Investors who parked their money in SBG Securities’ Bond Fund earned an effective annual yield of 13.20% in June 2026.
That is a full percentage point below the fund’s 14.39% average return for 2025, according a Stanbic Bank market performance report published on Thursday.
The dip signals a market that is recalibrating expectations even as inflation ticks upward, a tension that runs through much of the month’s numbers.
On the Uganda Securities Exchange, the story was far more upbeat.
The Local Company Index rose 3.35% to close at 541.20, its best monthly showing in some time.
Uganda Clays led the charge, gaining a striking 18.18% in June alone.
MTN Uganda continued its steady climb, up 63.64% over the past year and an eye-catching 151.29% over three years.
Stanbic Bank Uganda shares rose 5.26% for the month and have gained 200% over three years, rewarding patient shareholders handsomely.
Not every counter shared in the good fortune. Umeme’s share price has fallen sharply since June 2023, when it traded at UGX 440. It now sits at just UGX 72, a three-year decline of 83.64%.
The drop reflects the utility’s changed fortunes following the expiry of its concession and the transition to a new operator, a shift that has weighed heavily on investor sentiment.
Inflation, meanwhile, is creeping higher. Headline inflation climbed to 3.7% in June from 3.2% in May, driven by rising core prices and a jump in energy, fuel and utilities costs, which reached 11.9%.
Petrol, diesel and kerosene prices bore much of the blame. Food prices stayed flat, offering some relief to household budgets even as fuel bills rose.
The Ugandan Shilling had a comparatively better month. It appreciated 2.98% against the dollar, closing at UGX 3,665.14, clawing back some of its earlier losses.
Year-to-date depreciation now stands at a modest 1.25%, a marked improvement from the volatility seen earlier in the year.
Stanbic also delivered good news for shareholders. At their Annual General Meeting last month, the shareholders approved a final dividend of UGX 4.30 per share.
Payment is expected around 30 July to shareholders registered by 6 July.
Looking ahead, analysts at SBG Securities expect Uganda’s economy to remain resilient, buoyed by private sector expansion and easing lending rates.
Fixed income yields are likely to feel more pressure at the medium and long end, as investors demand higher compensation for inflation risk.
Fuel costs remain the chief concern, with the potential to push consumer prices higher if sustained.
Equities, by contrast, are expected to hold steady, with room for selective gains in the market’s stronger performers.
Taken together, June painted a picture of an economy finding its footing. Currency stability and equity gains offered comfort, even as inflation and softer bond yields reminded investors that the road ahead still has bumps.
