Resolution:
Please follow these steps:
-Create a Queue Manager "QMGR1".
-Create a Queue "Queue1"
- Start the "QMGR1"
- Copy JMS Client jars to your local machine and update designer.tra to point to the location of them. Make sure "com.ibm.mq.pcf.jar" and "mqcontext.jar" are part of client jars.
-From BW side create a JMS Shared Connection as follow:
JNDI Context Factory : com.ibm.mq.jms.context.WMQInitialContextFactory
JNDI Context URL :nmassood-dt:1414/SYSTEM.DEF.SVRCONN
Where nmassood-dt is the host name, 1414 is the listener port.
Queue Connection Factory: QMGR1
which is Queue Manager you created in the above step.
- Test the connection.

See the attached screen shot for an example.
Please also refer to for more information
http://www.ibm.com/developerworks/websphere/techjournal/0502_woolf/0502_woolf.html

How to connect to MQ JMS provider using "com.ibm.mq.jms.context.WMQInitialContextFactory" JNDI Contect Factory?