A Case for Investing in Uganda's Equity Markets. MTN Shares on Sale
June 5, 2024
Friends,
Globally, especially in developed countries, a significant and growing number of the population owns shares in various listed companies, particularly those that are profitable.
It's common knowledge that companies traded on the New York Stock Exchange, such as Tesla, Meta, Google, Microsoft, and Apple, are among the most recognized due to their size and global presence. Their activities and performance are frequently discussed by investors, writers, and commentators.
For instance, Nvidia, a company at the forefront of the AI chip industry, has seen remarkable success on the stock exchange, now valued at over 2 trillion U.S. dollars.
Nvidia’s stock price over time.
Turning our attention to Africa, the Johannesburg Stock Exchange stands out as one of the continent's premier exchanges, with notable companies like MTN and Standard Bank Group among its listings. Similarly, the Nigerian Stock Exchange is a vibrant and liquid market, allowing for the easy buying and selling of shares.
MTN Nigeria’s stock price over time.
Closer to home, the Nairobi Stock Exchange in Kenya is highly regarded, and we encourage investment in the companies listed there, such as CB Bank, Equity Group, and Safaricom PLC, the Kenyan telecommunications giant. In fact, across many countries, the future of investment is increasingly seen in the capital markets, and particularly in the equity market.
Safaricom Stock price over time.
This brings us to Uganda, where there is a significant opportunity to develop our stock exchange and equity market.
As many experts will tell you, it's better to own even a small fraction of a trillion-dollar company than to own 100% of nothing. Investing in large companies can be highly rewarding. For example, MTN Uganda is offering over 7% of its total shares on the market at an effective price of just 140 Ugandan shillings per share. While this may be lower than the initial public offering price a few years ago, it reflects the inherent equity price risk of the stock market, where prices can fluctuate at any time.
MTN Uganda Stock price over time.
The growth of our equity markets depends on an increasing number of investors opening CSD accounts with the Ugandan Securities Exchange platform and showing interest in these companies. With a minimum investment of just 240,000 UGX, individuals can begin investing in MTN shares. However, MTN is not the only option; other promising companies on the Uganda Securities Exchange (USE) include Bank of Baroda, which has shown substantial capital gains growth, and Stanbic Bank Uganda, which is performing exceptionally well. Airtel, which listed just eight months ago, is also a profitable company.
Bank of Baroda stock price over time
By participating in the market, investors contribute to the growth of the industry. For those with disposable income, investing in shares is a practical way to grow wealth. Additionally, shareholders often receive incentives such as dividends shortly after their investment.
The sale of MTN shares is being led by SBG Securities, but there are other registered brokers like Crested Capital and UAP through which orders can be placed.
With MTN being a profitable company that pays dividends annually and backed by significant institutional investors like NSSF Uganda, this presents an excellent opportunity for potential investors to diversify and continue investing in the capital markets.
i would like to know what these are 1.high yield saving acct,
2.dividend stocks. how a Ugandan can get these.how useful are they financially.
thank you for the golden nuggets about investments.are their investments that pay monthly dividends.