Uganda Shilling Gains While Stanbic Rises, MTN Slips

The Ugandan shilling and stock market experienced slight improvements on Wednesday, with modest gains recorded in both sectors. The shilling closed the day stronger at 3688/3698, up from its opening position of 3695/3705, while trading at the Uganda Securities Exchange (USE) saw five counters involved with a turnover of UGX 17.2 million, according to data from Crested Capital.
On the USE, several key stocks were traded. Bank of Baroda exchanged shares worth UGX 706,000, MTN Uganda traded shares valued at UGX 760,000, Stanbic Holdings saw significant activity with shares worth UGX 14.8 million, and Umeme shares traded at UGX 989,000. These trades, although small in volume, reflected a stable performance across the market.
Stanbic Holdings gained 0.96%, closing at UGX 43.25 per share. In contrast, MTN Uganda saw a slight decline of 1.48%, closing at UGX 195 per share. Despite this drop, MTN’s stock price has experienced an overall gain of 15% since August, showing resilience in the face of recent market fluctuations.
In the currency market, the shilling’s improvement was supported by strong inflows and increased activity from interbank dollar sellers. This positive movement helped stabilize the local currency, keeping it within a healthier range compared to the start of the day.
Uganda’s money markets faced tight liquidity conditions, with overnight yields averaging 11.62%, according to reports from Absa. This reflects the growing pressure on short-term borrowing, as market participants adjust to the tighter conditions.
The Bank of Uganda also held its routine treasury bill auction, with yields clearing at different rates for various tenors. The 91 day bills saw an average yield of 10.999%, while the 182-day bills cleared at 13.425%, and the 364 day bills settled at a yield of 14.502%. These rates provide insight into the current risk appetite for short-term government securities as investors continue to balance returns with liquidity considerations.
Stock
Value Traded (UGX)
Price Movement
Bank of Baroda
706,000
No change
MTN Uganda
760,000
-1.48% (UGX 195 per share)
Stanbic Holdings
14.8 million
+0.96% (UGX 43.25 per share)
Umeme
989,000
No change
 
Treasury Bill Tenor
Average Yield (%)
91-day
10.999
182-day
13.425
364-day
14.502
As the week progresses, market analysts will closely monitor the performance of both the currency and stock markets, especially in light of ongoing liquidity constraints and potential shifts in investor sentiment.