The private sectors in both Kenya and Uganda expanded over the course of November, whereas the Bank of Uganda will be seeking to raise UGX 280 billion from Wednesday’s auction.
Umeme dominates USE activity
Umeme (UMEM) dominated trading on the Uganda Securities Exchange, moving 1.36 million shares for a turnover of UGX 542.9 million. The share price remained unchanged at UGX 400.
Uganda shilling little changed amid flows and sagging demand
The Ugandan shilling was little-changed against the dollar on Tuesday on the back of healthy inflows from non-governmental organisations weighing against subdued demand.
At 1210 EAT commercial banks quoted the shilling at 3,622/3,632, a notch firmer than Monday’s close of 3,625/3,635.
Looking for foreign exchange rates from a foreign currency to the UGX – Ugandan Shilling? Check out the #CenteForexRates table below.
— Centenary Bank (@CentenaryBank) December 5, 2017
Private sector growth could point to economic recovery
The Markit Stanbic Bank Uganda Purchasing Managers’ x™ (PMI™) rose to 54.9 in November, compared with 52.8 from the month before.
The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for manufacturing and services rose to 42.8 last month, from 34.4 in October, but remained well below the 50 mark that separates an expansion from a contraction.
Treasury Bill Auction
There will be a T-Bill auction on Wednesday 06th December, in which BoU will offer UGX 140Bn ($38.58Mn), UGX 10Bn ($2.76Mn) on the 91-day, UGX 15Bn ($4.13Mn) on the 182-day and UGX 115Bn ($31.70Mn) on the 364-day bills. The T-Bill auctions held in November had investors highly participate on the 364D bill, this had subscription rates of 5 times the offer, we anticipate the same demand to be carried onto the next auction. Demand for the 91D is also likely to remain high with an average BTC of 2.521 in the last month relative to 2.089 on the 364D.
Uganda Business Confidence
Bank of Uganda will release the Business Confidence statistics for October.
The Business Tendency Index measures the level of optimism that executives have about current and expected outlook for production, order levels, employment, prices and access to credit.
CBK to hold next rate setting meeting on 22 Jan
The Central Bank of Kenya Monetary Policy Committee will hold its next rate-setting meeting on 22nd January, it said on its website.
At its last meeting in November, the bank held its benchmark lending rate at 10.0%.