Market Update th 5 Decem ber 2018 USE ALSI Close: 1,751.31 Previous: 1,742.81 (Down: 11.45% YTD) - USD/UGX: 3,724.17 Previous: 3,721.46 (Down: 2.45% YTD) USE ALSI* Key Statistics: Close 1,751.31 Market Synopsis: 1D* % Change 0.48 Five counters traded today as turnover generated soared to Ugx15.95Mn ($4,284). CiplaQCIL’ s MTD* % Change 1.63 share price shed 0.81% to Ugx245 per share as Ugx9.56Mn was made in turnover. The drug YTD* % Change (11.45) manufacturer traded 39,029 shares contributing 59.94% of turnover. Stanbic Bank Holdings 52 Week Range 1,668.36 – 2,264.43 made Ugx5.65Mn in turnover as its shares traded at Ugx30.80 at the close of trading. Umeme, Volume 224,977 NIC Holdings and Uganda Clays traded a combined Ugx0.74Mn. UCL and NIC share prices Turnover (ugx) 15.95Mn($4,284) were stable at Ugx19.50 and Ugx15 per share respectively whereas Umeme share price depreciated PE 6.86 by 0.74% to Ugx320 at the close of trading today. The USE All Local Share Index (ALSI) grew EPS 60.85 by 0.48% to 1,751.31 whereas Crested’s Local companies index (the C9) dropped by 0.18% to Dividend Yield 2.1% 150.61. Market Cap (Ugx) 24,832.93Bn ($6,668.04Mn) Headlines: USE ALSI*- USE All Share Index, 1D*- One Day, MTD*- Month to Date, YTD*- Year to Date Stanbic Bank becomes holding company: Uganda’s biggest bank by assets Stanbic Bank Source: Uganda Securities Exchange, Blomberg Uganda Limited has changed name and will now be operating as Stanbic Bank Holding Limited. This follows a special resolution that was supported by the shareholders during their Annual 2,300 USE ALSI INDEX - 12 months 2,250 general meeting held on May 31 and later on June 26 received regulatory approval from the registrar of companies. The name change effectively started on November 28, according to a 2,200 public notice issued in one of the dailies. In an interview with Daily Monitor, Ms Cathy Adengo, 2,150 head of corporate communications, said the change of name signifies the creation of a holding company. “As a holding company, we are going to expand and create new subsidiaries of which 2,100 the bank will be one of them,” Ms Adengo explained. The ability of the holding company to create 2,050 several subsidiaries opens up business opportunities in growth sectors in addition to banking. 2,000 Some of the sectors the holding company intends to take on include; equity brokerage, real estate and financial technology (Fintech). The new structure is expected to increase returns to its 1,950 shareholders while enhancing the value proposition to its customers. It will have no adverse 1,900 impact on SBU’s current shareholders, customers and employees. “The bank will not face any 1,850 substantial changes to its day to day operations. Banking operations will continue as usual with our customers,” Ms Adengo said. Stanbic’s total assets are worth Shs5.4 trillion ($1.46 billion) at 1,800 the end of 2017. In the first six months of 2018 amidst challenging environment, the bank’s profits 1,750 after tax grew from Shs95.4b in June 2017 to Shs96.1b at the end of June 2018, while its customer deposits grew an impressive 16.2 percent to Shs3.75 trillion up from Shs3.22 trillion in June 2017. 1,700 (Daily Monitor) 1,650 Simplify insurance products – regulator: Complicated insurance products that are not only 1,600 difficult to sell but also derail the sub-sector’s growth, the industry regulator has said. To penetrate the market which according to Insurance Regulatory Authority of Uganda (IRA) is annoyingly low, the industry players must grab the opportunity that bancassurance initiative presents to provide simple, meaningful and quality insurance products to targeted audience. Speaking while unveiling the Tropical Bank Bancassurance last week in Kampala, the chief executive officer of Source: Uganda Securities Exchange the Insurance Regulatory Authority of Uganda (IRA), Mr Ibrahim Kaddunabbi Lubega, said: Crested 9 Price Snapshot: “Demand for simple insurance products shouldn’t be understated.” He continued: “Always make simple and easy to understand products for all types of your target audience. This will make you Close 52 Week Range YTD % Ch. get closer to the uninsured population.” With this move, Tropical Banks becomes the 15th C9 150.61 118.92– 158.15 25.37 commercial bank in the country to offer Bancassurance services. Industry players, including the BATU 30,000 30,000 – 30,000 0.00 regulator, believes that the relationship between the two — the bank and an insurance company, BOBU 139 100 – 160 23.01 will increase the insurance uptake that is currently at 0.8 per cent. Under this arrangement, banks DFCU 845 680 – 970 24.26 offer insurance products or insurance benefits to the bank’s customers under the same CQCIL 245 245– 262 (4.48) roof. “Bancassurance is an innovation that will deepen insurance services. For our customers, we NIC 15.00 11.00 – 19.70 25.00 will always keep it simple and professional. Our products will also embed the component of NVL 336 336 – 538 (34.76) insurance because that is crucial in mitigating risks,” Tropical Bank managing director, Denis SBU 30.80 27 – 33 12.84 Kaketo said in his remarks. (Business Daily) UCL 19.50 14 – 33 (33.89) Forex Outlook: The Ugandan shilling was largely stable as investors decided to sit back waiting UMEM 320 300– 405 (20.00) for Central Bank’s rate decision. The shilling was quoted at 3,724/3,7341. (Source: Reuters) *C8 is Crested 8 Local companies Index Regional Counters: Macro Indicators: Close 52 Week Range YTD % Ch. (%) Period NSE 20 2,801.40 2,708.56– 3,830.98 (24.53) Inflation (Year on Year) 3.00 Ended November 2018 BRITAM (Kshs) 10.20 10.10 – 15.80 (23.60) Central Bank Rate (CBR) 10.0 03/10/18 SAF (Kshs) 23.60 22.25 – 32.00 (11.77) Bank Rate 15.0 03/10/18 KA (Kshs) 9.80 5.07– 12.95 (42.85) 91-day T-Bill 11.25 11/11/18 NSE (Kshs) 14.05 13.60 – 20.50 (26.68) 182-day T-Bill 12.79 11/11/18 BRL (Rwf) 149 143– 155 (0.67) 364-day T-Bill 13.50 11/11/18 BOK (Rwf) 279 279 – 290 (7.00) CTL (Rwf) 53 53 – 57 (19.70) Forex Close Prev. YTD % Ch. Sources: Crested Research, Uganda Securities Exchange, Nairobi Securities Exchange, GBP/UGX 4,743.56 4,748.58 2.82 Rwanda Securities Exchange, Bank of Uganda, Bloomberg EUR/UGX 4,226.25 4,215.04 2.55 KEN/UGX 36.30 36.24 (3.15) CRESTEDCAPITAL RESEARCH CONTACT TZS/UGX 1.62 1.62 0.00 Impala House 1st Floor, Plot 13/15 Kimathi Avenue Hotline: +256 414 230900 RWF/UGX 4.32 4.31 2.48 @: [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. .