Jamaica’s foreign exchange dealers sold US$33 million more US dollars than they purchased this week, adding to the US$35.5 million net sales in the prior week.
The selling pressured, the US dollar and resulted in a revaluation of the local currency to $128.22 for purchase of US$1, by end users, down from $129.09 at the close of the first week in October. The rate is now lower than for the last trading day of 2016 when it ended at J$128.44 to the US dollar.
Inflows of all currencies into Jamaica’s forex market fell to US$48.73 million on Friday, from US$51.81 million on Thursday while Dealers sold US$56.08 million versus US$56.89 million, previously.
US currency purchases, accounted for US$33.81 million on Friday at an average rate of $127.23 compared to Thursday at US$36.57 million at $127.58. Dealers sold US$43.84 million at an average rate of J$128.22 versus J$128.41 for US$42.52 million, previously.
The selling rate for the Canadian dollar fell to J$103.15 from J$103.36 at the close on Thursday. The British Pound declined to J$168.83 for buying the British currency versus J$169.33 on Thursday and the euro slipped in value against the Jamaican dollar, to J$150.87 to buy the European common currency, versus J$151.66 previously.
All Jamaica cracks 300,000 for first time
Jamaica Stock Exchange all Jamaica Index closes above 300,000 on Friday.
The JSE All Jamaican Composite Index surged 5,376.82 points to close above the 300,000 points level for the first time, as JMMB Group, NCB Financial and Scotia Group recorded strong gains and pushed the index to a record close at 300,363.16.
The JSE Index jumped 4,898.89 points to close at a record 273,664.81 and in the US dollar market the USD Equities Index closed at 184.36.
Come Tuesday, when trading resumes it will be interesting to see how NCB trades since the stock closed at the equivalent of $100 in Trinidad on Thursday. At the close on Friday, there were only 33,603 units on offer for the stock. A break out of NCB is likely to see the market moving decisively away from the resistance, around the 300,000 points level. On Tuesday, Berger Paints that was suspended pending the closure of the Ansa Coating mandatory buyout offer, at the end of the day there were information on the out-turn of the offer.
Trading on the main market of the Jamaica Stock Exchange finished on Friday with 22 securities changing hands, 7 advanced, 6 declined and 11 traded firm with 4,504,312 units valued at $68,391,852 compared to 
94,545,441 units valued at $1,119,081,050 on Thursday. In the US dollar market 425,898 units traded for a value of US$102,239 for two securities.
Trading ended with an average of 204,741 units for an average of $3,108,721 in contrast to 4,110,671 units for an average of $48,655,698 on Thursday. The average volume and value for the month to date amounts to 2,279,320 units valued at $30,989,186 and an average of 2,498,747 units at $34,245,233, previously. In contrast, September closed with average of 283,480 units at $3,630,990 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 2 with lower offers.
Steady trading for Junior Market
The Junior Market of the Jamaica Stock Exchange settled on Thursday with 20 securities changing hands, resulting in an exchange of 969,013 units valued at $4,496,741 compared to 827,619 units valued at $4,771,002 on Wednesday.
