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Weekly ecap
2015 marked a year of positive change right throughout the
investment landscape. Throughout the year the Bank of
Jamaica reduced the benchmark rate - the rate on 30 -day
certificates of deposit, on the expectation that inflation
would
remain low in the coming quarters. The supply of credit by
commercial banks to the private sector increased as lenders
anticipated an increase in demand. Annual devaluation of the
Jamaican dollar vis-a-vis the US dollar slowed to 5%
coming from 7.8% for the calendar year 2014. Additionally, the
country's ranking in the World Bank's Ease of Doing
Business Reportjumped 27 places to 58th among 189 measured
territories, and first in the Caribbean.
The bolstered performance of the local equities market
throughout 2015 (99% and 160% gains registered by the All
Jamaican and Junior indices, respectfully) reflected
improvements in investor sentiment driven by lower inflation
successive quarters of growth in the country's gross domestic
product, and the country's solid performance under the
IMF's Extended Funds Facility. Additionally, more and more
investors found themselves needing alternatives to a repo
structure which no longer existed, lower yielding money market
securities and a slowed acceleration in foreign currency
and its related investments. 2015 saw many stocks finally
reaching their true valuations in the bull run, and a few o
these stocks provided investors with opportunities to buy into
growing sectors with strong profits and room for further
growth. We anticipate that the year 2016, even with the
uncertainties surrounding general elections and a possible re
issuance of government debt, will be fruitful for many investors
in the local markets.
Despite the worst five-day start to a calendar year since 1928,
with the S&P 500 index level falling more than 4.5%, our
international outlook remains largely unchanged. Data today
showing that the US economy created 292,000 net new
jobs in December to finish 2015 with 2.65 million new jobs
created, indicates to us that the US economy is wel
positioned to outperform. Our base case is that the Chinese Yuan
stabilizes and the US economy outperforms on the back
of very large real wage gains, improved consumer balance sheets
and increased government infrastructure spending
Current market behaviour has opened opportunities in US
healthcare and select Asian stocks in our view.
Please contact a Barita investment professional to explore all
the opportunities available to you in the current
environment.
The Jamaican Government is considering reopening the domestic
bond market in the context of the large National DebtExchange
payment due in February, according to documents submitted to the
International Monetary Fund (IMF).. .read more
The World Bank forecasts 2.1 per cent growth for Jamaica in 2016
while lauding increased consumer confidence amidinternational
lending arrangements...read more
Calling for urgent radical tax reforms, economist John Jackson
has suggested that the Government increase tax on gasolene inorder
to fund the national budget...read more
Pulse Investments is considering raising capital through the
issue of new shares to investors...read more
Local News
January 8, 20
http://jamaica-gleaner.com/article/business/20160106/government-considers-reopening-domestic-bond-markethttp://jamaica-gleaner.com/article/business/20160106/government-considers-reopening-domestic-bond-markethttp://jamaica-gleaner.com/article/business/20160106/government-considers-reopening-domestic-bond-markethttp://jamaica-gleaner.com/article/business/20160107/jamaica-grow-21-cent-2016-world-bankhttp://jamaica-gleaner.com/article/business/20160107/jamaica-grow-21-cent-2016-world-bankhttp://jamaica-gleaner.com/article/business/20160107/jamaica-grow-21-cent-2016-world-bankhttp://jamaica-gleaner.com/article/lead-stories/20160107/increase-gas-tax-economist-urges-govt-top-petrol-cess-part-reformhttp://jamaica-gleaner.com/article/lead-stories/20160107/increase-gas-tax-economist-urges-govt-top-petrol-cess-part-reformhttp://jamaica-gleaner.com/article/lead-stories/20160107/increase-gas-tax-economist-urges-govt-top-petrol-cess-part-reformhttp://jamaica-gleaner.com/article/business/20160108/pulse-mulls-share-issuehttp://jamaica-gleaner.com/article/business/20160108/pulse-mulls-share-issuehttp://jamaica-gleaner.com/article/business/20160108/pulse-mulls-share-issuehttp://jamaica-gleaner.com/article/business/20160108/pulse-mulls-share-issuehttp://jamaica-gleaner.com/article/lead-stories/20160107/increase-gas-tax-economist-urges-govt-top-petrol-cess-part-reformhttp://jamaica-gleaner.com/article/business/20160107/jamaica-grow-21-cent-2016-world-bankhttp://jamaica-gleaner.com/article/business/20160106/government-considers-reopening-domestic-bond-market
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With none of the companies which pre-qualified during the
divestment process for the Morman Manley International
Airport(NMIA) deciding to submit a bid, two them have explained to
the Jamaica Observer that the promised return on investment didnot
meet their required standard...read more
Hardware & Lumber (H&L) has appointed Joseph Bogdanovich
to its board along with four others in a move that will signathe
further rise of the music mogul in corporate Jamaica.. .read
more
Having raised their respective targets from their IPOs in
December and met other requirements of the Jamaica Stock
Exchange(JSE), the air conditioning and energy solutions company
CAC alongside managed IT services tTech were listed on the
Juniormarket of the JSE on Thursday January 7...read more
The Kingston-based bakery Honey Bun Limited is planning to spend
US$250,000 to invest in its own 100-kilowatt solarenergy system at
its factory in Kingston with the objective of increasing
efficiency.. .read more
On December 31 the Jamaica Stock Exchange gave notice that Honey
Bun Jamaica Ltd, a bakery business and Junior marketcompany, had
transferred 55,151,600 shares or 70 per cent of its collective
holding to a related party...read more
The Jamaican dollar closed the 2015 calendar year at US$1.00:
J$120.42; a rate of depreciation of 5.02%.
