanzania, the Rwanda Stock Exchange, and the Nairobi Stock Exchange in Kenya. According to published reports in 2013, there were plans to integrate the four exchanges to form a single East African bourse.[6][7]

Uganda All Stock Index (ALSIUG) is the benchmark Index of the Uganda Securities Exchange.[8]

Trading edit

A published report in February 2011 claimed that USE would increase trading to five days a week in March 2011.[9]

During the first quarter of 2010, the USE adopted the Settlement and Clearing Depository electronic trading system. According to a published report in January 2011, other electronic modalities were being considered for the exchange.[10] In 2010, the USE was the best performing stock exchange in Sub-Saharan Africa, with an All-Shares Index return of 74 percent between January and November 2010.[11] On 20 July 2015, the USE initiated its electronic trading platform, backed by three independent data servers, cutting to three days (previously five days) the time it takes to settle trades.[12][13]

Market listing edit

As of November 2023

Number Symbol Company Notes
1. BOBU Bank of Baroda (Uganda) Finance, banking
2. BATU British American Tobacco Tobacco products
3. DFCU DFCU Group Finance, banking
4. EABL East African Breweries Brewing, gin, distilled beverages
5. JHL Jubilee Holdings Insurance
6. KA Kenya Airways Aviation
7. KCB KCB Group Finance, banking
8. NVL New Vision Group Printing, publishing, broadcasting, television
9. SBU Stanbic Bank Uganda Limited Finance, banking
10. UCL Uganda Clays Limited Manufacturing, construction materials
11. EBL Equity Group Holdings Limited Banking, finance
12. NIC National Insurance Corporation Insurance
13. UCHM Uchumi Supermarkets[14][15] Supermarkets
14. NMG Nation Media Group[16] Publishing, printing, broadcasting, television
15. CENT Centum Investments[17] Investments, private equity, real estate
16. UMEME Umeme[18][19] Power distribution
17. CQCIL Cipla Quality Chemical Industries Limited[20] Pharmaceutical manufacturing
18. MTNU MTN Uganda[21] Mobile Telephony
19. AIRTEL UGANDA Airtel Uganda[22] Mobile Telephony

Notes on market listings edit

(1) East African Breweries Limited, Kenya Airways and Jubilee Holdings, are primarily listed on the Nairobi Stock Exchange and are cross-listed on the Uganda Securities Exchange and on the Dar es Salaam Stock Exchange.[23] (2) Centum Investment Company Limited, Equity Group Holdings Limited, and Jubilee Holdings are listed primarily on the Nairobi Stock Exchange and are crosslisted on the USE.[24] (3) Kenya Commercial Bank Group and Nation Media Group are listed primarily on the Nairobi Stock Exchange and are crosslisted on the USE, the Dar es Salaam Stock Exchange, and the Rwanda Stock Exchange.[25] (4) Uchumi Supermarkets, a regional supermarket retailer with headquarters in Nairobi, Kenya, is listed on the Nairobi Stock Exchange, is crosslisted on the USE and the Rwanda Stock Exchange, and plans to crosslist its shares on the Dar es Salaam Stock Exchange.[26] (5) Umeme, the largest electric power distributor in Uganda, is listed primarily on the USE and is crosslisted on the Nairobi Stock Exchange.[23] (6) Equity Group Holdings Limited is listed primarily on the Nairobi Stock Exchange (2006). It is crosslisted on the USE (2009) and the Rwanda Stock Exchange (2015).[27] (7) In February 2015, Ugandan media indicated that both Housing Finance Bank and Crane Bank, which had intended to list their shares on the USE, have since changed their plans and put their IPOs on hold.[28]

Ownership edit

The exchange is owned by 16 stock brokers. In August 2016, a law was passed to allow the owners to sell shares in the stock exchange to members of the public through an initial public offering.[3] On 18 May 2017, the USE demutualised and registered as a "public company, limited by shares". Its authorised share capital is USh 1 billion, consisting of 100 million shares of 10/= each. At incorporation, the paid up capital was USh 42 million, with each of the founding investor firms owning 6,000,000 shares, each valued at 10/= each.[29]

The shareholding in the stock of the Uganda Securities Exchange is as depicted in the table below.[29]

Uganda Securities Exchange Stock Ownership
Rank Name of Owner Percentage Ownership
1 African Alliance Uganda Limited
14.29
2 Baroda Capital Limited
14.29
3 Crane Financial Services Limited
14.29
4 Crested Capital Limited
14.29
5 Dyer & Blair Uganda Limited
14.29
6 Equity Stock Brokers Uganda Limited
14.29
7 UAP Old Mutual Financial Services Limited
14.29
Total
100.00

Note The totals are slightly off due to rounding.

