• Scotia Group Jamaica Limited (SGJL) announced on June 6, 2026, that it has entered into a definitive arrangement agreement with its majority shareholder, Scotiabank Caribbean Holdings Limited (SCHL), to take the company private. Under the transaction, all issued and outstanding shares of SGJL not currently owned by SCHL will be repurchased at a price of J$61.50 in cash per share, subject to court approval, the approval of SGJL's minority shareholders and other customary closing conditions. SCHL currently owns 71.78% of SGJL's issued and outstanding shares.
• The purchase price of J$61.50 per share represents a premium of approximately 13.0% to the thirty-day volume weighted average trading price of SGJL's shares on the Jamaica Stock Exchange (JSE) as at June 11, 2026, the last trading day prior to the announcement. According to the company, the transaction is aimed at enhancing capital and operational efficiency as well as Scotiabank's agility in responding to market opportunities and is not expected to have any material impact on SGJL's current operations if completed.
• The agreement was entered into based on the unanimous approval of SGJL's board of directors, following the unanimous recommendation of a committee of independent directors appointed to consider the transaction. The Independent Committee engaged Ernst & Young Services Limited as its independent financial advisor, which provided a valuation of the SGJL shares and a fairness opinion concluding that the consideration to be received by minority shareholders is fair from a financial point of view. Both the board (with conflicted directors recusing themselves) and the Independent Committee recommend that minority shareholders vote in favour of the transaction.
• The transaction will be undertaken by way of a court-approved Scheme of Arrangement under the Companies Act, 2004. Completion is conditional on approval by a majority of the minority shareholders present and voting at a court-ordered meeting, representing at least 75% in value of those voting, as well as the approval of the Supreme Court of Jamaica. SGJL expects to hold the court-ordered shareholder meetings in the coming months and, if approved, the transaction is expected to close in the fourth calendar quarter of 2026. Shareholders will have the option to receive payment in either Jamaican or United States dollars, based on the Bank of Jamaica's weighted average selling rate three days before the settlement date.
• For the six months ended April 30, 2026, net income amounted to $10.08Bn, up 9.5% from $9.21Bn a year earlier, as total revenues excluding expected credit losses grew 11.1% to $37.1Bn. The Group's balance sheet continued to expand, with total assets rising 10.5% year-over-year to $843.9Bn, driven by a 16.8% increase in loans, net of allowances for credit losses, to $378.3Bn, while deposits by the public grew 11.9% to $571.8Bn. Credit quality also remained strong, with non-accrual loans representing 1.3% of gross loans, below the industry average of 2.3%, and provision coverage of 118.8% of non-performing loans.
• As at the close of trading on June 11, 2026, SGJL's ordinary share price closed at J$54.21, reflecting a 2.0% year-to-date increase. At this price, SGJL has a P/B ratio of 1.00x, which is below the Main Market Financial Sector Average of 1.07x. However, with the announced intention to privatise SGJL at J$61.50 per share, a notable premium to its current market price, demand for the stock is expected to rise in the short term as its price converges toward the offer price.

(Sources: Scotia Group Jamaica Limited, JSE & NCBCM Research)

