The Jamaican foreign exchange market responded on Thursday to the increasing net inflows into the system, by cutting the selling rates for all four major currencies, as the market delivered another day of surplus inflows.
Thursday’s the net inflows brought the excess in three days to US$30 million, an amount that is in excess of today’s total intake. At the end of trading, the equivalent of all currencies bought by dealers amounted to US$25,142,251, while US$21,013,454 was sold compared to US$44,113,891 purchased and US$32,654,420 sold on Wednesday.
In US dollar trading, dealers bought US$21,513,397 compared to US$39,723,979 on Wednesday. The buying rate for the US dollar fell 26 cents to close at $127.46.
A total of US$18,393,384 was sold versus US$30,231,066 on Wednesday, with the selling rate sliding 9 cents to end at $128.28. The Canadian dollar buying rate rose 66 cents to $96.83, with dealers buying C$2,682,076 and selling C$2,434,616 at an average rate that fell 29 cents to $97.55. The average rate for buying the British Pound dropped $2.57 to $159.74 for the purchase of £1,072,168 while £516,828 was sold at a rate that dipped 83 cents to end at $163.19.
At the end of trading, dealers sold €66,217 as the selling rate for the Euro, closed at $142.85 for fall of $1.58 from Wednesday’s rate, according to data from Bank of Jamaica. Dealers purchased €213,773 of the European common currency at $139.65 after rising 57 cents from the rate on Wednesday. The US dollar equivalent of other currencies traded, amounts to US$13,433 being bought and selling of US$37,481.
Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded currencies in the foreign exchange market on Thursday, include a fall of $1.20 in the highest buying rate of the 
US Dollar to $127.95. The highest buying rate of the Canadian dollar rose $2.30 to $100.50, while the highest selling rate jumped $2.64 to $104.70 and the lowest selling rate dropped $1.70 to $92. The highest buying rate of the British Pound jumped $4.90 to $170.65, the lowest buying rate climbed $3.57 to $134.71, the highest selling rate surged $4.64 to $175.28 and the lowest selling rate rose $2.50 to $160.50. Trading in the Euro resulted in a rise in the highest buying rate of $3.50 to $145, the highest selling rate climbed $4.31 to $149.85 while there was a sharp fall in the lowest selling rate of $23.47 to $114.53.
JSE majors gains juniors slip
Trading on the main market of the Jamaica Stock Exchange saw the market indices rising and the junior index slipping slightly after 45 minutes of trading on Thursday. The ratio of advancing stocks to declining ones was virtually even.
Up to 10:45 am, JMMB Group traded at a new 52 weeks’ high of $14.55 with 60,300 shares changing hands, Caribbean Cream fell 99 cents and last traded at $9.01 with 48,577 units changing hands but the stock traded at $10 initially, ISP Finance Services traded at a new high of $7 with 51,809 shares changing hands, Lasco Financial Services had 116,838 units trading at $3.30 and JMMB Group 7.50% traded 180,000 units at $1.10.
A total of 30 securities traded, resulting in a volume of 821,407 shares changing hands carrying a value of $7,914,772, compared to 1,437,120 shares changing hands carrying a value of $26,771,116 on Wednesday. The average number of shares traded amounts to 27,380 units compared to 51,326 on Wednesday. Market activity resulted in 10 stock falling while the prices of 9 securities rose.
The all Jamaica Composite Index rose 475.52 points to 185,454.27, the Jamaica Stock Exchange Market Index gained 425.19 points to 166,870.87, the Jamaica Stock Exchange combined index climbed 355.34 points to close at 179,703.50 and the junior market index declined 3.80 points to 2,428.63.
Rigged – Jamaica’s FX market
Rigged is the best way to describe the Jamaican foreign exchange market. How else can one describe a market where supply is much greater than demand, yet the price keeps rising. What is happening in the foreign exchange market defies logic, and the law of demand and supply.
Bank of Jamaica has a mandate to build up the Net International Reserves to an amount that is well in excess of the more than US$3 billion that it now holds. BOJ is not buying directly from the banks in the open market to add to the reserves other than the automatic surrender of 30-35 percent from gross inflows. From the start of July, to present, the net inflows into the banking system is in the order of US$470 million, with most being in United States dollars. In such a scenario one would expect at least stability in the rate of the Jamaican dollar versus the US dollar, with BOJ intervening to buy off the excess funds. On Tuesday, there was nearly US$15 million surplus into the system with the Jamaica dollar gaining moderately, on Wednesday the surplus of US dollar trading amounts to $9.5 million but the selling rate for the US dollar rose by 14 cents, despite the large net inflows.
