Pre Markets: USE Down As Shilling Remains Stable

The USE All Share Index and the Crested Capital C8 index reduced by 1.20% and 0.01% closing at 1,718.11 and 120.74 respectively.

Equity turnover plunged to UGX 13.19 million ($3,631) from UGX 67.66 million ($18,624) generated during yesterday’s trading session. Stanbic Bank Uganda (SBU) dominated trading with 186,620 shares traded at UGX 27.25 to generate Ugx5.08 million in turnover.

Uganda Clays Ltd (UCL) traded at UGX 30.25 as it generated a turnover of UGX 1.68 million. Its share price appreciated by 0.83% from yesterday’s UGX 30. dfcu (DFCU) and Umeme (UMEM) turned UGX 4.70 million and UGX 1.72 million respectively dfcu share price shed 1.45% to UGX 680 whereas Umeme share value remained flat at UGX 413.

Uganda shilling unchanged as banks, importers stay on sidelines

The Ugandan shilling traded unchanged on Tuesday on the back of slumping demand for hard currency from both commercial banks and importing firms including manufacturers and telecoms.

At 1114 EAT commercial banks quoted the shilling at 3,635/3,645, the same level as Monday’s close.

CBK governor sees 5 percent inflation in 2018 and beyond

The Central Bank of Kenya governor said on Tuesday he expects inflation of around 5% in 2018 and beyond, less than half the rate it reached earlier this year.

Kenyan Law: Rate-cap
Patrick Njoroge, CBK Governor

Annual inflation shot to a five-year high of 11.70% in May, mainly because a regional drought in the first quarter drove up food prices. It dropped to 5.72% last month after rainfall improved food supplies.

“Looking forward, inflation is well anchored. There’s no reason for it to deviate from where it is,” Patrick Njoroge told reporters on the sidelines of a conference in Dubai.

StanChart Kenya’s 9-month profit down 38 percent

Standard Chartered Kenya’s pretax profit dropped by 38% to KES 6.87 billion ($66.3 million) in the first nine months of this year, it said on Tuesday.

The lender blamed the fall on a government cap on commercial lending rates introduced in September last year and an economic slowdown after the Supreme Court nullified an 08th August presidential election and ordered a re-run.

“We have further seen an increase in our non-performing loan book,” CEO Lamin Manjang said in a statement.

The rate cap, which limited commercial lending rates at 4 percentage points above the central bank rate and set a minimum deposit rate of 70% of the benchmark, has squeezed margins across the industry.

Standard Chartered Kenya said its net interest income declined by 8% from a year earlier.