By Patrick Kagenda
The Uganda shilling opened the trading week ending January 10, 2013, stable trading at Ushs 2515/25 and quickly gained ground on account of offshore selling interest and lukewarm demand. By Wednesday the shilling was trading at Ushs 2505/15. According to Stephen Kaboyo the Managing Director at the Alpha Capital Partners Uganda, in the securities market, the central bank held a treasury bill auction, with yields slightly going up on the 91 day from 8.77% to 8.89% while on the 182 and 364 day yields came off to 11.5% and 12.03% from 13.38%and 13.43% respectively.
Kaboyo says , the market outlook suggests range bound trading in the coming days. “As we get into the second half of the month, demand is expected to rebound. On the other hand the decline in yields in the government securities especially in longer tenors is likely to discourage offshore interest, an important supply source for foreign exchange. The undercurrent indicates a bearish shilling in weeks to come