Key questions:
  1. How has the Uganda stock market performed over the last ten months?
  2. What influenced the decline of the USE performance in 2023

In more advanced markets, new information about a company typically influences its stock price without necessarily impacting the overall market index. However, for smaller markets like Uganda, where the market index comprises a few large companies, changes in the stock price of one large listed company can cause a discernible change in the index value.

The Uganda Securities Exchange (USE) has 17 companies listed —nine domestic and eight cross-border companies. Cross-listing is typically a business decision made by individual companies to diversify their investor base and improve their stock liquidity and is facilitated by the regulatory framework of the exchange. For eligibility in the USE, these companies have to meet the requirements for the main investment market segment

The exchange had a total market capitalisation of UGX 16.04 trillion ($4.2 billion) as of January 2024. In the East Africa (EAC) region, the exchange is relatively small compared to Kenya’s Nairobi