Weekly Report – Mar 20, 2020

Local Stock Market Review

For the week ended Friday, the Jamaica Stock Exchange indexes closed lower than the previous week. The JSE Junior Market Index declined 7.70%, the JSE Combined Index decreased by 11.45%, the JSE Main Market Index decreased by 11.70%, the JSE All Jamaican Composite Index decreased by 11.78% and the JSE USD Equities Index decreased by 2.83%. The biggest winner this week was Blue Power Group Limited, rising by 23.27% to close at J$3.70. The biggest loser was 138 Student Living Limited falling by 38.39% to close at J$4.05.

Index

3/20/20203/13/202012/31/2019Week/WeekYear-to-Date
JSE Main Market

367,554.61

416,262.28

509,916.44-3.65%

-18.37%

JSE Junior Market

2,139.47

2,317.91

    3,348.97

-8.55%

-30.79%

JSE Combined Market

361,185.51

407,894.58

505,253.98

-3.98%

-19.27%

JSE USD Equities Market

204.88

210.85

      226.23

-0.44%

-6.80%

 

Local Dividend Schedule

SecurityDiv/ShareRecord DateX DatePayment
EPLYJ$0.5727-Feb-2025-Feb-203-Apr-20
JBGJ$0.1813-Mar-2012-Mar-203-Apr-20
SVLJ$0.2017-Mar-2016-Mar-203-Apr-20
VMILJ$0.0313-Mar-2012-Mar-2027-Mar-20
GKJ$0.4016-Mar-2013-Mar-206-Apr-20
SGJJ$0.5513-Mar-2012-Mar-2022-Apr-20
PJAMJ$0.27523-Mar-2020-Mar-208-Apr-20
FirstRockUS$0.000826-Mar-2025-Mar-2031-Mar-20
JSEJ$0.3725-Mar-2024-Mar-2031-Mar-20

 

FX Market

Currency Pair3/20/20203/13/202012/31/2019Week/WeekYear-to-Date
JMD: USD136.51136.21132.57-0.22%-2.97%
JMD:CAD94.69100.26100.705.55%5.97%
JMD:GBP161.37171.73170.646.03%5.43%

 

Unit Trust Performance

Unit Trust Fund3/20/20203/13/2020Week/Week
Return
Year-to-Date
Return
1 Year ReturnYield
Capital Growth75.465981.24-7.11%-22.03%5.43% –
Money Market14.301414.5543-1.74%0.45%2.23%2.23%
Income Portfolio100.00100.001.12%
FX Bond Portfolio (US$)1.22511.3225-7.36%-8.72%2.23%
Real Estate Portfolio5,008.805,428.73-7.74%-2.64%-4.01%0.01%
FX Growth Portfolio0.7907
0.8228
-3.90%-11.72%-12.37%

 

Stock Market Weekly Report

March 20, 2020 – Download here

 

International Update

International Equity Market

Index3/20/20203/13/202012/31/2019Week/WeekYear-to-Date
Dow Jones
19.173.98
23,185.62
28,462.14-17.30%-32.63%
S&P 500
2,304.92
2,711.02
3,234.85-14.98%-28.75%
NASDAQ 100
6,879.52
7,995.26
8,733.07-13.96%-21.22%
FTSE 100
5,190.78
5,366.11
7,542.44-3.27%-31.18%
Euro Stoxx 50
2,531.22
2,571.07
3,748.47-1.55%-32.47%

US News & Data:

The Federal Reserve (Fed) lowered the target range for its federal funds rate by 100bps to 0-0.25% and launched a massive US$700 billion quantitative easing program during an emergency moveon March 15 ,2020 to protect the US economy from the effects of the coronavirus. “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least US$500 billion and its holdings of agency mortgage-backed securities by at least US$200 billion”, Fed said.