• Weighed down by lower revenues and persistent operating cost pressures, Main Event Entertainment Group Limited (MEEG) reported significantly weaker performance for the quarter ended April 30, 2026 (Q2 2026) pushing the company deeper into losses. Its net loss widened to $45.52Mn from $9.34Mn in the comparable quarter of 2025.
• The weaker performance was primarily driven by a sharp contraction in topline performance. During the quarter, revenues fell 14.7% year-over-year to $261.32Mn, reflecting softer demand across the group's business lines. Management attributed the contraction to the lingering effects of Hurricane Melissa, which continued to weigh on client activity, while higher energy costs, weaker economic activity and elevated inflation slowed consumer spending. As a result, key business segments like its Entertainment & Promotions, Audio, Film, and Multimedia & M Style, all recorded revenue declines ranging between 46.0% and 61.0% amid frequent event postponements and cancellations.
• Cost of sales declined 9.4% to $127.32Mn; however, this reduction lagged the pace of the revenue contraction, resulting in gross profit falling by 19.2% to $134.00Mn.
• The pressure on earnings was further compounded by rising operating expenses. Total operating expenses rose 5.4% to $196.88Mn, driven by a 10.9% increase in administrative and general expenses of $158.79Mn. This reflected higher fuel and other operating costs. Depreciation and amortisation charges of $32.25Mn together with impairment losses of $3.01Mn weighed further on profitability. Consequently, operating losses widened sharply to $59.31Mn from $8.25Mn a year earlier.
• The challenging second quarter also weighed heavily on year-to-date performance. Following a weak first quarter, the Q2 revenue decline brought six-month revenue down 47.0% to $472.80Mn. Combined with elevated operating expenses and relatively inflexible direct costs, this resulted in a six-month net loss of $111.09Mn, compared to a net profit of $64.33Mn a year earlier.
• Looking ahead, the pace of recovery in event activity and consumer demand will be critical to MEEG's earnings outlook. While management expects conditions to improve as the effects of Hurricane Melissa continue to recede, the company remains exposed to broader macroeconomic pressures, including elevated operating costs and softer discretionary spending. Notably, the sharp widening in losses highlights the group's operating leverage, whereby relatively fixed administrative and depreciation expenses continue to weigh heavily on profitability during periods of weaker revenue generation. As such, a meaningful rebound in revenues will likely be necessary to restore earnings momentum, while the extent to which demand normalises over the coming quarters will be a key determinant of the company's ability to offset ongoing cost pressures and return to profitability.
• On Thursday, MEEG's stock price closed at J$6.03, reflecting a 21.7% depreciation year-to-date. At this price, its P/B ratio sits at 2.4x, which is above the Junior Market average of 2.3x.

(Sources: Main Event Entertainment Group & NCBCM Research)

• The Dominican Republic is on track to undergo its largest energy expansion in decades, with firm installed generation capacity expected to increase by more than 50% between 2025 and 2028, according to Minister of Energy and Mines Joel Santos.
• The expansion will strengthen the country’s ability to support economic growth, attract investment, and improve competitiveness. The Dominican Republic currently has 2,000 megawatts (MW) of renewable energy in operation, with an additional 1,000 MW expected to come online by 2028 through projects already under development.
• Electricity demand is rising rapidly, with peak demand projected to reach 4,250 MW this year, up nearly 59% from 2019 levels, driven by growth in tourism, industry, commerce, and services. Santos emphasised that energy infrastructure must grow in step with the economy to sustain long-term development, particularly as key productive sectors continue to expand.
• The government’s energy strategy focuses on diversifying the energy mix through renewable energy, natural gas, and energy storage systems, while also expanding electricity access, promoting energy efficiency, strengthening the regulatory framework, and supporting the transition toward a more competitive and sustainable energy sector.

(Source: Dominican Today)

