• Jamaica's listed fuel distributors stepped on the gas during the June quarter, as higher fuel prices, stronger volumes and network expansion drove robust topline growth. Future Energy Source Company Limited’s (FESCO’s) turnover climbed 41.4%, while Regency Petroleum Company Limited (RPL) more than doubled to J$894.95. However, higher input costs and a shift towards lower-margin sales weighed on gross margins at both companies, limiting the conversion of revenue growth into earnings. Consequently, FESCO's net profit increased by a comparatively modest 5.2% to J$146.59Mn, while RPL delivered a stronger 49.5% increase to J$53.86Mn.
• FESCO’s FY2026/27 got off to a strong start, with revenue reaching a new quarterly high of 41.4% buoyed by higher fuel prices and continued growth in fuel volumes across its expanding retail network. Gross profit rose at a slower 27.6% to J$552.61Mn, resulting in gross margin contracting 60bps to 5.4% from 6.0%. The margin compression reflected higher petroleum acquisition costs and the industry-wide fuel margin pressures arising from higher supply costs. It also highlights the trade-off between FESCO's strong volume-led expansion and the relatively thin margins inherent in fuel distribution.
• Despite the weaker gross margin, FESCO maintained strong operating momentum. Operating profit surged 36.6% to J$230.53Mn, as the 18.5% increase in operating and administrative expenses to J$315.48Mn remained below the pace of gross profit growth. Higher expenses reflected continued investment in its company-operated service station network, staffing and management capacity, LPG infrastructure and other strategic assets.
• Further down the income statement, however, higher financing and tax costs constrained earnings growth. Finance costs more than doubled to J$63.00Mn, amid the Company's ongoing refinancing and investment programme, while the expiry of its five-year Junior Market tax concession resulted in a J$20.94Mn income tax charge, compared with nil a year earlier. Consequently, net profit growth was limited to 5.2%, materially trailing the increase in revenue and operating profit.
• RPL also kept its expansion strategy in high gear, with Q2 2026 revenue surging 108% YoY to J$894.95Mn for Q2 FY2026, bolstered by higher automotive fuel volumes in Westmoreland, increased fuel prices and the acquisition of Yaad Man Haulage (Ja) Limited’s LPG operations. Gross profit increased 58.7% to J$145.47Mn, although the gross margin narrowed to 16.3% from 21.3%. The contraction reflected a greater contribution from lower-margin fuel sales and the Company's efforts to limit the pass-through of higher petroleum costs to customers.
• Nevertheless, operating profit climbed 68.7% to J$77.39Mn despite a 47.6% increase in operating expenses on the back of higher depreciation charges on its fixed assets along with higher staff costs as RPL expands its operations. Similar to FESCO, however, higher financing costs absorbed some of the operating gains, with finance expenses surging 139.0% to J$23.53Mn due to higher loan interest, bank charges and one-time commitment fees related to its recent financing from CIBC Caribbean (Jamaica) Limited. Overall, the strong Q2 result lifted H1 2026 net profit 57.3% to J$80.39Mn, on an 80.2% increase in revenue to J$1.56Bn, supported by higher fuel volumes and prices and the contribution from the Yaad Man acquisition.
• Looking ahead, both companies remain focused on network expansion and diversifying their energy offerings, although the outlook remains sensitive to ongoing geopolitical conflict, financing costs and broader consumer pressures. FESCO is expected to continue expanding its service station footprint, LPG infrastructure and dealer-operated locations. Meanwhile, RPL is prioritising LPG market-share growth, further service station development and opportunities in Western Jamaica. However, persistent geopolitical tensions and volatile global petroleum prices remain key risks, as higher acquisition costs could further squeeze margins if the companies are unable to fully pass these increases on to consumers. At the same time, continued network expansion should support volumes, providing some offset to margin pressure.
• Investors have rewarded both companies' growth trajectories, with FESCO and RPL share prices gaining 22.8% and 10.1% YTD to J$3.55 and J$4.48, respectively, as at August 17, 2026. However, their valuations tell different stories. FESCO trades at 13.17x earnings, below the Junior Market Distribution sector average of 16.0x, while RPL trades at a considerably higher 45.71x.

