Kampala — Investors in Uganda's equity market witnessed a tough 2012 as the money market kept on attracting more investors with the attractive yields.
During much of the year, activity at the Uganda Securities Exchange (USE) was mostly limited to Stanbic Bank Uganda while the Treasury Bills auctioning at Bank of Uganda was mostly oversubscribed.
According to Henry Kakande, a Research Analyst at Crested Stocks and Securities the Equity Market went down last year whereas the money market was fixed thereby attracting more investors.
"When inflation and the Central Bank Rate go up, the Treasury Bills also go up and so investors tend to channel their investments in that direction.
The Equity market was not doing too well because of that," Kakande told the East African Business Week in an interview last week.
Umeme's initial Public Offering (IPO) at the USE has ever since last year improved on the level of trading the bourse as investors moved to invest in the power supplier.
In the first 15 days, the Umeme counter had posted a turnover of Ush12.45 Bn ($4.697m).
It has ever since dominated trading the bourse with an average price of Ush275 per share.
At the turn of the year, activity at the bourse has mainly been on the Umeme, Stanbic Bank and Bank of Baroda counters.
Kakande says that 2013 will be an interesting one for the equity market because there is talk of more IPOs and also more corporate action.