THE Jamaican dollar fixed income market experienced relatively high
liquidity levels this week. There were inflows of J$4.41 billion from coupon payments on US dollar indexed bonds and LRS coupon payments, and low outflows due to the lack of new primary issues/instruments in the market (other than the usual BOJ COSH). As such, secondary market repo rates remained stable throughout the week. The thirty-day secondary market repo rates were between 19% and 22% throughout the week. However, the overnight secondary market repo rates trended upward, trading within a band of 6% to 12% on Monday and 20% to 25% on Thursday. In the coming week, approximately J$7.3 billion is expected to enter the system from coupon payments on LRS VR: 2022/2023D, 2032/2033A Tr.1, 2032/2033A Tr.2, 2004D, 2003J 2006/2007B, 2012/2013E, 2012/2013G, 2012/2013J, 2011/2012, 2012/2013B and 2004C, FR: 1675% 2005AC, 16.15% 2022, 16.00% 2022, 17.5% 2005 and 16.50% 2027 and BOJ COSH
maturities.
US DOLLAR FIXED INCOME MARKET
The US dollar fixed income market traded relatively square this week. The secondary market repo rates continued to trade between the 7.75% to 8.0% band (which is slightly higher than last week's rates of 7.50% to 7.75%), as a result of the private deals in the US dollar fixed market, which reduced liquidity from the market. The Government of Jamaica Eurobond market continued to experience low trading activity this week, except for the GOJ 2017, which was in demand earlier in the week. As a result, the GOJ 2017 bond prices increased by 2 points. However, the GOJ 2005 lost 1 point since last week. The GOJ 2007, 2011 and 2022 bond prices all remained firm. (See Secondary Market) (See Equity Market)
MOVEMENT OF INDICES
All three market indices advanced this week over the period Monday to yesterday (see table). The major contributors to the movement in the main Jamaica Stock Exchange index were Guardian holdings Limited, Bank of Nova Scotia Limited and Jamaica Money Market Limited, which advanced by 441.13, 433.71 and 97.67 index points respectively.
UNITS TRADED
During the week 23,337,355 units traded with a market value of $122,430,346.89 representing a 121% increase in market volume and a 41.7% increase in market value over the previous week (close of trading on Thursday). Cable & Wireless Jamaica Limited, Jamaica Broilers Group Limited and Ciboney Limited accounted for the largest volume of transactions. Nineteen stocks advanced, seven declined, three traded firm and ten did not trade. At the close of trading yesterday, total market capitalization was $492.24 billion, a 3.4% increase compared with the previous week.
TOP PERFORMERS
Montego Freeport Limited, Jamaica Broilers Limited and Caribbean Cement Company Limited were the top performers, gaining 27.91%, 14.78% and 12.73% respectively, to close at $1.10, $1.32 and $3.10. The main losers were Dyoll Group Limited, Ciboney Group Limited and Dehring Bunting and Golding Limited down 12.32%, 10.00% and 3.85% respectively to close at $8.90, $0.09 and $12.50 respectively. (See Activity by Sector)
The Finance, Conglomerate and Manufacturing sectors dominated trading this week, accounting for 67.1%, 15.4% and 6.5% respectively, of the total value traded in the market. In the Finance sector, the shares of Bank of Nova Scotia Limited and National Commercial Bank Jamaica Limited (29.12% and 13.37% of market value respectively) dominated trading. In the Conglomerate sector, Grace Kennedy and Company Limited (11.08% of market value) dominated trading. The shares of Jamaica Broilers Group Limited (1.80% of market value) dominated trading in the manufacturing sector.
CROSS LISTINGS
At the close of trade on Wednesday, Capital and Credit Merchant Bank (CCMB), Grace, Kennedy and Company (GKC), Guardian Holdings Limited (GHL), Jamaica Money Market Brokers Limited (JMMB), National Commercial Bank Jamaica Limited (NCBJ), Royal Bank of Trinidad & Tobago (RBTT), and Trinidad Cement Limited (TCL) closed at TT$0.90, TT$5.55, TT$31.66, TT$1.00, TT$1.61, TT$33.01 and TT$5.65 respectively on the Trinidad Stock Exchange (TTSE). Five stocks advanced and two traded firm. The advancing stocks were GKC, GHL, NCBJ, RBTT and TCL which increased by TT$0.10, TT$0.15, TT$0.01, TT$0.15 and TT$0.17 respectively. CCMB and JMMB traded firm. The TTSE does not trade on Mondays and Thursdays. TT$6.30 is equivalent to US$1.00.
FOREIGN EXCHANGE MARKET
The Jamaican dollar opened the week trading at J$60.65 to US$1.00. The high liquidity levels in the Jamaican dollar fixed income market led to a continued depreciation in the Jamaican dollar. On Monday, the Central Bank intervened by selling US dollars to the market at a rate of US$1.00 to J$60.60 for resale at J$60.65. On Tuesday, the intervention rate was US$1.00 to J$60.58 for resale at J$60.63. However, reduced demand from end-users and financial institutions led to the Jamaican dollar appreciating towards the end of the week. On Thursday the US dollar closed at US$1.00 to J$60.60.
Indicative Foreign Exchange Rates as at close of trade on Thursday, December 04, 2003
Currency Bid Offer
US$ 60.55 60.60
CAD$ 46.05 46.20
GBP 104.10 104.40
