Stocks, forex markets still in play - But trading low-key

Sabrina Gordon, Business Reporter

The Jamaica Stock Exchange was cautious but undeterred by the raging gunfire across downtown Kingston, from where it operates, but investors were not too keen on trading wealth on Tuesday, leading to a narrow 222 point or .026 per cent slide of the main market index.

"We are not physically open for business, but we have a business continuity plan that has been activated and the stock exchange was open for trading at the usual time around 9 to 9.30 a.m.," said JSE general manager Marlene Street-Forrest.

"The trading and settlement platform was

remotely activated and we will continue to be open for the day, so there is no interruption relating to market trading."

Close by, the Bank of Jamaica, operator of the foreign exchange market, announced early that its operations would be dramatically scaled down and advised its staff to stay away, saying their safety could not be guaranteed.

Jamaica's security forces for two days has stormed the Tivoli Gardens housing enclave in search of West Kingston strongman Christopher 'Dudus' Coke, for whom an extradition warrant has been issued, sparking violent confrontations across downtown communities.

Commerce and services have been brought to a standstill in that section of the city, as a result.

"With everything being electronic, it's quite likely that trading is taking place but it may not be a lot," said Tony Morrison, spokes-man at the Bank of Jamaica.

Foreign exchange is traded at banks, cambios and other dealers licensed by the BOJ. The central bank tracks movement in the market electronically, and computes and publishes the weighted spot rates and moving averages at the close of trading.

The weighted average rates published Friday, May 21, would be applicable for customs and general consumption tax purposes up to today, Wednesday, May 26.

The markets were closed Monday for the Labour Day holiday.

Commercial banks and primary dealers were being offered limited services Tuesday, the central bank said. Settlement for Automated Clearing House transactions were stepped up to 12:30 p.m., while the JamClear central securities depository for fixed-income instruments and the real time gross settlement system also closed at 1:30 p.m. and 1:45 p.m., respectively.

A government of Jamaica fixed-rate instrument schedule to close today, was also extended for three more days up to Friday, May 28.

The JSE is also connected to its brokers by an electronic trading platform.

Street-Forrest said the exchange also has hot sites from which businesses can be conducted in emergencies but that, so far, there had been no need to activate them.

"We will continue to monitor the system remotely," she told Wednesday Business at mid-morning.

"Brokers are able to trade, and those uptown and not affected are now trading. We will continue to monitor the situation and, hopefully, tomorrow it will be back to normal operation in the sense that staff will be physically present at the office."

The stock market traded thin volumes of 1.148 million units values at J$20 million. Of the 15 stocks traded, four gained value, four were flat, and seven declined. The market closed at 86,636 points.

sabrina.gordon@gleanerjm.com