“In the Third Quarter we have continued to build momentum through our investment-led Project Marlin and we are continuing to deliver top line growth” Phil Bentley, Chief Executive of CW Communications, commented in a release of the group’s third quarter results today.
“Investments in our mobile networks have improved coverage and reliability and we saw mobile data grow a further 23 percent with traffic carried on our networks increasing by over 35 percent. Fibre investments have focussed on our Caribbean markets and are key to generating growth in the Broadband & TV segments. We continue to work with Governments and Regulators to gain the required approvals for completion of the Columbus acquisition and are on track to close before our fiscal year end” Bentley stated.
The groups CEO went on to say “Mobile revenue (53 percent of Group revenue) was up 4 percent in the Third Quarter driven by growth in LIME and Panama, up 10 percent and 4 percent respectively. LIME growth was driven by continued subscriber additions in Jamaica, 18 percent where investment in our 4G mobile network led to constant currency revenue growth of 27 percent and an NPS gain of 11 points, whilst in Barbados our “Upgrade Barbados” marketing campaign led to 6 percent revenue growth and our market-leading LTE service in Cayman drove revenue growth of 3 percent. Panama mobile growth followed a strong increase in subscribers, primarily within prepaid, as a result of increased promotions leading up to and through the holiday season.”
C&WJ revenues up 27% in Q3
Remittances up 5% for 2014
Remittance inflows into Jamaica, continue to grow at consistent pace for 2014, and is now at the highest levels ever. The latest data from Jamaica’s central bank, Bank of Jamaica revealed that total remittance inflows for October last year, climbed US$9 million or 5.2 percent to US$180 million, compared to the same month of 2013.
For the month, net remittances were US$160 million, an increase of US$8 million or 5.3 percent relative to the 2013 corresponding period. “These inflows were above the average of US$161.8 million for the previous five corresponding periods,” the BOJ report stated.
For the review period, total remittance inflows amounted to US$1.784 billion, for an increase of US$81 million or 4.8 percent. Net remittances for the calendar year to October were up US$90 million or 6 percent to US$1.59 billion, relative to the corresponding period of 2013. The growth of net inflows seemed tied to greater stability of the exchange rates of the Jamaican dollar and more availability of foreign exchange in the local market, in 2014 compared to 2013.
The JSE at 19 months’ high
Friday’s activity on the Jamaica Stock Exchange saw the all Jamaica composite index soaring nearly 2,000 points to hit the highest level since closing at 87,362.77 points, on July 29, 2013. The major contributors to the strong move are, Carreras closing at $42, Scotia Group ending at $21.99, Jamaica Broilers, Jamaica Money Market Brokers and Sagicor Group.
A large part of the gain in the indices is due to Scotia Group jumping $1.97, as broker Scotia Investments, aggressively bought most of the shares to trade in that stock at the higher level. At the close, bids were well below at $20.50, leaving a large gap for the price to fall back. Trading resulted in the prices of 11 stocks rising and only 1 declining as 22 securities changed hands, ending in 3,765,154 units trading, valued at $31,624,763, in all market segments.
Main Market| The JSE Market Index gained 1,782.43 points to 79,120.65, the JSE All Jamaican Composite index rose 1,992.84 points to close at 87,178.87 and the JSE combined index gained 1722.34 by points to close at 80,967.47.
GOJ income falls but fiscal on track
The Jamaican government is on track to achieve their primary surplus target with the December data showing only half a billion positive balance over the budgeted target level, but that is well down on $6.2 billion excess achieved for the period to November.
The primary surplus at the end of December comes out at $66.5 billion and is up from November’s surplus of $54.4 billion. The excess over forecast was achieved although revenues are off by $10 billion, or more than $3 billion worse than the $6.8 billion at the end of November. Tax revenues fell short by $9.7 billion to November as economic measures bite, but non tax revenue was better than forecast by $2 billion and grants were off by $3 billion.
Tax on interest brought in $1.5 billion in revenue over budget and was up by 39 percent, PAYE rose by 4 percent or $2 billion to $49.9 billion. The shortfalls were mostly local GCT down by $5.4 billion or 10.6 percent to $5.5 billion. Corporation tax fell short by $6.6 billion or 30 percent, Special consumption tax dropped $1.7 billion or 19 percent
The wage bill that was on target to November shows $1.76 billion in savings to December, as government spent $121 billion on this item, interest cost is down by $4.5 billion to $95 billion and other cost fell by $671 million. Capital expenditure, underspent by $7.4 billion to November is now $8.3 billion below forecast or 31 percent reduction.
