Weekly Report – May 8, 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 decreased 0.53%, the JSE Combined Index decreased by 2.27%, the JSE Main Market Index increased by 2.48%, the JSE All Jamaican Composite Index increased by 2.51% and the JSE USD Equities Index decreased by 4.14%. The biggest winner this week is Key Insurance Co. Limited, rising by 33.54% to close at J$9.71. The biggest loser was Palace Amusement Co. Limited falling by 48.94% to close at J$1424.05.

Index

5/8/20205/1/202012/31/2019Week/WeekYear-to-Date
JSE Main Market

374,196.18

365,129.45

509,916.444.31%

-26.62%

JSE Junior Market

2,420.48

2,433.44

    3,348.97

-0.53%

-27.72%

JSE Combined Market

370,335.80

362,129.83

505,253.98

2.27%

-26.70%

JSE USD Equities Market

188.69

196.84

      226.23

-4.14%

-16.59%

 

Local Dividend Schedule

 

SecurityDiv/ShareRecord DateX DatePayment
MILJ$0.12522-May-2021-May-201-Jul-20
SVLJ$0.002518-May-2015-May-2012-Jun-20
MJEJ$0.0612-May-2011-May-2026-Jun-20

 

FX Market

Currency Pair5/8/20205/1/202012/31/2019Week/WeekYear-to-Date
JMD: USD146.07144.00132.57-1.44%-10.19%
JMD:CAD104.80103.85100.70-0.91%-4.07%
JMD:GBP179.63181.55170.641.06%-5.27%

 

Unit Trust Performance

Unit Trust Fund5/7/20205/1/2020Week/Week
Return
Year-to-Date
Return
1 Year ReturnYield
Capital Growth75.863276.05-0.25%-21.62%-0.64% –
Money Market14.594114.5730.14%1.59%3.04%2.17%
Income Portfolio100.00100.001.74%
FX Bond Portfolio (US$)1.2577 1.25510.21%-6.29%2.77%
Real Estate Portfolio6,545.646,401.562.25%27.23%25.34%
FX Growth Portfolio0.8533
0.8499
0.40%-4.73%-5.83%

 

Stock Market Weekly Report

May 8, 2020 – Download here

 

International Update

International Equity Market

Index5/8/20205/1/202012/31/2019Week/WeekYear-to-Date
Dow Jones
24,331.32
23.723.69
28,462.142.56%-14.51%
S&P 500
2,929.80
2,830.71
3,234.853.50%-9.43%
NASDAQ 100
9,220.35
8,718.18
8,733.075.76%5.58%
FTSE 100
5,935.98
5,763.06
7,542.443.00%-21.30%
Euro Stoxx 50
2,908.11
2,927.93
3,748.47-0.68%-22.42%

US News & Data:

The US economy lost 20.5 million jobs in April 2020, less than market expectations of a 22 million cut, and after declining by 870K in March 2020. It is the largest drop ever, bringing the employment to 131 million, its lowest level since February 2011, due to the coronavirus pandemic and consequent restrictive lockdown restrictions imposed such as business closures. Job losses were widespread, with the largest 7.7 million decline occurring in leisure and hospitality. The ISM Manufacturing PMI for the US dropped to 41.5 in April 2020 from 49.1 in March 2020, remaining above market expectations of 36.9. The latest reading pointed to the steepest pace of contraction in the manufacturing sector since April 2009, as the new orders sub-index tumbled to the lowest level since December 2008 and the employment sub-index plunged to the lowest since February 1949. The smaller-than-expected drop in the ISM index was because the survey’s measure of supplier deliveries jumped, which is usually associated with strong customer demand but currently the result of virus-related supply constraints. The US trade deficit widened to US$44.4 billion in March of 2020 from a downwardly revised US$39.8 billion in February 2020 and in line with market expectations of a US$44 billion gap. Both exports and imports were the lowest since November of 2016 and fell in part, due to the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted.

European News & Data:

The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% on May 7th, 2020, in line with market forecasts. Policymakers also left the bond buying program at £$645 billion, although two members voted for a £$100 billion increase, in a further sign that fresh stimulus may be under way. The central bank expects the GDP to contract by 14% in 2020 due to the coronavirus pandemic. The inflation rate is seen falling to 0.6% and unemployment is like to rise to 8%.

G20 News & Data:

The Reserve Bank of Australia left the cash rate unchanged at a record low of 0.25% during its May 2020 meeting. Policymakers noted that the economy is going through a difficult period and projected that output will likely shrink by around 10% over the Q1 and by 6% over the year as a whole. The Committee also kept its yield objective unchanged as the functioning of the bond markets has improved. Policymakers said that since launching QE, the bank has purchased around AUD$50.7 billion of securities and is prepared to scale-up purchases again to ensure bond markets remain functional. The Committee projected that the unemployment rate will peak at around 10% over the next months and remains above 7% at the end of next year. Policymakers added that it will maintain its efforts to keep funding costs low and credit available. The board reiterated that it will not increase the cash rate target until progress is being made towards full employment. 

The Ivey PMI for Canada declined to 22.8 in April 2020 from 26 in March 2020 and below market expectations of 25. It was the lowest reading on record, amid the coronavirus crisis.

News

Trump says US will purchase $3 billion of dairy, meat and produce as farmers struggle amid pandemic…read more

Can stocks and bonds both be right? Making sense of rising equities and ultra-low Treasury yields…read more

Why the stock market is up even with historic job losses…read more

Caribbean Airlines plans to fly past COVID-19read more

The CEO of Southwest Airlines, one of the largest US air companies, insisted yesterday that travelers could again fly in safety and added that air traffic, nearly paralyzed by the coronavirus pandemic, was gradually reviving…read more

Negril chamber partners with TEF to distribute 2,000 care packages…read more

IDB says Caribbean’s tax revenue under threat amid deteriorating outlook…read more

MIAMI United States (AFP) — Carnival Cruise Line announced on Monday that it will resume limited operations from Florida and Texas on August 1 after halting cruises because of the coronavirus pandemic which left some passengers trapped on its ships for weeks…read more

Local top-flight law firm DunnCox yesterday laid off all salaried employees for just over eight weeks as the financial crunch from he COVID-19 pandemic continues to hit businesses in the country…read more

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