Stock market and performance of brokerage firms in Uganda case Study: Mbea Brokerage Services (U) Limited

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Kampala International University, College of Economics and Management
In Uganda, as in very many developing countries around the world, financial markets are still very shallow, poorly developed and dominated by commercial banks. As a · result, there are few alternative sources of finances other than commercial bank loans. This has greatly contributed to the poor saving culture dominated by most Ugandans. Performance of Brokerage firms has equally been affected by the slow development of stock markets. The general objective of this study was to determine the development of stock market and its relationship to the performance of Brokerage firms in Uganda. This study was based in MBEA Brokerage Services (U) Limited. Its specific objectives included to determine, the profile of MBEA Brokerage Services Ltd, determine the degree to which stock market affect the level of performance of MBEA Broker<;Jge Services Ltd and analyze MBEA Brokerage services Ltd strengths, weakness, investment risks. The research design was a descriptive survey method. A sample of 30 respondents from four departments: finance and administration department, research department, portfolio department and personnel department were selected. The findings on performance of MBEA Brokerage Services Ltd was measured with regard to the effectiveness of the Capital Market Authority policies using a five point scale response and there was a slightly high level of effectiveness. The saving culture of the clients was measured by assigning percentages to the three categories of investors. The findings revealed that 61% and above of their clients have no idea of what they want when they approach the Brokerage firm, 40% of the investors have a rough idea of what they want to buy or sell · whereas less then 19% of the investors know what shares or securities they want to buy or sell. It was established that there was a slightly positive relationship between Capital Market Authority policies and development of stock markets and performance of the Brokerage firms. From the findings, a summary, conclusion and recommendation were made. Capital Market Authority should ensure that they enact policies with particular emphasis on developing the stock markets through intensive sensation, fiscal stimulus to promote the supply of securities in capital markets and incentives for foreign investments.
A research presented to the School of Business and Management Kampala International University a partial fulfillment of the requirement for the Degree Award of Bachelor of Business Administration
Stock market, Performance, Brokerage firms, Mbea Brokerage, Uganda