THE JAMAICAN dollar fixed income market
experienced sustained
liquidity levels this week. There were no Government of Jamaica (GoJ) or Bank of Jamaica (BoJ) instruments released as the budget process unfolds. There was also no significant variation in instrument maturities or inflows.
Consequently, both 30-day and overnight secondary market repo rates remained stable (Table 1).
U.S. DOLLAR FIXED
INCOME MARKET
The U.S.$ fixed income market experienced reduced liquidity
levels this week. Increased broker demand and reduced inflows ensured that overnight secondary market repo rates increased by 125 basis points (Table 2).
The GOJ global bond market was relatively quiet this week. Consequently, bond prices remained fairly stable (Table 3).
In the coming week, approximately $14.1 billion is expected to enter the market from interest and principal payments on GOJ US$ denominated Index Bonds, GOJ Investment Debentures, Locally Registered Stocks (LRS), BOJ COSH flows and OMO (Open Market Operation) maturities.
FOREIGN EXCHANGE MARKET
The Jamaican dollar depreciated against the U.S. dollar this week, losing 13 cents (see below).
The dollar, however, appreciated against the pound sterling and the Canadian, gaining 50 cents and 20 cents, respectively.
Currency Bid Offer
US$ 61.60 61.66
GBP 115.50 115.70
CDN 50.30 50.45
MOVEMENT OF INDICES
The Jamaica Stock Exchange main index gained 2,695.71 points (Table 5) this week.
Trinidad Cement Limited (TCL) (1121.55 points), Royal Bank of Trinidad and Tobago (RBTT) (893.56 points) and Capital and Credit Merchant Bank (CCMB) (220.33 points) were the main contributors to the increased index value.
ACTIVITY BY SECTOR
The finance and manufacturing sectors led the volume traded, with 17.1 per cent and 57.4 per cent, respectively (Table 6), while the value traded was led by finance and conglomerate with 77.5 per cent and 14.9 per cent, respectively.
STOCK MARKET ACTIVITY
This week, the number of advancing stocks outnumbered the number of declining stocks 16 to
seven (Table 7), while market capitalisation increased by J$17.3 billion or 1.96 per cent
DISCLAIMER
All information contained herein is obtained by JMMB's investment research group from sources believed by it to be accurate and reliable. All opinions and
estimates constitute the analyst's judgment as of the date of the report. However, neither its
accuracy and completeness nor the opinions based thereon are guaranteed. As such, no warranty, expressed or implied, as to the accuracy, timeliness or completeness of this report is given or made by JMMB in any form whatsoever.
JMMB may make markets and effect transactions, or have positions in securities mentioned herein. In addition, employees at JMMB may have positions and effect transactions in the securities mentioned herein.
Unless otherwise stated, all rates quoted are indicative and do not constitute an offer to buy or sell.
