Ugandan market watch

The equities market in Uganda continued to show promise this week as investors eagerly awaited the latest developments in key listed entities. CNBC Africa’s Abbie spoke with Pamela Akidi, Retail Sales Manager Global Markets at Stanbic Uganda, to gain insights into the market movements and the ongoing saga surrounding Umeme Limited, the listed power utility entity. Akidi shared that the stock market opened at a slow pace in anticipation of the release of MTN's Q1 results, which highlighted impressive double-digit growth across various business areas. MTN's profit after tax surged by 20.6%, service revenue climbed by 13.5%, and subscriber numbers grew by 14.6%. Despite these positive results, dividends from MTN are only expected in Q2, Q3, and Q4. Stanbic Bank maintained stable trading at around 47 as shareholders awaited dividend declarations. Umeme Limited, on the other hand, experienced minimal activity due to an extension in negotiations with the government. With fund managers focusing on Q1 reporting, the stock market trended stable, and stability is expected to persist until H1. Turning to the fixed income markets, equities remained stable, and the treasury bond and bill auctions saw an expected 25 basis point increase for the one-year tenor. Akidi projected yields on the long end of the curve to trend around 17.5 to 17.7% as the financial year progresses. Umeme Limited's ongoing negotiations with the government have kept investors on edge, as only $118 million has been paid out of the expected $230 million. Talks between Umeme and the government are ongoing, with an extension in place until mid-May. The conclusion of these negotiations may lead to delays in both the release of Umeme's results and the anticipated payout. Umeme's significant contribution to over 50% of turnover at the Uganda Securities Exchange in the past year highlights the impact of unresolved issues on market volumes. As the market watches closely for updates on the Umeme situation, government feedback remains limited, with negotiations expected to continue until the end of May. Overall, the equities market in Uganda is poised for stability in the near term, with investors closely monitoring developments in key entities like Umeme Limited.