PetroCaribe Worries Hover Caribbean Markets Trading

5:00 PM December 12 – Caribbean markets traded sideways and for the week market indexes closed nearly unchanged. Jamaican dollar dropped to a new low as member nations in the PetroCaribe brace for the end of cheap oil supply.

Caribbean markets traded sideways in thin trading and for the week indexes closed nearly unchanged in the region.

Market sentiment was focused on the oil price plunge this week and investors worried that Venezuela will be forced to trim its supply of oil under favourable terms to member states of PetroCaribe initiative.

In Jamaica trading, The JSE Market Index gained 275.43 or 0.4% to 75,312.14 and The JSE Select Index rose 8.40 to 2,206.21.

For the week, JSE Market Index slid 0.07%.

Trinidad Composite Index slipped 3.01 or 0.3% to 1,142.90 and for the week, the index fell 0.1%.

Bahamas Stock Exchange Index decreased 0.46 to 1,640.67.

Of the 11 stocks traded on Jamaica Stock Exchange, 7 increased, 3 decreased and 1 were unchanged.

Jamaican dollar traded near record low and average buy rate against the U.S. dollar was 113.76 and average sell rate was 114.12 according to the website of Bank of Jamaica.

In Kingston trading today, 1.28 million units changed hands worth J$29.86 million and Jamaica Producers Group Ltd led the most active list with 328,071 units followed by Carreras Limited with 213,281 units.

Jamaica Producers Group Ltd jumped 50 to J$17.50 cents and traded 328,071 and GraceKennedy Ltd. climbed J$2.33 to J$62.84 and traded 67,188. Desnoes and Geddes Ltd. gained 4 cents to J$4.70 and traded 164,808.

Carreras Limited slid 5 cents to J$36.15 and traded 213,281 and National Commercial Bank of Jamaica Ltd. fell 15 cents to J$18.34 and traded 82,248. Mayberry Investments Ltd decreased 4 to J$1.45 and traded 4,540.

Trinidad Market Overview

Trinidad Composite Index slipped 3.01 or 0.3% to 1,142.90 and of the 15 stocks traded 7 advanced, 2 declined and 6 closed unchanged.

National Flour Mills Limited led the most active list and added 5 cents to TT$1.15 and traded 100,000 followed by The West Indian Tobacco Company Limited rose 3 cents to TT$121.29 and traded 31,242 and ScotiaBank Trinidad & Tobago Limited gained 55 cents to TT$60 and traded 4,500.

Trinidad Cement Limited slipped 5 cents to TT$2.55 and traded 114,825 and FirstCaribbean International Bank Limited declined 25 cents to TT$4.75 and traded 3,100.

World Market Review

Global markets accelerated decline after the oil price loss in the year extended to 45%. The latest decline in oil price was driven by the lowered global oil demand growth in 2015 and investors surmised lower economic growth as well.

Currencies of oil producing nations including Russia, Norway, Venezuela and Middle Eastern stock markets took another hit.

Stocks in New York traded lower and the International Energy Agency, formed by advanced Western nations, lowered its 2015 demand outlook for oil.

Crude oil futures in New York and London declined additional 4% and extended year-to-date loss to 45%. Crude oil futures of immediate month delivery declined 13% in five-day trading this week.

IEA lowered its oil demand increase in 2015 by 90,000 barrels a day to average of 93.3 million barrels a day. The western nation’s agency rivalling the OPEC cut its global demand estimate for the fifth time in six months.

The oil demand increase was cut largely on the lowered estimate of oil consumption in Russia by 195,000 a day to 3.4 million barrels.

U.S. Department of Labor reported producer price index dropped 0.2% in November on a seasonally adjusted basis followed by 0.2% increase in October and 0.1% slide in September.

Russia hiked its benchmark interest rate by 1% to 10.5% from 9.5%. The central bank also defended ruble by spending $1 billion in currency market in the last three days and may have spent more than $5 billion in the last two weeks.

In the U.S. earnings news, Adobe Systems agreed to acquire privately-held Fotolia for about $800 million in cash and profit jumped 12%. Dominion Diamond net swung to profit.

Esterline Technologies net swung to a loss. Nordson profit soared 21% on 14% increase in revenues. Quiksilver net loss narrowed.

Adobe Systems Inc (ADBE), the diversified software company reported revenues in the fourth-quarter ending on November 28 increased 2.9% to $1.07 billion from a year ago period.

Net income in the quarter jumped 12.2% to $73.3 million or 14 cents a diluted share compared to $65.3 million or 13 cents from a same quarter last year.

Separately, yesterday the company agreed to acquire privately-held Fotolia, a leading marketplace for royalty-free photos, images, graphics and HD video for about $800 million in cash.

Nordson Corporation (NDSN), the testing and inspection equipment maker reported sales in the fourth-quarter ending in October climbed 14% to $468.6 million from a year ago period.

Net income in the quarter soared 20.6% to $72.1 million or $1.13 a diluted share compared to $59.8 million or 92 cents from a same quarter last year.

For the fiscal first-quarter, sales growth is forecasted in the range of 5% to 9% and diluted earnings per share between 60 cents and 70 cents from a year ago period.

In London trading, FTSE 100 index declined 1.4% or 89.99 to 6,371.71 and in Frankfurt the DAX index slumped 1.3% or 131.06 to 9,731.47.

In Paris, CAC 40 index dropped 1.4% or 57.37 to 4,168.49.

In European corporate news, Conwert Immobilien agreed to sell two portfolios to a Czech company for about €48.5 million. Carillion launched £170 million convertible bond offering.

Drax declined after a change in the U.K. renewable energy policy. Permira sold stake in Hugo Boss for about €500 million.

Conwert Immobilien Invest SE, the Austria-based real estate developer agreed to sell its two portfolios with assets in Slovakia to a Czech Republican company for about €48.5 million or $60 million to focus in Germany and Austria.

Hugo Boss AG, after Permira Holdings Ltd plans to sell 4.9 million shares or about 7% for €500 million or $620 million in Germany-based apparel investor.

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