Mr. Ojambo Investors indeed shun Uganda Stock Exchange. I�ve just heard the British government is reclaiming British railways, this time under rigours control.
I am not against the stock market, if 45% of our population could but how many Ugandans are getting anything out of it � expect those who can mobilise funds in a limited period of time. It is not a coincidence that most banks in Uganda are not Ugandan but rather international offering world-class services � indeed they must be paid for that. I don�t know whether there is 10,000 Ugandans who can invest a million shillings in shares in a week. So who is getting the beef? The question may be, is who pays for what and how � the peasants paying to the banks through the state institutions like Bank of Uganda? Or banks doing a great service by offering low rate investment funds to Ugandan peasantry? Look at this i.e. from Standard Chartered Bank personal account ATM withdrawal charge - 200/= (per withdrawal) Ledger fee Application - 15,000/= Interest if you are to below 500,000/= is above 10% Monitor Business Week Badru D. Mulumba's Amidst rural doom, banks make a killing May 6, 2004, and Behind growth, lies 'beautiful' highways May 20, 2004 are very interesting pieces to read through, in order to get hold of the flux within Uganda economic 5 � 6% economic growth. He cites for example the boom within the banking industry; it irks me to wonder if Investments built on graft by French envoy Ambassador, Jean-Bernard Thiant was far off mark, particularly his behind growth, lies beautiful highways. Notice banks have refused to put up shares in Uganda stock exchange for poor Ugandans to buy. what more can we do with a dead government? Bwanika. ------------ Investors shun shares for bonds By Muhereza Kyamutetera July 16, 2004 KAMPALA - High demand for government's 2-year, 3-year, 5-year and 10 year bonds issued in the last two quarters of fiscal year 2003/2004 has caused a sharp fall in share trading. This was contained in the Uganda Securities Exchange (USE) quarterly bulletin. The statement read; "The decline in activity can be attributed to a switch in investment preferences towards the attractive government debt instruments."Government beginning this year issued the 2-year, 3-year, 5-year and 10-year bonds. The 2-year and 3-year bonds have also been re-opened. The four bonds including the re-openings were all oversubscribed. Secondary trading for these bonds has yielded a total of Shs13 billion. Equity turnover for the fiscal year 2003/2004 stood at Shs321.4 million dropping from Shs1 billion recorded in the previous fiscal year.The number of shares traded in the same period also fell to 470,836 shares from 584,484 shares traded in 2002/2003. The number of deals also nearly fell by a half from 437 deals to 229 deals in 2002/2003.Equity turnover for the April to June quarter plunged by 347 percent from Shs76.5m recorded in the first quarter to Shs17.2m. The number of shares traded also declined from 259,014 to 15,521 shares. The number of trade deals also fell from 68 deals to 44 shares. The Bank of Baroda (BOBU) and Uganda Clays (UCL) counters dominated trade activity for the quarter, taking 52.4 percent and 45.5 percent of total turnover respectively. Kenya Airways (KA) shares accounted for 1.7 percent while British American Tobacco (BATU) and East African Breweries (EABL) each accounted for less than 1 percent. USE Chief Executive Officer, Mr Simon Rutega said the reason BATU and EABL traded at less than 1 percent of the total turnover is because their holders stuck on to them. "For example, EABL shares have in the past gone up by over 300 percent and their holder do not want to sell. We often get many orders for these shares and there are no sellers," he said. "Some stocks are more liquid that others in terms of demand and supply. It is a question of these market forces," he said. Bwanika ________ http://www.idr.co.ug http://p201.ezboard.com/fugandamanufacturersassociationfrm1 ----------------------------------------------------------- Spela poker mot verkliga m�nniskor �ver Internet. �ver 40 000 spelare online http://www.multipoker.com -------------------------------------------- This service is hosted on the Infocom network http://www.infocom.co.ug
