January 8, 2016

Weekly Recap
2015 marked a year of positive change right throughout the investment landscape. Throughout the year the Bank of
Jamaica reduced the benchmark rate - the rate on 30 -day certificates of deposit, on the expectation that inflation would
remain low in the coming quarters. The supply of credit by commercial banks to the private sector increased as lenders
anticipated an increase in demand. Annual devaluation of the Jamaican dollar vis-a-vis the US dollar slowed to 5%,
coming from 7.8% for the calendar year 2014. Additionally, the country's ranking in the World Bank's Ease of Doing
Business Report jumped 27 places to 58th among 189 measured territories, and first in the Caribbean.
The bolstered performance of the local equities market throughout 2015 (99% and 160% gains registered by the All
Jamaican and Junior indices, respectfully) reflected improvements in investor sentiment driven by lower inflation,
successive quarters of growth in the country's gross domestic product, and the country's solid performance under the
IMF's Extended Funds Facility. Additionally, more and more investors found themselves needing alternatives to a repo
structure which no longer existed, lower yielding money market securities and a slowed acceleration in foreign currency
and its related investments. 2015 saw many stocks finally reaching their true valuations in the bull run, and a few of
these stocks provided investors with opportunities to buy into growing sectors with strong profits and room for further
growth. We anticipate that the year 2016, even with the uncertainties surrounding general elections and a possible reissuance of government debt, will be fruitful for many investors in the local markets.
Despite the worst five-day start to a calendar year since 1928, with the S&P 500 index level falling more than 4.5%, our
international outlook remains largely unchanged. Data today showing that the US economy created 292,000 net new
jobs in December to finish 2015 with 2.65 million new jobs created, indicates to us that the US economy is well
positioned to outperform. Our base case is that the Chinese Yuan stabilizes and the US economy outperforms on the back
of very large real wage gains, improved consumer balance sheets and increased government infrastructure spending.
Current market behaviour has opened opportunities in US healthcare and select Asian stocks in our view.
Please contact a Barita investment professional to explore all the opportunities available to you in the current
environment.

Local News
The Jamaican Government is considering reopening the domestic bond market in the context of the large National Debt
Exchange payment due in February, according to documents submitted to the International Monetary Fund (IMF)...read more
The World Bank forecasts 2.1 per cent growth for Jamaica in 2016 while lauding increased consumer confidence amid
international lending arrangements...read more
Calling for urgent radical tax reforms, economist John Jackson has suggested that the Government increase tax on gasolene in
order to fund the national budget...read more
Pulse Investments is considering raising capital through the issue of new shares to investors...read more

With none of the companies which pre-qualified during the divestment process for the Morman Manley International Airport
(NMIA) deciding to submit a bid, two them have explained to the Jamaica Observer that the promised return on investment did
not meet their required standard...read more
Hardware & Lumber (H&L) has appointed Joseph Bogdanovich to its board along with four others in a move that will signal
the further rise of the music mogul in corporate Jamaica...read more
Having raised their respective targets from their IPOs in December and met other requirements of the Jamaica Stock Exchange
(JSE), the air conditioning and energy solutions company CAC alongside managed IT services tTech were listed on the Junior
market of the JSE on Thursday January 7...read more
The Kingston-based bakery Honey Bun Limited is planning to spend US$250,000 to invest in its own 100-kilowatt solarenergy system at its factory in Kingston with the objective of increasing efficiency...read more
On December 31 the Jamaica Stock Exchange gave notice that Honey Bun Jamaica Ltd, a bakery business and Junior market
company, had transferred 55,151,600 shares or 70 per cent of its collective holding to a related party...read more
The Jamaican dollar closed the 2015 calendar year at US$1.00: J$120.42; a rate of depreciation of 5.02%.

Dividends and Global Bonds

Ordinary Dividends:
Security

Div/Share

Record
Date

X Date

HONBUN

$0.10

21-Dec-15

17-Dec-15

4-Jan-16

SIJL

$0.45

23-Jan-16

21-Jan-16

15-Jan-16

SGJ

$0.42

23-Jan-16

21-Jan-16

15-Jan-16

PAL

$1.75

8-Jan-16

6-Jan-16

19-Jan-16

HL

$1.09

15-Jan-16

13-Jan-16

29-Jan-16

Payment

US$ Global Bonds:

Year of
Maturity

Offer Price
(08/01/2016) (31/12/2015)

Offer Yield
(08/01/2016) (31/12/2015)

