Massive speculation in the US dollar in Jamaica since March this year, maybe ending with the latest move by Bank of Jamaica exposing the extent of the market’s acceptance of rates above J$150 to one US dollar, currently and effecting some revaluation of the local dollar.
Bank of Jamaica placed on sale through their B-FXITT Flash sale mechanism, US$20 million on Tuesday, with the results suggesting exhaustion of the speculative bubble. The sale was the first on record when the demand was less than the amount offered by the central bank since they started this method of intervention three years ago.
At the latest auction, only ten eligible bids amounting to a mere $7.8 million went after the amount offered. The Central bank accepted only five Bids for $6 million at $146.81 to the US dollar. The highest accepted bid was for US$2 million at a rate of US$148.30 to one US dollar. The move spilled over into the daily exchange market, with the average rate declining. Dealers bought US$55 million at an average rate of $147.545 to one US dollar and sold $53.85 million at J$148.6516 to the US. On Monday. Dealers bought US$42.68 million at an average of J$147.3109 and sold US$57.28 million at J$149.2881 each.
Jamaica’s Central Bank sold only US$6M in its FX flash auction on Tuesday.
Trading on Friday last saw buying by dealers of US$40.5 million at $148.3155 and selling of US$28.9 million at J$149.5907 each.
In August, Bank of Jamaica sold US$30 million to Authorized Dealers and select Cambios on Tuesday 18, through a B-FXITT Flash Auction that saw US$36.4 million demanded. Bank of Nova Scotia, First Caribbean International Bank, bought US$6 million, each and JMMB Securities with US$4.45 million, were the largest takers, buying between them. NCB Group was notably absent from the buyers in the August sale when the average rate was J$150.64 to the US.
At the close, the All Jamaican Composite Index dropped 7,335.15 points to 398,395.64, the Main Index declined by 6,792.78 points to 363,489.94 and the JSE Financial Index shed 1.74 points to close at 95.95.
Trading in August averaged 497,441 units at $3,201,918.
Key Insurance gained 34 cents, to close at $7.55 with an exchange of 5,417 stock units, Kingston Properties fell by $1.03 to $6.17, with 2,407 units changing hands. Kingston Wharves dropped $8 after trading 28,483 stock units to close at $42, NCB Financial Group declined by $4 to $136, after exchanging 24,762 stocks, Palace Amusement fell $200 to end at $1,500, with a transfer of 13 units. PanJam Investment fell $4.50 to $66.50 while trading 314 shares, Proven Investments shed $1.99 to close at $36 with an exchange of 6,896 stock units, Sagicor Group finished at $44, after losing $2.42 and the transferring of 48,477 shares. Scotia Group declined by $3.49 to settle at $47 in trading 26,079 stock units and Seprod gained 50 cents to end at $54, with 1,477 units changing hands.
Trading ended with 29 securities changing hands compared to 33 on Monday and ended with the prices of eight stocks rising, the prices of 12 declining and nine with prices remaining unchanged.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading for the market shows two stocks ended with bids higher than their last selling prices and three with lower offers.
Express Catering climbed 48 cents to settle at $3.94 with 115,504 stocks changing hands, Fosrich gained 20 cents and traded 100,750 stock units to close at $4, General Accident lost 3 cents to settle at $6.07 with investors transferring ownership of 15,589 stocks. Honey Bun gained 20 cents to finish at $5.10 with an exchange of 42,823 stock units, ISP Finance shed $2.59 to close at $12 with 841 shares traded, Jamaican Teas declined 10 cents to end at $4.60 with 34,457 units changing hands. Lasco Distributors fell 1 cent to $3 with investors switching ownership of 315,000 stocks, Lasco Financial slipped 1 cent to close at $2.14 with an exchange of 20,600 shares, Limners and Bards rose 1 cent to settle at $2.70 with 135,880 stocks changing hands. Lumber Depot lost 1 cent to finish at 99 cents, with 184,359 units traded and tTech advanced by 70 cents to end at $6.10 with 12,467 units crossing the exchange.