(Sources: JSE & NCBCM Research)

• Local economic activity in the Dominican Republic (DOMREP) continues to drive demand for financing, particularly in the private sector. Of note, private credit registered a year-on-year increase of 9.1% at the close of June 2026, according to the Association of Multiple Banks of the Dominican Republic (ABA).The country’s loan portfolio accelerated relative to the accumulated growth of 7.4% recorded in December 2025, with an additional injection of more than RD$80Bn during the first half of 2026, equivalent to 1.0% of the gross domestic product (GDP).
• According to the ABA, the greatest dynamism in financing has been concentrated mainly in the commercial and mortgage segments, supporting strategic sectors for economic growth, including tourism, construction, transportation, and private investment. The association highlighted that channelling resources toward productive activities strengthens the Dominican economy’s capacity to sustain its growth, particularly in an international environment marked by heightened uncertainty.
• The Central Bank of the Dominican Republic (BCRD) projects that credit to the private sector in national currency will continue to accelerate gradually during 2026, reaching 10.5% growth by the end of the year. This expansion would represent an increase in financing of RD$149,818 million, equivalent to 1.9% of GDP. The ABA noted that credit behaviour demonstrates the role of the financial system in supporting activities that are driving the economy, with a particular impact on sectors such as tourism and construction.
• Alongside the increase in credit, public deposits accelerated, rising from 9.2% in December 2025 to 14.9% in June 2026. During the first six months of the year, the deposit base available to financial intermediation entities increased by RD$257,124 million, equivalent to 3.3% of GDP. The ABA added that statistics from the Superintendency of Banks show that the financial system maintains a liquid asset ratio above 40% and a stable delinquency rate below 2.0%.

(Source: Dominican Today)

• Brazil's economy expanded just 0.2% in the second quarter from 1.1% in the first quarter, a central ​bank indicator showed on Monday, signalling a loss of ‌momentum from the year's strong start, particularly in the all-important services sector.
• The IBC-Br economic activity index, viewed by markets as a proxy for gross domestic product, ​fell 0.6% in June from the previous month, also on ​a seasonally adjusted basis. Economists polled by Reuters had ⁠expected a 0.53% contraction.
• Central bank data showed that the positive quarterly reading for the IBC-Br was driven mainly by industry, which expanded ​0.5% from the previous quarter. Agriculture rose 0.3%, while services, the ​backbone of Brazil's economy, shrank 0.1%. The index is compiled using the central bank's ‌estimates ⁠for those sectors, along with projections for taxes linked to production, which increased 0.1% in the second quarter from the preceding three months.
• The second-quarter slowdown was widely expected. The Finance Ministry has said it ​anticipated softer growth ​as the effects ⁠of government support measures faded following a series of credit-boosting initiatives announced by leftist President Luiz Inacio ​Lula da Silva ahead of his October re-election bid.
• Restrictive ​borrowing ⁠costs have also weighed on economic activity. Although Brazil's central bank began an easing cycle in March, interest rates remain among the highest in real ⁠terms ​globally, at 14%, as policymakers seek to ​bring inflation, which stood at 4.44% in the 12 months through July, back to the ​official 3% target.

(Source: Reuters)

• Canada's annual inflation rate accelerated to 3% in July, slightly more than expected, as renewed United States-Iran tensions drove gasoline ​prices, while the cost of travel tours also rose. On a monthly basis, the consumer price index rose by 0.5%, Statistics Canada said, once again driven by an increase in gasoline costs.
• The inflation rate now sits at the ceiling of the Bank of ​Canada's (BoC’s) 1% to 3% control range. Analysts polled by Reuters had projected consumer ​prices to rise 2.9% annually and 0.4% on a monthly basis ⁠in July
• The increase in headline inflation rate had been widely anticipated because of ​higher energy prices, leaving the trend of underlying or core inflation as a more important ​signal for the BoC. Core inflation measures CPI-trim and CPI-median came at 1.9% and 2%, respectively. Both measures were at 1.9% in the prior month, StatsCan said
• Economists have said that with core ​inflation largely hovering around 2%, the midpoint of the central bank's 1% to 3% ​control range, the BoC is likely to keep its key policy rate on hold for the rest ‌of ⁠the year. Gasoline was the major driver for the annual rise in CPI, with prices accelerating 25.7% in July against an increase of 20.5% in June, the statistics agency noted. Prices for travel tours also contributed to the yearly rise in July as consumers ​paid more for hotels ​and flights to the ⁠United States, especially to the cities that hosted the football World Cup.
• However, a slower rise in grocery prices moderated the CPI, ​with food purchased from stores rising by 3.1% in July after ​posting a ⁠9% acceleration in June. Despite the slowdown in grocery costs, July was the 18th consecutive month that grocery price inflation outpaced the all-items CPI.  Shelter costs, which include rents and ⁠mortgage interest ​costs, continued to be subdued, with the costs ​rising 1.3% in July.

