Interest rates set by the Bank of Jamaica held at 7 percent for the overnight deposits, even as inflation continues to fall rapidly in the country and now running at an average of 0.20 percent per month or 2.4 percent annualised since November last year. The monetary Policy Committee determined the decision at meetings held this week.
According to the country’s central bank, “Inflation continued to ease, consistent with Bank of Jamaica’s monetary policy and international developments. Jamaica’s inflation rate to February 2023 of 7.8 percent was below the rate of 8.1 percent at January 2023. The February outturn was the lowest rate since December 2021.”
The key external drivers of headline inflation, such as grains, fuel and shipping prices, continued to decline, broadly in line with the Bank’s expectations. In addition, inflation expectations continued to track.
Core inflation (excluding food and fuel prices from the Consumer Price Index) at February 2023 also decelerated to 6.6 percent from 7.1 percent at January 2023 and is projected to fall further as monetary policy remains tight.
Annual inflation is projected to continue to fall to the Bank’s inflation target range of 4 to 6 percent by the December 2023 quarter. One-off regulated price adjustments may, however, result in a temporary uptick in inflation.
Notwithstanding positive developments in inflation, “the MPC noted that the risks to the inflation outlook remain elevated. In a context where the domestic economy continues to grow, labour market shortages carry the potential for future wage adjustments that can put upward pressure on inflation.
BOJ holds overnight rate.
Higher inflation could also result from a worsening in supply chain conditions and higher commodity prices if there are further geo-political disruptions. Among the factors that could lead to lower-than-projected inflation, weaker-than-expected global growth could negatively affect domestic demand, and some projected adjustments to regulated prices may not materialise.”
“Therefore, to continue underpinning inflation returning to the target range and to underwrite continued stability in the foreign exchange market, the MPC unanimously agreed to hold the policy interest rate at 7 percent, to maintain tight Jamaican dollar liquidity in the money market and to continue fostering relative stability in the foreign exchange market. The Bank’s liquidity management strategy incorporates the impact of the one percentage point increase in the domestic and the foreign currency Cash Reserve Requirements applicable to DTIs, effective the beginning of April 2023.”
A total of 60,107,710 shares were traded for $290,707,932, up from 17,081,333 units at $87,212,275 on Tuesday.
The All Jamaican Composite Index surged 3,756.40 points to 368,992.59, the JSE Main Index popped 976.04 points to finish at 326,722.53 and the JSE Financial Index rallied 0.68 points to 76.15.
GraceKennedy dipped $2.50 in ending at $80 as 270,948 units passed through the market, Guardian Holdings dropped $4 to close at $490 in an exchange of 25 units, JMMB Group gained 45 cents to close at $30 after trading 88,644 shares. Massy Holdings declined $8 to end at $81 after trading 500,481 stock units, Mayberry Jamaican Equities increased $1 in closing at $12.50 with the swapping of 7,309 stocks, NCB Financial popped 98 cents to close at $74.98 after exchanging 11,726 stock units. Proven Investments rallied 50 cents after ending at $26.50 with investors transferring 1,144 stocks, Seprod shed $2.88 after finishing at $67 with a transfer of 21,165 shares, Stanley Motta rose 54 cents to $5.34, with 190,246 units changing hands. Supreme Ventures advanced 82 cents to end at $27.82, with 1,194,866 stocks crossing the market, 
Sygnus Real Estate Finance declined 67 cents to close at $9.30, with 1,600 stock units clearing the market and Wisynco Group climbed 40 cents to $16.70 while exchanging 206,419 shares.
A total of 1,034,911 shares were traded for US$21,566 compared with 339,743 units at US$36,245 on Tuesday.
Productive Business Solutions rallied 55 cents to close at US$1.90 after closing with an exchange of one stock unit, Proven Investments lost 0.49 of a cent after ending at 17.5 US cents with 43,111 stocks changing hands. Sterling Investments ended at 2 US cents after trading 1,100 units, Sygnus Real Estate Finance USD share fell 0.18 of a cent to 7 US cents with investors transferring 25 units and Transjamaican Highway popped 0.02 of a cent in closing at 0.97 of one US cent with an exchange of 988,002 stocks.
Investors traded 10,202,465 shares for $28,165,787 up from 8,256,705 units at $22,347,499 on Tuesday.
The PE Ratio, a measure of computing appropriate stock values, averages 10.9. The PE ratios of Junior Market stocks are computed based on the last traded stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Future Energy Source lost 12 cents to end at $4.35 with 497,865 shares crossing the exchange, General Accident dropped 35 cents to close at $4.70, with 5,150 stocks changing hands, ISP Finance declined $5.56 in closing at $20 after a transfer of 3,028 units. Jamaican Teas popped 13 cents to end at $2.29 with an exchange of 13,870 stock units, Knutsford Express rallied $1.33 to close at $11.33 with the swapping of 69,943 stocks, Lasco Distributors dropped 23 cents to $2.45 in an exchange of 13,792 shares. Lasco Manufacturing dipped 15 cents after ending at $4 and an exchange of 7,155 stocks, Limners and Bards lost 26 cents in closing at $2.25 after trading 6,624 shares, Main Event shed 15 cents to land at $12.10 in an exchange of 19,599 units. 
MFS Capital Partners fell 14 cents to end at $3.31 as 792,425 stock units passed through the market, Paramount Trading rose 19 cents to close at $2.34 after exchanging 545 units and tTech lost 30 cents in closing at a 52 weeks’ low of $2, with 117,880 shares crossing the market.
