Friday, June 10, 2011

Stanbic hits 350/= per share

On the last day of its Bonus trade, Stanbic bank shares touched a high of 350/= a share, a 30% price gain compared to average trade price of 270 over last Two months, a record price since it IPO listing at 70/= per share at the beginning of 2007. The price has settled in the 330/= per share zone in today's trading.

Bonus Books Closure and Price discovery
It will be interesting to see what the price will be between the Stock Market Bonus book closure date (Today 10/06/11) and the Stanbic Bank Limited Bonus book Closure date due on the 17th June 2011. Reason being- You Sale and Buy without Bonus AND at what price??????

for Baroda Bank in the same situation recentlty there was a deadlock- NO SHARES EXCHANGED HANDS, in this lacuna period, LETS SEE WHAT THE BROKERS BRING THIS TIME CONSIDERING STANBIC IS THE MOST LIQUID STOCK IN UGANDA.


Star Traders' expects Stanbic to trade between 180-210 shillings per share after bonus shares start trading on the 20th June 2011.

Update- 17th June 2011
Well as usual CFS (Crane Financial Services) played its role as the brokers trend setter by trading 200 shares worth 40,000 Ugx (approx- 16 yes 16* USD) so to speak they tasted the waters in this lacuna period! below is a record of trade.
* 1USD = 2,415 Ugx

Date Number of shares traded Turnover Average price

13th June 2011 200 40,000 200
14th June 2011 20,694 3,517,980 170
15th June 2011 734 124,780 170
16th June 2011 143,012 24,246,980 170
17th June 2011 1,805 306,850 170
source- USE market reports, 13-17 June 2011

INVESTOR ALERT- pro-Investor communique

"Prepare Yourself
Only shareholders with a Securities Central Depository (SCD) account shall be able to receive the bonus shares. It is expected that the bonus shares shall be deposited into the SCD accounts of shareholders within the next 60-90 days. If you have Stanbic Bank paper share certificates but have not yet opened an SCD account, contact Crested Stocks and Securities immediately for action.
Withholding Tax
The bonus shares may attract a charge of withholding tax to shareholders. As this issue is still unresolved we shall provide our clients with details once Stanbic announces the way forward.
Effect of Bonus on Market Price
The U.S.E. book closure date was 10th June therefore the share is trading ex-bonus (in other words, the shares trading now will not qualify for the bonus). This week SBU has traded in the range of 165 – 200 Ush per share. This is the equivalent of a pre-bonus range of 330 – 400 Ush. We advise clients that the price discovery process for SBU is ongoing and to contact us with specific questions about the current pricing.
Our offices are located at Impala Hse 6th Floor, Kimathi Avenue Tel. 0414230900 or Email. Open: Mon-Fri 8:30 to 6:00pm and Saturdays 9:00am to 1:00pm." Crested Stock Securities Kampala's Investor Alert on Stanbic Bonus
Star Traders' appreciates Crested leadership role in Investor Education, thanks CSS.

Star Traders' Take!
It is very clear we are in an information age those who seize the opportunity gain! it has not helped that Stanbic to-date has not started on the process that will bring the bonus issues on the market, we are now TRADING IN SHARES WITHOUT THE BONUS AROUND IN REAL TERMS YET THE PSYCHOLOGY OF LEADING US TO TRADE OR BUY HAS THE BONUS SHARES IN MIND. Not many Investors can fully comprehend this (took me sometime as well) whereas some are bound to gain (SELLERS) others will definitely lose (BUYERS) imagine the bonus shares may come on the market earliest September 2011.
Uganda Securities Exchage, Brokers and the Capital Markets Authority of Uganda WE CAN SURELY DO BETTER THIS IS OUR MARKET ALL- GUARD IT.