The Uganda shilling traded with a mild appreciation bias following a dovish central bank monetary policy decision to keep the policy rate unchanged . The unit traded in the range of 3515/25.In the fixed income market, yields remained flat amid huge uptake , trading at 6.501%, 8.039% and 9.180%.Going forward real yields are likely to remain attractive and competitive to both international and domestic investors despite the heightened global risk.Outlook for other emerging market currencies suggest that on the overall, they will continue to struggle over the coming months as the US Federal Reserve is expected to aggressively tighten monetary…
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The Uganda shilling traded firmer, propped up by end month flows that improved supply levels amid subdued demand. Bid and ask held at 3585/95.In fixed income space, yields turned out flat in a hugely oversubscribed auction. Liquidity levels in the banking system remained high and kept a lid on the rates. Yields printed at 6.662%, 8.298% and 9.591% respectively.In the regional markets the Kenya shilling was on the edge, with markets expecting a weakening bias on anticipated demand from energy sector . Trading was in the range of 114.85/115.05. Meanwhile, CBK held its benchmark lending rate at 7% reflecting a…
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The local currency recovered from previous week’s losses amid a slow down in appetite for dollars . On the supply side, inflows from coffee and other commodity traders helped in uplifting the shilling. Trading was in the range of 3580/90.In the fixed income, yields remained flat. The broader flattening bias across the yield curve is likely to persist given the liquidity levels in the banking system. Treasury bills printed at 6.501%,8.224% and 9.801% respectively.In the regional markets, most African currencies bounced back as market sentiment was boosted by the ongoing Russian- Ukraine talks and the positive data on US oil…
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The Uganda shilling surrendered some ground, undercut by a surge in dollar demand from offshore buyers, oil and merchandise importers. The local unit traded just above the 3600 key level for most of the trading sessions.Currency markets in general have not escaped the steep losses and wild swings seen across other asset classes with many facing massive downward pressure.In particular, the Kenya shilling weakened to a new record low due to rising global energy prices triggered by the Ukraine war, touching levels of 114.05/25.In the global markets, the current geopolitical shock is serving as a catalyst to trigger mean reversion…
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The Uganda shilling tumbled further, undermined by a surge in demand from offshore investors on a race for liquidity as international sentiment triggered flight to safety. Trading was in the range of 3550/60.In the fixed income market, yields in short term government securities remained unchanged with markets taking a view that yields have bottomed out following a consistent correlation of current 91 day benchmark rate to the Central bank policy rate. Yields printed at 6.501%,8.401%, and 9.700% respectively.In regional markets, the Kenyan, Zambian , Nigerian and Tanzanian currencies were all facing fresh pressure on account of costly imports and debt…
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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 rallied to its highest level in months trading below the key level of 3500 following the announcement of the Final Investment Decision by the international oil companies that is expected to bring in close to US$10 billion in investments over the coming years to kick start crude oil production.In the fixed income, the yield curve continued to flatten with demand remaining at the highest. Yields printed at 6.501%, 8.400% and 9.800%.In regional markets, the Kenya shilling was steady with the dollar supply matching importer demand, while Nigeria, Zambia and Tanzanian currencies faced mild pressure.In the global markets,…
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The Uganda shilling perched on the stable side supported by corporate and interbank market activity and held broadly in the range of 3515/25.In the bond market, investors continued to show huge appetite for the local bonds, with the demand two times over against the offer of 500 billion split into a 3 and 10-year bonds. Yields remained relatively flat at 12.090% for the 3-year bond and 14.390% for the 10 year.In the regional markets, the Kenya shilling held firm at 113.45/55 as the Central Bank of Kenya kept the policy rate unchanged at 7%. Forecast, however, indicates likely easing as…
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The local currency kept a positive outlook, as earlier forecast of increased dollar demand underpinned by the reopening of the economy did not come through at the scale that was expected. Trading volumes remained low keeping the unit within the range of 3520/30.In the fixed income, a record demand was registered, as more than 500 billion in bids were received at the weekly auction.Yields remained generally flat at 6.501%,8.400% and 10.000% for 91, 182 and 364 day tenors.In the regional markets, the major currencies remained sensitive to the global risk sentiment. Kenya, Zambia, Nigeria currencies all slipped undercut by soaring…
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In the first trading week of the year, the Uganda shilling was little changed following a quiet holiday period. Market activity remained low as most market players were yet to fully resume trading. Bid and Ask quotes were 3535/3545In other African markets it was a similar trend mainly underpinned by subdued demand . However in the coming week, the Kenya and Zambia are expected to weaken as activity picks up, while those of Nigeria and Tanzania are likely to hold steady.In the global markets, the US dollar is set to notch weekly gains and could extend the rally on the…
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