The bitter taste of sugar

By Rawle Lucas On In Business |
LUCAS STOCK INDEX The LSI increased slightly on trading with mixed results in the fourth trading period of the month of April 2011. In a rare occurrence, the stocks of seven of the nine companies making up the index were active during this session. Only the stocks of Caribbean Container Inc (CCI) and Citizens Bank (CBI) did not trade this week. Despite the historic participation, the index increased by a mere half of one percent. Guyana Bank for Trade and Industry (GBTI) posted strong gains of over 12 percent while Demerara Tobacco Banks (DTC) recorded positive growth of over one percent. The stocks of Demerara Distillers Limited (DDL), Republic Bank Limited (RBL) and Sterling Products Limited (SPL) remained unchanged while the stocks of Banks DIH (DIH) and Demerara Bank Limited (DDL) lost ground. The index remains in excess of five percentage points higher than the risk-free Treasuries due to mature in December 2011.
LUCAS STOCK INDEX The LSI increased slightly on trading with mixed results in the fourth trading period of the month of April 2011. In a rare occurrence, the stocks of seven of the nine companies making up the index were active during this session. Only the stocks of Caribbean Container Inc (CCI) and Citizens Bank (CBI) did not trade this week. Despite the historic participation, the index increased by a mere half of one percent. Guyana Bank for Trade and Industry (GBTI) posted strong gains of over 12 percent while Demerara Tobacco Banks (DTC) recorded positive growth of over one percent. The stocks of Demerara Distillers Limited (DDL), Republic Bank Limited (RBL) and Sterling Products Limited (SPL) remained unchanged while the stocks of Banks DIH (DIH) and Demerara Bank Limited (DDL) lost ground. The index remains in excess of five percentage points higher than the risk-free Treasuries due to mature in December 2011.

Oddity

The Stabroek News of April 18, 2011 contains a comment on the performance of the sugar industry that was attributed to Mr. Donald Ramotar, the Presidential candidate of the ruling PPP/Civic Party for the upcoming general elections in Guyana.  One thing of interest in the comment was the reference years used by Mr. Ramotar apparently to compare the performance of the sugar industry under the PPP/C and PNC administrations.  It did appear odd that Mr. Ramotar selected 1990 in the case of the PNC and 2004 in the case of the PPP/C since neither of the two years represented beginning or end points of the two administrations.   Undoubtedly, the oddity of the comparison piqued the interest of other Guyanese in the performance of the sugar industry under the two parties and probably prompted them to look at the record of sugar production since 1964.
Research on production statistics indicates that despite its sweetness, sugar has been bitter for both parties, but more so for the PPP/C.  It also reveals that the record of the PPP/C might be worse than that of the PNC, now PNC/R,