Buy shares in Uganda companies: Whether you are an individual investor or institutional investor, having knowledge of what kind of stocks you should invest your money in is very vital since it helps you avoid making losses while at the same time maximizing your expected earnings at the end of it all.
Picking stocks for your portfolio in 2020 more especially during times like this can become a bit more difficult than in times when the market produces gains week after week. That is why by carefully looking at the Uganda Securities Exchange market snapshots, we have been able to come up with a list of the best stocks to buy in 2020. Lets first understand more on stocks.
Who is an investor?
Investors are divided into two i.e, individual investors who can be local, east Africans and foreign, and Institutional investors who can may include but not limited to Companies, Investment Clubs, SACCOS, Pension Funds, Banks, Investment Banks, Fund Managers, and also can be classified as local, east Africans and foreign.
What is a Share?
A share can be defined as that single unit showing ownership in a company. When you buy shares, you become part of the company owners.
How to become a shareholder in Uganda?
In order to become a shareholder in Uganda, you are supposed to buy shares on the companies you are interested in. You can start by visiting any of the licensed stock brokerage firms and open a Security Central Depositary (SCD) Account.
How to open a SCD account?
In order to open a SCD account, you will need to have a valid I.D and 3 passport photographs. SCD account opening is free and there are no monthly or annual charges are associated with it.
How do you buy Shares?
In order to buy shares and become a shareholder, you need to do it through the Uganda securities exchange (USE) by way of approaching a stock broker and expressing your interest to buy any number of shares of your choice from the companies you want. You will be provided with details where after you will be required to deposit money on the trust account. The stock broker will then post the order (bid) on the Automated Trading System (ATS) during trading hours where by once your bid matches an offer (an order to sell) by either the same stock broker or other stock brokers, then the transaction is considered to have been concluded and your shares will be credited to your SCD account by your broker. Read how to sell shares here
Stocks To Buy in Uganda 2020
From the table below, you are able to see the different companies and their market cap including old price, new price and market cap as in UGX (Shillings).
Best 8 stocks to buy in Uganda 2020
Companies selling shares in Uganda 2020
- Bank of Baroda Uganda
- British American Tobacco Uganda
- Centum Investment Company Ltd
- Development Finance Company of Uganda Ltd
- East African Breweries Limited
- Equity Bank Limited
- Jubilee Holdings Limited
- Kenya Airways
- KCB Group
- National Insurance Corporation
- Nation Media Group
- New Vision Printing and Publishing Company Ltd
- Stanbic Bank Uganda
- Uganda Clays Limited
- UMEME LIMITED
Now that you have seen the companies listed, I am sure you are able to make a choice on stocks to buy in 2020 Uganda. It is worth investing your money into shares since you are not making your money sit idly.