At the close of market activities, the prices of 7 securities advanced, 5 declined and 8 remained unchanged leading to the Junior Market Index losing 2.43 points to close at 2,909.26. Trading ended with an average of 48,451 units for an average of $224,837 in contrast to 33,105 units for an average of $190,840 on Wednesday. The average volume and value for the month to date amounts to 69,963 units 252,557 valued at $317,553 and 71,783 shares at an average value of $319,802, previously. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Friday’s trading activity with 1 stock ending with the bid higher than their last selling price and 2 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place, accordingly, Access Financial closed at $38, with 4,080 units trading, AMG Packaging ended 14 cents higher at $3.49, with 8,200 stock units, Blue Power concluded trading at $44, with just 1,100 shares, Caribbean Cream traded with a loss of 70 cents at $6, after trading 46,737 shares, Caribbean Producers closed 2 cents higher at $3.72, with 392,821 units, Derrimon Trading ended trading with a loss of 99 cents at $7, with 78,700 shares. Express Catering settled with a loss of 5 cents at $4.55, with 66,900 stock units changing hands, 
General Accident traded 30 cents higher at $3, with 2,125 units, Honey Bun finished trading with a loss of 20 cents at $4, with 15,101 units, Jamaican Teas ended trading 9 cents higher at $4.10, with 31,362 stock units, Jetcon Corporation concluded trading at $5, with 12,000 shares changing hands, KLE Group settled 10 cents higher at $2.50, with 2,730 stock units. Knutsford Express traded at $14.89, with 6,138 shares, Lasco Distributors traded 50,544 units at $6, Lasco Financial closed at $4.50, with 62,557 shares, Lasco Manufacturing ended with a loss of 5 cents at $3.75, after exchanging 114,774 stock units, Main Event ended at $5.15, trading 4,594 stock units. Medical Disposables concluded trading at $5.30, with 41,260 shares and Stationery and Office settled 1 cent higher at $4.71, after 2,500 units traded. In the junior market preference segment, Derrimon Trading closed with a loss of 5 cents at $1.95, with 24,790 units traded.
Junior Market trading drops
Trading on the Junior Market of the Jamaica Stock Exchange dropped on Wednesday even with 25 securities changing hands as investors exchanged just 827,619 units valued at $4,771,002 compared to 2,217,305 units valued at $9,814,861 on Tuesday.
The Junior Market Index advanced by 9.31 points to close at 2,911.69 as 8 securities advanced, 10 declined and 9 remained with the prices unchanged.
Trading ended with an average of 33,105 units for an average of $190,840 in contrast to 100,787 units for an average of $446,130 on Tuesday. The average volume and value for the month to date amounts to 71,783 units valued at $ $319,802, previously 78,790 units valued at an average of $343,165. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Thursday’s trading activity as 3 stocks ended with bids higher than their last selling prices and 2 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place, accordingly, Blue Power ended trading with a loss of $5 to $44, with 2,100 stock units, CAC 2000 finished with a loss of 50 cents at $6.50, trading 30,770 shares, Cargo Handlers settled 50 cents higher at $10, with 1,500 stock units, Caribbean Cream added 60 cents to $6.70, with 4,810 stock units trading, Caribbean Flavours finished trading with a loss of 10 cents at $11.90, with 10,000 shares. Caribbean Producers closed with a loss of 4 cents at $3.70, exchanging 24,000 shares, Derrimon Trading dipped 1 cent to $7.99, with 5,000 stock units, Eppley finished at $12, with 1,517 units, Express Catering settled 10 cents higher at $4.60, with 28,301 stock units, Honey Bun finished trading with a loss of 29 cents at $3.80, with 20,003 stock units changing hands, 
Iron Rock gained 10 cents to end at $2.90, with 30,000 shares. ISP Finance ended with a loss of $1.95 down to $18, with 10,000 units, Jamaican Teas ended trading with a loss of 9 cents at $4.01, with 32,324 stock units, Jetcon Corporation concluded trading 50 cents higher at $5, after 1,358 units were exchanged, KLE Group ended with a rise of 12 cents to $2.40, with 47,665 stock units, Knutsford Express traded at $14.89, with 10,187 shares. Lasco Distributors finished trading at $6, with 159,013 units, Lasco Financial closed 25 cents higher at $4.50, with 10,400 stock units, Lasco Manufacturing ended 5 cents higher at $3.80, with 27,045 units, Main Event ended trading at $5.15, with 47,602 shares, Medical Disposables concluded trading 15 cents higher at $5.30, after 17,000 units changed hands. Paramount Trading finished with a loss of 30 cents at $2.50, trading 15,000 shares, Stationery and Office settled at $4.70, with 16,146 shares and tTech finished trading at $7, with 174,928 shares. In the junior market preference segment, Eppley ended trading 5 cents higher at $6.55, with 100,950 stock units being traded,
JSE backs off from record
Trading on the Main Market of the Jamaica Stock Exchange finished on Tuesday with the JSE All Jamaican Composite Index pulling back from Monday’s record close to fall by 659.53 points to 298,431.63 while the JSE Index fell 600.91 points to end at 271,904.96.
