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Annual market review: This is how Uganda Securities Exchange performed in 2019
Bank of Uganda (BoU) held its last Treasury Bills (T-Bill) auction of 2019 on December 18th to raise $59.96 million. However, the previous bill auction had an underwhelming performance in terms of amount raised with the Central Bank only managing 88.07 per cent of the amount offered. Also last week, trading turnover dropped by 36.36 per cent to 23.81 relative to $37.28 million the previous week. Oscar Emasu, Research Analyst at Crested Capital joins CNBC Africa for a review on how the money market faired this year.
Fri, 20 Dec 2019 11:04:40 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Significant increase in trading volume and productivity compared to the previous year
- Key drivers of market growth include companies like Stanbic Uganda, Umeme, and DFC
- Government borrowing appetite has risen by 28%, with stable interest rates and initiatives to boost market activity
The Uganda Securities Exchange has had a remarkable year in 2019, with significant growth and impressive activity in the market. The market has seen a surge in trading volume, with a substantial increase in productivity compared to the previous year. Oscar Emasu, a Research Analyst at Crested Capital, highlighted the key drivers behind this growth, including companies like Stanbic Uganda, Umeme, and DFC. Despite a decrease in prices by about 25%, the market remains strong and active. The demand for credit has also increased, with the government's borrowing appetite rising by 28% from the previous year. Interest rates have been relatively stable throughout the year, with only a slight uptick in the last two auctions to encourage participation. Government initiatives, such as reducing withholding tax on long-term securities, have further fueled activity in the market. Last week, there was a significant drop in trading turnover, but this week has seen a remarkable increase in volume. The exit of a top shareholder at DFC led to the highest single-day trade volume of the year. Overall, the Uganda Securities Exchange has had a prosperous year with promising prospects for the future.
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