Market Update 19th February 2020

USE ALSI Close: 1,784.59 Previous: 1,791.09 (Down: 1.88 YTD) - USD/UGX: 3,664.75 Previous: 3,666.46 (Down: 0.12% YTD)

USE ALSI* Key Statistics: Close 1784.59 Market Synopsis: 1D* % Change (0.36) The market generated a turnover of Ugx2.91Mn ($794) traded on two counters with MTD* % Change (1.91) YTD* % Change (1.88) 22,100 shares exchanged. Bank of Baroda lost 0.8% off its share price closing at 52 Week Range 1,525.46–1,869.69 Ugx124, the counter dealt Ugx2.63Mn ($717) from 21,200 shares. traded a Volume 22,100 value of Ugx283,500 ($77) from 900 shares with its price unchanged from the previous Turnover (Ugx) 2.91Mn ($794) day’s Ugx315. The USE All Share Index (ALSI) shed 0.36% to 1784.59 while the C9, PE 21.10 Crested’s Local Companies Index lost 0.06% to 117.50. EPS 56.37 Headlines: Dividend Yield 8.27% Govt starts discussing renewal of 20-year concession: After two directives Market Cap (Ugx) 24,765.58Bn ($6,755.24Mn) from President Museveni and other government officials, government has started

USE ALSI*- USE All Share Index, 1D*- One Day, MTD*- Month to Date, YTD*- Year to Date discussing terms of extending Umeme’s concession. The concession, which took effect Source: Securities Exchange, Blomberg in 2005 when Uganda Electricity Distribution Company Limited leased out its assets, 1,900 will expire in 2025. Speaking to , Mr. Robert Kasande, the Energy USE ALSI INDEX - 12 months Ministry Permanent Secretary, said the committee shouldering Ugandan’s interest in the 1,850 agreement has been set up. “Umeme still has its concession running up to 2025, therefore discussions to extend it are on now. There is a committee which comprises representatives from the Ministry of Finance, Energy and Attorney General’s office he 1,800 said. However, he declined to reveal the identity of the committee members. Key to note, the current discussions are still between government, which thereafter is expected 1,750 to approach Umeme with a unified position. However, no timeline has been set for conclusion of the negotiation. Uganda, in the negotiation, is expected to revise 1,700 downwards Umeme’s return on investment (ROI) currently at 20 per cent. This follows a havoc-wreaking moment for Umeme in March 2018 when President Museveni asked 1,650 to halt extension of the power distributor’s concession on the premise that terms such as return on investment had continued to be high thus affecting the electricity tariff. Mr. Patrick Bitature, the Umeme chairman has on numerous occasions said that the 1,600 power distributor is willing to revise its return on investment downwards.(Daily Monitor). Industrial capacity grows from 400 to 5,000 entities -UMA: Uganda’s industrial 1,550 capacity has grown from 400 to 5,000 manufacturing entities according to Uganda Manufacturers Association UMA). Speaking during a manufacturers business forum 1,500 organized by Standard Charted Bank yesterday , Mr. Allan Ssenyondwa, the UMA head of policy and advocacy ,said UMA records show that Uganda has grown its industrial capacity from just 400 manufacturers in 1986 to more than 5,000 industries. “The state of manufacturing in Uganda is on the rise. Uganda’s GDP is about $40b of which the

Source: Uganda Securities Exchange industrial sector contributes about 29.5 percent, he said. Uganda, according to details Crested 9 Price Snapshot: presented at the forum generates much of its income from manufacturing followed by construction at about 7.1 percent and mining which contributes about 2.1 percent. “We Close 52 Week Range YTD % Ch. have been undermining the industrial sector but data coming out indicates C9 117.50 117.31–142.57 (2.36) industrialization is beginning to take root, “ Mr. Sseyondwa said, noting that 33 percent BATU 30,000 30,000 – 30,000 0.00 of Uganda’s tax is generated from the industrial sector. The sector he note also BOBU 124 120 – 145 (0.80) consumes much of Uganda’s electricity with a consumption of about 67 percent. DFCU 645 645–800 0.00 However, Mr. Ssenyondwa cited a number of challenges key among them, poor CQCIL 102 100–200 0.00 infrastructure, high cost of production and limited access to financing mechanisms as NIC 10 10–14 0.00 some of the major threats. In addition, he noted the increase in substandard goods and NVL 315 315–337 (1.43) SBU 24 23–30 (8.01) counterfeits, poor linkage between trade and industrial development and lack of UCL 9.50 9.08–19.00 0.00 support systems to nurture innovation to full commercialization are also impending UMEM 235.30 182-300 0.99 industrial growth. (Daily Monitor). *C9 is Crested 9 Local companies Index Forex Outlook: The Ugandan shilling closed the day quoted at 3665/3675 compared to 3,670/3,680 on Tuesday. (Bank of Uganda) Regional Counters: Close 52 Week Range YTD % Ch. Macro Indicators:

NSE 20 2,540.23 2,419.67– 3,070.33 (4.30) (%) Period Inflation (Year on Year) 3.40 Ended January 2020 BRITAM (Kshs) 8.88 6.10 – 10.05 (1.33) Central Bank Rate (CBR) 9.00 13/02/20 SAF (Kshs) 30.50 23.20–32.90 (3.17) Bank Rate 14.00 12/02/20 KA (Kshs) 2.45 1.97– 9.39 19.51 91-day T-Bill 9.57 12/02/20 NSE (Kshs) 11 9.82– 15.45 (4.35)

BRL (Rwf) 139 139– 150 0.00 182-day T-Bill 10.95 12/02/20 BOK (Rwf) 265 243– 278 0.00 364-day T-Bill 12.50 12/02/20 CTL (Rwf) 70 50 – 80 7.69 Sources: Crested Research, Uganda Securities Exchange, Nairobi Securities Exchange, Forex Close Previous YTD % Ch. Rwanda Securities Exchange, Bank of Uganda, Bloomberg GBP/UGX 4,766.22 4,779.23 0.71 EUR/UGX 3,968.76 3,979.76 3.19 CRESTEDCAPITAL RESEARCH CONTACT KEN/UGX 36.23 36.33 (0.33) Impala House 1st Floor, Plot 13/15 Kimathi Avenue TZS/UGX 1.58 1.59 0.63 Hotline: +256 039 230900 RWF/UGX 3.86 3.85 - @: [email protected], W: www.crestedcapital.com

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