Alpha Capital Markets Commentary for week ending 18th September 2015

"UGX remained range bound" Federal Reserve decision lifts emerging markets currencies.

UGX traded sideways in most sessions of the week on the back of very low demand as most corporates were preoccupied with the mid month tax payments. However towards the end of the week , the shilling surrender some ground as the markets became edgy and market players started building positions in anticipation of the US rate hike.

In the treasury bill auction, weighted average yields rose across the board with 91 day going up to 18.324%, 182 day up to 20.511% and 364 day trading at 21.720%.  Market preference was skewed towards the short end of the curve.

In the international markets, the dollar retreated with emerging markets registering healthy gains after the US Fed held off hiking interest rates, citing  global economic weakness and financial market turbulence as the primary reasons underpinning their decision.

Shilling outlook suggest potential risk for weakening when taking into account severe domestic challenges as well global economic uncertainties. By and large these factors will dictate currency trends in the near term.


Stephen KABOYO



Stephen KABOYO
WWW.ALPHACAP.CO.UG