Jamaica enjoyed a record haul in remittance inflows for the month of January with US$166 million garnered in January this year, according to data from Bank of Jamaica.
The flows represent an increase of US$8 million or 5.1 percent more than the amounts collected in January 2014. The growth in remittance inflows and a contraction in outflows resulted in net remittance inflows increasing at a faster pace than total inflows, with net remittances of US$147.4 million for January 2015, an increase of US$9.5 million or 6.9 percent over January 2014.
The gain in net inflows would have been occasioned by greater stability and availability of foreign exchange locally.
January remittances climb
April 16, 2015 by
30 days interest rate rise
April 16, 2015 by
Interest rate increased for the latest Government of Jamaica Treasury Bills offering for April over the previous issue, in March this year, but by a relatively small amount of 0.04 percentage points.
The highest and lowest rates in the auction, suggest that investors expected rates to have eased rather than rise, with successful investors obtaining rates ranging from 6.1 percent to 6.74999 percent with an average rate 6.33979 percent, compared to the March auction with a high of 6.8 percent and a low of 6 percent and an average of 6.3 percent. Applications for $690,246,600 chased the $400,000,000 available on Wednesday, April 15 for Treasury Bills with a 30 days maturity of Friday May 15.
Will NCB pick up RBC Cayman?
April 10, 2015 by
Hot on the heels of an agreement to sell RBC Royal Bank (Suriname) N.V. (“RBC Suriname”), to Republic Bank in Trinidad, word reaching IC Insider is that Royal Bank’s operations in the Cayman Island is being sold.
The bank’s website shows three branches in that territory. IC Insider’s source informs us that Michael Lee Chin, Chairman of National Commercial Bank has been seen on the island frequently in recent times, but a comment from National Commercial Bank’s Cayman representative was numb when asked if his bank is buying the RBC operations, but there was no denial suggesting, strongly that NCB is a potential candidate.
RBC Canada stated when they announced the sale of the Suriname bank that “As we continue to focus our Caribbean operations on markets in which we can be a leading competitor for the long-term, we have made the decision to sell RBC Suriname to Republic Bank Limited,” said Kirk Dudtschak, executive vice-president and head, RBC Caribbean Banking. “This transaction supports the successful repositioning of our Caribbean business for the future and allows us to focus on markets where we can strengthen our operational capabilities and where we see opportunities for growth.”
Last year RBC sold the Jamaican operations to Sagicor Group after the entity lost billion of dollars and showed no sign of a turn around.
Big market move, up 1,680 points
April 2, 2015 by
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The JSE main and junior market indices are up so far with only half an hours trading. The junior market is up 7.06 points to 722.57 as Caribbean Producers moved to $2.30 and General Accident was up 10 cents to $1.80.
The all Jamaica climbed 1,679.59 points to 93,862.37 as Carreras jumped 99 cents to $41 and Scotia Group is up $1.44 to $23 with 827,000 shares trading and Jamaica Broilers is up 25 cents at $4.50. Scotia Investments acting as broker, bought all of the Scotia Group shares that traded, with 700,394 units being crossed by them. It is the first for sometime, that the JSE has started so positively and with such level of trading at this stage of the day.
The bid is strong for Caribbean Producers with 598,000 units at $2.30, Scotia Group’s bid is at $22.50.
Jamaican economy grew 0.4% in 2014
April 1, 2015 by
Building under construction in Montego Bay contributed to economic growth in 2014
For the year Statin said that there was a 0.6 percent increase in the output of the Services industries while the Goods Producing industries declined by 0.1 percent. Growth last year was the second year of increased output for the economy with very moderate growth for 2013 around 0.2 percent. The figures will undergo at least two sets of revision before they are final as such the figures could be increased or reduced based on new data that may become available.
The Jamaican economy, grew by 1.6 percent in the first quarter of 2014, over the similar period in 2013. In the second quarter, growth accelerated to 1.9 percent, but a combination of drought conditions and negative impact of Chick v illness as well as closure of the oil refinery severely affected growth in the second half of the year, but more so in the third quarter. The economy declined by 1.4 percent in the third quarter of 2014 compared to the similar quarter of 2013 and growth in “the final quarter of the year resulted in 0.4 percent negative growth compared with the same period in 2013,” Statin said.
For the final quarter of 2014 the reduction in output was due mainly to a 3.9 per cent decline in the Goods Producing industries. The Services industries however, recorded an increase of 0.8 per cent, Statin stated.
GOJ should report 2015 deficit
April 1, 2015 by
Government of Jamaica is reporting a deficit of $39 billion on its operation to February, this year, just below the $40 billion projected and a primary surplus of $79 billion versus forecast of $83 billion.
With the budget for March this year indicating expectations for a surplus of $29 billion, the country should be seeing an overall deficit close to the $11 billion reflected in the 2014/15 budget. The primary surplus budgeted at $121 billion could end up around $116 billion unless there are extraordinary inflows or sharp cut in expenditure.
Overall revenues fell $12 billion for the 11 months while there were cuts of $9 billion in capital expenditure, wages $3 billion and interest cost almost $6 billion. PAYE delivered $3 billion more inflows than forecast and withholding tax performed better than forecast by $2.5 billion. Pulling down the revenues were Local GCT $7 billion, corporation taxes $7.5 billion.
Is end of quarter JSE rally on?
