Jittery investors at the Uganda Stock Exchange (USE) are exiting their equity portfolio for high-yielding safer government securities ahead of a hotly contest presidential election in a week’s time.
Uganda’s presidential election pitting the incumbent Yoweri Museveni, 71, who’s running for the fourth-term, against his former Prime Minister Amama Mbabazi and opposition leader Kizza Besigye, is scheduled for February 18.
There are concerns that the vote could turn violent.
According to Salima Nakiboneka, an equities analyst at Kampala-based Crested Capital, there has been a decline in activity at the USE as investors hold back their decision until after the election.
“We are seeing a sought of stand off from the investors currently,” Nakiboneka told NTV Uganda, adding that most of the local listed firms were trading at undervalued positions, which has created an opportunity for investors to buy in.
“We have seen some shifting to the government securities side with yields soaring 25 percent for the one-year,” she said.