Stocks gain, dollar falls in trading last week
Published by www.jamaicaobserver.com on Sep 03, 2007
Sep 04, 2007

All three Stock Market Indices advanced at the end of trading last week. The Jamaica Stock Exchange Index gained 2.37 per cent to close at 94,544.95 points. The Select Index advanced by 4.53 per cent to close the week at 2,703.18 points and All Jamaica Composite Index slipped by 4.11 per cent to close the week at 98,698.71 points.

Of the 34 stocks which changed hands 21 advanced, 8 declined and 5 traded firm. Market volume was 35.8 million units. NCB led the volumes with just under 9.5 million units traded. The Gleaner traded 5.5 million units and Cable & Wireless with approximately four million units.

FOREIGN CURRENCY
The Jamaican dollar lost 24 cents last week as the market continued to be characterised by heavy broker driven demand. The Central kept out the market. At the close of trade last Friday it took an average of average $69.80 Jamaican for each US dollar in the Cambio Market.

LOCAL COMPANY NEWS
Net profits at Dehring Bunting & Golding grew by 16 per cent or $21 million during the three month period to July 31, 2007, to record $148 million when compared to the same period in 2006. This was due primarily to a 20 per cent increase in revenues, which saw interest revenues growing by 30 per cent during the period under review. Earnings per share was 42 cents compared to 35 cents in the corresponding period of last year.

LOCAL ECONOMIC NEWS
According to data from the Statistical Institute of Jamaica (STATIN), Jamaica spent US$2.52 billion on imports during the period January 2007 to May 2007. This represents a 12.4 per cent increase year over year. Total goods exported during this period valued US$881.3 million, a marginal increase of 4.7 per cent. Jamaica's trade deficit for the period January 2007 to May 2007 currently stands at US$1.64 billion, an increase of 17.1 per cent.

REGIONAL ECONOMY
Trinidad and Tobago's inflation rose to 7.95 per cent in July up from the 7.3 per cent recorded in June. Food price inflation which had shown some decline in the past seven months showed a reversal of 4.7 per cent June to 17.2 per cent in July.

However the central bank has decided to keep its 'repo' rate at 8 per cent while keeping monetary conditions under close review.

REGIONAL BUSINESS
According to CEO and Managing Director of the Barbados National Bank (BNB), Robert Le Hume, his bank is now the largest lender within the Barbadian banking sector. A former state owned bank, BNB currently accounts for 30 per cent of loans made by commercial banks in Barbados. For its nine month period ended June 2007, the bank recorded a 7 per cent increase in its loan portfolio which amounted to BDS$1.58 billion at the end of June. Four years ago the Trinidad & Tobago based RBTT acquired a majority stake in the bank.

INTERNATIONAL ECONOMIC NEWS
The US economy grew by an annual rate of 4.0 per cent during the second quarter of 2006, relative to a previous estimate of 3.4 per cent. The growth seen between January and March was due mainly to strong business investment.
Analysts believe the credit worries caused by the US housing slump will limit growth for the rest of 2007.

US STOCK MARKET
Only one of the three major stock market indices recorded a week over week gain last week. The markets, however, closed up on Friday after the US Federal Reserve chairman, Ben Bernanke, pledged the central bank will keep financial markets stable and the Bush Administration offered help to consumers hurt by the subprime mortgage crisis.

The Dow Jones lost 21.13 points (0.16 per cent) to close at 13,357.74

NASDAQ gained 19.67 points (0.76 per cent) to close at 2,596.36

Standard & Poor's lost 5.38 points (0.36 per cent) to close at 1,473.99