March 26, 2015 by
Jcakie Sharp CEO of Scotia Group that gained 45 cents on Thursday
Main Market| The JSE Market Index gained 865.46 points to 83,174.80, the JSE All Jamaican Composite index rose 967.61 points to close at 91,711.58 and the JSE combined index increased 800.44 points to 84,804.11.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 14 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The increased numbers, is suggestive of month end and end of quarter moves, by some investors or fund managers to get prices or values of certain stocks up to influence portfolio valuation, rather than a sustained higher interest in the market. Admittedly, the reading since March 18, has been strong with the number of higher bids ranging between 10 and 12.
Carreras gained 95 cents and is heading back above $40
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints trading with 7,496 shares at $1.61, Cable & Wireless dealing in 333,413 units and closing at 50 cents. Caribbean Cement had 30,000 shares changing hands at $2.25, Desnoes & Geddes ending trading with 7,728 units at $5.45 and while exchanging 2,320 units, closed at $6.40.
Declines|The last traded prices of stocks with losses, at the end of trading in the main market are, Jamaica Money Market Brokers, closing with 223,767 units, finishing 24 cents lower at $7.02, Mayberry Investments concluding trading with 11,829 units, 36 cents lower to $2 and Scotia Investments in trading 9,000 units, the price slipped $1 to $22.Preference| Proven Investments 8% preference share and closing with 1,000 shares traded with a gain of 45 cents to $5.50.
Another large sell off of US$
March 26, 2015 by
Dealers sold off a net of US$24 million on Thursday, with purchases of all currencies by dealers amounting to US$28,077,038 equivalent, compared with US$37,292,575, on Wednesday and selling of the equivalent of US$52,045,055 versus US$38,096,238 on the previous trading day.
Thursday’s sale is the second day for the week that dealers offloaded much more than they purchased, with net selling of $28.5 million on Tuesday.
In US dollar trading, dealers bought US$25,814,004 compared to US$35,114,776 on Wednesday. The buying rate for the US dollar slipped 10 cents to $114.51 and US$50,855,849 was sold versus US$36,632,413 on Wednesday, the selling rate edged up 1 cent to end at $115.11. The Canadian dollar buying rate rose 39 cents to $90.17 with dealers buying C$1,066,606 and selling C$586,764, at an average rate that fell 14 cents to $91.93. The rate for buying the British Pound declined 57 cents to $168.74 for the purchase of £878,391, while £380,175 was sold, at an average rate of $171.39, for an 81 cents increase. At the end of trading it took J$126.47 to purchase the Euro, 90 cents more than on Wednesday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.04 for a rise of 87 cents on Wednesday’s rate. Other currencies bought, amounted to the equivalent of US$128,765 while the equivalent of US$154,544, was sold.
Highs & Lows| The highest buying rate for the US dollar, fell 5 cents to $115.35. The lowest buying and the highest selling rates remained at $93.94 and $120.37 respectively and the lowest selling fell $1.85 to $93.94. The highest buying rate for the Canadian dollar dropped 50 cents to $92.70, the lowest buying rate remained at $72.46, but the highest selling rate rose 28 cents to $94.56 and the lowest selling rate climbed $2.10 to $89.40. The highest buying rate for the British Pound, gained 70 cents to $172, the lowest buying rate remained unchanged at $137.20 but highest selling rate climbed $1.73 to $176.87, while the lowest selling rate gained $1.40 to $166.70.
Remittances top $2.16b in 2014
March 24, 2015 by
Remittance inflows for 2014 exceeded the amount earned by Jamaica in 2013 by US$95 million or 4.6 percent, according to data released by Jamaica’s Central Bank.
The country saw total inflows of US$2.16 billion for the January to December period. The total flows are likely to be just under the $2.2 billion estimated inflows from the tourism sector for 2014.
Net remittances for 2014 were US$1.93 billion, representing a growth of US$102 million or 5.6 percent compared to 2013 and emanated from an increase in gross inflows and a reduction of outflows.
The increase in total remittance inflows reflected an increase of US$95 million in inflows through Remittance Companies. This increase was however partly offset by a decline of US$0.5 million in inflows from the Other Remittances sub-category.
NCB ends at $28 in Trinidad Thursday
March 19, 2015 by
NCB closed up by $1.50 at $25 on Wednesday
A total of 60,000 shares were traded in Trinidad on Thursday. At the close the bid on the stock was TT$1.55 for 42,395 shares with no stock on the offer for sale
In Jamaica 184,000 unit of the stock traded between $24.10 and $25 with the majority at $25. There are only three offers on the board for 275 units at $25.50, 103,873 at $30 and 503 shares at $33.
NCB demand flows from good 2014 results with earnings of $4.73 cents per share and a hike in its dividend payments as well as robust first quarter results to December and the high level of undervaluation of the stock.
Loans grew by $8.7 billion, or 6 percent to $157 billion at the end of December last year from the similar period in 2013. Net profit of $2.1 billion, a decrease of 15 percent, or $368 million from the $2.5 billion earned in 2013 but the booking of the tax on assets was done in full in the December 2014 quarter instead of being spread over the entire year. This added $670 million to cost compared to 2013 resulting in the net profit getting a hit of roughly $400 million.
NCB reported that “gain on foreign currency and investment activities, up by $861 million. This was due to higher levels of foreign exchange income and gains from the sale of debt securities in the December 2014 quarter. Net fee and commission income, increased by $465 million or 22 percent, mainly due to Payment Services fees, related to card usage and transaction volumes, credit related fees from the growth in loans and greater corporate finance and unit trust fees, booked in the current period, net interest income, increasing by 2 percent, or $151 million, primarily due to growth in net loans and advances and investment securities portfolios.”