Ordinary Dividends:
Security Div/Share RecordDate
X Date Payment
HONBUN $0.10 21-Dec-15 17-Dec-15 4-Jan-16
SIJL $0.45 23-Jan-16 21-Jan-16 15-Jan-16
SGJ $0.42 23-Jan-16 21-Jan-16 15-Jan-16
PAL $1.75 8-Jan-16 6-Jan-16 19-Jan-16
HL $1.09 15-Jan-16 13-Jan-16 29-Jan-16
US$ Global Bonds:
Year of
Maturity
Offer Price
(08/01/2016) (31/12/2015)
Offer Yield
(08/01/2016) (31/12/2015)
YTD
Change
2017 109.50 109.50 3.76% 3.85% 0.00%
2019 108.50 108.25 4.28% 4.41% 0.23%
2021(FormerlyCAPJAM)
108.50 108.50 5.40% 5.42% 0.00%
2022 127.25 127.00 6.13% 6.19% 0.20%
2025 107.50 107.25 6.46% 6.50% 0.23%
2036 108.25 108.00 7.69% 7.71% 0.23%
2039 104.75 104.75 7.55% 7.55% 0.00%
2019-JEP 109.00 109.00 6.64% 6.66% 0.00%
2027-AIR J 103.00 103.00 7.50% 7.50% 0.00%2021-Digicel
Ltd.88.25 86.50 8.84% 9.29% 2.02%
2023-DigicelLtd.
87.50 85.50 9.17% 9.59% 2.34%
2020-DigicelGroup
85.50 83.50 12.39% 13.02% 2.40%
2022-DigicelGroup
78.50 76.50 12.15% 12.68% 2.61%
2024-NROCC 115.50 115.50 6.89% 6.90% 0.00%
2021-JPS 109.00 109.00 3.40% 3.67% 0.00%
*The rates quoted above are indicative and subject to change due
to increased volatility in the international markets.
Dividends and Global Bonds
http://www.jamaicaobserver.com/business/Return-on-interest-too-low-for-potential-NMIA-investors_47811http://www.jamaicaobserver.com/business/Return-on-interest-too-low-for-potential-NMIA-investors_47811http://www.jamaicaobserver.com/business/Return-on-interest-too-low-for-potential-NMIA-investors_47811http://jamaica-gleaner.com/article/business/20160106/bogdanovich-raises-corporate-profile-hl-directorshiphttp://jamaica-gleaner.com/article/business/20160106/bogdanovich-raises-corporate-profile-hl-directorshiphttp://jamaica-gleaner.com/article/business/20160106/bogdanovich-raises-corporate-profile-hl-directorshiphttp://www.jamaicaobserver.com/business/tTech-and-CAC-2000-list-on-the-JSE-Junior-Market_48055http://www.jamaicaobserver.com/business/tTech-and-CAC-2000-list-on-the-JSE-Junior-Market_48055http://www.jamaicaobserver.com/business/tTech-and-CAC-2000-list-on-the-JSE-Junior-Market_48055http://jamaica-gleaner.com/article/business/20160106/honey-bun-invest-us250000-solar-projecthttp://jamaica-gleaner.com/article/business/20160106/honey-bun-invest-us250000-solar-projecthttp://jamaica-gleaner.com/article/business/20160106/honey-bun-invest-us250000-solar-projecthttp://www.jamaicaobserver.com/business/Honey-Bun-transfers-majority-holdings-into-new-company_47767http://www.jamaicaobserver.com/business/Honey-Bun-transfers-majority-holdings-into-new-company_47767http://www.jamaicaobserver.com/business/Honey-Bun-transfers-majority-holdings-into-new-company_47767https://vimeo.com/144037871http://www.jamaicaobserver.com/business/Honey-Bun-transfers-majority-holdings-into-new-company_47767http://jamaica-gleaner.com/article/business/20160106/honey-bun-invest-us250000-solar-projecthttp://www.jamaicaobserver.com/business/tTech-and-CAC-2000-list-on-the-JSE-Junior-Market_48055http://jamaica-gleaner.com/article/business/20160106/bogdanovich-raises-corporate-profile-hl-directorshiphttp://www.jamaicaobserver.com/business/Return-on-interest-too-low-for-potential-NMIA-investors_47811
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US Stocks suffer worst opening week in decades
TheDow Jones Industrial Average (DJIA - 16,346.45)lost 167.7
points, or 1%, bringing a close to its worst opening week
since1978. Only two of the Dow's 30 components ended higher, those
beingApple Inc. (NASDAQ:AAPL) andMicrosoft
Corporation(NASDAQ:MSFT),which added 0.5% and 0.3%, respectively.
