Latest News

Mexico Banking Sector: Credit Demand To Slump Amid Weak Sentiment Published: 10 April 2019

  • Asset growth and lending will slow in Mexico's banking sector over the coming quarters, in line with weaker investor sentiment that will drive a general economic slowdown. 
  • Investor sentiment is weakening under the administration of leftist populist President Andrés Manuel López Obrador (AMLO), sapping credit demand, especially for commercial loans. 
  • Fitch forecast total asset growth to slow to 5.0% y-o-y in 2019, from 6.0% in 2018, with client loan growth decelerating to 7.0%, from 9.3%. 

(Source: Fitch)

Finance Minister Calls for Increased Domestic Investments Published: 09 April 2019

  • Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says there is a need for greater levels of local investments, in order to sustain Jamaica’s economic growth.
  • “We have had a lot of foreign investment. But I don’t think domestic investment has yet been unleashed in the way that it can and ultimately will,” he said.
  • He highlighted that the Government has been working to restore economic stability through the implementation of policies that “encourage and incentivize greater levels of domestic and foreign investment”.
  • The Minister was speaking at the Destination Experience Masters of Industry Reception, which was held at the Mercedes Benz showroom on South Camp Road in Kingston on April 5.

(Source: JIS)

AMG Packaging & Paper Limited Records Dip in Profits for Q2 Published: 09 April 2019

  • For the year ended February 28, 2019, AMG Packaging & Paper Limited reported an unaudited net profit of $23.2Mn (EPS: $0.01) which represents a 12.4% decrease relative to the corresponding period of 2018.
  • Revenue for the period was $387.8Mn which represents a 12.8% increase relative to the $343.7Mn.
  • The lower profit was partly attributable to increased manufacturing costs which moved (+17.2%)  to $306.3Mn.
  • Paper prices have begun to stabilize on the world market, however, due to huge increases in paper costs in 2018, and the inability to pass on these increases to customers, the company’s bottom line continues to be negatively affected.
  • The stock has risen 21.05% since the start of the calendar year. AMG’s stock closed at $2.30 yesterday and currently trades at a P/E of 17.7x earnings which is above the Junior Market Manufacturing Sector average of 17.6x.

(Source: AMG Financials)

$41M Paid Out In Domestic Debt Restructuring Published: 09 April 2019

  • The government of Barbados recently paid out BDS$41 million to pensioners 60 years and over under the domestic debt restructuring programme.
  • This disclosure has come from Minister in the Ministry of Finance, Ryan Straughn, who said $7 million of that amount was interest. He explained that the pensioners each received a cash payment of up to $30,000.
  • “This recent payment has delivered financial relief to 377 pensioners who were fully paid out in March 2019, while an additional 1,123 received $30,000,” he stated.
  • Straughn added that pensioners with $200,000 or less would receive 42 equal payments of the principal from April 30, 2019, and those with over $250,000 would be paid over the remaining 11 years.

 (Source: GIS Barbados)

More freighters as US-DR yearly trade tops US$10.6Bn Published: 09 April 2019

  • The Dominican Republic’s maritime connectivity has increased with the arrival of new freight service in containers at short distances by sea, to and from Florida.
  • According to Economic Complexity Observatory (OEC) figures the US accounts for most of Dominican Republic’s imports with US$7.02 billion, and the main destination for its exports, at US$3.64 billion.
  • The new service, with arrival in Caucedo port on Wednesdays, improves the frequency and scope of maritime services in the country with its main commercial partner, through the port DP World Caucedo.
  • “The frequency and scope of maritime services are key to increasing our country’s competitiveness as a regional logistics platform, and the attractiveness of our export products,”  said DP World Caucedo commercial director Ramón Badia. 

(Source: Dominican Today)

IMF Cuts Global Growth Outlook to Lowest Since Financial Crisis Published: 09 April 2019

  • The International Monetary Fund cut its outlook for global growth to the lowest since the financial crisis amid a bleaker outlook in most major advanced economies and signs that higher tariffs are weighing on trade.
  • The world economy will grow 3.3 percent this year, down from the 3.5 percent the IMF had forecast for 2019 in January, the fund said Tuesday in its latest World Economic Outlook.
  • The 2019 growth rate would be the weakest since 2009 when the world economy shrank. It’s the third time the IMF has downgraded its outlook in six months.

 (Source: Bloomberg)

Trump slams EU in aircraft dispute, pushes tariffs on $11 billion of imports Published: 09 April 2019

  • U.S President Donald Trump said today that the USA would impose tariffs on $11Bn of products from the European Union, a day after U.S. trade officials proposed a list of EU products to target as part of an on-going aircraft dispute.
  • “The World Trade Organization finds that the European Union subsidies to Airbus have adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!” Trump said in a post on Twitter.
  • The two sides have been locked in a years-long global trade dispute over mutual claims of illegal aid to plane giants, Netherlands-based Airbus and U.S.-based Boeing, to gain advantage in the world jet business.
  • The U.S. Trade Representative on Monday announced the planned products targeted in retaliation for European aircraft subsidies, with a final list expected this summer.

(Source: Reuters)

Ironrock Insurance Recovers from Tough Losses Published: 02 April 2019

  • For the year ended December 31, 2018, Ironrock Insurance Company Limited reported a year-over-year audited net profit of $2.8Mn (EPS: 0.01) relative to the $47.9Mn loss recorded for 2017.
  • This improvement in profit was partly attributable to the 189.4% growth in net commission income as well as a 136.2% increase in net insurance premium revenue.
  • Along with the improvements in profit, Ironrock was also able to reduce claims expenses (-24.1%) whilst reporting huge gains from the movement in the exchange rate during the year. 
  • The stock has fallen 18.57% since the start of the calendar year closing at $3.99 yesterday. It currently trades at a P/B of 1.66x earnings, which is below the Junior Market Financial sector average of 3.38x.

 (Source: JSE)

Nasdaq to Deliver Market Technology to the Jamaica Stock Exchange Published: 02 April 2019

  •  Nasdaq Inc. and the Jamaica Stock Exchange (JSE) have signed a new seven-year agreement for Nasdaq to deliver matching engine and market surveillance technology (SMARTS) to the Jamaica Stock Exchange.
  • By tapping Nasdaq’s technology, the JSE, as part of its strategy will be able to bolster their product and service delivery regionally and globally.
  • Further, via the Nasdaq Matching Engine, JSE will have the ability to offer new products, enhance current trading capabilities and improve the latency of order execution.
  • The market surveillance technology will provide JSE with the ability to closely monitor trade activities while strengthening market integrity.

 (Source: JSE)

Productive Business Solutions Shows Signs of Improvement Published: 02 April 2019

  • For the year ended December 31, 2018, Productive Business Solutions Limited recorded audited net profits of US$0.138Mn (EPS: 0.06) vs losses of US$4.7Mn recorded for 2017.
  • This improvement in performance comes on the back of a 103.9% increase in other income as well as a 4.2% rise in revenues.
  • The stock has gained 1.46% since the start of the calendar year closing at US$0.59 yesterday. It currently trades at a P/E of 9.83x earnings which is below the USD Stock Market average of 15.18x.

(Source: JSE)