Political Mismanagement kills J$

Poor Jamaican dollar. killed by political mismanagement

Poor Jamaican dollar. killed by political mismanagement

The Jamaican dollar reached an unfortunate mile stone at the end of trading on Wednesday, when it crossed over the $117 mark to one US dollar, after decades of political experimenting and mismanagement that led to long periods of overvaluation for the currency.
Unfortunately, if this was the end of devaluation for the local currency, it may be considered not too bad but things look as if there is more decline coming with the country’s central bank is ensuring that the target they secretly hold is met, with a hike in the compulsory take from authorized dealers moving up sharply last year to 25 percent of each day’s inflows. Interestingly, while the currency has slipped since the last quarter of 2014, inflation at the same time has been virtually zero, thus giving the currency a real increase in competiveness.
Trading in foreign currencies in Jamaican closed with dealers buying the equivalent of US$38,333,260 in contrast to US$34,883,289 on Tuesday, while they sold the equivalent of US$37,824,842 versus US$38,197,799 previously and pushed the average selling rate for the US dollar over J$117 for the first time.
In US dollar trading, dealers bought US$36,094,493 compared to US$27,766,608 on Tuesday. The buying rate for the US dollar rose 6 cents to $116.41 and US$36,465,228 was sold versus US$35,932,831 on Tuesday, the selling rate rose 3 cents to $117.01. The Canadian dollar buying rate declined $1.07 FX Sum 1-7-15.docxto $91.49 with dealers buying C$1,004,694 and selling C$649,575, at an average rate that rose 20 cents to $94.04. The rate for buying the British Pound fell $1.93 to $180.32 for the purchase of £877,924, while £437,821 was sold, at an average rate that rose 1 cent to $183.79. At the end of trading, it took J$130.34 to purchase the Euro, 11 cents less than on Tuesday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.69 for 3 cents less than Tuesday’s rate. Other currencies bought, amounted to the equivalent of US$89,263, while the equivalent of US$149,848 was sold.
Highs & Lows| The highest buying rate for the US dollar rose 15 cents to $117.25, the lowest buying rate jumped $4.82 to $95.82, the highest selling rates was unchanged at $122.78, while the lowest selling rate jumped $19.34 to $114.95. FX HL 1-7-15The highest buying rate for the Canadian dollar dropped $2.88 to $94, the lowest buying rate lost 33 cents at $74.70. The highest selling rate inched up 27 cents to $97 and the lowest selling rate lost 50 cents to $89.50. The highest buying rate for the British Pound, and the lowest buying rate remained at $183.90 and $147.82,respectively, with the highest selling rate rising $3.61 to $190.99 and the lowest selling rate was up $1.30 to $178.

Remittances growing slowly

FX_USPoundJamaica enjoyed US$194 million in remittance inflows for the March this year, an increase of US$5.7 million or 3.1 percent relative to the same month of last year, after factoring an expansion in remittance outflows, net remittances came in at US$174.4 million, an increase of only US$2.6 million or 1.5 percent over the 2014 period.
Total remittance inflows were US$528 million for the first three months of the year, an increase of US$13 million or 2.6 percent. Net remittances for the 2015 March quarter were US$471 million, growth ofUS$8.3 million or 1.8 percent relative to the corresponding period of 2014. For the review period.
For 2014 total inflows into the system is put at US$2.16 billion by Bank Of Jamaica while outflows amounted to $227 million and declined from US$240 million in 2013 and US$267 million in 2012.

J$ just 2 cents from $117 to US$1

BankofJamaicaBOJ Tuesday’s trading in foreign currencies in Jamaican closed with dealers buying the equivalent of US$34,883,289 in contrast to US$44,006,677 on Monday, while they sold the equivalent of US$38,197,799 versus US$45,314,596 previously.
In US dollar trading, dealers bought US$27,766,608 compared to US$40,659,188 on Monday. The buying rate for the US dollar rose 6 cents to $116.35 and US$35,932,831 was sold versus US$42,723,695 on Monday, the selling rate fell 1 cent to $116.98. The Canadian dollar buying rate rose 58 cents to $92.56 with dealers buying C$1,573,168 and selling C$889,991, at an average rate that declined 46 cents to $93.84. FX sum 30-6-15The rate for buying the British Pound increased $1.99 cents to $182.25 for the purchase of £3,643,918, while £869,965 was sold, at an average rate that fell 10 cents to $183.78. At the end of trading, it took J$130.45 to purchase the Euro, 20 cents more than on Monday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.72 for 36 cents less than Monday’s rate. Other currencies bought, amounted to the equivalent of US$157,210, while the equivalent of US$184,358 was sold.
Highs & Lows| The highest buying rate for the US dollar rose 3 cents to $117.10, the lowest buying rate dropped $4.61 to $91, the highest selling rates put on 26 cents $122.78, while the lowest selling rate remained at $95.61. FX hl 30-6-15The highest buying rate for the Canadian dollar jumped $2.58 to $96.88, the lowest buying rate gained 4 cents at $75.03. The highest selling rate dipped $1.37 to $96.73 and the lowest selling rate lost 35 cent to $90. The highest buying rate for the British Pound, fell 45 cents to $183.90, the lowest buying rate remained at $147.82, with the highest selling rate diving $3.19 to $187.38 and the lowest selling rate fell $1.40 to $176.70.

