OECS Market
As expected the rise in cost of fuel at the pumps has been met by demands by taxi drivers across the region to increase prices. Strikes have already erupted in Guyana and strikes have been threatened in St Lucia.

ECSE Report
In light trading the only share to trade this week was Eastern Caribbean Financial Holdings Limited. The share value increased by 51 cents on last weeks closing price leaving ECFH down 5 cents since Wednesday of last week. There remains unfilled demand for Grace Kennedy shares (GKC) at EC$4.25 and there are bids and offers on most other stocks. The value of the ECSE All-Share Index stood 102.69 by mid-week down 0.1% on last week’s close.
There were no new issues on the regional governments securities market this week. On the secondary bond market there was no trading but there is demand for Government of St Lucia 10 years bonds at 101.80 and Government of St Vincent 10 year bonds at par value (100).

Regional Markets
After months of consistent decline the Jamaican market has emerged with all three market indices reporting positive returns. The Trinidadian market’s performance which typically lags that of the Jamaica still continues to decline. Locally, the TTSE composite fell by 2.77% for the period 23 August 2005 to 30 August 2005. Twenty- two of the 34 listed stocks reported declines with only 2 stocks advancing as the market continues to be plagued by a lack of demand.
In Jamaica, indicative of changing trends, all three market indices reported positive gains. The All Jamaican and JSE Select indices reported returns of 4.71% and 3.17% while the broader JSE Composite increased marginally by 0.74%. The Advance: Decline ratio was substantially improved at 21 to 9.
In Barbados the local index reported a marginal gain of 0.04%. Only four stocks reported movements in price with two advancing and two declining.

International Market Performance
International Markets continued to be fairly subdued in the wake of fresh fears about the direction of oil prices and the uncertainty created by the passage of Katrina. In the US, both the Dow Jones and the S&P Index were down 1.01% and 0.75%. Some speculation about if the Federal Reserve may pause in its cycle of interest rate increases due to Hurricane Katrina’s damage may have also influenced market activity. Typically highly correlated, the major indices for the European and Asian markets were also in negative territory. The Euro Stoxx was down 1.80% while the Hang Seng fell by 0.35%

Other News
Barbados has decided to join the thirteen other Caribbean countries signed up to the Petrocaribe agreement and will take Venezuela up on its offer to provide Caribbean countries with oil, under flexible financial terms. The announcement came Tuesday, two months after Barbados declined to sign the Petrocaribe Agreement during a summit in Venezuela, saying it wanted more details.
In its annual report on Jamaica, Moody’s Investors Service says the country’s B1 foreign-currency debt rating and stable outlook are supported by the government’s resolve to reverse debt dynamics via an aggressive fiscal adjustment. Despite steady growth in recent years major imbalances in the country’s finances persist due to a series of external shocks. Public debt ratios remain elevated, with general government debt to GDP at 137%. The rating agency’s report, “Jamaica 2005 Global Credit Analysis,” is a yearly update to the markets and is not a rating action. Investment bank Morgan Stanley in its report on Jamaica entitled “Jamaica-Virtues of a Virtuous Cycle” commended the country’s fiscal dynamics and made an overweight recommendation on Jamaican bonds.

Disclaimer: All information contained in this article has been obtained from sources that CMMB believes to be accurate and reliable. All opinions and estimates constitute the Author’s judgment as of the date of the article; 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 article is given or made by CMMB in any form whatsoever. CMMB and/or it employees or directors may, where applicable, make markets and effect transactions, or have positions in securities or companies mentioned herein. Neither the information nor any opinion expressed shall be construed to be, or constitute an offer or a solicitation to buy or sell.

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