INVESTMENT NEWSLETTER
Stanbic Bank Uganda
We are the anchor subsidiary of Stanbic Uganda Holdings, a member of the Standard Bank Group.
GLOBAL MARKETS
“Investing is a journey of self-discovery. It reveals your relationship with money, your tolerance for risk, and your ability to stay disciplined in the face of uncertainty.”
-Jeremiah Say-
?MARKET HIGHLIGHTS FEB 2024:
QCIL
Cipla Quality Chemicals Limited changed name to Quality Chemical Industries Limited. The company also declared an interim dividend of 1.6 shs per share with a record date of 29th Feb 2024 .
The dividend will be paid on 15th March 2024. ?
AIRTEL
Stock lost 4.4% from 91 to 87 as supply outweighed demand on the counter. The stock is likely to deep further on the same basis.
BATU
The company made a gross profit 86BN a drop of 14%, PAT of 13BN a 9% decline YoY. They declared a dividend of 181 shs per share, a 13% drop payable to shareholders on the company register as at 13th June 2024.
The payment date will be 25th July 2024.
?UMEME
UMEME was still stable at a market price of UGX 400 steadily maintaining the level in the month of February. They paid an interim dividend of UGX 24 per share on 29th Feb 2024. The stock started trading EX DIV on 7th Feb 2024. A reduction in the final dividend projection for FY 2023 is anticipated at the release of Financials in March due to a profit warning issues by the company recently. A projected drop in dividend payout was announced.
SUHL
The company put up good H1 2023 results declaring and interim dividend of 2.44 per share . This was paid on 6th November 2023 to shareholders on the register as at close of business 19th October 2023.
A surge in demand for the stock on the bourse in anticipation of a good final dividend have kept the stock price slightly stable. The stock has lost slightly in price to close at 32.25 shs per share as at end month February 2024.
The company saw change in leadership of SBG Securities, a stock brokerage subsidiary, seeing Mr. SEMAKULA GRACE from UMEME takes office as CEO of the subsidiary effective 1st March 2024.
TREASURY ?BOND?Trade Recommendation:
20 Year Treasury Bond?:
UGANDA – UGX
Maturity: 18-June-2043 Coupon 15% and Yield 15.6% ?Payment dates Jan and July
Oil prices rose in anticipation of the OPEC+ decision on voluntary cuts. It is widely expected that the voluntary cuts in production could be extended or deepened as oil prices have remained stable with a risk of dropping further if the sustained weakness in oil demand from China persists.
Gold is set for its highest close in month after the core PCE deflator (a US inflation reading) printed at 2.8% showing persistently stubborn inflation. This favored gold which has traditionally been seen as a hedge against inflation.
HOW TO MAXIMISE WEALTH
The key to wealth maximisation is putting a plan in place early.
?People often see financial planning as a task for tomorrow. However, by delaying it, they are putting themselves at a disadvantage.
The sooner one puts a wealth maximisation plan in place and start growing capital, the wealthier they are likely to become due to effective planning tools and the power of compounding.
?Steps to Wealth Maximisation
When creating a wealth maximisation plan, the first step is to consider your long-term and short-term goals. Once you have determined these, you can create a financial strategy designed to help you achieve them.
?Securing yourself financially.
?Before trying to grow your capital by investing it, it’s sensible to secure yourself financially by establishing an ‘emergency fund’. This is a pot of money that is set aside to protect yourself from unforeseen circumstances such as the loss of your job, an illness that prevents you from working, or a large, unexpected cost such as a house repair or hospital bill.
?Investing for the future.
Once you have put aside some money for emergencies, you can think about?investing?to build your wealth. Investing is the process of putting money into financial assets such as stocks, bonds, and alternative assets with the aim of generating higher returns than those offered by savings accounts.
?Minimising Tax liabilities.
?At this stage of the process, you will also want to give some thought to investing?tax-efficiently. High earners face high tax rates on interest, capital gains and dividend income.
?Do you have a financial goal?
As Stanbic we are here to Serve you and grow with you on your Investment Journey by enabling you invest in the different products based on your Need. Contacts Below
UGANDA
Bank of Uganda’s?MPC?left?the central bank rate unchanged?at 9.5%, judging domestic inflationary pressures as largely subdued with the risk tilted to the upside. The MPC marginally revised upward its inflation forecasts over the next 12 months, factoring in recent UGX depreciation. Headline inflation is projected to remain below the medium-term target of 5%, staying?between?3.0% - 4.5% throughout the first half of 2024.
?
Uganda was removed from the Financial Action Task Force (FATF) Grey List after four years of implementing reforms needed to combat illicit financial flows. The exit from the list implies the country has sufficient guards against money laundering and terrorist financing activities. This strengthens Uganda’s positioning in accessing available foreign funding and attracting of foreign investments.
?
?REGIONAL
February inflation eases to 23-month Low
Inflation dropped to a 23-month low of 6.3 percent in February following a decline in prices of major staples easing the pressure on the majority of low-income households, the latest data from the Kenya National Bureau of Statistics (KNBS ) shows .
?
?Kenya’s Euro-bond Attracts More Than $5 Billion in Orders .
Kenya’s latest Euro-bond issue attracted orders in excess of $5 billion as expectations of lower interest rates in the US fueled demand for the high -yielding securities . The East African nation accepted $1.5 billion for the seven-year debt at 10.375%. That’s the highest coupon paid by an African issuer this year.
?
?GLOBAL
The UK slipped into a shallow recession in the second half of 2023, with GDP falling by 0.3% in the fourth quarter. The economy has been hit by the worst cost-of-living crisis in decades and a rapid rise in interest rates that squeezed borrowers.
?
The S&P 500 index closed above the 5000 points mark, the first time ever, signalling investors continued bets on a resilient US economy with unemployment low, inflation now largely under control and the Federal Reserve’s forecast of a soft landing well in sight.
COMMODITIES
?WTI crude oil closed out the month trading at $78.43?per barrel, nearly a 4% monthly rise following a 5.7% while brent?crude?closed out at $82.19?per barrel, a 2.5% rise from 4.2% the previous month.
The uptick was largely driven by speculation that OPEC+ will continue?with?supply cuts, leading to a gradual tightening of the market. We look out for the upcoming OPEC+ meeting in March?as well as the ongoing?geopolitical tensions?within the Middle East and eastern Europe that continue to add to?risk premiums in?oil prices.
?Please?leave a comment or contact for our team to reach out :?
Sales:?Chad Nyakatura +256312224983, Pamela Akidi +256312224909,?? Liana Kabanda +256312224987, ?Diana Byarugaba +256312224984,Vincent Ssekiyana?+256312224986
?Daisy Nitwe +256312224922, Gad Habumugisha +256312224962 , Carol Nampurira +256312224983 ,?Engola Kenneth?+256312224992.
?SBG Securities:?Salima Asha Katamba +256312224965?
?Email:?[email protected]?/?[email protected]?/??[email protected]
?Disclaimer:?The views expressed in this publication are those of the writers where particulars are not warranted. This publication is meant for general information only and is not a warranty, representation, advice, or?solicitation of any nature. Readers are advised in all circumstances to seek the advice of a registered investment advisor.?
Justice for Children Regional Coordinator
10 个月Insightful?
LAW FIRM
11 个月Very useful