Cisco Systems, Inc. (NASDAQ:CSCO) was the biggest loser with a
2.5% loss. The Dow closed the opening week of 2016 with a 6.2%
loss. TheS&P 500 Index (SPX - 1,922.03) gave back 21.1points,
or 1.1%. The Nasdaq Composite (COMP - 4,643.63) fell by 45.8
points, or 1%. The SPX finished the week with a loss of5.9% - its
worst opening week in history. The COMP, meanwhile, was down 7.3%
for the week.
Netflix expands into 130 more countries in surprise move
Netflix has already crossed off the biggest item on its New
Year's list of resolutions. The Internet video service debuted in
130countries Wednesday in a surprise move likely to reel in
millions of new subscribers. CEO Reed Hastings revealed the scope
ofNetflix's expansion at the end of a presentation in Las Vegas at
CES, one of the technology industry's marquee events. Thenews
caught almost everyone off guard because Netflix had previously set
a goal of being available in most of the world by theend of this
year. It looked like the Los Gatos, California company had plenty
of work ahead of it because it ended December in60 countries. Now,
Netflix is available in 21 different languages and streaming in
just about every market that it had in itssights, with the notable
exception of China, the world's most populous country. Entering
China may be a formidable challenge
requiring potentially prickly negotiations with a government
that blocks its citizenry from seeing material it
considersobjectionable or incendiary. Netflix currently has no
plans to push into North Korea, Syria or Crimea because of
restrictions onUS companies operating in those countries.
No IMF programme needed for Nigeria: Lagarde
Africas biggesteconomy, Nigeria, battling a revenue shortfall
caused by the global oil shock, does not need assistance from
theInternational Monetary Fund, the groups head said yesterday. Let
me be very clear: Im not here nor is my team here tonegotiate a
loan with conditionalities, were not programming negotiations, said
IMF managing director Christine LagardeFrankly, given the
determination and resilience displayed by the president and his
team, I dont see why an IMF programme is
going to be needed, she told reporters in Abuja. Lagarde was
speaking after meeting President Muhammadu Buhari on a four-day
visit that will also see her hold talks with the central bank
governor and visit neighbouring Cameroon. Nigeria, Africasnumber
one oil producer, has seen revenues dive over the last year because
of the fall in global crude prices, causing a cash
crunch that has forced it to tighten spending. The naira
currency has also slumped and GDP growth stalled to under 3.0
percent, while inflation is nudging 10 per cent. Lagarde described
the talks as excellent and said they touched on the challengesahead
stemming from the oil price reduction and the need to find
different revenue sources.
Commodities
For the week, crude oil lost 10.5% to close trade at $33.16 per
barrel after falling to an 11-year low. Gold also declined
thisweek, shedding 3.6% to settle at $1,097.90 per ounce.
For further discussions on these matters or any of our other and
services, contact an Investment Advisor at any ofour locations:
Kingston: 926-2681, Toll-Free: 1-888-429-5333Kerry-Ann Chen:
[email protected] Harris: [email protected] Owens:
[email protected] Ferguson: [email protected]
Clarke Lee: [email protected] Glaze: [email protected]
Carroll: [email protected] Duhaney:
[email protected]
Mandeville:625-0031Vanessa Williams: [email protected]
Brown: [email protected] Johnson: [email protected]
Walters: [email protected]
Montego Bay: 940-7201Geneieve Harty: [email protected]
International News
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