T-bill rates lowest on record – April

April 19, 2018 by

Jamaica’s Ministry of Finance newest office building

Treasury bill rates declined to the lowest level on record, in the latest auction of bills on Wednesday this week. Information out of the country’s central bank in March indicates that there are no records with lower rates.
Rates for the $700 million 182 days instrument on offer fell below 3 percent for the first time with the average ending at just 2.979 percent and the 91 days bill ended at an average slightly above 2.818 percent for the $700 million that was also on offer for the shorter duration.
A total of $2.56 billion chased after the amount offered for the shorter dated issue, while a total of $2.92 billion chased the amount for the longer dated issue.
In March, rates fell to 2.977 percent for the 91 days bill, as $2.54 billion went after $600 million offered and the 192 days closed at an average of 3.172 percent with $2.48 billion going after $600 million offered.

Filed Under: Breaking News, Economy Tagged With:

Deflation for Jamaica’s Q1

April 17, 2018 by

Prices declined for another month in Jamaica, according to data just released by the Statistical Institute of Jamaica (STATIN) but prices are still high than a year ago.
Statin stated that the All Jamaica Consumer Price Index declined for the second consecutive month as a negative 0.1 percent inflation rate was recorded for March 2018. The main contributor to this movement was the 1.0 percent fall in Food and Non-Alcoholic Beverages category, due to lower prices for agricultural produce resulting in a 4.3 percent reduction in index for the class Vegetables and Starchy Foods. Transportation recorded a decline of 0.4 percent for the period, resulting from lower fuel prices. Upward movement of a 3.2 percent in Housing, Water, Electricity, Gas and Other Fuels, primarily resulting from higher electricity, water and sewage rates help to negate the above mention declines. As at March 2018, the calendar year-to-date inflation was negative 0.2 percent and the movement in the index for the last twelve months is 3.9 percent.

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SOS writing book manufacturing starts May

April 17, 2018 by

Stationary and Office Supplies – Montego Bay offices.

Stationery and Office Supplies (SOS) purchase of equipment used to manufacture various types of writing books as well as the brand name SEEK.
“This purchase will allow SOS to enter the manufacturing industry in Jamaica starting with books and a plan to continue to manufacture other stationery products in the future”, SOS states.
Machinery purchased includes the following: Ruling machines, Guillotines, Gluing Machines, Stapling Machines and Book Presses.
The total value of the purchase is $60 million and is being financed through a bond with Jamaica National amounting to $80 million at an interest rate of 8 percent, and a duration for repayment of 7 years. The company expects that the total investment including machinery, raw materials and renovations will exceed $80 million. The Company said with this expansion, SOS initially be employing an additional 25 persons with production expected to start during the first week of May 2018. Prior to the acquisition a compliment of 40 persons were employed with a mixture of full time and part timers.  Revenues expected in the first twelve months is estimated at $130 million but could rise beyond this, as the business maintains most of the customers for books and SOS leverage their existing customers base and others for  more business. According to Allan McDaniel, Deputy Managing Director & Director of Warehousing and Logistics, the previous owner operated for about six months per year, but SOS will be able to operate full time and at less cost. The operation will be housed in the adjoining building they acquired last year and effectively fills out the space with their expanded inventories occupying about half. Profit margin is attractive and will almost ensure that the company will profit from it, this year, with growth estimated by them to likely be in the 30 percent region coming from both local and export sales. The new operation could deliver around $40 million to profit in 2018 and around $70 million in 2019, IC Insider.com estimates.  Speaking about SOS operations, McDaniel would only say they are happy with the first quarter, that was helped by an increased inventory, now around $170 million compared to $117 million in March last year, just ahead of the public share offer. McDaniel said that while some of the fellow businesspersons are talking about a weak first quarter, SOS expects to report continued growth.

The company’s stock ended at a record close of $6 on the Junior Market of the Jamaica Stock Exchange on Tuesday gaining 200 percent since it was listed in August last year.

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Dealers sold US$4M in BOJ FX auction

April 11, 2018 by

The first BFXITT auction on Wednesday in which Bank of Jamaica offered to purchase purchased US$5 million, attracted 12 offers and fetched just US$3.95 million at an average rate of $125.42.
The highest bid was at $126 to sell US$500,000 with the lowest being $124.50 at which US$500,000 was traded. The rate compares with an average sale of $13.42 million in the overall market up to Midday at an average of J$1215.24.
The central bank started the BFXITT auction in July last year, only selling the US dollar to dealers before today. The bank has scheduled buying US$12 million on April 18 and US$15 million April 25, no trade is announced for the first week in May. The buying of the US dollars in the auction comes against the back ground of a revaluation of the local dollar to $125 after slipping to just over $128 to the US dollar in March. At a recent briefing relating to the commencement of buying through the BFXITT system as part of dissemination information, the Governor of the central bank, Brian Wynter indicated that the decision to buy or sell is based on market intelligence provided by the dealers through their customers.
The commencement of buying of foreign currency through BFXIIT auction also comes at a time that the central bank has reduced the percentage that it used to take from the daily inflows into the market and the planned phasing out of compulsory surrender requirement by authorised dealers.