J$ 1 cent from $117 to US$1 Monday

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J$1000front Monday’s trading in foreign currencies in Jamaican came down from the lofty heights of Friday’s trading as foreign exchange dealers bought the equivalent of US$44,006,677, in contrast to US$109,789,460 on Friday, while they sold the equivalent of US$45,314,596 versus US$86,467,457 previously.
In US dollar trading, dealers bought US$40,659,188 compared to US$104,883,104 on Friday. The buying rate for the US dollar declined 43 cents to $116.29 and US$42,723,695 was sold versus US$83,731,477 on Friday, the selling rate rose 7 cents to $116.99. The Canadian dollar buying rate fell $1.38 to $91.98 with dealers buying C$1,474,785 and selling C$633,071, at an average rate that declined 14 cents to $94.30. FX sum 29-6-15The rate for buying the British Pound lost $1.58 cents to $180.26 for the purchase of £1,100,105, while £825,122 was sold, at an average rate that climbed 17 cents to $183.88. At the end of trading, it took J$130.26 to purchase the Euro, 57 cents less than on Friday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$128.08 for 4 cents less than Friday’s rate. Other currencies bought, amounted to the equivalent of US$475,673, while the equivalent of US$783,772 was sold.
Highs & Lows| The highest buying rate for the US dollar dipped 3 cents to $117.07, the lowest buying rate and the highest selling rates remained at $$95.61 and $122.52, respectively while the lowest selling rate dropped $17.69 to $95.61. The highest buying rate for the Canadian dollar moved down 30 cents to $94.30, the lowest buying rate gained 4 cents at $74.99. FX hl 29-6-15The highest selling rate rose $1.55 to $98.10 and the lowest selling rate lost $1.45 to $90.35. The highest buying rate for the British Pound, fell 65 cents to $184.35, the lowest buying rate put on 8 cents to $147.82, with the highest selling rate rising $2.57 to $190.57 and the lowest selling rate climbed $1.60 to $178.10.

Huge forex trading in Jamaica Friday

NCB buys US$32.9m on Friday

NCB buys US$32.9m on Friday

Friday was a huge day for trading in foreign currencies in Jamaican as foreign exchange dealers bought the equivalent of US$109,789,460 or US$23,322,004 more than the amount sold, in contrast to only US$29,947,285 on Thursday, while they sold the equivalent of US$86,467,457 versus just US$27,593,054 previously.
Scotia Bank bought US$18.7 million and sold US$16.8 million while National Commercial Bank bought US$32.85 and sold only US$21.5 million, the next largest trade was Sagicor Bank with US$10.9 million bought to US$8.6 million sold.
In US dollar trading, dealers bought US$104,883,104 compared to US$27,666,499 on Thursday. The buying rate for the US dollar increased 50 cents to $116.72 and US$83,731,477 was sold versus US$26,103,111 on Thursday, the selling rate rose 3 cents to $116.92. The Canadian dollar buying rate rose $1.05 to $93.36 with dealers buying C$2,034,353 and selling C$1,742,563, at an average rate that rose 2 cents to $94.44. FX sum 26-6-15rThe rate for buying the British Pound gained 48 cents to $181.84 for the purchase of £1,661,063, while £785,759 was sold, at an average rate that climbed 34 cents to $183.71. At the end of trading, it took J$130.83 to purchase the Euro, 20 cents more than on Thursday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$128.13 for 21cents more than Thursday’s rate. Other currencies bought, amounted to the equivalent of US$691,331, while the equivalent of US$93,900 was sold.
Highs & Lows| The highest buying rate for the US dollar dipped 12 cents to $117.10, the lowest buying rate jumped $4.91 to $95.61. The highest selling rate remained at $122.52 and the lowest selling rate jumped $17.69 to $113.30.FX hl 26-6-15rv The highest buying rate for the Canadian dollar moved down $1.40 to $94.60, the lowest buying rate remained at $74.95. The highest selling rate declined $1.45 to $96.55 and the lowest selling rate rose $1.50 to $91.80. The highest buying rate for the British Pound, rose 85 cents to $185, the lowest buying rate remained at $147.74, with the highest selling rate rising $1.08 to $188 and the lowest selling rate climbed $1.70 to $179.70.