• The Panama Canal Authority (ACP) announced on June 4, 2026, that it will reduce the maximum authorised draft for vessels transiting the Neopanamax locks beginning July 3, 2026, based on current and projected water levels in Gatun Lake and concerns that El Niño conditions could develop later in the year.
• The announcement is now more significant after the National Oceanic and Atmospheric Administration (NOAA) issued an El Niño Advisory on June 11, 2026, confirming that El Niño conditions have developed in the tropical Pacific. According to the NOAA, El Niño, the warm phase of the El Niño–Southern Oscillation (ENSO), is expected to strengthen into the Northern Hemisphere winter, with a 63% chance of a very strong El Niño.
• According to the ACP, the maximum authorised draft for Neopanamax vessels will be reduced from 15.24 metres / 50 feet to 15.09 metres / 49.5 feet of tropical fresh water. The adjustment forms part of the canal’s broader water-management strategy and will not affect the number of daily vessel transits.
• The measure marks the return of draft restrictions for the first time in around two years, likely rekindling concerns about a repeat of the 2023–2024 drought crisis. At the height of that crisis, water shortages cut canal throughput by as much as 40% below normal levels through transit restrictions and vessel draft limitations.
• Canal officials have sought to reassure customers, noting that unusually heavy rainfall during the latest dry season has left both Gatun and Alhajuela lakes at maximum capacity. The ACP said current water reserves provide a substantial buffer against potential El Niño-related water stress and that significant disruption is not expected before December, while weather conditions and hydrological forecasts will continue to be monitored weekly.
• However, the draft cut comes as the canal is already operating under increasing pressure from record U.S. energy exports and shifting trade flows linked to the Middle East conflict. According to Clarksons Research, product tanker transits reached record levels in April and May, while growing volumes of liquefied petroleum gas and ethane exports have intensified competition for available slots.
• Signs of congestion are already visible, with Clarkson’s Research estimating that deep-sea cargo vessel waiting times averaged 50 hours during April and May, up from around 30 hours before the recent surge in traffic. Competition for priority passage has also intensified, with average auction prices for canal transit slots reportedly trebling to around US$400,000, while some priority bookings have changed hands for as much as US$4Mn per vessel.
• The Panama Canal draft cut is modest, but strategically important because it comes at a time when water-management risks and geopolitical trade disruptions are overlapping. While current lake levels provide a buffer and daily transits are not being reduced, higher U.S. energy exports, Middle East-related rerouting, rising waiting times and record auction prices suggest that any future restrictions could have a larger impact on freight costs, vessel scheduling and global supply chains than the small draft adjustment might initially imply.

(Sources: Seatrade Maritime News, Panama Canal Authority & the National Oceanic and Atmospheric Administration)

• The European Central Bank (ECB) announced a quarter-point rate hike on Thursday, bringing its key interest rate to 2.25% as the Iran war continues to blow inflation off target. Markets had been pricing in a near-100% chance of the ECB raising rates by at least 25 basis points ahead of its June Governing Council meeting, according to London Stock Exchange Group (LSEG) data.
• The ECB’s Governing Council said the decision had been made in a bid to ward off inflationary pressures generated by the U.S.-Iran war. The central bank also raised its inflation forecasts, saying it now expects headline inflation in the euro zone to average 3% in 2026 before cooling to 2.3% next year and 2% in 2028. It said the outlook had been altered in response to expectations of higher energy prices, which are expected to feed on the cost of food, goods and services.
• Economic growth forecasts, meanwhile, were revised downward for this year and next year. The ECB now expects growth in the euro zone to average at 0.8% in 2026, 1.2% in 2027 and 1.5% in 2028. Officials said the growth outlook had been trimmed to reflect “a more pronounced impact of the war on commodity markets, real incomes and confidence.”
• The ECB said that its Governing Council “remains well positioned to navigate the uncertainty caused by the war,” and will closely monitor the situation — but it stressed that officials are “not pre-committing to a particular rate path.” Euro zone inflation rose to 3.2% in May, flash data showed earlier this month, as higher energy costs drove the region’s inflation rate further above the ECB’s 2% target. The eurozone economy grew by just 0.1% in the first quarter of the year.

(Source: Reuters)

