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.
FX volume lowest since December 4
<strong Trading in the forex market in Jamaica on Friday, resulted in the lowest volume of trades since December 4 last year, when dealers bought US$27.6 million and sold US$27.3 million. The value of the Jamaican dollar was mostly up except for a slight slip in the selling rate against the US dollar.
Overall the equivalent of US$29,319,403 was purchased by dealers versus US$39,424,623 on Wednesday, and selling of the equivalent of US$32,815,088 compared to US$36,883,135 on Wednesday, the day before the market closed, for the New Year public holiday. In US dollar trading, dealers bought US$26,478,249 compared to US$35,027,815 on Wednesday. The buying rate for the US dollar declined 18 cents to $113.94 and US$31,451,847 was sold versus US$34,615,995 on Wednesday with the selling rate rising 2 cents to $114.68. The Canadian dollar buying rate dropped 94 cents to $95.40 with dealers buying C$1,417,177 and selling C$798,352, at an average selling rate that lost 4 cents, to $97.65. The rate for buying the British Pound fell $1.95 to $174.02 for the purchase of £960,308, while £384,502 was sold, the rate fell $1.36 to $176.31. At the end of trading it took J$138.75 to purchase the Euro, 64 cents less than on Wednesday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$136.02 for a 64 cents fall. Other currencies bought, amounted to the equivalent of US$187,910 while the equivalent of US$92,313, was sold.
Highs & Lows| The highest buying rate for the US dollar, fell 5 cents to $114.85, the lowest buying, the highest selling and lowest selling rates closed unchanged at $93.52, $119.84 and $95.37 respectively. The highest buying rate for the Canadian dollar rose 80 cents to $100.60, the lowest buying was unchanged at $78.14. The highest selling rate rose 14 cents to $100.95 and the lowest selling rate is up 35 cents to end at $94.35. The highest buying rate for the British Pound, gained 21 cents to $178.60. The lowest buying rate bounced back by $43.05 to $143.05, the highest selling rate gained $2.34 to $184.41 and the lowest selling rate ended 35 cents lower, at $171.50.
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.
Jamaican economy fell 1.4% in Q3
Agriculture was affected by drought and suffered a sharp contraction in GDP.
Statin sated that the performance for the September quarter was negatively impacted by a 7.8 percent fall in the Goods Producing industries but the Service industries improved by 0.7 percent. When compared to the second quarter of 2014, output in the economy fell by 1.8 percent.
All industries within the Goods Producing industries, with the exception of Construction experienced lower levels of output. Reduced output was recorded in: Agriculture, Forestry & Fishing 22.8 percent, Manufacturing 5.6 percent and Mining & Quarrying 2 percent. The Construction industry grew by 1.6 percent.
“The weak performance in the Agriculture, Forestry & Fishing industry resulted from drought conditions experienced throughout the island. The decline in Manufacturing was mainly attributed to a 51.6 percent decline in petroleum refining. There was no production of petroleum products for two months of the review quarter as the refinery was closed for operational maintenance in August and September. Lower production in the Mining & Quarrying industry was due largely to a 3.2 percent fall in alumina production. However, crude bauxite production increased by 2.2 percent resulting from improved efficiency at the bauxite plant,” Statin said.
Petrojam closed its refinery in August & September affecting growth in the manufacturing sector
Mayberry climbs 21% as JSE starts 2015 up
Mayberry stock price climbed 21% on first trading day of 2015.
The prices of 10 stocks rose and 5 declined as 22 securities changed hands, ending in a mere 610,207 units trading, valued at $3,977,611, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower.
Main Market| The JSE Market Index gained 644.11 points to 76,997.50, the JSE All Jamaican Composite index rose 720.15 points to close at 84,805.09 and the JSE combined index gained 616.43 points to close at 78,839.88. On the first trading day last year, the all Jamaican Index rose 560.09 with a small volume, valued at $3.6 million but traded below on the days after, until the third week of the month.
Salada gained 15% on Friday
Firm| The stocks in the main market to close without a change in the last traded prices are, Caribbean Cement that finished with 590 units trading at $2.41, Grace Kennedy with 11,118 shares trading at $61, Jamaica Money Market Brokers closed with 600 shares trading at $7.10 and Pan Jamaican Investment ended with only 500 shares at $59.Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Desnoes & Geddes finished with 4,965 shares trading lower by 1 cent to $4.94, Sagicor Group ended trading with 54,388 shares changing hands to close lower by 25 cents to $10 and Sagicor Real Estate Fund closed with 19,224 units as the price slipped 1 cent to $7.10.
Preference| Proven Investments 8% preference shares traded 119,700 units ended trading at $5.10.
Junior market up 1st trading day of 2015
Caribbean Cream traded at 77 cents to gain 2c but closed with the bid at 80c.
At the close of the market continues to reflect renewed interest in junior stocks with 6 securities closing with no bids to buy and 8 securities that had no stocks being offered for sale, in addition there were 6 stocks with bids higher than their last selling prices and none with offers that were lower.
The stocks trading are, AMG Packaging trading 22,220 shares with the price rising 25 cents to $2.15, Caribbean Cream ended with 68,000 shares changing hands to close 2 cents higher at 77 cents, Caribbean Producers closed with 9,935 shares with the price rising 8 cents to $2.11, Paramount Trading finished with 42,000 shares changing hands to close 9 cents up to $2.71.
