This week, the finance ministry will open subscriptions to Fixed Rate 17.125% Investment Debenture 2011 Series Ca, November 11 to 14.

The coupon or interest is fixed at 17.125 per cent per annum with semi-annual interest payments until maturity at August 11, 2011.

The first interest payment will become due and payable after six months on May 11, 2010. Thereafter, interest will be paid semi-annually on November 11 and May 11, until maturity on August 11, 2011.

Global Jamaican Bonds

With the news of the recent downgrade of Jamaica's sovereign rating from 'CCC+' to 'CCC'' with negative outlook, the demand for Jamaican global bonds continues to show weakened demands, with prices moving south.

Demand was weak across the entire Jamaican curve. Activities and closing prices for GOJ globally traded bonds were:

1. GOJ 9% Eurobond 2015 - there was a small volume that traded earlier in the week at a price of $97 but indicative offers fell and closed at $95 with no demand;

2. GOJ 10.625% Eurobonds 2017 saw a trade at $90 and closed the week with bids at $88 and offers at $92;

3. GOJ 8% Eurobond 2019 - There was a small trade executed at $97 early in the week, however, indicative offers fell to $95 later in the week. At close of the week there was no demand;

4. GOJ 11.625% Eurobond 2022 (Tax-free) - Saw no activity this week but closed with an indicative bid of $105.50;

5. GOJ 9.25% Eurobond 2025 - Saw no activity. Indicative bid was $81;

6. Government Guaranteed Air Jamaica 9.375% Amortizing Notes due in 2015 saw a very small trade being done at $89; however, for larger volumes the indicative offer was at $91;

7. GOJ 8% Eurobond 2039 - volumes were being offered at $73, but there were no takers;

8. GOJ Euro-denominated 11% Global Bond 2012 had volume offers at $97 but minimal demand;

9. GOJ Euro-denominated 10.50% Global Bond 2014 also had volume offers at $98 but almost no demand.

Regional Globals

The Petroleum Corporation of Trinidad and Tobago Bonds (PetroTrin) both saw declines in prices this week.

The PetroTrin 9.75% 2019s closed trading at a price of $112.50 while the PetroTrin 6% Bond, maturing in 2022, closed at $92.

There was no demand for the Government of Barbados 2021 7.25% Global Bond and closed the week with an indicative offer of $102.25.

FX Report

Demand for hard currency was very high even as USD supplies remained extremely tight.

The Bank of Jamaica intervened in the market last Monday at J$89.16, with brokers selling the USD at a J$89.21.

The weighted average selling rate for the USD this week was expected to close at J$89.23.

Stock Market Report

Trading activity was moderately high, with the JSE Market Index advancing by 259.02 points closing the week at 80,826.54 points.

Overall activity resulted from 29.4m shares being traded valued at $232.4m compared to the previous week, where 5.5m units traded valued at $38.688m. Last week, 32 stocks were traded of which 16 advanced, 14 declined and two traded firm.

National Commercial Bank Jamaica Ltd was the volume leader with over 12.6 million shares being traded after excellent results were released mid-week, amounting to 42.99 per cent of market volume.

Cable and Wireless and Radio Jamaica Ltd followed with 20.34 per cent and 17.54 per cent of the volume traded.

The biggest winner was Pan Caribbean Financial Services, up by $1.20, to close at $15.50, followed by Supreme Ventures Ltd and Desnoes and Geddes, up by $0.14 and $0.26 to close at $2.15 and $4.07, respectively.

The biggest losers were FirstCaribbean International Bank down by $0.05 to close at $117.95, followed by Jamaica Money Market Brokers Ltd and Radio Jamaica, down by a cent and four cents, with closing prices of $4.00 and $2.21.

Company News

On November 5, the Board of Directors of National Commercial Bank Jamaica Ltd released their audited results for the bank and its subsidiaries for year ended September 30, 2009, with a net profit of $10.2 billion.

The board of NCB Capital Markets approved the redemption of the 11.75% Cumulative Redeemable Preference Shares in January 2010 at a price of $3 per unit. The stock closed at $2.68 on Friday.

Paula V. Brown is Executive Wealth Adviser at NCB Capital Markets Limited.