Minister of Finance Audley Shaw.

Jamaica's markets reacted coolly yesterday to the illness of Finance Minister Audley Shaw, with brokers saying that global events, rather than the immediate state of the minister's health were more likely to shape short-term investment behaviour here.

In any event, the presence at the Finance Ministry of the technocratic Don Wehby, and Dwight Nelson - both of whom sit in Bruce Golding's Cabinet with full ministerial rank - was helping to calm nerves.

"I don't know the extent of his illness, whether it is a long-term illness or short-term illness, but I think he has capable people at the Ministry of Finance," said Anya Schnoor, the head of Scotia DBG, the investment banking arm of the Scotiabank group.

Shaw collapsed Wednesday at a meeting with government colleagues and was rushed to University Hospital of the West Indies in St Andrew where he has since been undergoing tests.

Slipped again

The Jamaica stock market - deserted by buyers and in retreat on small volumes in recent weeks - slipped again yesterday, down 196.37 points of 0.2 per cent at 96,805.37. On the day, 26 stocks traded, with four advancing and a dozen declining. Ten traded firm.

On the foreign exchange market, the Jamaica dollar fell by 16 cents to $73.03 against the benchmark US dollar.

Analysts, however, say that the movements had little or nothing to do with concern about the minister's illness.

"I think the bigger picture is that people are more concerned with what is happening globally," said John Jackson, an investment analyst, who also publishes the magazine, Investors' Choice.

"So far, the market hasn't responded to it, from what I see," Jackson told The Financial Gleaner.

In fact, while there was concern for Shaw's health, there was a sense that his prolonged absence from the ministry would not undermine government's policy, particularly the effort to hold the public sector deficit this fiscal year to no more than 4.4 per cent of GDP.

Technocratic support

When Golding's Jamaica Labour Party won the general election 13 months ago, Wehby, former deputy CEO of the GraceKennedy group, was co-opted by the Government in what was interpreted as a move to provide technocratic support for Shaw's political skills.

Nelson, a trade unionist, was brought in and given responsibility for public sector employment and compensation issues.

"(Shaw) has two good deputies, so I think that they should be able to manage anything that comes up in this period of time until he is better," said Scotia DBG's Schnoor, who is also president of the Jamaica Securities Dealers Association (JSDA).

The recent appointment of the new Financial Secretary Sharon Crooks has also added to management certainty at the ministry, Schnoor suggested.

Christopher Zacca, president of the Private Sector Organisation of Jamaica said that the immediate concern of his members was for Shaw's early recovery.

"From all indications it is nothing serious, we are just more concerned about him getting back on his feet and back to work and we wish him all the best," he said. "Based on the information we have there should be no impact (on the market)."

dionne.rose@gleanerjm.com