(Source: Reuters)

• Japan's economy slowed in the second ​quarter and missed market forecasts on softer household and business spending, highlighting the fragile nature of its recovery as the Middle East war clouds the outlook. Japan's economy slowed in the second quarter and missed market forecasts on softer household and business spending, highlighting the fragile nature of its recovery as the Middle East war clouds the outlook.
• However, long-term ‌bond yields hit a three-decade high as investors brushed aside the soft reading as reflecting one-off factors and focused more on mounting inflationary risks that could prod the Bank of Japan to raise interest rates next month.
• Gross domestic product rose 1.1% in annualised terms, government data showed on Monday, missing a median market estimate of 2.0% in a Reuters poll and below a revised 1.9% expansion in the previous quarter. While the data revealed some temporary soft patches in demand, analysts say robust underlying momentum and persistent price pressures are likely to keep the case for imminent interest rate hikes intact.
• Reuters reports that the BOJ is set to raise rates as soon as September and is considering a more aggressive pace of tightening thereafter to avoid falling behind the curve on inflation. The benchmark 10-year Japanese government bond (JGB) yield rose for a sixth straight session on Monday to hit a 30-year high of 2.925%, as investors continued to price in BOJ rate hikes sooner and faster than earlier expected. Private consumption was the biggest disappointment in the GDP data, falling 0.02% versus market expectations for a 0.5% increase, the first drop in eight quarters.
• Analysts said the weakness was due in part to lower school fees households paid thanks to subsidies, which pushed down headline private consumption but lifted government spending. Capital spending, a key driver of private demand, fell 1.2% in the second quarter, confounding market forecasts for a 0.4% increase. However, capital expenditure, as well as overall preliminary GDP, tend to be revised higher with updated figures. Exports remained resilient thanks to solid U.S. demand for Japanese hybrid vehicles and sustained global investment in artificial intelligence that supported shipments of semiconductor-related equipment and components.
• Looking ahead, analysts cautioned that rising import costs and mounting upstream price pressures could eventually feed through to consumers, posing a risk to spending later this year. Aside ⁠from rising fuel costs from the Middle East conflict, a weak yen has lifted import prices and broader cost-of-living for households, posing a headache for policymakers. Such price pressures have led to a flurry of hawkish comments from BOJ policymakers that bolstered the case for an early rate hike.

(Source: Reuters)

• For the second quarter ending June 30, 2026 (Q2 2026), Sagicor Group Jamaica Limited (SJ) and Dolla Financial Services Limited (DOLLA) reported divergent results. SJ’s net profit attributable to stockholders fell 40.0% year-over-year to $2.85Bn, while DOLLA’s grew 28.0% to $169.00Mn.
• SJ’s decline largely reflected Hurricane Melissa-related claims provisioning, higher onerosity¹ and the absence of prior-year gains.
• SJ’s shortfall starts with the insurance business. Despite a 3.2% increase in insurance revenue to $15.61Bn, service expenses climbed 15.4% to $12.44Bn on elevated claims provisioning related to Hurricane Melissa. This cut insurance service result by 24.6% to $2.66Bn. Meanwhile, net investment income improved 4.6% to $9.33Bn, as a 16.4% increase in net interest income to $8.07Bn compensated for a 40.3% aggregate decline in realised and unrealised capital gains. The group also reported a $1.90Bn or 23.3% increase in other operating expenses to $10.07Bn, leaving profit before taxes 32.5% lower at $4.20Bn.
• SJ’s Q2 results contributed to a 44.3% decline in its H1 2026 performance. H1 insurance results are down 29.0% to $4.32Bn, net investment income is down 11.6% to $16.67Bn, while operating expenses grew 14.9% to $18.70Bn.
• As for DOLLA, earnings growth benefited from lower expected credit loss provisions of $34.34Mn (-66.2%), which supported a 23.5% revenue jump. The company had prior-year provisions and write-offs tied to fraudulent loans and continued to benefit from strengthened underwriting and collections. Notably, interest income on loans was also up 3.6%, supported by a larger loan book, but this was largely negated by a 22.2% increase in interest expense.
• Still, a slower rise in administrative expenses (+5.7%) brought its efficiency ratio to 42% from 56%, which supported earnings. Consequently, profit before taxation grew 47.0% to $194.00Mn, which fed into a 51.6% increase to $382.00Mn year-to-date.
• Looking ahead, SJ expects its balance sheet, robust risk and governance frameworks and diverse revenue base to support long-term value creation. Still, the group’s earnings remain exposed to claims development and market losses across its insurance books. Meanwhile, DOLLA expects to convert its strengthened liquidity² into earning assets – prioritising quality secured lending and further reduction of non-performing exposures. However, the group carries concentration in high-yield, single-market lending, where a 14.0% non-performing ratio and elevated funding costs leave limited room for slippage.
• SJ’s share price has advanced 3.2% year to date to $41.46 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/B of 1.4x, which is above the Main Market Financial sector average of 1.1x. Within the same period, DOLLA has gained 17.2% year-to-date, closing at $3.21 and trading at a P/B of 4.4x. This is below the Junior Market Financial sector average of 1.4x.

