5% of Proven shares traded

An investor picked up 31,265,399 proven shares in trading on the US market of the Jamaica Stock Exchange today, representing 5 percent of the total issued share capital of the company of 625,307,963 units.
The trades were executed at 31.55 US cents per share and cost US$9,864,233. The trades comprise a block of 21,374,171 shares with amounts in smaller denominations. Proven Investments’ record show Nekia Limited as the owners of the 21.37 million block and the second-largest shareholder.
The purchaser is unknown at the time of going to press, but Barita Investments subsequently announced that they acquired the block of shares that put them as the lead shareholder in the company. The move is consistent with realignments taking place within the dynamic Jamaican financial market.

BOJ sells US$40m into forex market

Bank of Jamaica sold US$40 million via B-FXITT to authorized dealers and Cambios to augment supply in the market on Tuesday.
“The factors behind the recent depreciation in the exchange rate are well known and Bank of Jamaica expects that these impulses will subside and that normalcy will return to the market. There has been an increase in demand for foreign currency due to the regular re-stocking by retailers for the Christmas season. Further, there has been extraordinary demand relating to portfolio transactions,” the central bank stated in a release today.
“Notwithstanding the recent depreciation, inflows into the foreign exchange market remained healthy. For October 2019, average daily inflow from earners was approximately US$31 million, in line with October 2018. However, driven by the factors noted above, demand has outstripped this supply,” the release went on to say.
The local currency moved in recent weeks and traded at $141.96 to one US dollar on average on Monday as dealers bought US$30.7 million at an average rate of $138.89 and sold $31.5 million at J$141.96 each. On Friday, dealers bought US$33 million at an average price of J$139.49 and bought US$30.2 million at J$141.89.

BOJ sold US$30m to FX market on Friday

BOJ interest cuts overnight rate.

Bank of Jamaica (BOJ) intervened in the foreign exchange market on Friday, October 18, the first time since July by selling US$30 million at a weighted average rate of $138.87 by means of a flash intervention.
Bank of Jamaica introduced a bidding system when they intervene in the foreign exchange market officially called “Foreign Exchange Intervention and Trading Tool (BFXITT).” The system was introduced in 2017 with the central bank buying and selling funds in the market whereby authorized dealers and Cambios had bid for the amounts on offer.
Friday’s intervention was to address temporary demand and supply imbalances in the market Jamaica’s central bank stated. Friday’s intervention is the first being made since the central bank intervened with two flash sales on July 18 and 19th this year with a total sale of US$35 million and prior to, US$30 million on July 11. In 2017 and 2018 the central bank had regular weekly scheduled interventions in the market from August to October and November, but there has been none in 2019 after BOJ lowered the amount dealers had to surrender to the central bank from amounts they bought weekly.
The amount offered for sale on Friday attracted 42 bids amounting to US$72.6 million but just 17 were accepted with the highest bid at $139.15 and the lowest at $137. Bids at $138.65 got 33.33 percent of the amount applied for.
The intervention comes against the background of the country’s Net International Reserves climbing US$162 million, from US$2.936 billion at the end of August to US$ 3.098 billion at the end of September.

US$20m pumped into Jamaica’s forex market

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Jamaica’s Central Bank is offered US$20M for sale in FX market on monday.

Jamaica’s central bank, Bank of Jamaica pumped US$20 million into the country’s foreign exchange market today, in what they call a flash intervention.
The intervention, not previously announced, comes against the background of the exchange rate for the US dollar closing on Friday at $129.41, up from $128.19 on Thursday, with selling by dealers, amounting to US$25.3 million on Friday. It also takes place with a US$77 million build up in Net International Reserves at the end of March, to US$3.085 billion from US$3,007 at the end of February.
The flash offer resulted in 39 bids amounting to $45.65 billion that came in for the amount auctioned. Just 15 bids were accepted, with rates ranging from $130.25 to $131.80. The average clearing rate was $130.85.

Jamaican dollar makes more gains

NCB had the highest net sale of US$ on Friday

The rate of exchange for the United States and Jamaican dollar inched further in favour of the local currency on Friday as dealers sold US$42.2 million at an average rate of $127.99 on Friday, down from an average of 128.126 with the sale of $67 million on Thursday.
On Friday, dealers bought US$37.38 million at an average of $126.74, a decline from $127.38 with the buying of US$61 million on Thursday.
Dealers bought $45,56 million in all currencies on Friday and sold US$50.28 million compared to purchases of US$77.6 million and sale of US$82.5 million on Thursday. Thursday’s trading includes the buying of Can$19.7 million and sale of Can$19.4 million.
Major net sellers of US dollars on Thursday are, Citibank with the purchase of US$160,000 and sale of US$1.65 million, First Global Bank buying US$271,000 and selling US$1.96 million. JMMB Bank ended with the buying of US$839,000 and selling $3.6 million, JN Bank purchased $868,000 and sold $2.48 million, Victoria Mutual Building Society bought $720,000 and sold of $2.45 million but First Caribbean purchased $5.6 million and sold just $1.38 million.
On Friday, Bank of Nova Scotia purchased $9.2 million and sold just $5 million, First Caribbean Bank bought US$813,000 and sold US$1.3 million, JMMB Bank ended buying US$1.87 million and sold $4.8 million, JN Bank purchased $1.16 million with sales of $1.87 million. National Commercial bought US$3.56 million and sold $8.5 million, Sagicor Bank bought $852,000 while selling US$1.99, Victoria Mutual Building Society purchased $693,000 and sold $1.3 million but Citibank purchased US$1.7 million and sold just US$587,000.

