ISSUE NO. 6

For the second consecutive week, MASSY registered the largest gain for the week, increasing $0.49 to $50.50 at the end of the week. Conversely, both UCL and AMCL registered the week's largest decline, falling $4.06 and $2.79 respectively.

FEATURES

Local Market Review Local Fixed Income Review

16TH OCTOBER, 2017

WEEKLY MARKET ROUND-UP 

The local fixed income market continues to trade with stable liquidity conditions. No major trading activity has been recorded over the last week.

All information contained herein is obtained by JMMB® Investment Research from sources believed by it to be accurate and

reliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracy

and completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS OR

IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®

IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.

Local Market ReviewMarket volume on the First Tier Market amounted to 1.67 million units valued at over $21.69 million. This

represents a 41.5% increase in traded units and 51.7% increase in value, when compared to the previous

week's activity. Last week, National Flour Mills Limited (NFM) was the volume leader with 627,400.00 units

(37.49%), followed by Angostura Holdings Limited (AHL) with a volume of 567,071 units (33.88%) changing

hands. ANSA McAL Limited (AMCL) contributed 93,268 units or 5.57% to overall market activity.

For the second consecutive week, MASSY registered the largest gain increasing $0.49 to $50.50 at the end

of the week. Conversely, both UCL and AMCL registered the week's largest decline, falling $4.06 and $2.79

respectively. The retraction in prices seem to be triggered by softened demand since fundamentals have

remained relatively stable. It should be noted that both stocks trade well above the market P/E multiple of 13

times. Overall market activity resulted from the trading activity of 22 stocks of which 5 advanced, 8 declined

and 9 traded steady.

Local indices weekly performance:

� The Composite declined by 4.25 points (↓0.34%) to close at 1,241.96. (YTD Return : ↑2.68%).

� The All T&T Index declined by 11.70 points (↓0.6%) to close at 1,770.66. (YTD Return:↓3.47%).

� The Cross Listed Index advanced by 0.45 points (↑0.47%) to close at 95.87. (YTD Return:↑22.64%).

N O M A D I C | 2 4

2 JMMB INVESTMENTSMARKET ROUND-UP

Local Fixed Income ReviewThe local fixed income market continues to trade with stable liquidity

conditions. No major trading activity has been recorded over the last

week.

Revisions to the Economic Commission for Latin America and the Caribbean (ECLAC) economic activity

forecasts highlighted a 0.3% expansion in growth for the Caribbean in 2017 and a 1.9% expansion in

2018. ECLAC expects a rebound in growth in the region’s economies during 2018, averaging 2.2%, the

highest growth rate since 2013.

ECLAC noted that the South American economies which specialized in the production of primary goods

(particularly oil, minerals and food), are expected to grow at a positive rate of 0.7% this year after two (2)

consecutive years of negative growth. ECLAC forecasts that the Central American economies may

expand 3.4 per cent this year and 3.5 per cent in 2018.

English and Dutch-speaking Caribbean growth have been revised downwards to an average growth of

0.3% for 2017, due to the damage caused by Hurricanes Irma and María in some countries. However, in

2018, ECLAC said that “increased dynamism is forecast with a growth rate of 1.9 percent, influenced in

some cases by spending efforts aimed at reconstruction, as well as a somewhat more dynamic global

context in terms of growth and foreign trade.”

ECLAC alluded, “the capacity of the region’s countries to generate a more dynamic economic growth

process that is sustained over time depends on the space for adopting policies that support investment,

which will be fundamental for mitigating the effects of external shocks and averting significant impacts on

economic performance in the medium and long term.”

3 MARKET ROUND-UP

Regional Economic ReviewECLAC revises economic activity for the Caribbean

N O M A D I C | 2 4

4 MARKET ROUND-UP

Crude oil prices settled at US $51.45 on Friday, the

highest price level within the last two weeks. Prices

lifted as a result the geopolitical uncertainty in the

Middle East, threatening to disrupt energy supply, in

wake of the US refusal to certify Iran’s compliance

with the nuclear deal.

As expected, Trump refused certifying the 2015 Iran

nuclear agreement, which will evidently increase

the risk of doing business in the oil-rich Middle

Eastern nation. As investors continue to monitor

the ongoing turmoil in Iraq following an

independence referendum in Iraq’s Kurdistan region

last month that threatens to disrupt supply by

approximately 500,000-600,000 barrels of crude per

day.

ENERGY UPDATE

All information contained herein is obtained by JMMB® Investment Research from sources believed by it to be accurate and

reliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracy

and completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS OR

IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®

IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.

Over the next couple months, we expect to see

minimum growth in crude oil prices as global

uncertainty looms.

Despite the bullish signals, analysts warned that

the Organization of the Petroleum Exporting

Countries (OPEC) needed to extend its

agreement to reduce oil output beyond its current

March 2018 expiry date in order to re-balance the

market.

Market participants anxiously await information on

U.S. stockpiles of crude and refined products in

the week ahead to gauge the strength of demand

in the world’s largest oil consumer.

International Economic Review