Oil Prices Hit 9 Month Low. Did We Say More IPOs Ahead?

Here is the latest weekly digest (Jun 19th – Jun 25th, 2017). A quick easy read of this week’s top and most relevant business news. No fluff, just the highlights.

U.S. crude-oil prices on Tuesday retreated into bear-market territory, defined as a drop of at least 20% from a recent peak, as the industry continues to be dogged by oversupply concerns.

Oil on Tuesday marked its lowest finish since mid-September, with prices sinking into bear-market territory as investors remained concerned that rising output from the U.S. and Libya will offset OPEC-led production cuts.

• Prices ended down 20.6% from 2017’s year-to-date high above $54—putting them in bear-market territory.
• Libya, which is exempt from the output-cut accord led by the Organization of the Petroleum Exporting Countries, has ramped up production to 900,000 barrels a day, adding further pressure on the market that is awash with surplus.

What are some local industries and stocks impacted by falling oil prices?

 

Here are some of the top performers this week.

Big movers this week (top 5 advancing stocks) were

Security	Open	Close	WTD % Change
PAL	340.00	498.00	46.47%
JETCON	4.96	5.85	17.94%
SEP	25.43	29.99	17.93%
BIL	6.05	7.00	15.70%
MEEG	5.88	6.77	15.14%

 

Worst performing (top 5 declining stocks) were led by…

Stock	Open	Close	WTD % Change
BRG	17.56	14.21	-19.08%
HONBUN	6.76	6.05	-10.50%
PJX	9.96	9.00	-9.64%
RJR	1.65	1.50	-9.09%
CBNY	0.22	0.20	-9.09%

 

New 52 Week Highs and Lows were

Security	Open	Close	Low	High	WTD % Change
DTL11.75	2.20	2.50	2.50	2.50	13.64%
JETCON	4.96	5.85	5.71	6.39	17.94%
MTL	0.35	0.35	0.34	0.40	0.00%
ProvenJA	19.56	19.36	19.00	20.15	-1.02%

As always, you can see the full list of companies and their stock price performance since the start of the year here.

In other news… Did we say more IPOs ahead?

• PBS IPO Ahead – Productive Business Solutions’ prospectus for its Initial Public Offer (IPO) is expected to be available to the public on June 29, when it will be posted on the Jamaica Stock Exchange website.
  • The company, a member of the Musson Group, is slated for listing on the US dollar market of the Jamaica Stock Exchange. The price will be $0.55 with the target is to raise US$41.5 million. NCB Capital Markets are the brokers handling the deal.
• Indies Pharma Ltd, which sells generic and specialised pharmaceuticals islandwide, has announced plans to list on the Junior Market later this year. Founder of the Montego Bay-based pharmacy, Dr Guna Muppuri, in a release from the company, expressed enthusiasm about the growth prospects associated with listing on the Jamaica Stock Exchange.
• Winchester Surgical & Medical Institute, owned by consultant surgeon Dr Neville Graham and other doctors, is reporting progress on plans to go public and list on the junior stock market

 

Over in Trinidad & Tobago

• Cocoa gets attention in Tobago budget
• TT Corn Beef Saga – Local consumers need not be concerned about the recent decision by the US Department of Agriculture to suspend imports of fresh beef from Brazil citing food-safety concerns. The Ministry of Agriculture is reassuring the public that T&T does not import fresh beef or any other fresh meat from Brazil.
• TT Government Querying Sandals Meeting – The Opposition party of the Trinidad & Tobago Government is calling on Prime Minister Keith Rowley to disclose the details of a recent meeting he allegedly held with officials of the Sandals group.
  • Opposition Senator Wade Mark, who claimed such a meeting was held, posed the query to Government in the Senate on Tuesday. The Government appointed a team, headed by former Tobago House of Assembly secretary Neil Wilson, to handle negotiations for the proposed Sandals development in Tobago.

And in other news…

• Jamaica’s tourism industry may find itself in need of a drastic overhaul as data from the World Bank points out that the island, among other Caribbean countries, is now lagging in competitiveness behind other regions in the world.
• Haiti says it wants to strengthen its trade links with Cuba and has officially accepted an invitation to participate in the 35th International Fair of Havana (FIHAV 2017) to be held in that city later this year.
• The Betting, Gaming & Lotteries Commission (BGLC) is drafting regulations to legalise online gaming in Jamaica, but is mum on the entities that are lined up for licensing and unsure of the timeline for implementation.
• Kingston Wharves Limited (KWL) will be rolling out a number of measures that will make it more efficient to clear goods. They will be moving auto cargo to Tinson Pen, and reorganising their port facilities.
• Access Financial Services Limited has acquired the assets of another rival, Micro Credit Limited (MCL), whose brand it plans to keep.
• An unnamed entity has acquired 10 per cent of Caribbean Flavours & Fragrances Limited under a new partnership that the company says is meant to boost exports
• Proven Investments Ltd (ProvenJA) which is now eyeing funding for expansion and acquisition opportunities is seeking to raise US$16.547 million ($2.17 billion) by way of a renounceable rights issue.

 

Here are some key market and economic figures

• Stock Market Movement (Combined Index):

Date	MTD % Chg	YTD % Chg
Jan/17	10.09%	10.09%
Feb/17	8.99%	19.99%
Mar/17	-3.08%	16.30%
Apr/17	4.08%	21.04%
May/17	3.19%	24.91%
Jun/17	-1.76%	22.71%

• Inflation:
  • Year to date (Dec 16 – May 17) 1.4%

• Unemployment: 12.7% – Jan 2017 (12.9% as at Oct 2016)
• GDP: 1.1% Oct – Dec 2016  (2.0% – Jul – Sep 2016) – Rate of Growth of Value Added at Constant (2007) Prices Seasonally Unadjusted

Thanks for reading our weekly digest. (Jun 19th – Jun 25th 2017). All weekly reviews can be viewed here.

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