Uganda’s stock market suffers a losing run

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Russell Padmore Business correspondent, BBC News

It has been a losing year for investors who hold shares listed on the Uganda Securities Exchange.

The total value of all the companies listed on the financial market fell by 15% in the year to June.

The stock market here was hit worst in the second half of the financial year, as the coronavirus pandemic crippled the Ugandan economy.

Earlier this year, more investors shifted offshore, putting their money into the United States, attracted by the rising value of the dollar, a trend that increased with the spread of coronavirus.

According to Uganda’s Capital Markets Authority, the total value of listed companies fell from $6.1bn (£4.6bn) to $5.1bn and companies with a parallel listing at the Nairobi Stock Exchange, were among the big losers.

However six of the nine Ugandan firms which are only listed in Kampala saw their shares drop between 14 and 40%.

Investors in Uganda will be hoping that a vaccine against Covid-19 will lead to economic recovery and an upturn for their share holdings next year.Article share tools