5:00 PM December 8 – Market indexes in Jamaica and Trinidad advanced but in The Bahamas closed nearly unchanged. Caribbean region braces for the implication of cheaper oil and likely demise of the supply under the PetroCaribe initiative.
In Jamaica trading, The JSE Market Index gained 157.42 to 75,524.34 and The JSE Select Index added 8.31 to 2,217.66.
Trinidad Composite Index increased 1.90 to 1,144.80. Bahamas Stock Exchange Index slid 0.06 to 1,634.32.
Of the 14 stocks traded on Jamaica Stock Exchange, 4 increased, 5 decreased and 4 were unchanged.
Jamaican dollar traded near record low and average buy rate against the U.S. dollar was 113.19 and average sell rate was 113.82 according to the website of Bank of Jamaica.
In Kingston trading today, 1.04 million units changed hands worth J$7.59 million and LIME led the most active list with 469,204 units followed by National Commercial Bank of Jamaica Ltd. with 190,112 units.
LIME rose 1 cent to 45 cents and traded 469,204 and National Commercial Bank of Jamaica Ltd. jumped 5 cents to J$18.25 and traded 190,112. GraceKennedy Ltd. climbed J$1.93 to J$62 and traded 25,000.
Jamaica Broilers Ltd. slipped 3 cents to J$4.02 and traded 140,520 and Desnoes and Geddes Ltd. dropped 1 cent to J$4.68 and traded 15,531 and Jamaica Money Market Brokers Ltd. declined 2 cents to J$7.04 and traded 7,528.
Trinidad Market Overview
Trinidad Composite Index increased 1.90 to 1,144.80 and of the 14 stocks traded 6 advanced, 3 declined and 5 closed unchanged.
National Commercial Bank Jamaica Limited led the most active list and gained 6 cents to TT$1.11 and traded 300,170 followed by Trinidad Cement Limited jumped 6 cents to TT$2.60 and traded 182,745 and Praetorian Property Mutual Fund climbed 10 cents to TT$3.50 and traded 6,575.
Clico Investment Fund fell 1 cent to TT$23 and traded 49,397 and Republic Bank Limited slid 2 cents to TT$119.94 and traded 400. Ansa Merchant Bank Limited decreased 1 cent to TT$39.42 and traded 32.
World Market Review
Market indexes on Wall Street traded lower and crude oil futures declined nearly 4% to a five-year low.
China reported record trade surplus in November partly on the cheaper oil and commodities imports and buyers delayed oil purchase on the prospect of even further weakness in oil.
Crude oil futures declined 3.7% or $2.45 to $63.39 a barrel and Brent Crude Oil futures fell 4% or $2.82 to $66.25 a barrel.
Exports to the U.S. increased only 2.6% from the sharp rise of 10.9% in October and exports to the European Union increased 4.1%, matching the increase in the last month.
Exports in the month jumped 4.7% and import plunged 6.6% from a year ago month.
China imported $16.4 billion of crude oil in November, lower than the import of $18.4 billion a year ago month.
In the U.S. corporate news, Blackstone Group agreed to sell its portfolio of 26 office buildings in Northern California for $3.5 billion.
The Blackstone Group LP (BX), the financial advisory service provider agreed to sell its Northern California portfolio of 26 office buildings for $3.5 billion to Los Angeles-based Hudson Pacific Properties Inc.
Merck & Co., Inc (MRK), the pharmaceuticals maker agreed to acquire Cubist Pharmaceuticals Inc for $102 a share, a 25% premium from Friday’s closing price or for about $9.5 billion.
The acquisition is expected to close in the first-quarter of 2015.
Cubist stock surged 36% as much as $74.36 before the regular market trading hours began.
McDonald”s Corporation (MCD), the fast-food restaurant operator announced global comparable sales in November decreased 2.2%. System-wide sales in the month plunged 6%.
The company said comparable sales in the U.S. declined 4.6% and comparable sales in Europe slumped 2% while sales in Asia/Pacific, Middle East and Africa dropped 4%.
In London trading, FTSE 100 index slipped 0.8% or 55.35 to 6,687.49 and in Frankfurt the DAX index fell 0.4% or 42.42 to 10,044.70.
In Paris, CAC 40 index slipped 0.7% or 30.52 to 4,388.96.
In the European corporate news, Air France KLM dropped on November traffic update. The Burkard family agreed to sell its 16.1% stake and control of voting rights in Sika AG to Saint-Gobain agreed for 2.75 billion Swiss francs. Cupid agreed to sell its last dating operating business for £3 million.
Air France KLM SA, the France-based airliner reported traffic in November increased 0.4% to 17.40 billion while available seat kilometers fell 1.3% to 21.28 billion from the same period a year-ago.
Load factor for the month jumped 1.4% to 81.8 but cargo traffic in the month declined 3.6% and load factor dropped 2.3 percentage points.
Compagnie de Saint Gobain SA, the France-based building products maker agreed to acquire controlling voting rights and 16.1% held by the Burkard family in Switzerland-based construction chemicals maker Sika AG for 2.75 billion Swiss francs or $2.81 billion.
The deal between the founding family and France based company was done without the consent of management at Sika and the chief executive at the chemical maker threatened to quit.