Something stinks in Trinidad

TCement_280x150Something stinks in the land of calypso and it has nothing to do with football. Trinidad Cement offered rights to purchase shares in the company early this year but only some shareholders were invited. No one has done anything about this stinking thing. One investors in the twin island state made a stink about the issue but not really about the salient point.
They are of the view that with Cemex controlling a large block of the shares by way of the rights issue made it tantamount to a takeover, hence they ought to have made an offer to the other shareholders to buy their shares. With officially less than 50 percent of the shareholdings that seems a bit farfetched.
What is of far greater import are two issues that go to the heart of good corporate governance, equitable treatment of shareholders and proper disclosure. The first issue is that all shareholders were not treated equally as is the norm for all holders of the same class of shares.
TCL directors found it convenient to deprive shareholders who reside overseas except for a select few from participating in the offer. It is interesting that when Guardian Holdings had a rights issue it was open to all shareholders whether residing in Trinidad or not. TCL had lots of time to have prepared themselves and others for the rights.
“TCL has advised that at a meeting of the Board of Directors of TCL held on Thursday, February 26, 2015, the board confirmed a decision to offer the shares in the Rights Issue of 124,882,568 new shares in Trinidad and Tobago only, and to exclude all other jurisdictions in which TCL`s shares are listed – including Jamaica. This decision was based on the following: (1) The complexities involved in satisfying the requirements of the various regulatory bodies in all jurisdictions in which the Company is listed and its effects on the stringent timeframe for the Rights Issue, especially having regard to the fact that the condition imposed by TCL`s Lenders; and (2) the de minimis shareholding and trading activity in the other jurisdictions (including Jamaica).”
The second and even more serious concern has to do with disclosure or lack of it. One would hardly be regarded as foolish as to think that the deal was hatched to get Cemex controlling interest by the back door.
First overseas based shareholders were excluded from the issue, no shareholder was allowed to subscribe to more than their allotment and the scheme provided for Cemex to have their required holding whether the rights was successful or not by the agreement to issue added shares if the amounts from the rights did not allow them at least 35 percent ownership.
The offer document stated “If Sierra Trading has not achieved a shareholding in TCL of 35%, then subject to receiving all required approvals, including Shareholder approval, a private placement of TCL shares will be issued in favour of Sierra Trading in an amount that will permit Sierra Trading to achieve a shareholding of 35% of TCL’s outstanding shares”

Carib Cement a subsidiary of TCL

Carib Cement a subsidiary of TCL

The grave error is that the company withheld important and extremely relevant information from shareholders. In fact they got noted auditors to issue report that is questionable in one critical area for what it did not disclose that was a part of the offer document. Why did PriceWaterhouse (PW) signed off on it and leaving out one of the most critical bit of information on the profit in 2015 and thus giving great validity to the numbers is a mystery? The information would have led any reasonable reviewer to the conclusion that the group made no profit for the March quarter, the hiding of this critical information is very unfortunate. If TCL who would have been in a good position to know what the profit for the quarter was likely to be had disclose same to investors many more would probably have taken a more positive view of the company as the numbers showed a vastly better picture than was released to the investing public.
According to the offer document TCL made no profit between December and March this year and this was critically false information. Yet the company posted a huge improvement in profit in the March quarter. That is odd, so hear what PW said in their report about the financial position and forecast prepared by management of TCL. Extract from the PW report states, ”in our opinion the projection has been properly compiled on the basis of the assumptions set out in note 1 and the basis of accounting used is consistent with the accounting policies of the group.” It goes on to suggest that actual results may vary materially from forecast. That is fine for projection somewhere down the road but can’t be good for information that has already been known.
Retained earnings at December 2014 is included in the balance sheet at $64.257 million and the same figure of $64.257 million on April 1, 2015, the conclusion here is that there was no profit nor loss in the quarter and if so many would consider the price of $2.90 too high. On April 23 the TCL directors signed off on the first quarter results showing a big jump in profit to $43 million up from $11 million in 2014. Was all the profit made in March alone ahead of the rights issue document and if not, why was it not disclosed in the report? Certainly for the months or the period that they had information investors should have been provided with it and with some guidance for the rest of the months for the quarter and for the full year as well. The numbers for the quarter puts full year’s earnings around 64 cents without any savings from debt restructuring that makes the $2.90 rights issue price extremely cheap, few would have known what the numbers were likely to be based on the silence of the company’s “dumb” directors.
Why hasn’t the FSC of Trinidad and the stock exchanges on which the stock is listed not taken up the matter in the interest of the investing public? Caribbean investors deserve far better treatment than this shabby approach.