Trading closed Wednesday with a surplus of US$11.5 million, as the Jamaican dollar lost ground against the United States dollar but gained against the others.
At the end of trading, the equivalent of all currencies bought by dealers amount US$44,113,891, while US$32,654,420 was sold compared to US$51,024,854 purchased and US$36,510,572 sold on Tuesday.
In US dollar trading, dealers bought US$39,723,979 compared to US$47,917,627 on Tuesday. The buying rate for the US dollar rose 7 cents to close at $127.72. A total of US$30,231,066 was sold versus US$34,533,467 on Tuesday, with the selling rate gaining 14 cents to end at $128.37. The Canadian dollar buying rate rose 77 cents to $96.17, with dealers buying C$1,581,148 and selling C$1,198,795 at an average rate that fell 3 cents to $97.84. The average rate for buying the British Pound rose 36 to $162.31 for the purchase of £2,358,729 while £976,119 was sold at a rate that dipped 49 cents to end at $164.02.
At the end of trading, dealers sold €148,438 as the selling rate for the Euro, closed at $144.43 for fall of $1.24 from Tuesday’s rate, according to data from Bank of Jamaica. Dealers purchased €91,063 of the European common currency at $139.08 after rising 53 cents from the rate on Tuesday. The US dollar equivalent of other currencies traded, amounts to US$102,475 being bought and the selling of US$95,527.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remained moderate on Wednesday. Notable changes to rates for the other regularly traded currencies in the foreign exchange market on Wednesday, include a fall of $3.96 in the highest buying rate of the Canadian dollar to $98.20, while the lowest selling rate jumped $5.70 to $93.70. The highest buying rate of the British Pound dropped $1.05 to $165.75 and the lowest buying rate dived $2.74 to $131.14, the highest selling rate dipped $3.56 to $170.64 and the lowest selling rate rose $1 to $158. Trading in the Euro resulted in a drop of $4.58 in the highest selling rate to $145.54 while there was a jump in the lowest selling rate of $3.20 to $138.
2 TTSE stocks rise 2 fell – Wednesday
Republic Financial Holdings jumped $1 in Tuesday’s trading on TTSE
The market closed with modest movements in the indices and ended with 2 stocks gaining, 2 declining and 5 remaining unchanged as 9 securities traded.
The Composite Index inched higher by 0.18 points to close at 1,163.92, the All T&T Index lost 0.27 points to close at 1,815.77 and the Cross Listed Index gained 0.09 points to 68.24 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 8 stocks with bids higher than their last selling prices and 1 with a lower offer.
Gains| Republic Financial Holdings jumped $1.01 in trading 18,151 units with a value of $2,006,553 to end at $111 and Sagicor Financial Corporation gained 10 cents to close at $7 with 6,186 shares changing hands.
Losses| Guardian Holdings traded 2,000 shares with the price closing at $12.70 after falling 4 cents and Massy Holdings lost $1 and ended with 61,403 shares valued at $3,194,959 changing hands at $52.Firm Trades| JMMB Group had 2,659 shares changing hands to close at 70 cents, Scotiabank closed with 5,607 shares changing hands at $57.99, Scotia Investments had 12,115 shares changing hands, to close at $1.80. Trinidad and Tobago NGL closed at $23.65 with 19,104 units valued at $451,898, changing hands and Trinidad Cement had 23,639 shares changing hands at $3.25.
Advancing stocks shine – Wednesday
JMMB Group closed at a 52 weeks’ high on Wednesday.
At the close 4,936,602 units valued at $80,553,639, changed hands, compared to 1,458,426 units valued at just $21,510,810 changing hands on Tuesday. The junior market accounted for 1,995,508 units valued at $10,428,547 of the stocks traded.
At the close, the JSE Market Index lost 619.07 points to end at 166,445.68.