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Jamaica dollar back to 125 to US$

April 10, 2018 by

The Jamaican dollar closed trading made on the foreign exchange on Tuesday, at J$125.01 to the US dollar, with the selling rate falling by 32 cents, but the US dollar was sold as low as $124.62 by midday.
In US dollar trading, dealers sold US$43.52 million at a rate of J$125.01 at the close, compared to US$51.22 million at a rate of J$125.33 on Monday. Purchases of the US currency by dealers, amounted to US$47.36 million, with the average rate falling 35 cents to $123.95, compared to US$50.66 million at an average rate of $124.30 on Monday.
The market closed with inflows of all currencies, ending at US$53.17 million, versus US$60.68 million on Tuesday and dealers sold US$47.97 million in contrast to US$59.71 million, in previous trading activity.
At mid-day on Tuesday dealers purchased US$13.34 million at an average rate of J$124.45 and sold US$14.45 million at an average of J$124.62. In comparison at mid-day on Monday, dealers purchased US$28.59 million at an average rate of J$124.70 and sold US$15.95 million at an average of J$125.15.
The selling rate on Tuesday, for the Canadian dollar, declined to J$98.23 from J$98.63 at the close on Monday. The selling rate for the British Pound rose to J$175.41 from J$174.87 previously and the euro increased against the Jamaican dollar to J$156.99 to buy the European common currency, versus the prior selling rate of J$154.26.

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JSE at record high at opening

March 26, 2018 by

The Jamaica Stock Exchange hit a new record within 1 minute of today’s opening with the JSE All Jamaican Composite Index jumping 4,576.37 points to 327,071.44 and the JSE Index climbing 4,169.59 points to a record 297,999.05.
The move beat the previous record intraday high reached on March 9 of when the JSE All Jamaican Composite Index (AJI) surged 6,583.63 points to 325,588.39 and the JSE Index jumped 5,998.43 points to a record 296,647.83 at 10.26 in the morning session.
The Junior Market Index put on 11.32 points to trade at 2,942.63 as Express Catering jumped to $5.25 from $4.50 on Friday, following release of nine months results showing profit increasing 166 percent.
With just 5 minutes to 11am the gains for the main market were trimmed with the AJI being up 3,075.18 points to 325,570.25 and the JSE index was up 2,808.68 to 296,638.14 with the Junior Market index being up 15.45 points to 2,946.76.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , , , ,

JSE trading in record territory

March 9, 2018 by

Scotia Group is trading at $53.50 following the release of first quarter results yesterday and helped to push the main market into record territory.
The market is trading at an intraday high on the all Jamaica Index of 325,588.39 having risen 6,583.63 points at 10.27 in the morning session. The JSE index jumped 5,998.43 points to 296,647.83. if the market closed around these levels it would end at a n all-time closing high beating the previous record close by a few thousand points. The market indices slipped back a bit and are now at 325,177.34 for the all Jamaica Index and 296,273.32 for the JSE Index.
Scotia Group was showed increased profits from lower loan loss provisioning and gains from sale of its former subsidiary CrediScotia.

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Minority owners disrupt NCB’s Guardian offer

February 23, 2018 by

NCB Financial Group has advised that the offer to acquire up to 62 percent of Guardian Holdings shares lapsed due to failure for condition 2.4.5 of the Offer.
The conditions in summary stipulates that the conclusion of the offer is subject to there being no action instituted or threatened or investigation by government or its bodies or legal action that may delay the completion of the offer or make it illegal.
At the end of Friday 23rd February, there are terms and conditions of the Offer which remain outstanding a release from NCB stated, as such and in accordance with the provisions of the Securities Industry (Take-Over) By-Laws, 2005 the Offer lapsed.
The latest tally of offers received showed 535 Guardian shareholders tendered approximately 91,743,975 shares which, together with the NCB existing shareholding, represents approximately 70.24% of the outstanding GHL Shares. No shares deposited have been taken up by the Offeror.
NCB future states that the Trinidad and Tobago Securities and Exchange Commission has decided to convene a hearing in accordance with the provisions of the Securities Act, 2012 in respect of the facts and circumstances surrounding the Offeror’s equity interest in GHL and the issuance of the Offer Circular.

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Treasury bill rates plummet

February 15, 2018 by

Interest rates on Government of Jamaica Treasury bills reached their lowest levels in decades with the latest round of treasury bills falling sharply as $9.1 billion dollars chased after the limited amount of $1.8 billion on offer in three tranches.
The 91 day bills cleared at an average of 3.35 percent, down from 3.99 in January, the 182 days instrument ended at 3.593 percent, a fall from 4.16 percent from the average rate in January and the 9 months bill closed at an average of 4 percent. The sharp fall comes against the background of zero inflation rate in January and with no planned tax increase ahead the next few months could continue to see very low inflation.
The decline has implications for a wide array of developments in the wider economy and should herald a general fall in interest rates across the board over the coming months. Rates look as if they will fall further to around 3 percent where they could settle for some time.

Filed Under: Breaking News, Economy, Feature Stories

Elite IPO put off for now

January 23, 2018 by

The initial public offer of 71 million shares in Elite Diagnostic that was to have opened to the public on Monday January 22 but put back to Wednesday January 24 has been put off once again.
The prospectus that was originally planned for release in early December included results for the first quarter of the current fiscal year to September with errors that lead to an understating of expenses and over stating of profit as well as errors in the amounts relating to fixed assets in the cash flow and balance sheet.
According to a recent release from the company, “Elite, after consulting with its Financial Advisors, has decided to update certain statements made in its prospectus dated December 11, 2017 and Addendum dated January 17, 2018. The revised statements and the new Opening and Closing Dates will be published on the JSE’s website as soon as possible.”
IC Insider.com who first brought the errors in the report to the public had written after the addendum was released that the company needed to withdraw the prospectus and have the figures properly checked and audited before releasing it again to the public.

Filed Under: Breaking News, Initial Public Offers Tagged With: ,