J$ edges closer to $117 to the US

J$5000 The Jamaican dollar lost ground on Wednesday against the US dollar as it edges close to J$117 and the Pound but gained on the Canadian dollar.The Jamaican dollar which started the year at $114.66 to the US dollar has so far lost nearly 2 percent, with inflation at roughly zero, the currency has gained a bit in competitiveness this year as well as since October last year with negative inflation between then and December.
Dealers bought the equivalent of US$30,175,916 compared with US$33,052,701 on Tuesday, while they sold the equivalent of US$36,534,605 versus US$35,474,277 previously.
In US dollar trading, dealers bought US$26,945,527 compared to US$29,480,545 on Tuesday. The buying rate for the US dollar increased 3 cents to $116.11 and US$33,784,230 was sold versus US$32,534,666 on Tuesday, the selling rate rose 10 cents to $116.80. The Canadian dollar buying rate fell 3 cents to $92.67 with dealers buying C$1,157,439 and selling C$845,699, at an average rate that fell 5 cents to $94.70. FX sum 24-6-15The rate for buying the British Pound lost 97 cents to $180.87 for the purchase of £1,179,293, while £657,132 was sold, at an average rate that rose 3 cents to $183.83. At the end of trading, it took J$130.51 to purchase the Euro, $2.43 less than on Tuesday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.87 for $2.30 less than Tuesday’s rate. Other currencies bought, amounted to the equivalent of US$469,585, while the equivalent of US$1,030,411 was sold.
Highs & Lows| The highest buying rate for the US dollar fell 5 cents to $117.10, the lowest buying and the highest selling rates remained at $95.61 and $122.52 respectively, but the lowest selling rate dropped $18.39 to $95.61. FX hl 24-6-15The highest buying rate for the Canadian dollar declined 90 cents to $94.60, the lowest buying rate ended 58 cents lower at $74.95. The highest selling rate was down 60 cents to $97.40 and the lowest selling rate climbed $1.20 to $91.80. The highest buying rate for the British Pound, remained at $184, the lowest buying rate fell 83 cents to $147.74, with the highest selling rate rising $2.81 to $190.46 and the lowest selling rate climbed $1 to $180.

JSE slips most stocks rose

Caribbean Cement factory the company's stock closed at a 52 weeks' high on Friday

Caribbean Cement factory the company’s stock closed at a 52 weeks’ high on Friday

Activity on the Jamaica Stock Exchange, resulted in the prices of 15 stocks rising, 9 declining as 31 securities changed hands, ending in 5,015468 units trading, valued at $22,480,880, with 6 stocks closing at 52 weeks’ high, in all market segments. Only 7 stocks gained in the main market with 5 declining.
TheJSE Market Index lost 248.58 points to 97,382.18, theJSE All Jamaican Composite index fell 277.83 points to close at 107,786.05 and the JSE combined index dropped 186.25 points to end at 100,134.89.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 8 stocks with bids higher than their last selling prices and 3 with offers that were lower.
JSe sum 19-6-15rvIn trading, Cable & Wireless ended with 400,245 units changing hands, 1 cents down at 44 cents, there is some amount of selling at the 48-50 cents range and not much buying showing before 40 cents, with the full 2015 fiscal year results showing a large loss. The Gleaner contributed 670,000 shares with the price rising 3 cents, to end at $1.08, Jamaica Stock Exchange ended at a new all-time high of $7 with 58,055 shares trading to gain of 65 cents, ahead of the ex-dividend date of June 23. JMMB Group had 215,427 shares changing hands with the price remaining at $7.50. National Commercial Bank trading in only 32,931 shares closed at $29.50, Pan Jamaican Investment contributed 20,962 shares with the price slipping 1 cent, to $63.50, JSE fn qts 19-6-15 the stock traded earlier at a 52 weeks’ high of $65, Radio Jamaica closed at a new 52 weeks’ high of $3.20 with 50,000 shares changing hands. Sagicor Group contributing 185,000 shares with the price easing 1 cent, to $12.60. Scotia Group contributing 32,351 shares with the price rising just 1 cent to $23.15, Scotia Investments had 32,219 shares trading between $27.28 and the last price of $29.85, Supreme Ventures contributed 2,148,484 shares with the price falling 20 cents, to $3.50 and Proven Investments contributing 94,708 shares with the price closing unchanged at 22 US cents.