The all Jamaica Composite Index fell 692.34 points to close at 184,978.75 and the JSE combined index slipped 28.68 points, to end at 179,348.16.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 12 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Berger Paints traded 49,851 shares and gained 10 cents to close at a 52 weeks’ high of $5.60, Cable & Wireless gained 3 cents to close at 90 cents with 18,516 units trading, Caribbean Cement rose 50 cents in trading 201,487 shares to close at $30.50, Carreras dropped $1 with 74,889 shares changing hands at $65. Trading in 1834 Investments ended with 31,636 shares changing hands to close at $1.24, Grace Kennedy closed with 11,459 shares changing hands at $42.45 after falling 5 cents, Jamaica Producers ended with 40,200 shares changing hands as the price gained 30 cents to close at $8.40. JMMB Group climbed $1.01 in trading 91,100 units to close at a 52 weeks’ high of $14.01, Mayberry Investments traded 973,100 shares to close at $3.70,
National Commercial Bank traded 892,203 shares and declined 10 cents to end at $42, Pan Jamaican Investments lost 55 cents and closed at $23.40 after trading 11,215 shares. Radio Jamaica gained 30 cents in trading 52,835 shares to close at $1.70, Sagicor Group traded 6,291 shares and ended at $23.81, Sagicor Real Estate Fund traded 10,769 shares but fell 13 cents to close at $10.12, Scotia Group dropped $1.49 and closed at $30.01 with 4,228 shares changing hands. Scotia Investments jumped $3.50 with 11,920 units changing hands to close at $30, Proven Investments traded 49,063 shares at 20 US cents, Jamaica Money Market Brokers 7.50% preference share traded 388,250 units at $2.10 after falling 3 cents and Jamaica Public Service 9.5% preference share traded 9,675 units at $1,247 each.
Another record close for juniors – Wednesday
Caribbean Cream ended at a new closing high on Wednesday of $10 & is up 900% since listing in 2013..
Trading volume rose strongly from Tuesday’s levels, ending with 1,995,508 units changing hands, 402 percent higher than on Tuesday, while value traded jumped 659 percent to $10,428,547 from $1,373,477, on Tuesday.
Market activities ended with 4 securities closing with bids higher than their last selling prices and 1 ending with a lower offer.
In market activity Cargo Handlers stock has not traded since it closed at $86.10 on September 12, the market closed today with the bid at $87 to buy 393 units, a total of
45,551 units were offered for sale at $90, the will be split 10 for 1 stock, effective from the close of business on October 21.In trading activity, AMG Packaging closed with a fall of 45 cents at $17.55 with 615 units changing hands, Caribbean Cream gained 70 cents with 541,070 shares changing hands to end at a 52 weeks’ closing high of $10, Caribbean Producers gained 20 cents in trading 435,000 units to end at $3.50. Dolphin Cove gained 50 cents to end at $13 after trading 100 shares, General Accident Insurance rose 1 cent with 139,954 units changing hands at $2.65, Honey Bun traded 7,386 shares at $6.10, Iron Rock Insurance traded 313,700 shares and gained 5 cents to end at $3.35, Jamaican Teas lost 4 cents in trading 2,000 shares to close at $4.
Jetcon Corporation traded 108,111 shares and gained 8 cents to close at $4.59, Key Insurance closed down to end at a 52 weeks’ low of $2.25 with 27,266 units, for a loss of 5 cents, KLE Group ended at $2.05 with 3,760 shares changing. Lasco Distributors closed with rise of 45 cents as 41,072 units traded at $7.50, Lasco Financial ended with 72,300 shares changing hands at $3.35, after rising 5 cents, Lasco Manufacturing closed at $5.10 with 60,135 shares trading to gain 5 cents. Medical Disposables traded 22,991 shares and gained 6 cents to close at $4.42, tTech climbed 28 cents and ended with 8,548 shares changing hands at $5.58 and Derrimon Trading preference share fell 10 cents and ended with 211,500 units changing hands at $2.10.
Advancing stocks beat decliners 2-1
Trading on the main market of the Jamaica Stock Exchange on Wednesday saw the market indices hitting new highs but within an hour of the markets’ opening, the market fell back, with the all Jamaica Index declining by 335 points. 
The decline in the main market did not negate the 2 to 1 advantage that advancing stocks held over declining ones in the overall market.
Up to 10:45 am, Caribbean Cement jumped $3.50 to $33.50 with 76,003 shares changing hands, National Commercial bank traded 502,203 units at $42.40 after rising 30 cents and Jamaica Money Market Brokers 7.50% traded 388,250 units at $2.10.
A total of 28 securities traded, resulting in a volume of 1,437,120 shares changing hands carrying a value of $26,771,116, compared to 251,399 shares changing hands carrying a value of $1.3 million on Tuesday. The average number of shares traded amounts to 51,326 units compared to 17,957 on Tuesday. Market activity resulted in 7 stock falling while the prices of 13 securities rose.
The all Jamaica Composite Index fell 335.20 points to 185,335.89, the Jamaica Stock Exchange Market Index slipped 299.73 points to 166,765.02, the Jamaica Stock Exchange combined index declined by 177.72 points to close at 177,199.12 and the junior market index rose 9.76 points to 2,389.08.
