Devaluation of J’ca dollar pushes up cement price

In a release to analysts this week Trinidad Cement (TCL) has announced that its Jamaican subsidiary, Caribbean Cement Company Limited (CCCL) has implemented a 21% increase in cement prices effective May 20, 2003. This has become necessary because of the increasing costs of operations arising from the continued devaluation in the exchange rate of Jamaica.  CCCL also lamented the fact that the dumping of cement into Jamaica continues unabated, affecting the Company’s market share. As such CCCL has had to reduce production which resulted in the unit cost of production increasing.  CCCL is looking to the export market in order to get rid of its surplus production. The Company also reiterated its previously announced plans to embark upon a major plant upgrade costing US$100 million that would bring the company up to world-class levels and allow it to enter the export market.  We believe that TCL would be pressed to achieve its forecast for 2003 as CCCL battles to maintain profitability and market share. We would continue to monitor the situation in Jamaica as it affects many of the listed companies that we cover. The Jamaican dollar has strengthened in the last week because of the intervention of the Bank of Jamaica. However there are still underlying concerns which need to be addressed. 

Major Advances
Neal & Massy Holdings up 77 cents (+3.67 per cent)
Berger Paints up 9 cents (+2.94 per cent)
Prestige Holdings up 10 cents (+2.78 per cent)
PLIPDECO up 26 cents (+2.21 per cent)
National Enterprises up 10 cents (+2.13 per cent)
Trinidad Publishing up 5 cents (+1.19 per cent)
Major Declines
Grace Kennedy & Co. down 40 cents (-8.16 per cent)
Angostura Holdings down 40 cents (-7.41 per cent)
JMMB down 4 cents (-4.26 per cent)
Analysis by West Indies Stockbrokers Limited. Member of the Trinidad and Tobago Stock Exchange Ltd.