_______________________

¹Onerosity refers to insurance contracts that are onerous under IFRS 17, meaning expected claims and expenses exceed expected premiums. Insurers must recognise the loss on such contracts immediately rather than over the life of the policy, so higher onerosity depresses current-period earnings.

²The $1.50Bn bond issuance strengthened DOLLA’s liquidity by adding fresh lending capacity.

(Sources: Sagicor Group Jamaica Limited & Dolla Financial Services Limited Unaudited Financial Statements & NCBCM Research)

• Stationery & Office Supplies Limited (SOS) and Cargo Handlers Limited (CHL) faced different earnings outcomes, for the quarter ended June 30, 2026 (Q2 2026). SOS lifted second-quarter net profit 216.9% to $62.87Mn, while CHL’s Q3 earnings were relatively flat as its revenue growth was thwarted by higher costs.
• SOS's Q2 revenue rose 4.8% to $469.44Mn while cost of sales was virtually unchanged at $199.69Mn. This lifted gross profit 8.5% to $269.75Mn and the gross margin to 57.5% from 55.5%. Administrative and general expenses fell 10.6% to $157.83Mn, while selling and promotional costs declined 10.2% to $38.63Mn – absorbing a 27.8% increase in depreciation and amortisation. Consequently, operating profit jumped to $62.01Mn from $17.92Mn.
• This strong Q2 carried SOS’ first 6 months of its financial year. H1 Profits increased 51.7% to $141.67Mn. Of the $48.27Mn increase, 89.0% came from Q2 alone.
• Meanwhile, CHL’s Q3 revenue rose 20.0% to $140.76Mn, which management attributed to higher cargo volumes through the Port of Montego Bay. This includes the delivery of pipes for the National Water Commission's Western Water Resilience Improvement project, increased cement tonnage and a limited containerised transhipment service.
• However, CHL’s gains were largely consumed by cost. Other operating expenses rose 32.6% to $85.22Mn owing to elevated volume handled, higher labour costs, and a shift in cargo mix, and administrative expenses rose 16.6% to $10.97Mn. The higher costs held operating profit to a 2.1% increase at $44.19Mn. An 82.9% fall in exchange gains to $0.64Mn also negated the combined effects of a $0.79Mn increase in interest income, a $1.5Mn increase in Share of profits of associates, and near elimination of finance costs ($0.69Mn: -97.3%).
• Beyond a flat Q3, CHL’s 9-month was softer. Revenue slipped 1.0% to $353.89Mn, other operating expenses climbed 14.1% to $217.48Mn, while administrative expenses rose 8.5% to $38.73Mn. This cut operating profit by 26.4% to $93.99Mn, while a $0.47Mn exchange loss and a 10.4% decline in share of profits of associates also weighed on earnings.
• Looking ahead, SOS wants to sustain current efficiencies while continuing to grow revenue for the remainder of the financial year. Meanwhile, CHL points to large-scale commercial projects and extensive luxury accommodation buildouts across Western Jamaica as continuing to propel cargo through the Port of Montego Bay. However, CHL’s key risk is that its earnings remain heavily tied to cargo flows through a single port. Any slowdown at Montego Bay or further cost pressure could quickly limit earnings.
• SOS’s share price has declined 7.2% year to date to $1.54 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/E of 25.7x, which is above the Junior Market Distribution sector average of 17.6x. Within the same period, CHL is down 2.2% year-to-date, closing at $17.02 and trading at a P/E of 22.1x. This is below the Junior Market Others average of 32.1x.

