Alpha Capital Market Commentary for week ending 25th September 2015

UGX was relatively stable in a short trading week as markets closed for the the IDD holiday. The shilling traded in a tight range of 3650/3660 supported by tight liquidity  in the money market.

BOU was in the market with an injection of 184 billion , 7 day reverse repo, an action that was aimed at alleviating shilling tightness.

In the international markets, emerging market currencies enjoyed a short reprieve after the US Fed announcement, but quickly gave up their gains as investors realized that the Fed is still on track to raise interest rates later this year.

Outlook for the shilling suggest gradual weakening as end month demand kicks in. BOU dollar purchases, if increased from the current levels could also  drive the currency faster into weak territory.

Stephen KABOYO



Stephen KABOYO
WWW.ALPHACAP.CO.UG