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Ugandan market watch: BoU looks to raise $66.9mn at this week’s T-Bill auction
Bank of Uganda is scheduled to hold this week’s T-Bill auction on tomorrow February 24 and is expected to raise a total of $66.89millon. Moreover, last week, the secondary market activity declined by 49.11 per cent generating $78.08 million in turnover with activity dominated by the medium-term notes contributing 44.34 per cent of turnover. Oscar Emasu, Research Analyst at Crested Capital joins CNBC Africa for more.
Tue, 23 Feb 2021 10:11:41 GMT
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AI Generated Summary
- Bank of Uganda prepares for T-Bill auction with a target of $66.9 million, signaling investor confidence in the market
- Secondary market activity experienced a 49.11% decline, generating a turnover of $78.08 million with medium-term notes dominating trading volume
- Investors advised to monitor key stocks like Women and Sambiq for potential investment opportunities amidst mixed earnings reports in the market
Uganda's financial market is abuzz with anticipation as the Bank of Uganda gears up to conduct this week's Treasury Bill (T-Bill) auction, aiming to raise a substantial $66.9 million. Last week, the secondary market activity experienced a notable decline of 49.11%, generating a turnover of $78.08 million, with medium-term notes dominating the trading volume at 44.34%. Oscar Emasu, a Research Analyst at Crested Capital, provided insights on the current market dynamics and the key drivers influencing investor sentiment.
Emasu highlighted the recent surge in market activities, citing the significant move on training worth about a billion organic shillings by Sambiq as a notable development. This level of activity, not witnessed in the past month, is speculated to be connected to an upcoming earnings announcement expected at the beginning of next month. As the market enters the final week of the month, investors are advised to keep an eye on counters like Sambiq, which remains highly liquid and attractive. With the earnings reports of British American Tobacco and New Vision recently disclosed, Emasu noted that these stocks might not generate widespread interest due to mixed performance results.
While British American Tobacco recorded a successful year, New Vision reported substantial losses after three years, tempering expectations for the earnings season. Emasu suggested that standby counters could be potential areas of interest for investors seeking promising opportunities in the market.
Looking ahead, market participants are urged to monitor the performance of key stocks like Women and Sambiq, which are expected to sustain positive momentum in the coming weeks. The market sentiment remains cautiously optimistic, with a focus on potential market shifts influenced by earnings projections and external factors.
As investors navigate the evolving market landscape, strategic decisions and monitoring of market indicators are essential to capitalize on emerging opportunities. The forthcoming T-Bill auction poses an opportunity for the Bank of Uganda to raise crucial funds, signaling investor confidence and market resilience amid dynamic economic conditions. With a diverse range of investment options available, prudent investment strategies and risk management will be instrumental in navigating the market volatility and seizing lucrative prospects.
In conclusion, the Ugandan financial market is poised for heightened activity, driven by the upcoming T-Bill auction and evolving market dynamics. With expert insights and market analysis guiding investor decisions, proactive engagement and informed strategies will be key to maximizing returns and mitigating risks in the dynamic financial landscape of Uganda.
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