All three stock market indices advanced during trading on the Jamaica Stock Exchange Index last week, despite a negative advance to decline ratio - with 16 stocks declining and 13 advancing. Four stocks traded firm.

The JSE main index gained 2456.5 points to close at 111,226.9. The All Jamaica Composite Index advanced by 1,431.6 points to close at 115,461 and the JSE Select advanced by 97.33 points to close at 3,216.8

Trading was moderate, with 29.7 million stocks changing ownership. Cable & Wireless Jamaica was again the volume leader, its 7.6 million units accounting for 25.7 per cent of the week's total volume. National Commercial Bank (NCB) traded the second highest volume for the third straight week - some 6.8 million stock units that accounted for 23 per cent of the trades.

The third highest volume was traded by Gleaner Company - some 1.7 million stock units that accounted for 5.8 per cent of the total weekly volume.

Trinidad Cement which gained $12 or 17.6 per cent recorded the highest percentage gain to close at $80. Next were NCB which gained $2.64 or 12.48 per cent to close at $23.79, and Jamaica Producers Group which gained $4 or 11.1 per cent to close at $40.

The main losers were First Caribbean International Jamaica Limited , which shed $5.49 or 19.7 per cent from its stock price to close at $22.3. Carreras Group lost $4 or 11.11 per cent to close at $32, making it the second biggest loser, followed by Jamaica Pegasus Hotel whose price declined by $1 or 10 per cent to close at $9.

Foreign currency market

The local currency opened the week trading at $61.95/US$1. By mid-week the market was seeing increased supplies of United States dollars with very few takers. End-users were the primary demand players and they purchased selectively. The result is that the Jamaican dollar strengthened by 15 cents to close the week at $61.80/US$1.

Money market

The Jamaica government's investment debenture, which closed on Friday December 17th, appears to have been met with moderate market response.

The debenture appeared to have helped tighten the market slightly by mid-week. However, by Friday the inflow from coupon payments allowed the market to close even-to-liquid.

Nevertheless the week-over-week rate in both markets increased: the 30-day dealer market closed on Friday 14.10-14.25 per cent, up from the 13.95-14.10 per cent the previous week. The overnight market also tightened a bit week-over-week at 7-12 per cent. This represents a 50 basis point decline in the lower rate limit and a 225 basis point increase in the upper rate limit.

Company news

The highlight of the week was the approval of the board of directors of Carreras Group, dividend payments of $9.80 per share to shareholders on record on December 17, 2004.

The payment date is set for January 14, 2005. This brings the total dividend payment by Carreras Group for the year to $16.80 per share. Carreras Group also advised shareholders of the retirement of its chief executive officer, William Telling, effective February 1, 2005.

Local economic news

The all-Jamaica "all-group" consumer price index for November 2004, showed a 2.4 per cent increase over the index for October 2004. This compares to a 3.3 per cent inflation rate registered for the month of October and a 0.6 per cent for the month of September.

For the month of November all the groups recorded higher indices than in October. The increase was largely the result of the movement in the index for the groups, 'food and drink' which registered a 3.5 per cent increase, 'fuels and other household supplies' (2.5 per cent) and 'housing and other housing expenses' (2.7 per cent).

Caribbean business news

Reports from Barbados last week were that the 11 Courts furniture stores in the Caribbean - all of which are market leaders in their respective territories - were still moving ahead with plans to amalgamate their operations. However, they are not clear as to whether KPMG, which has been appointed to administer the financially-strapped parent company, Courts PLC in the UK, will approve the move.

US business news

As was anticipated by market watchers, the US Federal Open Market Committee chaired by Dr Alan Greenspan increased the Feds funds rate by 0.25 percentage point to 2.25 per cent.

US weekly stock report

All three major US stock market indices advanced last week.
. The Dow Jones climbed 106.7 points or 1.01 per cent to close the week at 10,649.92 points.

. The Nasdaq inched forward by 7.13 points or 0.33 per cent to close the week at 2,135.2 points.

The Standard and Poor's crawled ahead by 6.22 points or 0.52 per cent.

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