By Martin Luther Oketch
Investment experts are advising Ugandans to embrace stocks as a valuable part of their investment portfolio especially if they are looking to build wealth.
This comes as members of the general public continue to ask questions about how to maximise income from the MTN International Ltd recently floated offer for sale of 4.5billion ordinary shares priced at Shs 200 each.
According to experts, the MTN Initial Public Offering is bound to attract several investors hoping to cash in with a minimum investment of Shs100, 000.
But some Ugandans are wondering how and when they will make the money.
Dr Rachel Mindra Kotorogo, the head department of the Faculty of Commerce at Makerere University Business School, tells Prosper Magazine that owning stocks in different companies can help protect one’s savings from inflation and taxes.
She says investing in MTN shares is a worthwhile opportunity for both the short and long-term investors in Uganda because the company is one of the leading telecoms with a good track record of performance.
“This is a good investment opportunity for both the old and young people, students and those in higher institutions of learning because it is a well-established telecommunication company. It offers good investment returns on equity”, she said.
While Stephen Kaboyo, the managing director Alpha Capital explains that one can either wait for share price to rise beyond the Shs200,
“You can buy and wait for the investment to appreciate. After listing, the supply and demand dynamics will come into play which will influence the prices. Price appreciation means capital gain”, Kaboyo explains.
He says alternatively, one could simply wait for the company to share profits with shareholders.