Stanbic Investment Newsletter for April 2024
Stanbic Bank Uganda
We are the anchor subsidiary of Stanbic Uganda Holdings, a member of the Standard Bank Group.
TREASURY ?BOND?Trade Recommendation:
20 Year Treasury Bond?:
UGANDA – UGX
Maturity: 18-June-2043 Coupon 15% and Yield 15.7% ?Payment dates Jan and Jul
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Returns
Oil Prices rose for the month mainly on the back of tighter supplies and a resilient global economy coupled by continued geopolitical instability as witnessed with the attacks on oil refineries in Russia and constraints because of the Israel – Hamas conflict. Gold is slightly down after trading high above $2300. This was primarily driven by U.S inflation data that signalled the fed could maintain current interest rates for longer. Gold has traditionally been seen as a hedge against inflation.
MARKET HIGHLIGHTS MARCH 2024:
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AIRTEL
Stock further lost?4.4%?from 87 to?85?as supply outweighed demand on the counter.?The stock?is?likely to deep further on the same basis.
Company results saw a decrease in earning.?PAT?of?296.9BN?(FY 2022: 325.7BN)
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MTNU
The released FY 2023 numbers making?a?PAT 493BN?a?21.4%?increase YoY, They declared a final dividend of?6.4?shs per share, (Total?18?shs?per share a?13.3%?increase YoY. The final dividend ?will be payable to shareholders on the company register as at 4th?June 2024. The payment date will be 21st?June 2024. Stock price remained stable at shs?170?per share
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UMEME
UMEME market price gained 34.9% from UGX?400?to?434.9?in?the?month of March attributed to investors taking positions ahead of the company’s concession end and buy out come 30th?March 2025. They also declared a Final dividend of?54.2?per share on top of an interim?dividend of UGX?24?per share which was paid on 29th?Feb 2024. The final dividend is payable 19th?July 2024 book closure June 28th?2024.?This makes total dividend paid Shs?78.2?(FY 2022: shs?63.9)
There was a surge in volume traded on the counter in Q1 with?51.51MN?shares traded contributing?88%?of the market traded value the entire quarter. The market traded a total value of shs 47.99 BN in Q1 2024
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SUHL
The company put up a stellar 2023 performance results making a PAT of shs?412BN?Final dividend of?3.03?per share (5.47 whole year). This is subject to shareholders and regulatory approval. 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 gained?5.43% in?price to close at?34.?shs?per share as at end month March?2024.
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The company saw change in leadership of SBG Securities,?a?stock brokerage subsidiary,?Mr.?SEMAKULA GRACE?from UMEME took office as CEO of the subsidiary effective?1st?March 2024.
Umbrella Unit Trust Fund
Did you know that you can invest in our Umbrella Unit Trust Fund?
The SBG Securities Uganda Umbrella Unit Trust Fund is an investment product that enables you to pool your money together with other investors to create a large pool of funds which are managed by a licensed professional Unit Trust Manager.? who invests in a wide range of securities e.g., Treasury bills, Treasury bonds, fixed deposits, equities.
Unit Trusts are highly regulated and structured to ensure the safety of your investments.
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Benefits of investing in the SBG Securities Uganda Umbrella Unit Trust Fund
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What funds are available under the SBG Securities Uganda Umbrella Trust Fund:
Fund Type
Suitability
Invested In
领英推荐
Money Market Fund
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For investors with a short-term savings goal seeking a competitive yield.
Treasury Bills, Fixed Deposits
Bond Fund
For investors saving for a medium to long term goal (2 to 5 years)
Fixed Deposits, Treasury Bills, Treasury Bonds, Commercial Papers & Corporate Bonds
Balanced Fund
For investors saving for a long-term goal (more than 5 years)
Fixed Deposits, Government Securities, Equities, Corporate Bonds & Commercial Papers
A management fee of 2% per annum is charged on the assets under management.
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Who can Invest in the SBG Securities Uganda Umbrella Trust Fund:
The product is available for individuals, companies, parents investing for their children, jointly with your partners, and savings groups.
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How do I start investing with the SBG Securities Uganda Umbrella Trust Fund?
Fill a sign-up form (Link indicated below) with your KYC details and attach a passport sized photograph and your National ID (for Ugandans) or Passport (for foreigners). Upon completion, download the form, attach your passport size photograph and both faces if your National ID and a fully completed form. Send the documents to the email address?[email protected].
You will receive a confirmation email upon the verification of your documents and the recipient account details where to transfer your initial investment.
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Link to the Form:
On March 6 , 2024 , special Monetary policy Committee (MPC ) meeting increased the Central bank Rate ( CBR ) to 10% .The unfolding of some of the risks mentioned in the monetary policy statement of February 2024, which includes the depreciation of the shilling exchange rate , ?triggered the need for monetary policy tightening
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Uganda’s annual headline inflation slowed slightly to 3.3% from 3.4% in February, while core inflation was unchanged at 3.4%. A large attribution is to energy, fuel and utilities prices slowing to 7.6% from 8.0% in the previous month as well as a slowdown in Other goods Inflation to 1.6% from 1.8%.
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?REGIONAL
February inflation eases to 2 year ?Low
The annual inflation rate in Kenya slowed to 5.7% from 6.3% in February and below market forecasts of 6.1%. The slowdown was driven by falling prices of some food items and transport costs in addition to the Kenya shilling appreciating against the dollar by 19% in the year.?
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GLOBAL
?The US Federal Reserve and European Central Bank (ECB) left their policy rates unchanged, highlighting a positive path on the battle against inflation. Major central banks have signalled loosening in monetary policy this year with the Swiss National Bank leading by cutting by 25 basis points, citing sustained price stability.
Please?leave a comment or contact for our team to reach out :?Email
?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]
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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.