Aug 2016 Financial News

Equities deliver returns above 50% in June quarter

Aug 31, 2016

For the June 2016 quarter, investments in equities continued to provide greater returns relative to both foreign currency instruments and domestic money market investments, the Bank of Jamaica (BOJ) confirms in its recently issued quarterly monetary policy report (QMPR).

Equities offered a return of 63.4 per cent, while GOJ global bonds offered an average monthly return of 14.1 per cent, according to the BOJ report.

In addition, the BOJ noted, the average monthly rate of interest in the 30-day private money market was 5.5 per cent during the period.

The JSE Main Index recorded respective growth rates of 10.1 per cent for the value of transactions, 12.9 per cent for volume traded, and eight per cent in the number of transactions.

This compares to growth of 10.3 per cent, 6.8 per cent and 21.3 per cent for the value of transactions, volume traded and number of transactions, respectively, in the March quarter.

The manufacturing sector accounted for four of the top ten advancing stocks, which recorded average price appreciation of 179.1 per cent.

The BOJ said the positive performance of the equities market “reflected the impact of continued improvements in the domestic macroeconomic environment, which included stronger GDP growth, low inflation and lower interest rates”.

It added, “Improved investor sentiment as well as generally higher company profits also augured well for the performance of the equities market for the quarter. In addition, the implementation of stock splits and bonus and rights issues also contributed to the favourable performance of equities for the reporting period”.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter 
Jamaica Observer
Wednesday August 31, 2016    

http://www.jamaicaobserver.com/business/Equities-deliver-returns-above-50--in-June-quarter_72483