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ISSUE NO. 4
CIF registered the largest gain for the week, increasing $0.44 to an end of the week price of $21.51. Conversely, RFHL registered the week's largest decline, falling $0.16 to close at $101.75.
FEATURES
Local Market Review Local Fixed Income Review
2ND OCTOBER, 2017
WEEKLY MARKET ROUND-UP
Trading activity remains buoyant as the October 2nd Budget continues to be a concern.
All information contained herein is obtained by JMMB® Investment Research 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, EXPRESS OR
IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®
IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.
Local Market ReviewIn an anticipation of budget woes, local market gains continued to slow as overall market activity weakened
for the second consecutive week. Trading activity on the First Tier Market registered a volume of 565,648
shares crossing the floor of the Exchange valued at $4.49 million, representing a 51% decline in traded units
and a 67% decline in value when compared to the prior week. Last week, NCB Financial Group Limited
(NCBFG) topped as the the volume leader, trading 102,395.00 units (18.10%), followed by JMMB Group
Limited (JMMBGL) with a volume of 101,358 units (17.92%) changing hands. National Flour Mills Limited
(NFM) contributed 100,144 units or 17.70%, to overall market activity.
CIF registered the largest gain for the week, increasing $0.44 to an end of the week price of $21.51.
Conversely, RFHL registered the week's largest decline, falling $0.16 to close at $101.75. Overall market
activity resulted from the trading activity of 20 stocks of which 8 advanced, 6 declined and 6 traded steady.
Local indices weekly performance:
� The Composite advanced by 4.27 points (↑0.35%) to close at 1,241.60. (YTD Return : ↑2.90%).
� The All T&T Index declined by 1.61 points (↓0.09%) to close at 1,782.18. (YTD Return:↓2.68%).
� The Cross Listed Index advanced by 1.40 points (↑1.51%) to close at 94.18. (YTD Return:↑21.01%).
N O M A D I C | 2 4
2 JMMB INVESTMENTSMARKET ROUND-UP
The local fixed income market continues to trade with stable
liquidity conditions. Trading activity remains buoyant as the
October 2nd Budget continues to be a concern.
Local Fixed Income Review
N O M A D I C | 2 4
3 JMMB INVESTMENTSMARKET ROUND-UP
On September 29th, 2017, SIJL announced that the
Supreme Court has approved the successful
cancellation of SIJL shares, in consideration for
cash payments to minority shareholders. Jamaican
shareholders are eligible to receive payments in
either Jamaican or US dollars while local SIJL
shareholders can only receive US dollar payments.
At the stockholder’s meeting held August 30th, 2017,
shareholders, holding approximately 99.95% of the
stock units represented in the meeting, voted in favor
of the Scheme.
US dollar disbursements will be based on the
weighted average selling rate for US dollars
published by the Bank of Jamaica on September
28th, 2017 (3 days before payment date). Hence the
conversion rate used is US$1.00 = J$129.9901.
Trading in SIJL has been suspended with effect from
Monday 2nd October,2017 and shareholders will
receive their payments by October 3rd, 2017.
JAMAICA Scotia Investments Jamaica Limited (SIJL) Updates
Regional Economic Review
N O M A D I C | 2 4
5 MARKET ROUND-UP
Effective from January 2018, China’s central bank is
expected to reduce the amount of cash lenders must
hold as reserves. The size of the cut will be linked to
the flow of funding to parts of the economy where
credit is deemed scarce.
Cuts are expected to range from 0.5% to
1.5% depending on how much business banks do
with small enterprises, agricultural borrowers and
startups. Foreign banks will also be eligible for the
cut should they meet the stipulated requirements.
According the central bank, this reduction in rate is
considered a "structural adjustment" and isn’t a shift
in the country's monetary policy.
ENERGY MARKETCHINA
Oil prices climb as demand boosts China's Central Bank Growth Plan
All information contained herein is obtained by JMMB® Investment Research 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, EXPRESS OR
IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®
IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.
Oil returned to a bull market last week on signs of
rising demand and production cuts by OPEC,
clearing a global oil surplus. Prices also rallied after
Turkey threatened to halt oil exports from the state,
Iraqi Kurdistan, after the vote for independence from
the rest of Iraq. Additionally, Saudi Arabia supplied
the U.S. with the lowest amount of crude and
petroleum refined products in 30 years in July.
Is the surge in oil prices sustainable?
Within recent months, we have seen a turnaround in
the oil market as investor sentiment turned positive
and prices jumped. However, we believe that this
appreciation may be short lived as growing US
production is likely to cap prices close to the current
levels this year.
International Economic Review