Trading climbed to 1,467,927 shares for $8,272,610, up from 257,799 stock units at $4,379,273 on Tuesday.
Investor’s Choice bid-offer indicator shows four stocks ending with bids higher than their last selling prices and one with a lower offer.
NCB Financial traded 1,110 shares and fell 14 cents to close at $3.75, National Enterprises had an exchange of 81,296 stocks in closing at $3.70, National Flour lost 10 cents in trading 3,401 shares at $1.40. One Caribbean Media gained 14 cents to end at $3.70, with 16,500 units changing hands, Prestige Holdings ended at $7.40 in switching ownership of 405 shares. Point Lisas traded 92,463 shares and gained 1 cent to close at $3.60, Republic Financial closed at $138 after 8,554 shares crossed the market, Scotiabank fell 5 cents to $77.95 while exchanging 1,504 stock units, investors in Trinidad and Tobago NGL swapped 13,424 after slipping 4 cents to end at $$20.01, Unilever Caribbean ended trading at $14.75 with an exchange of 1,050 stocks and West Indian Tobacco added 4 cents to end at $16.55 after trading 2,947 shares.
Movements in the preference section of the market that is not reflected in the TOP10 graphs, JPS 7 percent dropped $41.61 to $263.39 and JPS 9.5 percent jumped $98 to $2,998.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that also show the closing volume pertaining to the bids and offers for each company.
The fall since 2021 has been consistent, although the rate for a few of the months exceeded this pace. The average monthly inflation rate has dropped from the 2022 level of 0.6 percent per month from November 2021 to October 2022 and is now running at an average of 0.2 percent per month or 2.4 percent per annum over the last five months, well below the Bank’s target of 4-6 percent per annum. If history is anything to go by, the next three months should see relatively low inflation, suggesting that the current average of 0.2 per month could continue for a few more months.
Investors who were receiving negative interest rates are now seeing positive rates for the first time since 2019 and the trend suggests that this will become more positive over the next few months as inflation continues to fall to more acceptable levels.
A total of 17,081,333 shares were exchanged for $87,212,275 versus 83,621,528 units at $169,448,467 on Monday.
The PE Ratio, a formula to ascertain appropriate stock values, averages 13.7 for the Main Market. The JSE Main and USD Market PE ratios incorporate earnings forecasts by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Mayberry Jamaican Equities lost $1.05 to end at $11.50 with 1,209,652 shares crossing the exchange, NCB Financial shed 99 cents in closing at $74, with 30,174 stocks changing hands, PanJam Investment climbed $1 to end at $54 after 14,552 units passed through the market. Portland JSX increased $1.57 after ending at $11.27 with 103 units changing hands, Proven Investments lost 50 cents to $26 in an exchange of 24,024 stock units, Sagicor Group rallied 45 cents to close at $47 in trading 5,002 shares. Scotia Group popped 88 cents to $34.94 with 129,877 stocks clearing the market, Seprod rose $8.87 to end at $69.88 while exchanging 21,814 stock units and Supreme Ventures advanced $1.50 to close at $27 in trading 358,872 stocks.
In the preference segment, Jamaica Public Service 7% declined by $94.99 after ending at $305 in switching ownership of 226 shares and Jamaica Public Service 9.5% increased by $200 in closing at $2,900 with an exchange of one unit.
Overall, 339,743 shares were traded for US$36,245 compared to 620,736 units at US$61,293 on Monday.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than the last selling prices and one with a lower offer.
A total of 8,256,705 shares were exchanged for $22,347,499 up from 4,366,193 units at $11,400,138 on Monday.
The PE Ratio, a measure of computing appropriate stock values, averages 10.9. The PE ratios of Junior Market stocks are computed using the last traded stock price and ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Express Catering advanced 19 cents to end at $5 in an exchange of 4,636 stock units, Fosrich declined 10 cents in closing at $2.74 after exchanging 1,879,393 stocks, Future Energy Source rose 19 cents to $4.47 in trading 376,387 stocks. GWest Corporation rallied 13 cents to $1.06 in switching ownership of 5,423 shares, Honey Bun gained 30 cents after ending at $6.30 as investors exchanged 6,202 stock units, Iron Rock Insurance rallied 9 cents to close at $2.09 after trading 4,956 units. Jamaican Teas fell 14 cents in closing at $2.16 in an exchange of 201,530 stocks, KLE Group popped 24 cents to $1.70, with 3,177 units crossing the exchange, Knutsford Express dipped 30 cents to end at $10, with 97,416 shares clearing the market. Lasco Distributors advanced 22 cents to $2.68 in trading 28,430 stock units, Limners and Bards rose 22 cents in closing at $2.51 with a transfer of 1,461,352 stock units, Lumber Depot increased 26 cents after ending at $2.40 as 268,060 stocks passed through the market. Mailpac Group gained 19 cents to close at $2 with investors transferring 558,371 shares, Main Event climbed 25 cents to end at $12.25 while exchanging 20,646 units,Medical Disposables popped 15 cents to $5, with 1,877 stocks crossing the market.
Paramount Trading fell 25 cents to end at $2.15, as 350 stock units passed through the market, Regency Petroleum rose 11 cents to close at $2.09 while exchanging 535,937 units, Spur Tree Spices climbed 10 cents after ending at $2.50 with an exchange of 153,009 shares but only after trading at an intraday 52 weeks’ low of $2.33 and Tropical Battery declined 9 cents in closing at $2 after exchanging 141,447 stock units.