Lasco Distributors finished with only 1,850 shares changing hands at $1.45, Lasco Manufacturing ended with 116,962 shares changing hands to close at $1.12, Derrimon Trading closed with 3,000 units changing hands, the price slipped 5 cents to $2.10 and Dolphin Cove ended with only 100 shares trading 20 cents lower to $8.80.
TTSE starts 2015 slightly up
West Indian Tobacco traded 122,699 shares with a value of $14,888,215 for the largest trade on Friday.
At the close of the market, the Composite Index rose just 0.10 points to close at 1,151.01, the All T&T Index rose by a mere 0.08 points to close at 1,983.26 and the Cross Listed Index increased by 0.02 points to 41.74.
Gains| Stocks increasing in price at the close are, Clico Investment Fund, posting a gain of 43 cents, to end at $23.50, for a new 52 weeks’ high, with 28,703 shares trading at $673,441. First Citizens Bank with 375,312 shares changing hands for a value of $13,912,734 to close with a gain of 1 cent at $37.07, Unilever Caribbean traded 1,050 shares at $64.51 with a gain of 1 cent and West Indian Tobacco with a volume of 122,699 shares traded for $14,888,215, ended at $121.34, up by a cent.
Declines| Guardian Media suffered a fall of 2 cents to end the day at $19.75 with 3,397 shares trading and was the sole stock falling.Firm Trades| Stocks closing with prices unchanged at the end of trading are, Grace Kennedy trading 11,000 shares to close at $3.65, Massy Holdings with 79 shares trading at $68.25, National Commercial Bank traded 34,700 shares at $1.15, National Enterprises had 1,000 units trading at $17.42. National Flour with 28,724 shares advanced by 1 cent to end at $1.16, Sagicor Financial Corporation traded 823 shares to close at $5.95 and Trinidad Cement contributed 55,308 shares with a value of $138,270 to close at $2.50
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator showed 4 stocks with the bid higher than their last selling prices and 1 with the offer lower.
Cargo Handlers’ Q4 profit doubles
Profit for the September quarter at Cargo Handlers is up 117 percent over the 2013 results to $49.7 million from revenues that climbed a very strong 77 percent. Profit rose by a smaller 55 percent, for the nine months ending September this year, to $131.7 million or $3.52 per share from revenues for the nine months of $220 million.
Other income, mainly foreign exchange gains, fell 13 percent in the quarter and was flat for the year, at $16 million. During the year the company earned $13.6 million from leasing and $8.9 million from management fees charged to a related party – Bulk Liquid Carrier and Petroleum Transport Ltd.
Administrative expenses dropped 31 percent in the quarter and 9 percent for the year but operat9ing expenses climbed 37 percent for the quarter and 22 percent for the year well below the increase in revenues. The company paid a dividend of $1.80 per share during the year for a yield in excess of 13 percent based on the stock price of $13.50 at the start of 2014.
Looking forward the foreign exchange gains earned in the last two years is unlikely to repeat in 2015 as the Jamaican dollar is unlikely to slip to the same degree it did in the recent past, so earnings will need to exclude most of these gains which amounts to just over 40 cents per share. Investors could be looking at earnings per share around $4.80 in 2015. At a price of $16 the stock is undervalued but they are difficult to come by.
Equity capital stood at $200 million and net book value at $5.33 per share. There is virtually no borrowings and cash of $93 million.
The company is involved in primarily in stevedoring services and is in the process of acquiring a petroleum haulage company which it now manages pending completion of the sale. The stock is listed on the Jamaican Stock Exchange.
J$ ends 2014 down
Trading in the forex market in Jamaica resulted in the value of the Jamaican dollar slipping in value against the three main foreign currencies. Overall there was buying of the equivalent of US$39,424,623 versus US$54,541,839 on Tuesday, and selling of the equivalent of US$36,883,135 compared to US$51,849,629 on Tuesday.
In US dollar trading, dealers bought US$35,027,815 compared to US$46,951,936 on Tuesday. The buying rate for the US dollar rose 6 cents to $114.12 and US$34,615,995 was sold versus US$48,252,657 on Tuesday with the selling rate rising 7 cents to $114.66. The Canadian dollar buying rate lost 31 cents to $96.34 with dealers buying C$1,903,363 and selling C$1,148,199, at an average selling rate that gained 11 cents, to $97.69. The rate for buying the British Pound fell 50 cents to $175.97 for the purchase of £1,705,748, while £724,736 was sold, the rate gained 47 cents to $177.68. At the end of trading it took J$139.39 to purchase the Euro, 15 cents less than on Tuesday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$136.66 for an increase of 26 cents. Other currencies bought, amounted to the equivalent of US$159,733 while the equivalent of US$165,851, was sold.
Highs & Lows| The highest buying rate for the US dollar, rose 5 cents to $114.90, the lowest buying and highest selling rates closed unchanged at $93.52 and $119.84 respectively. The lowest selling rate dropped $16.43 to $95.37. The highest buying rate for the Canadian dollar rose 60 cents to $99.80, the lowest buying rate climbed 29 cents $78.14. The highest selling rate rose 6 cents to $100.81 and the lowest selling rate is up 20 cents to end at $94. The highest buying rate for the British Pound, gained 26 cents to $178.39. The lowest buying rate plummeted by $42.14 to $100, the highest selling rate slipped $1.17 to $182.07 and the lowest selling rate ended 60 cents higher at $171.85.