The fiscal deficit targeted at $33.87 billion is down by $5 billion to $28.9 billion thanks to cut in scheduled payments.
GOJ T-bill rate decline conftinues
Ministry of Finance Building Kingston, Jamaica
The 182 days note that fell to 7.14 percent at the December auction, the lowest level since June 201, returned a lower rate in the January auction at 6.99 percent.
The pace at which the 182 days treasury rates are falling, have slowed from 0.34 percent dip in November to 0.15 percent at the latest issue. With the latest announcement by Bank of Jamaica on projection for inflation for 2015 being in the range of 3-5 percent there will be lots of room for the treasury rates to decline sharply in the months ahead.
The latest auction, dated January 14, 2015, for the 28 days instrument, ended with an average rate of 6.29528 percent. The rate fell from the average rate of 6.38 percent at the December auction and from 6.71 percent in November and 6.826 percent in October, as $1.1 billion up from $686 million in December, chased the $400 million on offer.Investors’ demand for the 91 days Treasury bills, climbed to $706 million, from $531 million in December, but is still well below the $1.042 billion that chased the November auction offering. Demand for the longer-term 182 days instrument, was down to $717 million from $925 million for the December auction. The amounts available were $400 million for each for the Treasury bills on offer.
The Treasury bill for the 91 days period, Friday, January 23 to mature on Friday, April 24, attracted an average yield of 6.8817 percent down from 6.956 percent in December. November’s rate was 7.052 percent, 7.336 percent in October and 7.46952 percent, at the September auction. At the August auction the average rate out turn was 7.46767 percent. The yield for July was an average of 7.63643 percent, for the June issue 7.65893 percent and 8.2 percent in May, for the Treasury bill of same duration.
The offer of 182 days duration, dated December 2014, maturing on June 19, 2015, resulted in an average interest rate yield of 7.14 percent, down from 7.387 percent at the November’s auction. At the October auction the average rate declined to 7.73187 percent from 7.99887 percent, at the September auction, 8.11578 percent, in August, 8.21982 percent at the July’s auction and 8.36502 percent for the June issue, of the same duration. At the May auction, the rate came out at 8.932 percent.
Inflation drops in December
The rate of inflation in Jamaica, fell in December last, the Statistical Institute of Jamaica (Statin) reported today. Statin reported that the rate for the last month of the year, registered a fall of 0.3 percent over November. In November, the rate declined by 0.5 percent.
The rate for the full year and the point-to-point inflation, each ended at 6.4 percent and compares with 6.4 percent for 2013 but is above the 6 percent achieved in 2011. The increase for 2014 is the second lowest on record, for the past seven years dating back to 2008.
The price movement in December was largely attributable to the “downward movement recorded in the index for the division ‘Food and Non-Alcoholic Beverages’, ‘Housing Water, Electricity, Gas and Other Fuels’ and ‘Transport’. The index for the division ‘Food & Non-Alcoholic Beverages’ declined by 0.6 percent, due mainly to lower prices for vegetables. Lower rates for water and sewage in addition to a reduction in the cost of electricity were key factors influencing the division ’Housing, Water, Electricity, gas and Other Fuels’, which moved down by 1.2 percent. A decrease of 0.4 percent was recorded for the division ‘’Transportation as a result of global reduction in oil prices” Statin said.
On the other hand price increases occurred in Alcoholic Beverages and Tobacco, Clothing and Footwear, Furnishings, Household Equipment and Routine Household Maintenance, Health, Recreation and Culture and Miscellaneous Goods and Services.
Treasury rates at 18 months low
The latest results for Treasury bill auctions, show a decline in the interest rates on all three instruments offered to the public. Importantly, the 182 days note fell to the lowest level, since June 2013, when the rate was 7.12 percent.
At the latest auction dated December 19, 2014, the average rate on 28 days instrument, ended at 6.38 percent. The rate fell from sharply, from 6.71 percent in November and 6.826 percent in October as $686 million chased the $400 million on offer.
Investors, demand for the 91 days Treasury bills offered, continued to climb, dropped to only $531 million from to $1.042 billion for the November auction. Demand for the longer-term 182 days instrument, was for $942 million for the latest auction in which the amounts available was $400 million for all three Treasury bills on offer.