JSE closes up with 15 stocks rising

Sagicor Group traded at day a new 52 weeks' high on Thursday.

Sagicor Group traded at day a new 52 weeks’ high on Thursday.

Activity on the Jamaica Stock Exchange, resulted in the prices of 15 stocks rising, 8 declining as 30 securities changed hands, ending in 2,795,375 units trading, valued at $21,467,371 and 3 new 52 weeks’ high in all market segments.
TheJSE Market Index gained 372.85 points to 97,630.76, theJSE All Jamaican Composite index rose 416.74 points to close at 108,063.88 and the JSE combined index gained 368.09 points to end at 100,321.14.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, JSE sum 18-6-15the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 7 with offers that were lower.
In trading, Cable & Wireless ended trading with 391,410 shares to end at 45 cents. Caribbean Cement ended with 1,019,125 shares but the price fell 40 cents to $5, Carreras ended trading with 7,660 shares to gain 41 cents to $48.50, Grace Kennedy closed with 32,022 units changing hands, 40 cents higher at $63.90. Jamaica Broilers traded 140,665 shares and was down 5 cents to $5.40, Jamaica Producers jumped $1.46 to $20 on a small volume of 7,239 shares. JMMB Group traded 176,877 shares but remained unchanged at $7.50, National Commercial Bank closed trading with 52,710 units changing hands and gained 5 cents to $29.50, JSE fn qts 18-6-15Sagicor Group traded at a new 52 weeks’ high of $13 during the morning but closed at new 52 weeks’ close of $2.61, 1 cent higher with 69,030 shares trading. Sagicor Real Estate Fund ended with 11,619 shares trading and remained unchanged at $8.
Scotia Group had trading in 208,096 shares to gain just 3 cents at $23.14, Supreme Ventures closed with 64,000 shares changing hands at $3.70. Proven Investments traded 91,678 shares and put on 0.38 US cents at the close, for a new closing high of 22 US cents, while Jamaica Money Market Brokers 7.50% preference share, traded 48,470 units at $2 and Jamaica Money Market Brokers 8.75% preference share traded 30,500 units and lost 1 cent, to end at $2.98.

JMMB dominates trading as JSE rises

JMMB_Building600x250 JMMB Group dominated trading with 9.9 million units valued at $74.5 million on Wednesday in activity on the Jamaica Stock Exchange but the stock price was up only moderately.
In trading the prices of 14 stocks rose, 6 declined as 28 securities changed hands, ending in 13,740,198 units trading, valued at $109,298,383, with two new closing 52 weeks’ high, in all market segments but with Jamaica Broilers trading at a 52 weeks’ high during the day.
TheJSE Market Index gained 661.40 points to 97,257.91, theJSE All Jamaican Composite index rose 739.27 points to close at 107,647.14 and the JSE combined index gained 659.28 points to end at 99,953.05.
Stocks trading include, JSE sum 17-6-15Caribbean Cement adding 800,705 shares to gain 40 cent to close at $5.40 for a new closing 52 weeks’ high, Desnoes & Geddes lost 40 cents to $7.60 with 7,235 shares trading, Hardware and Lumber traded 210,000 shares at $18 but the bid that was at $18 was moved down to $16, shortly the trade. Jamaica Broilers had 47,213 shares trading to close at $5.45 for a gain of 25 cents but traded earlier in the day at $6. JMMB Group traded 9,935,904 shares at $7.50, up from $7.41 on Tuesday, the shares were sold in 10 lots by JMMB Securities and all but 96,142 were purchased by NCB Capital Markets for clients. Mayberry traded 147,3000 shares at $2.88, National Commercial Bank trading only 4,777 shares as high as at $29.99 but closed at $29.45, Pan Jamaican Investment closed at a new 52 weeks’ high of $63.51 with only 5,000 shares but traded at $63.75 during the day. JSE fn qts 17-6-15Sagicor Group in trading 1,773,139 shares, ended up 10 cents higher at $12.40 at the close. Sagicor Real Estate Fund gained 30 cents in trading 23,151 units and closed at $8, Scotia Group ended with 61,864 shares at $23.11, Supreme Ventures had 59,656 shares trading at $3.70 at the end and Jamaica Money Market Brokers 8.75% preference share traded 143,000 units to lose 1 cent and close at $2.99.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 11 stocks with bids higher than their last selling prices and 5 with offers that were lower well down on the 19 bids and 7 offers on Tuesday.