Africa-Press – Uganda. Capital markets record near-double turnover in Q1 2026 as investor participation rises, setting the stage for new investment products including ETFs and a Commodities Exchange.
Uganda’s capital markets are on a strong upward trajectory, with authorities accelerating plans to introduce an Exchange Traded Fund (ETF) and finalise the long-awaited Commodities Exchange—moves expected to deepen liquidity and broaden investor participation.
The developments come alongside a robust performance in the first quarter of 2026, which saw significant growth in trading activity and market engagement.
According to Paul Bwiso, the market recorded a total turnover of Shs32.64 billion in Q1 2026, nearly double the Shs16.94 billion registered in the same period last year.
“We are seeing strong momentum in the market, and the introduction of an ETF alongside the Commodities Exchange will be a game changer in broadening investment options and deepening liquidity,” Bwiso said.
He noted that while the new financial instruments are still under development, existing products such as unit trusts continue to play a significant role in expanding investor participation.
“In the interim, unit trusts continue to bring in new investors and are significantly contributing to the expansion of the market base,” he added.
Equities dominated trading activity during the quarter, accounting for Shs32.63 billion of total turnover. MTN Uganda led market activity, contributing 64.7% of traded value, followed by Stanbic Uganda Holdings at 25.1%, and Bank of Baroda Uganda at 3.9%.
A total of 229 million shares changed hands, with MTN Uganda, Stanbic Uganda Holdings, and Bank of Baroda also leading in trading volumes.
Market performance was broadly positive, with MTN Uganda posting the strongest gains at 50.5%, followed by Airtel Uganda at 45.9% and Stanbic Uganda at 31%. Quality Chemical Industries Limited registered modest growth of 5.2%.
Uganda Clays Limited showed relative stability in 2026 following a difficult 2025 period. Managing Director Jonnes Muhumuza said the performance reflects ongoing recovery efforts.
“Despite the headwinds we faced in 2025, our focus has been on stabilizing operations and positioning the company for gradual recovery. The performance we are seeing now reflects those efforts,” Muhumuza said.
Investor confidence has also strengthened, with seven of the eleven listed domestic companies already declaring dividends, signaling improved corporate earnings.
Bwiso attributed the overall market growth to stronger company performance and increased investor activity across the board.
“Improved financial results and increased participation have supported the upward movement across all indices, particularly the Local Company Index,” he said.
Regionally, equity markets continue to build on gains made in 2025, supported by improved economic conditions, currency stability, and rising investor participation across East Africa.
Locally, declining Treasury yields—down by a cumulative 153 basis points since the election period—have pushed investors toward equities in search of higher returns.
Investor participation has also surged, with account numbers rising from 162 in January to 1,789 by March, largely driven by retail investors using digital and USSD platforms. Nearly 98% of accounts are retail-owned, with over 96% locally held.
Foreign investor accounts remain steady at just over 11,000, indicating sustained but moderate international interest.
As Uganda moves closer to launching ETFs and a Commodities Exchange, analysts say the market is entering a new phase of diversification, deeper financial inclusion, and expanded investment opportunities.
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