Market Update 3rd July 2 018

USE ALSI Close: 2,067.48 Previous: 2,079.57 (UP: 4.54%YTD) - USD/UGX: 3,861.71 Previous: 3,874.38 (Down: 6.23% YTD) USE ALSI* Key Statistics: Market Synopsis: Close 2,067.48 Value traded on the bourse declined to Ugx8.08Mn ($2,094) compared to 1D* % Change (0.58) Ugx51.24Mn ($13,272) on Monday. Activity across the local counters was relatively MTD* % Change (5.17) balanced as Bank of Baroda (BOBU) traded Ugx2.86Mn ($739), Stanbic Bank Uganda YTD* % Change 4.54 52 Week Range 1,652.18 – 2,269.50 (SBU) moved Ugx1.92Mn ($497), Umeme with Ugx1.38Mn ($357) and NIC which Volume 180,270 had its share price drop 5.55% traded a turnover of Ugx1.12Mn ($288). Uganda Clays Turnover (ugx) 8.08Mn ($2,094) (UCL) had a turnover of Ugx675,100 ($175), DFCU Ugx97,000 ($25) while the least PE 9.39 value of Ugx41,400 ($10) was traded on the NVL counter. All the other counters were EPS 47.39 unchanged from the previous day’s close. Dividend Yield 2.6% The USE All Share Index shed 0.58% from yesterday’s close to 2067.46 while the C8, Market Cap (ugx) 28,259.23Bn ($7,319.15Mn) Crested’s local companies index lost a meagre 0.03% to 132.67. Headlines: USE ALSI*- USE All Share Index, 1D*- One Day, MTD*- Month to Date, YTD*- Year to Date Source: Uganda Securities Exchange, Bloomberg Govt emphasizes power distribution: Uganda Government will in the medium to 2,300 long term put emphasis on constructing power transmission and distribution lines than on power generation plants, according to Mr. Edward Iruura, the acting chief 2,250 USE ALSI INDEX - 12 months executive officer of Electricity Regulatory Authority (ERA). Mr. Iruura said 2,200 government has managed to increase installed generation capacity and that Uganda 2,150 now has excess supply. This, he said is meant to ensure that the electricity that is 2,100 generated reaches the people who should use it. “Now focus is on transmitting this 2,050 power and distributing it to the consumers,” he said. “If we increase on productive 2,000 demand as President Museveni says, we will (Mop up the excess) energy,” he added. Uganda currently has an installed generation capacity of 936MW, with demand 1,950 peaking at 568MW. Even with that, more power generation plants are under 1,900 construction among them the 183MW Isimba and the 600MW Karuma, which will be 1,850 commissioned late this year and early next year respectively. Consumption, however 1,800 is not increasing at the same pace, according to different players in the electricity 1,750 sector. () Uchumi closes more branches, seeks $10m: Uchumi Supermarkets has quietly 1,700 closed more branches in as the chain looks to secure $10 million in emergency 1,650 funding to stay afloat. Uchumi which had only 12 branches still open confirmed it has 1,600 now closed ’s Koinange Street, Juja, Buru Buru and Kericho branches, 1,550 ostensibly to renegotiate their leases with the landlords. The EastAfrican, however, 1,500 found that even the popular Nairobi’s Aga Khan Walk branch had been closed. The firm ceased operations in Tanzania and Uganda in October 2015, leaving behind a trail of debt. “Yes, we are affected but we are not dead,” chief executive Mohamed Ahmed Mohamed told The EastAfrican. The firm is urgently looking for between Ksh500 million ($5 million) and Ksh1 billion ($10 million) in the coming weeks to Source: Uganda Securities Exchange shore up its financial position, which has been badly damaged by sustained losses, Crested 8 Price Snapshot: failure to attract new capital from investors, and the Kenya government’s reluctance Close 52 Week Range YTD % Ch. to inject more money into the business. “In the short term, we need to get cash. We C8 132.67 114.33– 132.71 10.44 cannot talk about long-term plans if we cannot sort out our short-term issues. We are BATU 30,000 30,000 – 30,000 0.00 engaging several people including financial institutions,” Mr Mohamed said. After BOBU 150 100 – 160 32.74 more than four decades, the retail chain that was once the biggest in the region is DFCU 970 680 – 970 42.64 showing signs that it could exit the retail business with millions of dollars unpaid to NIC 17 11.00 – 19.70 41.67 suppliers, workers and investors. Uchumi is struggling with a backlog of debts, NVL 450 450 – 539 (12.62) revenue losses, lack of supplies and deteriorating customer and investor confidence. SBU 32 27 – 32 17.43 The business was started in 1975. (The East African) UCL 21.50 12 – 33 (27.12) Forex Outlook: The Ugandan shilling posted gains on Tuesday, buoyed by a local UMEM 345 300– 455 (13.75) *C8 is Crested 8 Local companies Index currency liquidity squeeze in the interbank market and a slowdown in appetite for dollars by importers. The shilling was quoted at 3,850/3,860 stronger than Monday’s Regional Counters: close of 3,870/3,880. (Source; Reuters). Macro Indicators: Close 52 Week Range YTD % Ch. (%) Period NSE 20 3,287.76 2,965.31– 4,114.01 (11.80) Inflation (Year on Year) 2.2 Ended June 2018 BRITAM (Kshs) 14.50 10.71 – 17.06 9.36 Central Bank Rate (CBR) 9.0 12/06/18 SAF (Kshs) 29 22.75 – 32.75 8.41 Bank Rate 14.0 12/06/18 KA (Kshs) 11.10 4.00 – 18.45 (37.90) 91-day T-Bill 10.52 20/06/18 NSE (Kshs) 17 16.30 – 24.75 (12.69) 182-day T-Bill 12.03 20/06/18 BRL (Rwf) 150 125– 155 0.00 364-day T-Bill 14.50 20/06/18 BOK (Rwf) 286 245 – 300 (4.67) CTL (Rwf) 53 53 – 75 (19.70) Forex Close Prev. YTD % Ch. Sources: Crested Research, Uganda Securities Exchange, Nairobi Securities Exchange, GBP/UGX 5,098.64 5,074.5 (4.45) Rwanda Securities Exchange, Bank of Uganda, Bloomberg EUR/UGX 4,508.71 4,486.83 (3.96) KEN/UGX 38.29 38.32 (8.81) CRESTEDCAPITAL RESEARCH CONTACT TZS/UGX 1.70 1.70 (4.94) Impala House 1st Floor, Plot 13/15 Kimathi Avenue Hotline: +256 758 230900 RWF/UGX 4.51 4.58 (1.75) @: [email protected], W: www.crestedcapital.com

DISCLAIMER: The information contained herein is obtained from sources, which to the best of our knowledge are reliable. As such, we are not responsible or liable for any factual errors arising thereof. The opinions expressed herein are ours and are subject to change anytime without notice.