The Uganda shilling was relatively volatile as it responded to the demand and supply imbalances in the market. Investor sentiment and trading moves were see-sawing most of the sessions. Trading was in the range of 3510/20.In bond market, BOU converted UGX345.9 billion that were due to mature in June extending the maturities to 2023 and 2040. The market response was overwhelming, bids in excess of 570 billion were received. The rationale behind the conversions was to manage lumpy maturities and ease government cash flows.In the regional markets, the Kenya shilling held steady ahead of the sale of the infrastructure bond…
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The Uganda shilling got a boost from export flows as well end month conversion that lifted up the local unit to trade at 3550/60. In fixed income markets, yields on government securities climbed on the 6 and 182 day curve and could be on the path for further elevation as treasury figures show revenue shortfalls while expenditure was running ahead of a year ago as government pursued a supplementary budget. In the global markets, the US dollar traded at its highest in over a year against the major currencies as a hawkish tilt by the Fed buoyed by strong US…
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The Uganda shilling surrendered some ground shedding off at least 15 units on the back of heavy demand from fuel importers stocking up for end of year. Trading was in the range of 3550/60. In the regional markets, the Kenya shilling equally edged down, pressured by strong energy demand to trade at 112.15/35. Globally the US dollar was set to post a second week of gains, touching a 16 month high. The greenback has been rallying since data showed last week that US inflation in October had hit a 31 year high while other economic indicators also suggested solid economic…
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The local unit was relatively stable with a bit of interbank demand that emerged well managed by the available supply in the market as players squared off. Trading held in the range of 3525/35.In the fixed income market, the record demand at the weekly sale of government securities indicate that the prevailing higher yields compared to other peer markets continue to downplay investor’s concerns about the country’s fiscal outlook. Market players placed orders far in excess of the offered amount and as a result yields slightly edged down to trade at 6.825%, 8.751% and 9.700% for 91,182 and 364 day…
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The shilling was a touch stronger at the close of the week, well supported by sufficient flows that kept demand in check. Major players quoted the shilling at 3540/50.In the fixed income space, the high liquidity levels in the market kept a lid on yields as commercial banks continued to place huge amounts in the government securities as the lending market that would otherwise be the alternative channel, remained subdued. Yields played out at 7.298%,8.869% and 10.150% for 91, 182 and 364 days respectively.In the regional currencies, the Kenya shilling was relatively stable, but market players expected it to weaken…
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The shilling was slightly firmer for the good part of the week as seasonal end month flows mainly from commodities exporters and remittances offered support. However towards the end of the week, the unit slipped a touch on some pockets of demand. Trading was in the range of 3545/55 compared to opening levels of 3540/50. On the overall, it was more of a cautious mode as financial markets awaited government guidance on the likely future course regarding measures to control COVID-19 after the expiry of the 42-day lockdown.In the regional markets, the Kenya shilling was unchanged against the dollar in…
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The Uganda Shilling held steady with supply side showing strong response against tepid demand. Trading was in the range of 3665/75. In other UGX peer currencies, the trend was similar following comments by the US Fed Chairman that the US economy needed support for some time creating negative sentiment and hurting the dollar.In the fixed income markets, yields on the short term government paper slightly dropped in an auction that was highly oversubscribed with bid to cover ratio on the 91 day almost 3 times the offer, 1.905 and 1.545 for 182 and 364 day respectively. Huge demand continue to…
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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 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 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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