At the close of trading in the main market, 24 securities changing hands, 6 advanced, 11 declined and 7 traded firm with 5,506,552 units valued at $185,232,323 changing hands, compared to 310,999,356 units valued at $2,974,897,171 on Monday.
In the US dollar market trading accounted for the Equities Index declined 2.47 percent by 4.62 points to close at 182.53 as one security traded with a loss.
Trading ended with an average of 229,440 units for an average of $7,718,013 in contrast to 13,521,711 units for an average of $129,343,355 on Monday. The average volume and value for the month to date amounts to 2,622,376 units valued at $36,983,349 and previously 3,041,577 units with a value of $42,110,123. In contrast, September closed with average of 536,395 units at $1,905,441 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 5 stocks with bids higher than their last selling prices and 2 with lower offers.
Junior Market trading doubles Monday’s
Trading on the Junior Market closed on Tuesday with 22 securities changing hands, resulting in a more than doubling of trading levels over Monday with an exchange of 2,217,305 units valued at $9,814,861 compared to 904,019 units valued at $4,463,382 on Monday.
The Junior Market Index declined by 3.62 points to close at 2,902.38 as market activity resulted in the prices of 5 securities advancing, 6 declining and 9 remaining unchanged.
Trading ended with an average of 100,787 units for an average of $446,130 in contrast to 43,049 units for an average of $212,542 on Monday. 
The average volume and value for the month to date amounts to 78,790 units valued at $343,165, previously 74,618 units valued at an average of $323,637. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded. Trading ended with the market sentiments looking mixed for Wednesday, as 4 stocks ended with bids higher than their last selling prices and 2 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place. Trading ended with Access Financial plunged $4 to close at $38, with a mere 100 stock units changing hands, AMG Packaging closed 5 cents higher at $3.35, with 50,395 shares, Caribbean Cream rose by 10 cents to $6.10, with 170,000 units, Caribbean Producers ended 4 cents higher at $3.74, with 15,240 shares traded, 
Consolidated Bakeries settled at $2.02, with 26,000 units. Dolphin Cove closed at $17.50, with 7,438 stock units, Eppley concluded trading at $12, with 1,500 shares changing hands, Express Catering traded 10 cents higher at $4.50, with 192,607 shares, General Accident fell 3 cents at to $2.70, with 837,115 stock units traded, Honey Bun traded with a loss of 1 cent at $4.09, with 3,420 stock units. Iron Rock traded at $2.80, with 6,245 units, Jamaican Teas settled at $4.10, with 23,280 stock units, Jetcon Corporation closed with a loss of 50 cents at $4.50, with 13,419 stock units, Knutsford Express concluded trading at $14.89, with 4,188 stock shares. Lasco Distributors traded 619,619 units at $6, Lasco Financial settled at $4.25, with 52,621 shares, Lasco Manufacturing ended 25 cents higher at $3.75, trading 3,100 stock units, Main Event finished with a loss of 3 cents at $5.15, exchanging 61,685 shares, Medical Disposables lost 15 cents at $5.15, trading 1,899 shares and Stationery and Office closed at $4.70, trading 81,373 stock units. In the junior market preference segment, Eppley settled with a loss of 5 cents at $6.50, with 45,961 units changing hands.
Junior Market drops again
The Junior Market Index after falling 14.30 on Friday, declined further on Monday by 26.18 points to close at 2,906.00 as trading ended with 21 securities changing hands of which 6 advanced, 5 declined and 10 remained with prices unchanged.
Market activity resulted in an exchange of 904,019 units valued at $4,463,382 compared to 1,976,686 units valued at $6,469,834 on Friday.
Trading ended with an average of 43,049 units for an average of $212,542, in contrast to 89,849 units for an average of $294,083 on Friday. The average volume and value for the month to date amounts to 74,618 units valued at $323,637 and 81,597 units valued at $348,195, previously. 