The Treasury bill for the 91 days period, Friday, December 19 to mature on Friday, March 20 next year, attracted an average yield of 6.956 percent a moderate fall from November’s 7.052 percent, and 7.336 percent in October and 7.46952 percent, at the September auction. At the August auction the average rate out turn was 7.46767 percent. The yield for July was an average of 7.63643 percent, for the June issue 7.65893 percent and 8.2 percent in May, for the Treasury bill of same duration.
The offer of 182 days duration, maturing on June 19, 2015, attracted $925 million for the $400 million on offer resulting in an average interest rate yield of 7.14 percent, down from 7.387 percent at the November’s auction. At the October auction the average rate declined to 7.73187 percent from 7.99887 percent, at the September auction, 8.11578 percent, in August, 8.21982 percent at the July’s auction and 8.36502 percent for the June issue, of the same duration. At the May auction, the rate came out at 8.932 percent.
Jamaica’s trade deficit slips to September
Imports of Machinery & Transport Equipment increased
Jamaica’s trade deficit for the first nine months of 2014 widened marginally by US$27 million to US$3.28 billion compared to US$3,26 billion in the similar 2013 period. Imports during the period fell by US$81 million to US$4.4 billion.
Exports fell by US$108 million or 8.8 percent to US$1.11 billion compared to the same period in 2013. “During the nine-month period, there was a general downward trend in the value of imports, with six of the ten commodity groups registering declines,” Statin stated. “Mineral Fuels, etcetera” the main contributor, fell US$9 million to US$1.56 billion. “Chemicals” by US$108 million or 18.8 percent, to US$464 million. Lower imports of ethanol products were the primary contributor to this decline.
Compared to the 2013 period, Machinery and Transport Equipment valued at US$681 million grew by US$24 million due mainly to higher expenditure in the, divisions telecommunication, sound recording and reproducing apparatus, office machines and automatic data processing equipment, power generating machinery and equipment, machinery specialized for particular industries and electrical machinery apparatus and appliances. Manufactured Goods grew by US$14 million to US$449 million. “Misc. Manufactured Articles” increased by US$19 million to US$323 million.
Bauxite mining
GOJ targets on track but
Jamaica’s Ministry of Finance – newer office building
The primary surplus at the end of November is $54.4 billion against a target of $48.2 billion. The excess was achieved although revenues are off by $6.8 billion a slightly worse position than at October by $500 million with a revenue shortfall then of $6.28 billion. Tax revenues fell short by $700 million in November and was the major reason for the shortfall in the month.
On the payment side the wages bill in on target with very little variation but other cost fell by $1.36 billion in November bringing the year to date cut to $2.8 billion. Interest saved climbed to $3.4 billion in November from $3 billion in October. Capital expenditure is underspent by a further $2 billion in November and $7.4 billion so far for the fiscal
Collector of Taxes office, Constant Spring, Kingston, Jamaica
Government borrowed $10 billion less on the local market but foreign borrowing is up by $73.4 billion but loan repayments are in line with original forecast.
The fiscal deficit that was targeted at $34.4 billion is down by $9.6 billion to $24.75 billion and is better than the deficit at the end of October when it reached $26.8 billion.
Tax on interest brought in $2.9 billion in revenue over budget, PAYE is up by $1.7 billion. The shortfalls were mostly local GCT down by $4.3 billion, Corporation tax $4.6 billion, Special consumption $2.2 billion, International traded $2.4 billion and grants $1.2 billion.
Mayberry out of Access
There is trading in 135,339,271 units of access shares which were sold by Mayberry from their holdings and said to be purchased by clients in 33 trades at $9 each.
Reports to IC Insider.com, indicate that the mediator to both parties in the Access dispute between Marcus James and Mayberry, R Danny Williams was advised today that Mayberry has disposed of their holdings.
Up to late on Monday, the Chairman of Access confirmed that he was not aware of the trades on Monday, that IC Insider gather were cancelled by Mayberry. Under the stock exchange rules pertaining to insider trades, the intention to trades in the stock of a company by insiders must be communicated to the Chairman in writing.
Based on the price the block was old at the consideration is $1.218 billion. IC insider.com understand that Proven Investments purchased the shares which would bring their holdings to just under 50 percent of the 274 million shares outstanding at Access.