See also edit

References edit

  1. ^ Mark Keith Muhumuza (20 February 2015). "USE gets new chief executive". Daily Monitor. Kampala, Uganda. Retrieved 25 July 2015.
  2. ^ Geoffrey Onegi-Obel (19 August 2016). "Bank of Uganda governors and the capital markets industry". The Observer (Uganda). Kampala. Retrieved 23 October 2016.
  3. ^ a b Anyanzwa, James (20 August 2016). "New law passed, gives Ugandan bourse nod to go public". The EastAfrican. Nairobi. Retrieved 23 October 2016.
  4. ^ Mark Keith Muhumuza (5 February 2015). "Automated stock market to start trading in May". Daily Monitor. Kampala. Retrieved 19 August 2016.
  5. ^ Wafula, Walter (31 December 2010). "USE to increase trading days next year". Daily Monitor. Retrieved 25 July 2015.
  6. ^ IBTimes Staff Reporter (9 July 2013). "East African Stock Exchange In The Works To Merge Buoyant, Profitable Markets". IBTimes. New York City. Retrieved 25 July 2015.
  7. ^ Winile Masinga, and Polycarp Machira (9 July 2013). "East Africa Hopes to Have Regional Stock Exchange in a Year - Experts". London: TrustMedia via AllAfrica.com. Retrieved 25 July 2015.
  8. ^ Uganda Securities Exchange Holidays
  9. ^ Ojambo, Fred (10 February 2011). "Centum of Kenya Starts Secondary Trading in Uganda". Bloomberg News. Retrieved 25 July 2015.
  10. ^ Monteiro, Ana (3 January 2011). "Ugandan Bourse Plans to Expand Trading Days, Daily Monitor Says". Bloomberg News Quoting Daily Monitor. Retrieved 25 July 2015.
  11. ^ Oketch, Martin Luther (4 January 2011). "USE leads Sub-Saharan Africa in All Shares Index 2010". Daily Monitor. Kampala. Retrieved 25 July 2015.
  12. ^ Busuulwa, Bernard (23 July 2015). "Kampala bourse trading platform goes live". The EastAfrican. Nairobi. Retrieved 23 July 2015.
  13. ^ Oketch, Martin Luther (2 September 2015). "Automated system raises USE turnover by Shs17b". Daily Monitor. Kampala. Retrieved 2 September 2015.
  14. ^ Mugabe, David (7 November 2012). "Corporate deals to stir dull market". New Vision. Retrieved 6 July 2014.
  15. ^ Kulabako, Faridah (29 August 2013). "Uchumi To Cross-List At Uganda Bourse This Year". Daily Monitor. Retrieved 25 July 2015.
  16. ^ Faridah Kulabako, and Walter Wafula (7 October 2010). "NMG to cross-list in Uganda on October 19". Daily Monitor. Retrieved 25 July 2015.
  17. ^ Ojambo, Fred (29 December 2010). "Uganda Approves Secondary Listing by Centum Investment of Kenya". Bloomberg News. Retrieved 25 July 2015.
  18. ^ Ilungole, Stephen (2012). "USE welcomes Umeme listing". New Vision. Kampala, Uganda. Retrieved 25 July 2015.
  19. ^ Moses Mugalu (29 November 2012). "Umeme lists shares today". The Observer (Uganda). Retrieved 25 July 2015.
  20. ^ Bakundana, Martin (29 August 2018). "Why Uganda's Stock Market Is Not Growing". New Vision. Kampala. Retrieved 24 September 2018.
  21. ^ Elias Biryabarema (6 December 2021). "MTN Uganda shares jump 3% after listing on Ugandan bourse". Reuters. Retrieved 7 December 2021.
  22. ^ Deogratius Wamala (7 November 2023). "Airtel lists on Uganda securities exchange". Daily Monitor. Kampala, Uganda. Retrieved 8 November 2023.
  23. ^ a b Mugwe, David (1 August 2013). "Umeme makes first trade at Nairobi Stock Exchange". Daily Monitor Mobile. Kampala. Retrieved 19 August 2016.
  24. ^ Kulabako, Faridah (31 January 2011). "Centum to cross-list on USE". Daily Monitor. Retrieved 25 July 2015.
  25. ^ Mugabe, David (18 June 2009). "KCB offers 2 billion shares to Rwandans". New Vision. Archived from the original on 25 July 2015. Retrieved 25 July 2015.
  26. ^ Githaiga, Hellen (6 November 2013). "Uchumi to list on Kampala bourse Wednesday". The EastAfrican. Retrieved 25 July 2015.
  27. ^ Ngigi, George (11 February 2015). "Equity debuts at the Rwanda Stock Exchange". Business Daily Africa. Nairobi. Retrieved 25 July 2015.
  28. ^ Oketch, Martin Luther (17 February 2015). "They promised to sell shares, what happened?". Daily Monitor. Kampala. Retrieved 25 July 2015.
  29. ^ a b Martin Luther Oketch (5 October 2017). "USE becomes public limited company". Daily Monitor. Kampala. Retrieved 5 October 2017.

External links edit

  • Uganda pension funds control 19% shares on the USE - 14 August 2016
  • Uganda Securities Exchange website

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