Jamaican GDP doubles 2015 growth
Image courtesy of arztsamui/FreeDigitalPhotos.net
The economy that rose by 0.8 percent in the March quarter over the similar period in 2015 is up by 1.4 percent for the second quarter of 2016, compared to the similar quarter of 2015. If the trend were to continue, growth for the full year could hit 2 percent, the fastest pace of growth since 2006 with growth of 2.9 percent. The only other time since 2004 that the economy grew close the 2016 pace is 2007 when the economy grew by 1.45 percent and 1.43 percent in 2011.
Growth in 2015 over 2014 reflected an increase of 0.4 percent in the March quarter and 0.8 percent for the second quarter.
Agriculture added the most to GDP in Q2
US$14.5M net inflows on Tuesday
The Jamaican foreign exchange market started trading in October on a positive note, with more inflows than out flows of all currencies traded after the market closed on Monday due to the threat of hurricane Mathew.
Trading closed with a surplus of US$14.5 million on Tuesday as the value of the United States dollar and the British Pound lost value against the Jamaican dollar and the euro and the Canadian dollar strengthened versus the local dollar.
At the end of trading, the equivalent of all currencies bought by dealers amount US$51,024,854, while US $36,510,572 was sold compared to US$36,697,304 purchased and US$26,244,697 sold on Friday.
In US dollar trading, dealers bought US$47,917,627 compared to US$33,292,037 on Friday. The buying rate for the US dollar rose 6 cents to close at $127.65. A total of US$34,533,467 was sold versus US$25,030,676 on Friday, with the selling rate falling 4 cents to end at $128.23. The Canadian dollar buying rate rose 32 cents to $95.40, with dealers buying C$1,661,331 and selling C$1,154,174 at an average rate that rose 56 cents to $97.87. The average rate for buying the British Pound dropped $1.20 to $161.95 for the purchase of £1,275,723 while £256,608 was sold at a rate that dipped $2.27 to end at $164.51.
At the end of trading, dealers sold €624,799 as the selling rate for the Euro, closed at $145.67 for rise of 71 cents from Friday’s rate, according to data from Bank of Jamaica. Dealers purchased €213,770 of the European common currency at $138.55 after falling $3.64 from the rate on Friday. The US dollar equivalent of other currencies traded, amounts to US$15,073 being bought and the selling of US$57,257.
Highs & Lows| Changes to the highest and lowest traded rates for the US Dollar remain moderate on Tuesday. Notable changes to rates for the other regularly traded currencies in the foreign exchange market on Tuesday, include a jump of $4.46 in the highest buying rate of the Canadian dollar to $102.16, the lowest selling rate dropped $4.30 to $88. The highest buying rate of the British Pound dropped $1.38 to $166.80 and the lowest selling rate dipped $1 in to $157. Trading in the Euro resulted in a drop of $3.56 in the highest buying rate to $141.44 while there was a jump in the lowest selling rate by $20.27 to $134.80.
Juniors’ advancers beat decliners – Tuesday
The junior market within touch of record territory
Trading volume rose strongly from Friday’s levels, ending with 397,764 units changing hands, 88 percent lower than on Friday, while the value traded dropped 89 percent to $1,373,477 from $12,272,247, on Friday.
Market activities ended with 8 securities closing with bids higher than their last selling prices and 1 ending with a lower offer.
In market activity Cargo Handlers stock has not traded since it closed at $86.10 on September 12, the market closed today with the bid at $88 to buy 3,000 units, with no units offered for sale, the will be split 10 for 1 stock, effective from the close of business on October 21.In trading activity, AMG Packaging closed with a gain of 50 cents at $18 with 920 units changing hands, Caribbean Cream gained 1 cent with just 500 shares changing hands to close at $9.30, Caribbean Producers traded 200,000 units to end at $3.30, Consolidated Bakeries dropped 5 cents to end at $2.40 after trading 50,000 shares. C2W Music closed with 21,500 units changing hands to close at 24 cents, Derrimon Trading rose 10 cents and closed with 5,000 shares at $3.60, General Accident Insurance rose by 24 cents with 3,620 units changing hands at $2.64,
Honey Bun traded 3,800 shares at $6.10 after falling 9 cents. Jamaican Teas rose 14 cents in trading 4,400 shares to close at $4.04, Key Insurance that was under selling pressure for weeks finally traded down to end at a 52 weeks’ low of $2.29 with 2,500 units for a loss of 10 cents, but the stock was on offer at $2.25. There were no bids to buy the stock at the close. KLE Group ended at $2.05 with 9,500 shares changing hands after falling by 5 cents, Lasco Distributors closed with a loss of 5 cents as only 499 units traded at $7.05, Lasco Financial ended with 9,703 shares changing hands at $3.35, after rising 5 cents and Lasco Manufacturing closed at $5.05 with 85,822 shares trading.