• The Bank of England will leave its key interest rate unchanged at 3.75% on June 18, according to all 65 economists polled by Reuters, who remained uncertain about ​what the central bank will do later this year.
• Bank Rate will stay where it is through the ‌rest of this year, according to median forecasts in the June 5 to 12 polls, but nearly 40% of respondents predicted at least one hike. Only six expected a 25-basis-point cut by the end of the year. Governor Andrew ​Baileysaid earlier this month it was important to get inflation back to target and give households confidence about the ​central bank's ability to do so.
• Fellow BoE policymaker Megan Greenesaid last week she saw a growing case for raising interest rates as the Iran war drags on and boosts the chance of wide-ranging rises in prices across the economy.
• British inflation was seen peaking at 3.6% towards the end ​of this year, getting close to double the central bank's 2% target. It will average 3.3% across 2026 but ease to 2.6% in ‌2027. Prices ⁠have jumped as the U.S.-Israeli war with Iran led to soaring energy costs and disrupted shipping lines through the key Strait of Hormuz. Still, hopes grew on Friday for peace after U.S. President Donald Trump said a deal could be signed as soon as this weekend.
• Economic growth will be ​1.0% this year - revised up from a 0.8% projection in a May poll - and ​1.1% in 2027 ⁠before expanding 1.5% in 2028, the poll found. Earlier this month, the OECD nudged up its 2026 forecast for Britain to 0.9% from the 0.7% it predicted just after the Middle East conflict broke out.
• Firms in the country's dominant services industry suffered a small fall ⁠in ​activity in May as the strains of the Iran warpushed up costs ​sharply, a key surveyshowed last week. The economy contracted 0.1% in April, its first monthly drop since August, official data showed earlier on Friday.

(Source: Reuters)

• Recent company disclosures highlighted both capital allocation and governance considerations, with Caribbean Cement Company Limited (CCC) moving to reward shareholders through another dividend recommendation, while Dolphin Cove Limited (DCOVE) announced an upcoming change in its external audit arrangements amid a challenging operating backdrop.
• CCC advised that its Board of Directors has recommended a final dividend of J$2.0854 per share following its meeting on June 10, 2026. The proposal will be presented to shareholders for approval at the Company's Annual General Meeting on August 13, 2026. Shareholders on record as at August 28, 2026, will be eligible to receive the dividend, which is expected to be paid on October 15, 2026.
• The recommendation continues CCC's renewed commitment to shareholder distributions following a 17-year hiatus that ended in 2022. Since reinstating dividends, the Company has declared one annual payout each year, with distributions trending higher over time from J$1.5032 per share in 2022 to J$2.0979 in 2025. While the proposed 2026 dividend is marginally below last year's level, it remains broadly consistent with CCC's recent capital return profile.
• Separately, DCOVE advised that it has mutually agreed with KPMG that the firm will not seek reappointment as auditors at the next Annual General Meeting (AGM) on July 23, 2026. The Directors will proceed with a process of selecting new auditors to hold office until the subsequent AGM.
• The announcement follows a difficult period for DCOVE, characterised by delays in the release of its December 2025 audited financial statements, board-level changes, and operational disruptions stemming from Hurricane Melissa. These challenges weighed heavily on financial performance, with the Company reporting a consolidated net loss of US$2.34Mn for FY2025, compared to a net profit of US$1.83Mn in 2024, marking its first full-year loss since 2020.
• Market performance across both stocks has been mixed year to date. CCC’s share price (3.1%) advanced, while DCOVE has declined 14.2%. At this price, CCC traded at a P/E of 12.80x, well below the 58.44x Main Market Energy, Materials, and Industrials (EMI) sector average. DCOVE, which recorded a loss in FY2025, trades at a 0.93x price to book value, below the 1.75x average for its Junior Market peer group.

(Sources: JSE & NCBCM Research)

• Fitch BMI revised Barbados’ GDP growth forecast for 2026 down to 1.9% from 2.1%, compared with an estimated 2.7% in 2025. The downward revision reflects rising external headwinds linked to a longer-lasting US-Iran conflict, higher inflation and pressure on the key tourism sector.
• Inflation is expected to rise from an average of 0.9% in 2025 to 2.8% in 2026, driven largely by imported price pressures from higher international oil prices and shipping costs.
• The overall budget deficit is forecast to widen modestly from an estimated 0.4% of GDP in FY2025/26 to 1.2% in FY2026/27, as the government increases spending to support growth and cushion households and businesses from higher fuel prices.
• Despite the wider deficit, ongoing fiscal prudence is expected to continue, anchored by a healthy primary surplus. This should support a gradual decline in gross public debt from around 95% of GDP at end-FY2025/26 toward the government’s long-term target of 60%. Additionally, the central bank is expected to maintain the hard exchange rate anchor at BBD2.00/USD, supported by international reserves of around US$1.5Bn.
• Further escalation in the US-Iran conflict could create a more severe oil price shock, pushing inflation higher and placing additional pressure on growth. Rising energy and shipping costs could also intensify cost-of-living pressures and public discontent, while climate-related shocks remain a major risk given Barbados’ reliance on tourism.
• Barbados’ outlook remains relatively stable, but higher oil and shipping costs could pressure tourism, inflation and public spending at the same time. As such, the country’s strong fiscal framework, primary surplus and exchange-rate anchor will be an important buffers if global energy volatility persists.

