The Uganda Stock Exchange has reported a sharp downturn in performance for the first quarter of 2025, with turnover falling to Shs17 billion from Shs24 billion in first quarter of 2024.
This 29.35% drop in the All-Share Index turnover marks one of the most significant quarterly declines in recent years, stirring concern among market watchers and investors alike.
The Chief Executive of the Uganda Securities Exchange, Paul Bwiso, attributed the decline largely to the ongoing uncertainty surrounding Umeme buyout with the suspension triggering by unresolved negotiations over the buyout price has effectively frozen a substantial chunk of investor activity on the exchange.
The Umeme buyout continues to bite further as the Uganda Securities Exchange registered poor figures in the first quarter of 2025
Umeme has long been one of the most actively traded counters on the Uganda Stock Exchange, and its suspension sent ripples through investor confidence.
According to the Quarter 1 results for running year 2025 released by the Uganda Securities Exchange,
The Turn Over drastically reduced from 24billion in Q1 2024 to 16 billion shillings in Q1 2025
The volumes of shares traded in Q1 2024 Increased from 118million to 122million shares in Q2 2025
The number deals in the first quarter of 2024 increased from 1762 to 2165 in the first quarter of 2025
Management at the Uganda Securities Exchange says that the temporary freeze on Umeme not only removed a high-volume stock from circulation but also contributed to a broader sense of caution in the market.
“Many investors held back from selling because there was no agreed price on UMEME shares,” Bwiso Stated
Despite the grim figures, USE management remains cautiously optimistic, noting that resolution of the Umeme issue could bring renewed liquidity and investor participation in the coming quarters.
With more primaries dealers being licensed, The Capital Markets calls for more non-bank Financial Institutions to apply for their respective dealer license to promote transparency and liquidity with in the fixed Income marker.
As the market looks ahead to Q2, eyes remain firmly fixed on developments in the Umeme deal and whether a rebound can reverse the bruising start to 2025.