Margaritaville flat profit, growth coming

Margaritaville Turks traded 531,220 shares at 20 US cents on friday

Margaritaville posted flat profit for the first quarter of the May 2019 fiscal year, with net earnings of US$290,815, down slightly from US$296,412 in 2017.
Revenue was also down moderately to $1.8 million, from $1.86 million in the 2017 period, but growth should be coming when Carnival Lines expands the port facilities in Turks and Caicos in 2019.
Cost declined modestly, with direct expenses falling to $471,386 from $483,803 in 2017, resulting in a gross profit margin of 74 percent, while administrative and other cost declined to $1.057 million, modestly down from $1.082 million in the prior period in 2017.
Earnings per share came in at 0.43 cents. For the full year to May 2018, earnings per share was 1.58 cents resulting from net profit of $1.067 million. The stock trades on the Jamaica Stock Exchange US market at 25 US cents at a PE of 16.
Equity capital stood at $5 million while current assets amounted to $2.7 million with current liabilities of $1.1 million.

Ian Dear Chairman

Going forward Chairman Ian Dear, told IC Insider.com that Carnival Line is expanding the docking facility in Turks and Caicos Islands that will allow much larger ships to dock and will result in increase in the number of passengers landing and will bring more business for the company. According to Dear, the ships currently in use can accommodate up 3,000 passengers plus crew but the newer ships will carry 8,000 passengers and they could have two of these ships on a typical day. The expectation that the first ship should dock in Turks next year. The coming on stream of the increased business will see Margaritaville adding another restaurant, with construction to commence shortly after carnival advises them of date the news ships will commence operations.

Some banks offloading US dollars

National Commercial Bank sold off US$ on Thursday.

The Jamaican dollar closed below the J$130 to the US dollar on Thursday, with the selling rate to buyers ending at an average of $129.62. The rate fell as National Commercial Bank bought just US$6.2 million and sold $14.8 million while JN Bank offloaded US$5.3 million while buying a mere $190,000.
On Wednesday, Scotiabank offloaded nearly US$23 million against buying $13.6 million. For the week to date, dealers bought US$182 million and sold US$204 million. In the previous full week, purchases amounted to $192 million and selling $188 million. With one more day of trading to come for this week, inflows will be well ahead of last weeks’ level which included purchases of US$10 from Bank of Jamaica (BOJ). No sale of foreign exchange was done by the central bank this week, and none are planned for the next four weeks. BOJ sold US$19 million to the market up to November 15 last year.
For the current week dealers also bought 5.9 million of Pound sterling and sold 3.4 million and purchased $21.2 million Canadian dollars and sold $18.9 million.
In 2017, for the first four days of the fourth week of October, purchases of all dealers and Cambios amounted to $196 million which including purchases from BOJ of US$10 million with sales of US$179 million.

BOJ FX auction rate drops $1 to $132.75

The average rate for the sale of the US$10 auction sale by Bank of Jamaica in its regular B-FXITT Standard Intervention on Wednesday, fell by $1 to $132.74 this week from $133.75, in the previous week’s auction.
The central bank offered US$10 million to eligible bidders that attracted 31 bids amounting to $21.5 million, 17 bids were accepted and resulted in an average rate of $132.74. the out turn suggest that rates in the spot market for foreign exchange could decline in the next series of trading.
Interestingly, the highest bid was priced at $133.90 and the lowest at $130.83. The lowest bid that was successful was at $132.30 and received just 16.3 percent of the amount applied for.
The final scheduled auction for October will be on the 17th when US$10 million will be auctioned.
In trading on the foreign exchange market on Tuesday, dealers bought $46.28 million in US dollar currency at an average of $132.39, slightly below the rate in today’s auction. Dealers sold US$46.94 million at an average rate of $133.34 overall, trading of all currency amounted to just over $55.3 million for both selling and buying. In trading on Monday, US dollars purchase amounted to just US$20 million at an average rate of $131.11 and sale of US$34 million at $133.99.
On Monday overall, trading of all currencies, amounted to just over $25 million and US$36.74 million, buying and selling respectively.

NIR steady despite BOJ sales

Jamaica’s Net International Reserves slipped by just US$32 million in September according to data just released by the country’s central bank – Bank Of Jamaica ( BOJ).
According to BOJ the NIR stood at US$3.027 billion at the end of September down marginally from US$3.027 billion at the end of August. Reserves amounts to just over 19 weeks of Goods & Services Imports, the central bank states.
The change comes against the back ground of sale of US$41 million in B-FXITT weekly auction of foreign currency.

Jamaican$ plunges below $134 to US$1

In another day of buoyant foreign exchange trading, the Jamaican dollar pushed below the $134 mark for one US dollar at the close of the market on Friday.
Dealers bought US$48.8 million at an average rate of $132.914 and sold US$46 million at $133.80 bettering the closing rate on Thursday of $134.02 for the $40.32 million sold and a bit higher than the $132.88 for the US$30.92 Million bought by dealers.
Overall the market had US$56.6 million of inflows of all currencies and US$53.17 million of sales on Friday compared to the buying of US$45.26 and the selling of US$44.58 million of all currencies.
Friday’s rate is the lowest since July 24, when it averaged $134.05 with July 23 just below at $133.39. The local dollar slipped to its lowest level ever on August 23, this year at $137.96