Weekly Report – April 9, 2020

Local Stock Market Review

For the week ended Friday, Majority of the Jamaica Stock Exchange indexes closed higher than the previous week. The JSE Junior Market Index increased 6.80%, the JSE Combined Index increased by 3.72%, the JSE Main Market Index increased by 3.50%, the JSE All Jamaican Composite Index increased by 3.56% and the JSE USD Equities Index decreased by 2.35%. The biggest winner this week Wisynco Group Limited, rising by 39.49% to close at J$19.40. The biggest loser was Pulse Investments Limited falling by 15.06% to close at J$2.60.

Index

4/9/20204/3/202012/31/2019Week/WeekYear-to-Date
JSE Main Market

398,359.12

384,905.24

509,916.443.50%

-21.88%

JSE Junior Market

2,642.81

2,474.60

    3,348.97

6.80%

-21.09%

JSE Combined Market

394,956.70

380,787.88

505,253.98

3.72%

-21.83%

JSE USD Equities Market

202.37

207.23

      226.23

-2.35%

-10.55%

 

Local Dividend Schedule

SecurityDiv/ShareRecord DateX DatePayment
SGJJ$0.5513-Mar-2012-Mar-2022-Apr-20
SJJ$0.4024-Apr-2023-Apr-206-May-20
MILJ$0.12522-May-2021-May-201-Jul-20

 

FX Market

Currency Pair4/9/20204/3/202012/31/2019Week/WeekYear-to-Date
JMD: USD137.67136.94132.57-0.53%-3.85%
JMD:CAD100.9198.20100.70-2.76%-0.21%
JMD:GBP175.33169.60170.64-3.37%-2.75%

 

Unit Trust Performance

Unit Trust Fund4/8/20204/3/2020Week/Week
Return
Year-to-Date
Return
1 Year ReturnYield
Capital Growth79.950877.623.00%-17.40%10.6% –
Money Market14.360314.3796-0.13%-0.04%1.96%2.22%
Income Portfolio100.00100.001.62%
FX Bond Portfolio (US$)1.24461.2483-0.30%-7.26%2.43%
Real Estate Portfolio6,426.336,140.464.66%24.91%13.13%
FX Growth Portfolio0.8173
0.7986
2.34%-8.76%-11.34%

 

Stock Market Weekly Report

April 9, 2020 – Download here

 

International Update

International Equity Market

Index4/9/20204/3/202012/31/2019Week/WeekYear-to-Date
Dow Jones
23,719.37
21,052.53
28,462.1412.67%-16.66%
S&P 500
2,789.82
2,488.65
3,234.8512.10%-13.76%
NASDAQ 100
8,238.53
7,528.11
8,733.079.44%-5.66%
FTSE 100
5,842.66
5,415.50
7,542.447.89%-22.54%
Euro Stoxx 50
2,892.79
2,662.99
3,748.478.63%-22.83%

US News & Data:

The Federal Reserve announced a new stimulus package on April 9th, 2020, providing up to US$2.3 trillion in loans, aimed to support households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. The US economy lost 701 thousand jobs in March 2020, much worse than market expectations of a 100K cut, reflecting the effects of the coronavirus and efforts to contain it. The US unemployment rate jumped to 4.4% in March 2020, the highest since August 2017 and well above market expectations of 3.85%, as the Covid-19 crisis threw millions out of work. The number of Americans filing for unemployment benefits eased to 6.606 million in the week ended April 4th, 2020, over the previous week’s record high of 6.867 million, but well above expectations of 5.25 million. US average hourly earnings for all employees on private nonfarm payrolls increased by U$0.11, or 0.4% over the month to US$28.62 in March of 2020, after increasing 0.3% in February 2020 and surprising markets who expected a 0.2% gain. This was the strongest increase in wages since last November 2019.

European News & Data:

The GfK consumer confidence in the United Kingdom fell further to -34 in late March 2020 from -7 in February 2020, its biggest fall in more than 45 years, after GfK ran an extra poll at the end of the month. The index, that had dropped initially to -9 in early March, was revised to the lowest since February 2009 due to the negative impact of Covid-19.

G20 News & Data:

The Bank of Canada slashed its benchmark interest rate by 50bps to 0.25% in an emergency meeting on March
27th, 2020.The move follows a similar margin cut on March 13 , 2020 and brings borrowing costs to its
effective lower bound aiming to support the economy and the financial system amid the coronavirus pandemic. The Committee also launched a Commercial Paper Purchase Program to help to restore a key source of short-term funding for businesses and said that will begin acquiring government securities in the secondary market until the economy recovers. Policymakers added that they are closely monitoring economic and financial conditions, in coordination with other G7 central banks and fiscal authorities and will take further action if necessary. The unemployment rate in Canada rose to 7.8% in March 2020 from 5.6% in the previous month and above market expectations of 7.2%. It was the highest jobless rate since October 2010, as the coronavirus pandemic began to take hold. The economy shed more than 1 million jobs, well above market expectations of a 350 thousand decline. The Canadian economy lost 1010.7 thousand jobs in March of 2020, after creating 30.3 thousand in February 2020, surpassing market expectations of a 350 thousand cut. This was the biggest decline in employment on record and larger than in any of the three significant recessions experienced since 1980, attributed to the Covid-19 lockdown.

The Reserve Bank of Australia left the cash rate unchanged at a record low of 0.25% during its April 2020 meeting, as the country grapples with the economic fallout from the COVID-19 outbreak. Policymakers said they will not increase the cash rate target until progress is being made towards full employment and until they are confident that inflation will be sustainably within the target of 2–3%. The Committee also said that the functioning of the bond market has improved and added that if conditions continue to improve, it is likely that smaller and less frequent purchases of government bonds will be required. Policymakers noted that there is considerable uncertainty about the economy, with a very large contraction expected in Q2 2020 and the jobless rate projected to rise to its highest level for many years.

News

The OPEC oil cartel and nations, including Russia, have agreed to boost oil prices by cutting as much as 10 million barrels a day in production, or a tenth of global supply. More countries, including the United States, were discussing Friday their own cuts in what would be an unprecedented global pact to stabilize the market…read more

Key Insurance now trading on the JSE main market Graduates from Junior Stock Market…read more

The Bank of Jamaica (BOJ) has removed the restriction on the price at which B-FXITT participants can resell the US$20-million intervention funds, which was auctioned on Wednesday…read more

GK’s Wehby calls for more local, value-added finished goods…read more

The Bank of Jamaica (BOJ) has said that given the continued effects stemming from the coronavirus disease (COVID-19) across the globe, it has factored the reality that there will be a significant fallout in foreign exchange (FX) as two major sources — remittances and tourism – become adversely impacted…read more

Scotiabank, Scotia Insurance, and Scotia Investments will be temporarily closing eight branches and office locations across the island April 15, 2020 to April 30, 2020…read more

Goldman says beware stocks getting government assistance even though they may pop on the news…read more

OPEC and its oil producing allies on Sunday April 12, 2020 finalized a historic agreement to cut production by 9.7 million barrels per day, which is the single largest output cut in history…read more

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