Kampala — The interconnectedness of the Uganda Securities Exchange (USE) to the Nairobi Securities Exchange (NSE) has a lot to do with the dismal market performance in 2016.
The market had started the year with a capitalisation of Shs24.5 trillion but by Wednesday December 28, with only two days left to trading, it had fallen to Shs20.3 trillion.
The USE has eight cross-listed firms from the NSE, especially on account of commercial banks in Kenya losing value in their shareholding. Kenya Airways, Jubilee Holdings, Centum Investments, KCB Group, Equity Group, UCHUMI, Nation Media Group and East African Breweries are the eight cross-listed companies.
Cross-listing refers to where company shares are floated on a different stock exchange – in this case, a foreign country – after being listed on the primary stock exchange. In this case, the eight Kenyan companies are listed on the primary market (NSE) but cross-listed on the secondary market (USE).
These companies do have subsidiaries that do business in Uganda.
Capping interest rates On August 24, 2016 president Uhuru Kenyatta signed into law a law that allows Kenya to cap interest rates.The following day, listed Kenyan banks saw the value of their shares tumbled sending the stock markets in Kenya […]