YTD
Change

2017

109.50

109.50

3.76%

3.85%

0.00%

2019
2021(Formerly
CAPJAM)
2022

108.50

108.25

4.28%

4.41%

0.23%

108.50

108.50

5.40%

5.42%

0.00%

127.25

127.00

6.13%

6.19%

0.20%

2025

107.50

107.25

6.46%

6.50%

0.23%

2036

108.25

108.00

7.69%

7.71%

0.23%

2039

104.75

104.75

7.55%

7.55%

0.00%

2019-JEP

109.00

109.00

6.64%

6.66%

0.00%

2027-AIR J
2021-Digicel
Ltd.
2023-Digicel
Ltd.
2020-Digicel
Group
2022-Digicel
Group
2024-NROCC

103.00

103.00

7.50%

7.50%

0.00%

88.25

86.50

8.84%

9.29%

2.02%

87.50

85.50

9.17%

9.59%

2.34%

85.50

83.50

12.39%

13.02%

2.40%

78.50

76.50

12.15%

12.68%

2.61%

115.50

115.50

6.89%

6.90%

0.00%

2021-JPS

109.00

109.00

3.40%

3.67%

0.00%

*The rates quoted above are indicative and subject to change due to increased volatility in the international markets.

International News
US Stocks suffer worst opening week in decades

The Dow Jones Industrial Average (DJIA - 16,346.45) lost 167.7 points, or 1%, bringing a close to its worst opening week since
1978. Only two of the Dow's 30 components ended higher, those being Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation
(NASDAQ:MSFT), which added 0.5% and 0.3%, respectively. Cisco Systems, Inc. (NASDAQ:CSCO) was the biggest loser with a
2.5% loss. The Dow closed the opening week of 2016 with a 6.2% loss. The S&P 500 Index (SPX - 1,922.03) gave back 21.1
points, or 1.1%. The Nasdaq Composite (COMP - 4,643.63) fell by 45.8 points, or 1%. The SPX finished the week with a loss of
5.9% - its worst opening week in history. The COMP, meanwhile, was down 7.3% for the week.
Netflix expands into 130 more countries in surprise move

Netflix has already crossed off the biggest item on its New Year's list of resolutions. The Internet video service debuted in 130
countries Wednesday in a surprise move likely to reel in millions of new subscribers. CEO Reed Hastings revealed the scope of
Netflix's expansion at the end of a presentation in Las Vegas at CES, one of the technology industry's marquee events. The
news caught almost everyone off guard because Netflix had previously set a goal of being available in most of the world by the
end of this year. It looked like the Los Gatos, California company had plenty of work ahead of it because it ended December in
60 countries. Now, Netflix is available in 21 different languages and streaming in just about every market that it had in its
sights, with the notable exception of China, the world's most populous country. Entering China may be a formidable challenge
requiring potentially prickly negotiations with a government that blocks its citizenry from seeing material it considers
objectionable or incendiary. Netflix currently has no plans to push into North Korea, Syria or Crimea because of restrictions on
US companies operating in those countries.
No IMF programme needed for Nigeria: Lagarde

Africas biggest economy, Nigeria, battling a revenue shortfall caused by the global oil shock, does not need assistance from the
International Monetary Fund, the groups head said yesterday. Let me be very clear: Im not here nor is my team here to
negotiate a loan with conditionalities, were not programming negotiations, said IMF managing director Christine Lagarde.
Frankly, given the determination and resilience displayed by the president and his team, I dont see why an IMF programme is
going to be needed, she told reporters in Abuja. Lagarde was speaking after meeting President Muhammadu Buhari on a fourday visit that will also see her hold talks with the central bank governor and visit neighbouring Cameroon. Nigeria, Africas
number one oil producer, has seen revenues dive over the last year because of the fall in global crude prices, causing a cash
crunch that has forced it to tighten spending. The naira currency has also slumped and GDP growth stalled to under 3.0 per
cent, while inflation is nudging 10 per cent. Lagarde described the talks as excellent and said they touched on the challenges
ahead stemming from the oil price reduction and the need to find different revenue sources.
Commodities

For the week, crude oil lost 10.5% to close trade at $33.16 per barrel after falling to an 11-year low. Gold also declined this
week, shedding 3.6% to settle at $1,097.90 per ounce.

For further discussions on these matters or any of our other and services, contact an Investment Advisor at any of
our locations:
Kingston: 926-2681, Toll-Free: 1-888-429-5333
Kerry-Ann Chen:
k.chen@barita.com
Francine Harris:
f.harris@barita.com
Sonia Owens:
s.owens@barita.com
Heather Ferguson:
h.ferguson@barita.com
Petula Clarke Lee:
p.clarke@barita.com
Ian Glaze:
i.glaze@barita.com
Safiya Carroll:
s.carroll@barita.com
Matthew Duhaney:
m.duhaney@barita.com

Mandeville: 625-0031
Vanessa Williams:
v.williams@barita.com
Karlia Brown:
k.brown@barita.com
Dahlia Johnson:
d.johnson@barita.com
Horace Walters:
h.walters@barita.com
Montego Bay: 940-7201
Geneieve Harty:
g.harty@barita.com