Market stays calm, bearish sentiment lingers on
The Shilling (Ugx) was largely stable most of the week trading within a narrow range of 2990/3000 due to low demand for the green buck coupled with liquidity tightness in the money market.
However, demand is expected to remain subdued on account of absence of strong demand from importers as well mid-month taxation effect where corporate remain inactive .
On the overall the shilling bearish undertone still holds drawing from the unfavourable economic fundamentals, and as we get closer to the budget release for FY 15/16.
Volatility is likely to set in as markets take defensive strategies in anticipation of new policy measures.
The writer works with Alpha Capital markets: WWW.ALPHACAP.CO.UG