The local unit backtracked slightly, surrendering previous week’s gains as some pockets of demand emerged. The impact of the new COVID-19 measures kept the markets on the edge. Trading was in the range of 3520/30.In a related development, Bank of Uganda kept support for economic recovery by dropping the policy rate to a record low of 6.5%, citing uncertain times ahead.In government securities markets, short term yields continued on the down trend underpinned by huge appetite for Uganda government risk. Domestic banks and offshore portfolio investors were very active driving rates to record lows of 6.849%, 9.000% and 9.950% for…
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The local currency strengthened on sustained inflows that outstripped demand as markets reacted to fresh COVID-19 lockdown measures. Bid and ask hovered around 3510/20.In fixed income, yields on Uganda government paper fell on 2 and 10 year by average 200 basis points to 11.500% and 13.739%. Falling long term yields and renewed demand for yield by both local and foreign investors may tempt the government to lock in lower rates.In the regional markets, the Kenya shilling was stable, but traders expected it to weaken due to increased demand from energy and food importers. Trading was in the range of 107.55/108.05.In…
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The shilling was stable, supported by size able flows from agriculture commodity exports. However, a sense of caution enveloped the markets as speculation around government new measures to deal with the resurgence of COVID-19 took center stage. The bid and ask for the unit were at 3540/50.In the regional markets, the Kenya shilling strengthened due to adequate supply of dollars from exporters amid a drop in demand from importers. Commercial banks posted the shilling at 107.45/65.In the global markets, the US dollar hit a seven-week peak against other majors as traders braced for what is expected to be robust US…
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The local currency continued on its upward trajectory, trading closer to a key resistance level of 3,550 as demand slumped. The Central open market operations also assisted in keeping market liquidity levels in check. In other market moving news, word was out that the Government of Uganda had applied to the International Monetary Fund for US$900 million to bolster its finances as the pandemic continued to wreak havoc on the economy. Regional Market In the regional markets, the Kenya shilling firmed slightly due to subdued demand for dollars from importers and inflows from offshore investors participating in the bond auction….
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The Uganda Shilling was somewhat at crossroads, searching for fresh direction before making its next move as volatility was the order of business. Technical analysis of the market pointed to an oversold currency. Trading was in the wide range of 3590/ 3625.In the fixed income market, investors continued to see value in high yielding instruments and high risk currency. Yields on the short end of the curve remained flat at 7.011% and slightly dropped on the 6 month and one year curve to trade at 9.950% and 11.728% respectively.In the regional markets, the Kenya shilling recent rally slowed as a…
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The local unit was volatile, trading near a 3 and half year high against the greenback, breaching the key support level of 3600. The shilling hit that level in the last quarter of 2017 when it traded at 3659/3600. Factors that drove the sharp appreciation were largely a general slowdown in demand and seasonal conversions.While in the region, the currency of Uganda’s largest trading partner followed a similar trade. The Kenya shilling strengthened to a nine month to trade at 106.80/107.00.In the fixed income, Uganda’s yield curve, an indicator of risk sentiment in the bond market, remained fairly flat after…
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The shilling was firmer against a soft dollar supported by healthy flows from commodities exporters as market demand remained at a low ebb. The trading held in the range of 3645/3655.In the fixed income, yields on the 91 day and 364 day marginally went up by 0.012% and 0.301% respectively while on the 182day there was a slight drop. The total offer of 245 billion was taken up, registering a huge subscription.In the regional markets, the Kenya shilling strengthened against the dollar on improved market flows from portfolio investors targeting the infrastructure bond and new financing from the International Monetary Fund. Trading was in…
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The local currency was firmer after marginal losses early in the week, with the recovery guided by subdued market activity as mid-month tax obligations took center stage. Trading was in the range of 3655/65.In the fixed income market, bonds edged weaker as navel gazing bond investors offloaded huge amounts of liquidity in the auction. Yield on the 3 year dropped to 13.997% from the previous 15.750% while the 10 year yield dropped to 15.970% from previous yield of 16.100%.In the regional currency markets, the Kenya shilling was stable, but forecasted to weaken due to an uptick in demand mainly from…
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The Uganda shilling inched down towards the end of the week as interbank demand rebounded, trading at 3660/3670 compared to previous week’ s closing of 3655/3665 .In the fixed income market, short dated government treasuries firmed with yields falling to 6.999%, 10.300% and 11.847% for 91,182 and 364 day tenors respectively. Record demand at the auction suggests the lure of relatively high yields still outweighs investors’ concern about the country’s fiscal path. Regional marketsIn the regional markets, the Kenya shilling was stable against the greenback in a calm market where supply and demand was evenly matched. Spot market quotes were…
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The local currency was broadly stronger, oscillating in a narrow range amid receding dollar demand. The supply side was active with flows offering support. While in other news the monetary settings that kept an accommodative stance reinforced the Central Bank willingness to support the economy that has been dented by the COVID effects.In the local fixed income markets, bonds firmed alongside the shilling .The local markets continued to be supported by the global economic developments, with monetary and fiscal policies in developed markets remaining highly expansionary.In the current play, the shilling is an attractive carry trade offering good returns against…
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