Caribbean stock market report

FOR THE week of February 14-18, some 14.2 million shares traded on the six stock exchanges across Caricom, with 19 stocks advancing, 24 declining and 78 unchanged.

Cable and Wireless Jamaica was again the volume leader with 3.1 million shares traded, followed by Jamaica Broilers Group 2.84 million, Grace-Kennedy 1.16 million, Desnoes and Geddes 1.14 million, and Caribbean Cement Company 685,060 shares traded.

Ciboney posted the largest gain of 100 per cent for the week, while on the losing end, Angostura Holdings fell 16.7 per cent.

Investor sentiment was generally muted or bearish across CARICOM with declines outnumbering advances and 65 per cent of stocks unchanged. The Caribbean Select Index, or CSX 30, was again essentially flat advancing 2.29 points, while the Caribbean AllShare Index, the CASX, fell 1.42 points and the junior market continued its decline from last week with the Caribbean Junior Share Index (CJSX) falling a further 7.5 points.

From this week, we add another metric, the volatility or risk of the various indices.

As expected, the CSX 30 is the least volatile of the broad market indices, while the junior market is the most volatile. The CASX is surprisingly volatile, possibly being driven by the volatility of the CJSX. Table 1 provides a summary of the broad market indices for the week.

For the week, eight of the CSX's 30 stocks advanced, 11 declined and 11 were unchanged. The CSX 30 was led by Scotiabank Trinidad and Tobago, Lascelles, Sagicor and Goddard Enterprises, which posted gains of 5.07 per cent, 1.69 per cent, 0.98 per cent and 0.85 per cent, respectively.

For the week, three of the 10 CJSX stocks advanced, three declined and four were unchanged. Dolphin Cove and Blue Power posted gains of 6.94 per cent and 2.34 per cent, respectively, but the CJSX declined for a third week running, dragged down by declines in Access Financial Services -8.21 per cent, and Cargo Handlers Limited -3.85 per cent. Table 2 provides some details on the best-performing stocks for the week.

SECTOR ANALYSIS

Banking stocks turned in the best performance for the week with the Caribbean Banking Index, CBSX, advancing seven points. Four of the 22 CBSX stocks advanced, three declined and 15 were unchanged.

The CBSX was led by Demerara Bank Limited which advanced 11.1 per cent, followed by Scotiabank Trinidad and Tobago which gained 5.07 per cent.

Conglomerate stocks continued to hold their own in a negative market as the Caribbean Conglomerate Index, or CCSX, advanced 2.41 points for the week. Three of the 10 CCSX stocks advanced, one declined and six were unchanged. Goddard Enterprises led the CCSX with a 0.85 per cent gain followed by GraceKennedy with a 0.83 per cent gain.

Manufacturing and retail and distribution stocks had a tough week with the CMSX declining 23.1 points and the CRDX 19.5 points. Two of the 30 CMSX stocks advanced, eight declined and 20 were unchanged. While Berger Paints Jamaica posted a 23 per cent gain, this was more than offset by declines in Angostura Holdings -16.71 per cent, Caribbean Cement Company -6.71 per cent, and Kingston Wharves -4.40 per cent.

In terms of retail and distribution stocks for the week, one of the 10 CRDX stocks advanced, two declined and seven were unchanged. The decline in the index was largely due to a 2.99 per cent decline in Carreras Limited.

Stocks in the insurance and investments sector continued to struggle, with the CIIX declining six points, with the CCUX down one per cent year to date. Two of the 17 CIIX stocks advanced, six declined and nine were unchanged. Jamaica Money Market Brokers and Sagicor posted gains of 6.69 per cent and 0.98 per cent, respectively, but the index was dragged down by declines in Mayberry Investments -6.48 per cent, Scotia Dehring Bunting -4.6 per cent, and Guardian Holdings -3.45 per cent. Stocks in the communications and utilities sector suffered a second weekly decline with the CCUX falling 5.1 points. However, the index is up 11.41 per cent year to date.

For a second week, none of the 14 CCUX stocks advanced, while for this review period four declined and 10 were unchanged. There was a 10.35 per cent decline in Cable and Wireless Jamaica, a 9.53 per cent decline in Gleaner shares and a 1.48 per cent decline in Radio Jamaica.

Prepared by the Department of Management Studies, UWI Cave Hill. Email justin.robinson@cavehill.uwi.edu.

Table 1: Broad Market Indices Feb 14-28

IndexChange%ChangeYear Volatility

to dateCASX 942.8 -1.42 -0.15% -6.5% 1.26%CSX 301,150.6 2.29 0.20% 1.77% 0.20%CJSX1,149.8 -7.5 -0.65% 0.57% 1.59%

Table 3: Sector Indices February 14-18

Index Change%ChangeYear to dateCaribbean Banking 1,131.2 7.00.63%1.70%

Index (CBSX)

Caribbean Conglomerate 1,076.4 2.410.22%-0.31%

Index CCSX)

Caribbean Communications1,192.9 -5.1-0.42%11.41%

and Utilities Index (CCUX)

Caribbean Insurance and 982.9 -6.0-0.61%-1.00%

Investments Index (CIIX)

Caribbean Manufacturing 1,131.8- 23.1-2.00%-0.80%

Index (CMSX)

Caribbean Retail and 1,104.1 -19.5-1.73%5.04%

Distribution Index (CRDX)

Caribbean Tourism and 789.2 -1.3-0.16%-7.32

Real Estate Index (CTRX)

Table 2: Five Best Performing Stocks Feb 14-18

Exchange Return Volume Volatility

Ciboney JSE 100% 381,290 16.9%

Berger Paints JSE 23.8% 35,097 6.6%

Jamaica

Demerara Bank Ltd GASCI 11.1% 43,900 3.3%

Freeport Oil BISX 9.4% 15,700 1.3%

Company Holdings

Dolphin Cove JSE 6.9% 678,490 1.5%

Grains futures fall

Grain prices fell Tuesday in mid-morning trading on the Chicago Board of Trade.

Wheat for March delivery fell 21.25 cents to US$8.01 a bushel, May corn shed 15.75 cents to US$7.0425 a bushel; May oats were down 15.25 cents at US$4.0225 a bushel, while soybeans for March delivery fell 19 cents to US$13.49 a bushel.

Beef and pork traded mixed on the Chicago Mercantile Exchange.

April live cattle dropped 0.30 cent to $1.1485 a pound; March feeder cattle fell 0.47 cent to $1.2960 a pound, April lean hogs gained 0.93 cent to 93.20 cents a pound, while February pork bellies were unchanged at $1.2100 a pound.

- AP

Euro regains footing

Hope that the European Central Bank will lift interest rates sooner than the Federal Reserve will act helped the euro regain its footing against the dollar Tuesday.

The US currency was mixed in other trading amid deepening unrest in the Middle East, which sent oil prices jumping to their highest point in more than two years.

In mid-morning trading in New York, the euro traded at US$1.3676 from US$1.3680 late Monday, recovering from a low of US$1.3523 in overnight trading in Asia.

In other trading, the dollar gained to 98.46 Canadian cents from 98.30 Canadian cents and rose against the Australian and New Zealand dollars. The US currency fell to 0.9391 Swiss franc from 0.9472 Swiss franc. The Swiss franc is also a popular safe-haven bet.

- AP