Bourse business shows optimism

The Uganda Stock Exchange chief executive Paul Bwiso has said turnover at the bourse has increased by 39.45 percent in the first quarter to Shs23.999 billion from Shs17.210 billion recorded in the first quarter of 2023.

‘The main movers on the index have been NSE cross-listed stocks with the catalysts being the 21.89 percent gain by Kenya Shilling against the Uganda Shilling," Bwiso said.

Kenya Shilling was the best performing currency in the world against the USD, Bwiso said.

Subsequently, the ALSI has gained by 22.86 percent while the LCI has dropped by 1.69 percent on Airtel Uganda. NIC and MTN Uganda drops.

EBL, KCB and EABL have seen relatively high increases with Equity's increased performance, KCB's recently announced sell-off of one its subsidiaries i.e., National Bank of Kenya.

Asked about the Bond market, the USE chief told Nile Post that the bond market has also seen slight increases in yields with potential cause coming from the depreciation and volatility of the shilling against the dollar and weakened flows in January and February.

Data from the Exchange also indicates that the top gainers of the quarter were Equity bank Limited, at 77.93 percent, KCB Group at 68.75 percent, East African Breweries at 38.06 percent, Jubilee Holdings Limited by 34.72 percent, and Nation Media Group at 26.83 percent.

These were mainly attributable to the maturing Eurobond and Infrastructure bond issued out the Kenyan government

The top losers of the quarter were Airtel Uganda at -9.34 percent, National Insurance Company which lost -6.15 percent and MTN Uganda by -0.32 percent.

The all share Index (ALSI) Close 28.03 - 1,017.92 [22.86 percent YTD] while the LCI (Close 28.03) - 267.25 [-1.69 percent TD]

Approximately 98 percent of the turnover is from institutions with 94.84 percent of turnover activity on only UMEME and MTNU.

The beginning of the year started with skepticism from some of the institutional investors stemming with the Uganda Shilling's volatility against the US Dollar.

The currency has since relatively stabilised.

Inflation has since also slightly increased prompting the Central Bank's Monetary Policy committee to raise its benchmark rate to 10% from 9.5 percent.

Counter results and performance, DFCU Limited DFCU Limited presented its financial statements for the year ended December 31, 2023.

They recorded a 4.09 percent increase in total revenue for the year to Shs449.154 billion however, their profit after tax reduced by 2.56 percent from Shs29.476 billion recorded in 2022 to Shs28.720 billion for 2023 with a 95 percent cost to income ratio and a 38.39 earnings per share, thus a 5.86 P/E ratio.

Subsequently, their total assets also reduced by 2.62 percent and currently stand at Shs3.158 trillion.

The bank declared a first and final dividend of Shs9.1 per share (4.04 percent dividend yield) a 11.11  percent increase from the Shs8.19 declared for 2022.

The counter is now trading at Shs225 per share.

Stanbic Uganda Holdings Limited presented its financial statements for the year ended December 31 2023.

They recorded a 15.1 percent increase in total revenue for the year: to Shs1.19 trillion.

The banking sector giant ‘s profit after tax increased by 15.1 percent from Shs357.380 billion recorded in 2022 to Shs411.531 billion for 2023 with a 53 percent cost to income ratio and an 8.04 Earnings Per Share thus a 4.22 P/E ratio.

Subsequently, the total assets also increased by 2.7 percent and currently stands at Shs9.3 trillion. Stanbic bank Uganda declared a final dividend of Shs3.03 per share [5.47 total dividend] (17.09 percent dividend yield) a 51.52 percent increase from the Shs3.61 declared for 2022.

The company's share price increased by 52.4 percent in 2023 and is now trading at 34, a 6.25 percent increase.

Airtel Uganda presented its financial statements for the year ended December 31, 2023. The telecom giant recorded a 11.1 percent increase in total revenue for the year: to Shs1.783 trillion.

Their profit after tax decreased by 8.8 percent from Ugx 325.7 billion recorded in 2022 to Shs296.9 billion for 2023 on account of increased costs with a 7.4 Earnings Per Share thus a 11.35 P/E ratio. They recorded a 33.17 percent EBITDA margin.

Their data revenue grew by 11.81 percent and voice calls also increased by 6.7% compared to the previous year. They declared a final dividend of Ugx 2.15 per share. The company's share price is currently Ugx. 84. The company's share price has dropped by 16% since listing with skepticism from retail investors.

MTN Uganda presented its financial statements for the year ended December 31, 2023.

The tech company recorded a 15.1 percent increase in total revenue for the year: to Shs2.669 trillion.

Their profit after tax increased by 21.4 percent from Shs406 billion recorded in 2022 to Shs493 billion for 2023 with a 22.02 Earnings Per Share thus a 7.72 P/E ratio.

They recorded a 51.4 percent EBITDA margin, a 0.2 percent decline thus an improving operating environment.

They also grew by double digits across various revenue lines and subscriber growth.

They declared a final dividend of Shs6.4 per share [18.0 total dividend] (10.59 percent dividend yield) a 13.2 percent increase from the Shs15.9 declared for 2022. The company's share price is currently Shs170.

British American Tobacco Limited presented its financial statements for the year ended December 31, 2023.

They recorded an 8.28% decrease in total revenue for the year: to Shs44.870 billion.

Their profit after tax decreased by 9.84 percent from Shs9.882 billion recorded in 2022 to Shs8.910 billion for 2023 with a 181 Earnings Per Share thus an 82.87 P/E ratio.

They declared a first and final dividend of Shs181 per share (1.21 percent dividend yield) a 13.4  decrease from the Shs209 declared for 2022. The company's share price is currently Shs15,000.

UMEME presented its financial statements for the year ended December 31, 2023.

They recorded a 16.37 percent increase in total revenue for the year to Shs2.196 trillion however, there profit after tax reduced by 92% from Shs148,215 billion recorded in 2022 to Shs11,470 billion for 2023 with a 7.1 Earnings Per Share thus a 56.33 P/E ratio.

The reduction in profit is on account of accelerated depreciation due to the concession agreement with the government coming to an end.

There has been increased activity on the counter with its price increasing to 438 from 400 in a two-week period.

This comes on the account that despite the fact that the company's concession is coming to an end, its cash position is expected to improve from the operations of 2024 and the government payout estimated at $339 million.

Currently, they have fully paid off their long-term debt and thus residual cash shall be paid to shareholders.

“Various counters declared profit warnings however, all local companies that have released financials have declared a dividend," Bwiso said.

"The operating environment continues to improve post COVID and thus the activity on the exchange is improving and expected to continue improving."