EGC Launched, New IMF Agreement & Good NBJ, GK, PROVEN Results

Here is the latest weekly digest (Nov 7th – Nov 13th, 2016). A quick easy read of this week’s top and most relevant business news. No fluff, just the highlights.

National Highlights

• The Government’s Economic Growth Council was launched this week – The EGC has outlined eight specific policy proposals as a part of their plan to generate 5% economic growth over the next 4 years. Watch the launch event here.

• These include
  1. the maintaining of macro-economic stability and pursuing debt reduction strategies,
  2. improving citizen security,
  3. improving access to finance,
  4. pursuing bureaucratic reform to improve the business environment,
  5. stimulating greater asset utilisation,
  6. building human capital,
  7. harnessing the power of the Diaspora and
  8. catalyzing the implementation of strategic projects.
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• The IMF Executive Board approved a US$1.64 billion Stand By Arrangement for Jamaica
  • The Executive Board of the International Monetary Fund (IMF) on Friday approved a three-year Stand-By Arrangement (SBA) for Jamaica – to support the continued economic reform agenda. Access under the new arrangement amounts to about US$ 1,64 billion. The Jamaican authorities have indicated that they will treat the arrangement as precautionary, and do not intend to draw on the new SBA unless exogenous shocks generate an actual balance of payments need. The Executive Board approval will make about US$ 411.9 million available, and the remainder in six tranches upon completion of semi-annual program reviews.
  • This also means the life of the Economic Programme Oversight Committee (EPOC), the group charged with monitoring Jamaica’s current four-year economic support programme with the International Monetary Fund (IMF), will shortly come to an end with the conclusion of the current Extended Fund Facility (EFF).

• Local government elections were announced and nominations held on Friday
• Donald J Trump was elected United States president in a shocking victory over Hillary Clinton. Due to the shocking and unexpected win, the markets initially dropped significantly before regaining stability and settling down
• The Indian government has reissued new (500 and 1,000) currency notes that were were last week declared as no longer accepted. This is some 86% of the country’s cash money supply, which the government declared would no longer be legal tender, in a bid to deal with the severe ‘black money’ problem.

Companies & the Markets

• NCBJ released impressive results for the year ended Sep 2016. The company’s results improved by 17.5% or $2.1b. The stock hit a 52-week (and possibly an all-time high) this week
• Lasco Financial announced that they are exiting the mobile phone business as sales from mobile phones have been slower than expected
• Chris Dehring’s ReadyTV is closer to launch – The company recently installed a Tv Tower (spending over US2m) and expects to launch in Q1 2017. ReadyTV expects full roll-out in 18-24 months (once they start), and may list on the stock market after 3-5 years.
• PROVEN delivers 40% growth in Q2 results (compared to last year) – the growth came from increased revenues from existing businesses.
• Hamburg International begins manufacturing cigarettes in Montego Bay – In July of this year, the company got the go-ahead to supply tobacco products. They have spent over US$1.6 million or $206 million, and employ 25 persons in the project based in the Montego Bay Free Zone.
• Billion dollar ruling on outstanding debt due to the Jamaica Mortgage Bank – owed by Ebony View Limited and YP Seaton and Associates Ltd.
• GraceKennedy reported a 12% increase in revenues and an increase in profits to $3.7b (up from $2.3b last year).

Thanks for reading Vol. 2016 Issue No. 5 of our weekly digest.  ( 07.11.2016 – 13.11.2016). All Weekly reviews can be viewed here.