• The sectors have faced an evolving and extensive market to woo trainers as investment professionals, financial analysts and portfolio managers.
• Students in teams research and analyse a publicly traded company, giving recommendations to foreign or local investors.
Cement, banking, stock markets and service companies are the top sectors in the country and the East Africa region attracting and in return supporting research and development among financial professionals.
According to Chartered Financial Analysts Society East Africa director Steven Wamathai the sectors have faced an evolving and extensive market to woo trainers as investment professionals, financial analysts and portfolio managers.
Students in teams research and analyse a publicly traded company, giving recommendations to foreign or local investors.
In the recent CFA Institute Research Challenge EA level competition between Uganda, Rwanda, Tanzania and Kenya, Strathmore University produced a group taking a research in Nairobi Stock Exchange.
“The analyses are based on how different market dynamics would affect the dividends and price of shares. This will help improve the financial and investment management environment in the region and globally,” Wamathai said.
Makerere University however beat Strathmore University in competition.
The team will represent region in the Europe Middle East and Africa finals that will be held from April 8 to 19 in Switzerland.
The Ugandan team focused on banking sector, with analysis on the Stanbic Bank Uganda, listed on Uganda Stock Exchange.
“From our research we expect the share price to rise by 12 per cent in the next one year, meaning investors can keep their shares to the bank,” said John Ssemwegerere from Makerere University said.
Ssemwegerere said the case findings would only apply in Uganda for which the bank dominates, and not in Kenya with local Kenya Commercial Bank being the biggest player.
The team is also set to research on telecommunications provider, Telkom Uganda citing its growth at high rate and digital transformations driving returns.
“The companies participating in the competition should take students as interns and offer employment opportunities as the quality of research has been relevant to the various industries,” Wamathai added.
Other universities that were involved include Ardhi University and Mzumbe University from Tanzania.