[2007-10-30]  Clays Share Price Up
One year after the Uganda Clays Limited (UCL) share split, the company has witnessed a phenomenal doubling of its share price.

Since its Initial Public Offering (IPO) in 2000, UCL experienced a phenomenal 463% rise in share price from $2.2 (Ush4,000) in January 2000 to $12.2 (Ush22,530) by October 5, 2006.


The price fell to Ush2,253 after the share split was done in the 1:10 ratio. But since then, the Uganda Securities Exchange's (USE) most prolific counter has never looked back.

This is quite astronomical considering that after the share split, UCL traded at less than Ush3,000. This means the figure has just about doubled, making UCL the most sought after stock at the bourse.

There is a rich flow of positive gains for investors at the bourse following the announcement of commendable 2007 half year results for most companies besides UCL. In the last one week, the tile maker had gained 32% in value.

But UCL is not the only star performer. Stanbic bank is keeping good pace.


"Institutional presence coupled with heavy supply on the Stanbic counter combined to give stellar end-of-week performance as trading revenues shot up 126% to a remarkable $1.2 million (Ush2.1billion)," said Grace Semakula, a broker at African Alliance, a fund manager and brokerage firm in the region.

The Stanbic counter recorded a turnover of over $1.1 million (Ush2 billion) as close to 11 million shares exchanged hands at a volume weighted average price of Ush190. "We believe the current share price levels have provided attractive exit-opportunities to a huge number of retail investors," said Semakula.

New Vision Limited traded at a new high of $0.4 (Ush700), up from the previous $0.39(Ush 670) while DFCU Limited held steady at $0.25 (Ush430).


Source: Copyright © 2007 East African Business Week.