MAR­KET

Jamaica Gleaner - - FI­NANCE - Busi­ness@glean­erjm.com

COVID-19 pan­demic, aver­age quar­terly re­turn on eq­uity in­vest­ments, mea­sured by the change in the aver­age of the daily in­dex val­ues from one quar­ter to the next, re­flected a de­cline of 20.7 per cent rel­a­tive to al­ter­na­tive op­tions such as for­eign cur­rency and money mar­ket in­vest­ments,” said BOJ.

“More pre­cisely, the aver­age quar­terly re­turn on for­eign cur­rency in­vest­ments and 30-day pri­vate money mar­ket repo se­cu­ri­ties yielded pos­i­tive rates of 1.9 per cent and 0.67 per cent, re­spec­tively, for the March 2020 quar­ter,” the cen­tral bank said in its Quar­terly Mone­tary Pol­icy Re­port.

Bro­ker­age house NCB Cap­i­tal Mar­kets Lim­ited says that of the 52 com­pa­nies that re­leased quar­terly earn­ings, re­leased up to last Fri­day, just over half re­ported im­proved re­sults; of that, 22 recorded yearover-year in­crease in profit, 14 recorded con­trac­tions, and 16 re­port­ing losses.

The bro­ker­age also noted that fi­nan­cial firms were post­ing bad re­sults, while the per­for­mance of man­u­fac­tur­ing com­pa­nies was mixed.

“De­spite the dis­rup­tion to busi­ness ac­tiv­ity caused by the COVID-19 pan­demic since the lat­ter part of March, the man­u­fac­tur­ing and distri­bu­tion sec­tor seem to have had a rel­a­tively bet­ter quar­ter than oth­ers did, with eight com­pa­nies record­ing an in­crease in earn­ings, five see­ing con­trac­tions, and only two re­port­ing losses,” NCB Cap said.

“Mean­while, the out-turn for the fi­nan­cial sec­tor was less favourable, with nine com­pa­nies re­port­ing losses, rel­a­tive to four re­port­ing con­trac­tions, and four re­port­ing higher earn­ings. This was mainly due to the fall-off in the price of as­sets held by these in­sti­tu­tions.”

Dur­ing May, the value of share trades on the mar­ket was S2.8 bil­lion, less than the $3.9 bil­lion for the month of April, and less than half the $6.8 bil­lion of shares that traded in March. Stock mar­ket wealth has fallen from around $2.1 tril­lion to $1.66 tril­lion as at the end of May.

Newspapers in English

Newspapers from Jamaica

© PressReader. All rights reserved.