MTN Uganda Stock Rebounds to IPO Price After 1.52% Gain

MTN Uganda’s stock has bounced back to its initial public offering (IPO) price of sh200 per share on the Uganda Securities Exchange (USE) following a 1.52% increase in value this week. This marks a significant recovery for the telecom giant after recent fluctuations in the market. The rise in MTN shares comes after robust demand in the market, particularly since the conclusion of its secondary market offer in June. That offer, priced at sh170 per share, was oversubscribed by an impressive 230%, resulting in strong investor interest.

The total turnover for the week on the USE surged to sh5.1 billion, a major increase compared to the sh80.9 million traded in the previous week. According to Crested Capital’s market report, the volume of shares traded also saw a dramatic rise, soaring to 24.36 million shares from the previous week’s 0.99 million shares.

Umeme led the market this week, accounting for 86.55% of the total turnover with sh4.45 billion. Stanbic Holdings followed with a turnover of sh624.2 million, while MTN Uganda contributed sh54.6 million to the weekly total.

Other companies that were notable movers on the exchange this week included Airtel Uganda, Bank of Baroda (BOBU), Quality Chemical Industries Limited, Uganda Clays Limited (UCL), dfcu Limited (DFCU), and NIC Holdings Limited (NIC).

In terms of price movements, Bank of Baroda saw the largest increase in share price this week, rising by 12.25% to sh22.45 per share. Stanbic Holdings also saw gains, with a 4.44% increase, bringing its share price to sh47 per share. On the downside, Airtel Uganda was the sole loser among the local firms, with a 1.45% decrease in its share price to sh68.

Cross listed stocks also experienced fluctuations. Centum Investments gained 9.17%, while Equity Group Holdings saw a more modest rise of 1.19%. However, not all cross-listed companies performed well; Jubilee Holdings Limited led the losers, falling by 6.95%. Other cross-listed firms that experienced declines were East African Breweries Limited, KCB Group, and Nation Media Group.

The Uganda Securities Exchange All Share Index (USE ALSI) climbed by 0.69% to 1,103.13 points, reflecting a slight upward trend in the overall market. Additionally, the Composite Index (C11) increased by 1.43% to 103.62 points, indicating a generally positive performance across the board.

The market saw a mixture of gains and losses, but overall activity increased significantly compared to the previous week. Investors appear to be responding positively to the recent surge in activity, particularly in key sectors such as energy and finance.