In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Tuesday’s trading activity as 4 stocks ended with bids higher than their last selling prices and 4 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place. At the close, AMG Packaging finished with a loss of 10 cents at $3.30, trading 604 units, Cargo Handlers ended at $9.50, trading 101,214 stock units, Caribbean Producers closed at $3.70, with 55,335 units, C2W Music closed at $0.49, exchanging 4,882 shares, Derrimon Trading gained 1 cent to end at $8, with 6,050 units, Dolphin Cove finished at $17.50, trading 4,162 shares. Eppley ended at $12, with 4,429 units changing hands, 
Express Catering settled at $4.40, with 63,989 units, General Accident concluded trading at $2.73, with 10,857 stock units, Honey Bun lost 20 cents at $4.10, with 3,000 shares, Jamaican Teas ended 5 cents higher at $4.10, with 50,135 shares. Jetcon Corporation concluded trading 1 cent higher at $5, with 70,000 stock units, KLE Group traded with a loss of 22 cents at $2.28, after 14,000 stock units traded, Knutsford Express settled at $14.89, with 1,120 shares, Lasco Distributors ended with a loss of 29 cents at $6, with 78,848 units, Lasco Financial gained 5 cents to end at $4.25, with 97,639 shares, Lasco Manufacturing concluded trading 201,526 units at $3.50. Main Event ended 8 cents higher at $5.18, with 35,041 units, Medical Disposables settled at $5.30, with 15,000 stock units, Paramount Trading rose 1 cent to $2.80, with 29,294 units and Stationery and Office finished with a loss of 8 cents at $4.70, with 56,894 shares traded.
Record 299,091 points for JSE on Monday
Sagicor Group traded at a 52 weeks’ closing high of $39.99 on Monday.
In another record close for the Jamaica Stock Exchange, the All Jamaican Composite Index ended on Monday just shy of the 300,000 mark after climbing 1,334.26 points to an all-time closing high of 299,091.16 and the JSE Index, pushed higher by 1,215.66 points to a record close at 272,505.87.
Trading on the Main Market of the Jamaica Stock Exchange ended with 23 securities changing hands, 9 advanced, 12 declined and 2 traded firm with 310,999,356 units valued at $2,974,897,171 compared to 5,262,809 units valued at $149,711,405 on Friday as Supreme Ventures accounted for 307 million units while Sagicor Group traded at a 52 weeks’ closing high of $39.99.
In the US dollar market, trading accounted for 2,300 units valued at US$1,380 as just one security traded resulting in the price rising and the JSE USD Equities Index advancing 2.29 points to close at 187.15.
Trading ended with an average of 13,521,711 units for an average of $129,343,355 in contrast to 250,610 units for an average of $7,129,115 on Friday. The average volume and value for the month to date amounts to 48911643 3,041,577 units valued at $42,110,123 and previously 927,164 units valued at $15,214,449. In contrast, September closed with average of 283,480 units at $3,630,990 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 6 stocks with bids higher than their last selling prices and none with lower offers.
JSE closes 1,000 points shy of 300,000
The market made another run at the 300,000 mark on the All Jamaican Composite Index on Monday, but fell just under 1,000 points shy, with the index ending at 299,091.16 points as the investors continued their bullish attack on a limited set of stocks.
The Main Market of the Jamaica Stock Exchange ended with 23 securities changing hands, 9 advanced, 12 declined and 2 traded firm with 310,999,356 units valued at $2,974,897,171 as Supreme Ventures accounted for 307 million units. One stock traded in the US market resulting in the price rising on small volume.