(Sources: Stationery & Office Supplies Limited & Cargo Handlers Limited Unaudited Financial Statements)

• Latin America is bracing for what experts say could be the strongest El Niño on record, ​raising questions about how the climate phenomenon will affect the world's top food-exporting region. El Niño, characterised by unusually warm sea surface temperatures in the central and eastern ‌tropical Pacific Ocean, disrupts weather patterns worldwide. In Latin America, it typically brings heavier rainfall to the south while increasing drought risks further north, affecting agriculture, energy production, trade routes and the environment
• An unusually wet Southern Hemisphere winter, disruptions to Pacific marine ecosystems and dry conditions are already affecting parts of the Caribbean and the Amazon. Researchers expect the phenomenon to strengthen from September and potentially exceed the intensity of the 2015-16 El Niño, the strongest ​in modern records.
• In Argentina's fertile Pampas, Paraguay, Uruguay and southern Brazil, El Niño usually brings above-normal rainfall. Despite concerns over a strong ​or "super" El Niño, analysts said more water is generally good for crops.
• Germán Heinzenknecht, a meteorologist at Argentina's Applied Climatology Consultancy, said that, as ⁠in previous cycles, El Niño could boost soybeans, corn and wheat harvests by providing soil moisture for planting and improving water availability during the December to February summer.
• A stronger El Niño could also mean some rural areas will flood, though these will mostly be lands geographically prone to such events, Heinzenknecht ​added. Muddy or flooded roads can prevent South American farmers from accessing fields, complicating efforts to apply fertilisers and chemicals to protect yields, he said.
• Many of the rural roads, crisscrossing the region's southern agricultural heartlands, are already in poor condition. Heavy rains from September could also cause floods in cities and transport routes to ports, prompting Paraguay's government to put military units on alert and mobilise civilian engineering teams in July. Peru's northern coast faces flooding while ​the highlands suffer from water scarcity, a pattern likely to be repeated in Chile and elsewhere on the Pacific coast, according to the United Nations Food and Agriculture Organisation.
• An uneven El Niño-driven rainfall could reshape South America’s energy and trade flows, boosting Argentine natural-gas exports as drought hits parts of Brazil while heavier rains support hydropower, but worsening dry conditions threaten Amazon waterways, agriculture, and Panama Canal shipping.

(Source: Oil Now Guyana)

• Cement is strengthening its role in the Dominican Republic’s export performance, with the country’s cement industry emerging as a leading exporter of cement, lime, and gypsum in Latin America and the Caribbean.
• According to data from the General Directorate of Customs (DGA) cited by the Regional Centre for Sustainable Economic Strategies (Crees), Dominican exports totalled US$3.34 billion from January to June 2026, a 35.1% increase compared with the same period in 2025. The chemicals and minerals sector contributed US$295 million, or 8.8% of total exports, with cement and copper accounting for 4.8%.
• The Dominican Association of Portland Cement Producers (Adocem) said the figures demonstrate the importance of maintaining a strong domestic industrial base capable of meeting local demand while competing in international markets.
• A Ministry of Industry, Commerce and MSMEs (MICM) report found that Latin America and the Caribbean exported US$581.3 million in cement, lime, and gypsum in 2025. The Dominican Republic accounted for 25.4% of those exports, making it the region’s leading exporter and placing it ahead of Mexico and Guatemala.
• Crees has warned that Dominican exports remain concentrated in a limited number of sectors and has called for greater diversification and the promotion of higher-value products. Adocem argues that strengthening local manufacturing can contribute to that goal by encouraging investment, innovation, efficiency, and sustainable production.
• The association also emphasised the importance of public policies that promote productive investment, legal certainty, competitiveness, and better access to international markets, allowing domestic industries to expand production and create greater economic value in the country.

Source: Dominican Today)

• As the clock ticks toward U.S. President Donald Trump's latest tariff deadline, Canada and the U.S. aren't at a point where a tariff deal can be reached.
• Canadian officials are not satisfied with the latest U.S. offer, according to two sources with knowledge of the trade talks. According to sources on both sides of the border, the Americans offered a new proposal on Tuesday which would lower some of the sectoral tariffs but not to the degree that the Canadian side would like to see.
• LeBlanc, the Canada-U.S. Trade Minister, posted to X saying that discussions are "ongoing" and he and Charette, Canada's chief trade negotiator, will "continue to engage at the negotiation table." In addition to trying to dissuade Americans from levying new tariffs, LeBlanc and Charette are looking for relief on tariffs the U.S. has slapped on Canadian steel, aluminium, lumber and autos.
• Negotiators have been going back and forth in recent weeks in an effort to reach some sort of deal before Aug. 19, which is when Trump has promised a 50 per cent levy on hundreds of Canadian goods in addition to the sectoral tariffs already in place. The Americans are seeking a deal that would see preferential access to Canadian critical minerals and cover security and energy, the sources said.
• Sources told CBC News last week that the Canadian side has aggressively argued to the Americans that there would be no political appetite among Canadians to keep talks going if the Aug. 19 tariffs come into place.
• Canada is also hoping the ongoing trade talks between the two countries will result in a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration last month declined to extend the deal past 2036.

(Source: MSN)