(Source: BMI, A Fitch Solutions Company)

• Mexico’s annual inflation rate decelerated for a second consecutive month in May 2026, returning to the higher end of the central bank’s target range. However, concerns remain around future inflation trends and core price pressures.
• Consumer prices rose 3.94% year-over-year in May 2026, easing from 4.45% in April 2026 and coming in below economists’ forecast of 4.03% in a Reuters poll. This placed inflation back within Banxico’s target range of 3%, plus or minus one percentage point.
• Consumer prices fell 0.21% in May 2026, marking the first monthly decline in two years. The decline was larger than economists expected, as the Reuters poll had forecast a smaller 0.12% month-over-month fall.
• However, underlying price pressures remain a concern. The closely watched core index, which strips out some volatile food and energy prices, rose 0.22% month-over-month, while annual core inflation slowed only slightly to 4.19% from 4.26% in April.
• According to Pantheon Macroeconomics’ Chief Latin America Economist, Andres Abadia, while inflation is moving in the right direction, progress remains uneven, with core services inflation still running above levels consistent with Banxico’s target.
• Banxico recently ended its more than two-year monetary easing cycle, lowering its benchmark interest rate by 25 basis points to 6.50% in a divided decision, amid concerns about inflation risks linked to the U.S. and Israel war on Iran and a sluggish domestic economy.
• While Mexico’s softer headline inflation gives the bank some comfort that price pressures are easing, sticky core and services inflation suggest the central bank is unlikely to rush into further rate cuts. According to Capital Economics, the policy rate is likely to remain at 6.50% in the foreseeable future, despite the larger-than-expected fall in headline inflation.

(Source: Reuters)

• U.S. consumer inflation increased at its fastest pace in three years in May, boosted by surging prices for energy products amid the Middle East conflict, and giving more ammunition for the Federal Reserve to keep interest rates unchanged into 2027. The third straight month of ​strong increases in the Consumer Price Index reported by the Labour Department on Wednesday underscored the mounting pressure on households, which are increasingly tapping their savings to fund spending.
• Inflation eroded wages for a second ‌consecutive month in May, which could weigh on overall economic growth. The soaring cost of living is a political liability for President Donald Trump and his Republican Party, seeking to retain control of Congress in the midterm elections in November. Trump won the 2024 presidential election in large part because of his promise to lower inflation, but has seen his approval rating tumble as frustration mounts over his handling of the economy.
• The U.S. central bank tracks the Personal Consumption Expenditure Price Index for its 2% inflation ⁠ All inflation measures are running well above the Fed's target. Real average hourly earnings dropped 0.7% in the 12 months through May after falling 0.3% in April.
• The Consumer Price Index ​(CPI) increased 4.2% in the 12 months through May, the largest gain since April 2023, the Labour Department's Bureau of Labour Statistics said. The CPI advanced 3.8% year-on-year in April and rose 3.3% in March. Prices increased 0.5% over ​the month after climbing 0.6% in April. The rise in inflation was in line with economists' expectations.
• A 3.9% jump in the price of energy goods accounted for more than 60% of the rise in the monthly CPI. Energy prices rose ​3.8% in April. They vaulted 23.5% in the 12 months through May. Gasoline prices accelerated 7.0% over the month and were up 40.5% from a year ago. Prices at the pump have retreated in recent weeks as oil prices eased, raising cautious optimism among economists that May could be the peak in CPI inflation.

(Source: Reuters)