In market activity, volumes are those trades for the day and the closing prices are those at which the last trade took place. In the main activity, Barita Investments concluded trading 24 cents higher at $8, with 10,673 units changing hands, Cable & Wireless rose 2 cents to $1.02, with 126,398 shares, Caribbean Cement ended at $28, with just 144 units, Carreras ended trading with a loss of 2 cents at $13.48, with 252,898 stock units changing hands, Grace Kennedy finished with a loss of 40 cents at $43, in trading 38,318 units. Jamaica Broilers settled with a loss of 50 cents at $18, while exchanging 8,266 stock units, Jamaica Producers concluded trading with a loss of 80 cents at $15.20, with 6,459 shares, Jamaica Stock Exchange finished 10 cents higher at $7.70, with 27,315 units, JMMB Group traded 89 cents higher at $26, with 36,897 stock units, Kingston Properties settled with a loss of 5 cents at $7.15, with 2,000 units, 
Kingston Wharves finished 75 cents higher at $30.75, with 20,539 shares. Mayberry Investments exchanged 9,218 stock units at $4.50, property company, 138 Student Living finished 1 cent higher at $5.41, with 2,700 shares, PanJam Investment shed $1 to end at $43, with 11,244 stock units, Pulse Investments traded with a loss of 2 cents at $1.80, trading 69,750 shares, Radio Jamaica settled with a loss of 9 cents at $1.11, with 87,688 units. Sagicor Group jumped $4.99 to a record $39.99, with 52,394 shares, Sagicor Real Estate Fund closed with a loss of 8 cents at $13, after trading 3,100,000 units, Scotia Group fell 96 cents to $50, with 91,270 stock units, Seprod settled with a loss of $1.50 at $28.50, with 8,160 shares and Supreme Ventures finished with a loss of 60 cents at $9.50, with 306,999,685 stock units changing hands. In the main market preference segment, JMMB Group closed at $1.15, with 600 units and in the US dollar market Productive Business Solution rose 0.25 US cents in trading 2,300 units to close at 60 US cents.
Shaw must cut taxes in 2018
Image courtesy of cooldesign/FreeDigitalPhotos.net
All available data since 2016 show that the Government of Jamaica never needed to raise taxes to cover the lost revenues from the hiking of the threshold to $1.5 million, as revenues continue to run well ahead of forecast in the last fiscal year and for the current one.
IC Insider.com gathers that while the government never wanted to increase taxes to cover the cost of the increased threshold, as data suggested that there that the lost revenues would be covered by increased revenues, the International Monetary Fund insisted that they had to increase taxes to cover the lost revenues.
With revenues running well ahead of forecast for two years running its time government start planning to cut taxes in next year’s budget forecast.
Last fiscal year revenues were $8.6 billion better than projected, just about $2 billion short of the cost of the threshold but expenditure was $5 billion lower than planned for a net improvement of nearly $14 billion, much greater than the revenues foregone.
Collector of Taxes office, Constant Spring, Kingston.
After a mere 5 months of the fiscal year to August, the Ministry of Finance has amassed a tidy $14.6 billion more than forecast for the government coffers. If the trend continues by the end of the fiscal year we should be looking at $30 billion more than budgeted and would be more than the taxes foregone by the increase in the tax threshold.
In two years, government has amassed excess tax revenues of $45 billion and assuming there were no major adjustment in the tax threshold, to $70 billion.
The increased revenues over the past three years are well ahead of the increase from new taxes levied and after taking in account a major reduction in PAYE contribution in 2016-17. Not only are the inflows running well ahead of the prior year for the last two and a half years, increased revenues are well above forecast. Two factors are contributing to this buoyancy, improved economic activities and increased taxes, helped by strong increases in corporate profits that is pushing revenues higher.
GOJ revenues inflows have been extremely buoyant since the drop in budgeted inflows for the fiscal year to March 2015. While 2015 fiscal year came up short of budget by $16 billion with revenues at $412 billion, 2016 came in with $50 billion more than the out turn for 2015 at $456 billion and 2017 with total revenues of $514 billion was $52 billion more than for 2016.
Interest cost ended $2 billion lower than projected to August this year and should and the cost should decline even more going forward, with the recent cut in Treasury bill rates by over 50 basis points.
The government gave up $10 billion in payroll taxes last fiscal year and an additional amount, estimated at $13 billion this fiscal year but the revenues are still well ahead of forecast.
With the buoyancy in tax revenues and lower interest cost on loans the government should have far more room to reform taxes in 2018 and reduce taxes as well as improve allocations for social spending.