At the close of the market, trading ended with three securities changing hands compared to two on Monday with the prices of no stocks rising, one declining and two remaining unchanged.
two stocks ending with bids higher than their last selling prices and none with lower offers.
The T&T Composite Index gained 1.10 points to 1,325.21, The All T&T Index rose 1.79 points to 1,798.08, while the Cross Listed Index gained 0.05 points to close at 115.13.
Massy Holdings closed at $59.50, having shed 50 cents trading 353 units and Scotiabank ended at $54.55, with a loss of 10 cents exchanging 526 units.
At the close, the All Jamaican Composite Index climbed 4,681.28 points to 405,730.79, the Main Index bounced 4,232.34 points to end at 370,282.72 and the JSE Financial Index gained 1.36 points to close at 97.69.
The average trade for the month to date ended at 497,441 units at $3,201,934 for each security, in contrast to 491,213 units at $3,153,576. Trading for the month to date is well ahead of July, which closed with an average of 392,128 shares for $2,444,356.
Key Insurance lost 39 cents to settle at $7.21, with 8,947 units changing hands, NCB Financial Group carved out a gain of $2 to close at $140 with investors swapping 637,827 shares. PanJam Investment advanced $5.90 to $71, after exchanging 5,950 stock units, Proven Investments rose $1.99 to settle at $37.99, in 2,802 units changing hands. Sagicor Group finished $2.42 higher at $46.42, with an exchange of 275,545 shares, Scotia Group climbed $3.49 to $50.49, in exchanging 29,922 stock units, Seprod shed $1.50 to close at $53.50, having traded 15,713 stock units. Sygnus Credit Investments rose 35 cents to close at $15.35 with 128,320 shares passing through the market and Wisynco Group lost 50 cents to close at $16 and 200,997 shares changing hands.
At the close of the market, trading the JSE USD Equities Index gained 1.53 points to settle at 187.50 and with the average PE Ratio ending at 12.9 based on IC Insider.com forecast of 2020-21 earnings.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading for the market shows three stocks ending with bids higher than their last selling prices and none with lower offers.
During the past week, companies continued the release of midyear results, with little impact on the market. Jamaica Broilers released decent first-quarter results to the end of July, with a slight improvement in after-tax profit, with operating profit rising 25 percent on lower revenues. Wisynco Group full-year audited financials showed modest gains in profit while Blue Power profits jumped 41 percent. Of the three, only Jamaica Broilers is in the TOP 10. At the close of the week, Medical Disposables dropped out of the Junior Market listing and replaced by Jetcon Corporation. NCB Financial returns to TOP 10 and now sits at the bottom of the list, having replaced Eppley.
Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic, the focus on all three is on the 2021 fiscal year results, projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 205 to 264 percent, are Berger Paints followed by Radio Jamaica and JMMB Group, all three suffered declines during the week.
The average projected gain for the Junior Market IC TOP 10 stocks is 291 percent, and 161 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially greater gains in the Junior Market than in the Main Market.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading for the market shows two stocks ending with bids higher than their last selling prices and two with lower offers.
Jetcon Corporation lost 9 ents, in ending at 75 cents and clearing the market with 76,129 shares, Lasco Distributors lost 1 cent to close at $3.19, with 50,892 shares changing hands, Lasco Financial finished at $2.09, after slipping 7 cents and exchanging 287,275 shares. Lasco Manufacturing shed 9 cents to end at $3.51, with a transfer of 314,834 shares, Limners and Bards settled at $2.56, having lost 4 cents trading 22,468 stock units, Lumber Depot gained 5 cents to end at $1.05 with investors swapping 244,122 shares. Mailpac Group picked up 2 cents to finish at $2.02, trading 128,728 stock units and Medical Disposables lost 5 cents to close at $4.90 in an exchange of 10,810 units.
At the close of the market, trading ended with four securities changing hands compared to six on Thursday and ended with the prices of one stock rising, three declining and none remaining unchanged.
two stocks ended with bids higher than their last selling prices and one with lower offers.
