The shilling powered to its firmest in the last full trading week of year, trading below 3650, building on its recent gains as market flows increased against subdued demand.In the fixed income market, yields rose across all tenors in the Treasury bill auction. The neutral policy stance announced earlier in the week also gave boost to the currency with search for yield carry traders showing renewed interest in the local fixed income space. However the stretched state of public finances remains a top concern for market players.In the regional markets, Kenya Shilling was stable against the dollar amid slow market…
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The local currency weakened, pausing an advance in the previous sessions that saw the currency on the gaining side. Markets players were seen earlier in the week reposition. The unit traded in the range of 3700/3710.In the fixed income segment of the market, yields slightly dropped underpinned by significant demand as institutional remained net buyers in the absence of other financial products while private sector credit remains at the lowest level. Yields printed at 7.558%, 9.621% and 12.502% respectively. Kenya shilling hits historical lowIn the regional market, the Kenya shilling hit a new historical low, trading at 109.20 signaling rising…
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The local currency backtracked mid-week pausing the stable stance in the previous sessions. The shilling breached a key level of 3,700 on the sell side as demand surged mainly from importers, retail and energy players. Supply side remained subdued.The fixed income market segment continued to register significant demand that saw yields remain relatively flat. The auction coincided with the Central Bank decision to relaunch the Primary Dealer system alongside refining the monetary policy operational framework with the introduction of the standing lending facility. The reintroduction of PD is likely to support demand and limit sharp spikes on the curve. Kenyan…
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The local currency traded unchanged, holding firm for most of the trading sessions on the back of offshore portfolio flows that improved supply conditions in the market. Bid and ask for the shilling was at 3683/93. In the fixed income market, yields on government bonds of 2 and 5 year printed at 13.80% and 15.35% with pre-determined coupons of 11.000%and 16.625%. Regional markets Regional currencies kept a similar trend as their UGX peer, with the Kenya currency holding firm, supported by flows targeting the debt market. Trading was in range of 107.85/108.05. Tanzania shilling traded at 2315/2325. Dollar nurses losses…
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The local currency traded marginally stronger, pulling away from the key technical level of 3700, with both counters trading below that level as supply conditions improved, against subdued demand. Bid and ask quotes were at 3685/95. With the prevailing minimal volatility, markets were anticipating the Central Bank presence in the market on the buy side for reserve rebuilding. In fixed income segment, Treasury bill auction was well bid. 405 billion was tendered against an offer of 245 billion. Yields remained relatively flat, printing at 8.679%, 9.953% and 12.000% for 91, 182 and 364 days respectively. Regional performance In the regional…
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The Ugandan Shilling this week, traded flat against a muted demand for the US Dollar. The shilling was on one hand supported by end month flows from charities and coffee export inflows coupled by Bank of Uganda liquidity mop-up operations that took out UGX839 billion equivalent to USD222 million.In the interbank Shilling market overnight funds traded at an average 5.1% while one-week funds traded at 6%.Regional marketsIn the regional currency markets, the Kenya Shilling was on the ropes, undermined by elevated end of month demand from manufacturers and importers. Market players were also seen building positions ahead of expected dividend…
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The Uganda Shilling remained stable for most of the trading session, opening the week in the range of 3788/98 and closing at 3785/95 on the back of hard currency flows from the treasury auction and commodity exports amid depressed importer demand for forex.In the fixed income segment, the market continued its appeal, attracting huge uptake from an investor base that was largely domestic and some trickle in from offshore. Yields dropped slightly as compared to the previous treasury auction, printing at 8.604%, 10.711% and 12.267% for the 91, 182 and 364-day tenors. Amount on offer was UGX140 billion, with the…
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Following a short-lived rebound early in the week, the local currency fell to a weekly low, testing the resistance level of UGX3,800, undercut by a pickup in demand from market players as risk sentiment deteriorated on account of a negative report indicating that exports declined by 8.7%, which meant minimal inflows from the export sector. The fixed income segment had a treasury bill with UGX225 billion on offer. Yields edged up on the short end of the market with the 91-day and 182-day printing at 9.249% and 11.349% respectively up from 9.24% and 10.751% as at March 25th. However, market…
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BOU to cut the policy rate for April 2020 Globally Central Banks have reacted en masse to prop up their economies in the face of the Covid-19. BOU is expected to move alongside its peers and slash its policy rate; a bigger cut than usual is expected to send a much strong signal in light of the severe risks that the economy faces. While a hawkish, warlike policy from the Central Bank, is necessary at this stage, it will not work independently. The government must move in tandem and consider other fiscal measures that will protect businesses and minimize the…
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