European News & Data:

The Bank of England lowered the key interest rate to 0.1% at a special meeting on March 19 , 2020. It follows a 50bps cut last week, bringing borrowing costs to a fresh record low. The central bank said the spread of Covid- 19 and the measures being taken to contain the virus will result in an economic shock that could be sharp and large but should be temporary. The central bank also announced it will increase its holdings of UK government and corporate bonds by £$200 billion.

The Ifo Business Climate indicator for Germany tumbled 8.3 points from the previous month to 87.7 in March 2020, a preliminary estimate showed, the biggest drop since 1991 to the lowest level since August 2009. The gauge for business expectations posted the sharpest decline on record amid concerns that the Covid-19 which could send Germany’s economy into a severe recession. The ZEW Economic Sentiment Index for Germany plunged by 58.2 points to -49.5 in March 2020, the lowest level since December 2011 and well below market expectations of -26.4. It was also the largest drop since the survey was started in December 1991, as coronavirus worries rattle global markets. German GDP is seen contracting in the first half of the year, and expectations for 2020 as a whole point to a decline in real GDP growth of approximately one percentage point as a result of the Covid-19 pandemic.

G20 News & Data:

The People’s Bank of China (PBoC) held its benchmark interest rates steady on March 20th, defying market forecasts that pointed to a reduction in borrowing costs amid widespread disruptions to businesses and activity from the Covid-19 crisis. The decision contrasted with other central bank’s moves, as policymakers around the world have been unleashing massive stimulus packages to support their economies hurt by the pandemic. The one-year loan prime rate (LPR) was left unchanged at 4.05% from the previous monthly fixing while the five- year remained at 4.75%.

Japan’s consumer price inflation unexpectedly fell to 0.4% yoy in February 2020 from 0.7% in the previous month, below market expectation of 0.8%. This was the lowest inflation rate since last October 2019.

Japan’s trade surplus widened to JPY$1.11 trillion in February 2020 from JPY$0.33 trillion in the same month a year earlier and beating market expectations of a JPY$0.92 trillion surplus. It marked the first trade surplus in four months, as exports fell 1% year-on-year to JPY$6.32 trillion, whereas imports shrank 14% to JPY$5.21 trillion. Japan Balance of Trade – data, historical chart, forecasts and calendar of releases – was last updated on March of 2020.

The annual inflation rate in Canada fell to 2.2% in February 2020 from 2.4% in January but above market expectations of 2.1%.

The Reserve Bank of Australia slashed the cash rate by 25bps to a new record low of 0.25% in the second emergency move, joining peers around the world in a bid to mitigate the impact of the coronavirus. The board said that they will not increase the cash rate target until progress is being made towards full employment and remains confident that inflation will be within the 2–3% target. Also, the bank targets the yield on 3-year Government bonds of around 0.25% that will be achieved through purchases in the secondary market, starting Friday, March 20, 2020. Policymakers agreed to launch a 3-year funding facility for the banking system of at least AUD$90 billion, with particular support for credit to SMEs at a fixed rate of 0.25%. The Committee added that the exchange settlement balances at the bank will be remunerated at 10bps, rather than 0. The RBA will continue to provide liquidity to financial markets by conducting 1-month and 3-month repo operations until further notice.

News

Dow tumbles 900 points to end Wall Street’s worst week since 2008…read more

WHO officials say at least 20 coronavirus vaccines are in development in global race for cure…read more

Stockpiling for the coronavirus pandemic has left many grocery store shelves bare in the US…read more

 Scotiabank is about to sign a deal with a global financial services company, which will bring significant benefits and opportunities for its local and regional customers…read more

Tourism Minister Edmund Bartlett is admitting that the entire tourism industry in Jamaica is facing imminent closure given the travel restrictions on many of its source markets as well as local containment and restriction protocols…read more

Cayman shuts down air travel for three weeks amidst COVID-19…read more

Trinidad announces series of measures to help ease impact of coronavirus…read more

Panjam shareholders to vote on APO and stock split…read more

Global airlines slash flights as US carriers seek US$50-bn bailout…read more

 

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