Archives for November 2013

TTSE: Moderate trading

November 20, 2013 by IC Insider.com

Wednesday, 20th November 2013 | Market activity resulted from trading in 15 securities of which 3 advanced, 4 declined and 8 traded firm as 280,277 shares traded for a value of $4,173,249.

Trading in the main market resulted in First Citizens Bank added 19,122 shares valued at $688,404 as the price remained firm at $36. National Commercial Bank with a volume of 55,220 shares traded for $63,503. Prestige Holdings was the volume leader with 84,381 shares changing hands for a value of $797,400.45; Sagicor Financial Corporation exchanged 7,896 units at $7.20 down 5 cents; Agostini’s traded 4,166 units to close at $17.99 down a cent; Republic Bank swapped 2,990 units at $115.04 off a cent; Trinidad Cement contributed 35,755 shares with a value of $78,861 and closed unchanged at the end at $2.20; Unilever Caribbean traded at a new 52 weeks high in gaining 7 cents but only 798 units traded to end the day at $56.10.

Clico Investment Fund traded 52,966 shares valued at $1,138,754 as the price remained unchanged at $21.50.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 4 stocks higher and 5 stocks with offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net.

Inflation high, lower than September

November 19, 2013 by IC Insider.com

A combination of factors led to a hike in inflation in October as measured by the Consumer Price Index (CPI) of movements for householders.

According to the Statistical Institute of Jamaica (STATIN), the inflation rate as recorded by the All Jamaica ‘All Divisions’ Consumer Price Index was 0.8 percent for October 2013. Impacting the index for this month was the 3.9 percent increase in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’ due mainly to upward movement in the cost of water and sewerage, which resulted in a rise of 20.0 percent in the group ‘Water Supply and Miscellaneous Services Related to the Dwelling’. Also increasing in this division was the group ‘Electricity, Gas and Other Fuels’ which rose by 2.9 percent. All other divisions with the exception of ‘Transport’ and ‘Communication’ recorded increases in their index Statin stated. Transport fell by 0.4 percent due to lower prices for petrol and air fares while Communication fell by 0.6 percent due to the reduction in some telecommunication rates.

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

The calendar year-to-date inflation rate for October 2013 was 8.6 percent, the point-to-point 10.3 percent. The October out turn reflects moderation from the 2.8 percent recorded for September, which Statin said stemmed mainly from bus fare increases.

The other divisions that recorded increases in the All Jamaica ‘All Divisions’ index were: ‘Food and Non-Alcoholic Beverages’ 0.4 percent, ‘Alcoholic Beverages and Tobacco’ 1.8 percent, ‘Clothing and Footwear’ 0.2 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance’ 0.6 percent, ‘Health’ 0.4 percent, ‘Recreation and Culture’ 0.3 percent, ‘Restaurants and Accommodation Services’ 0.1 percent, and ‘Miscellaneous Goods and Services’ 1.1 percent.

The regional index showed upward movements in all three regions: Greater Kingston Metropolitan Area 0.8 percent, Other Urban Centres recorded a movement of 0.9 percent and Rural Areas 0.8 percent.

Related posts | Jamaica’s inflation jumps

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Filed Under: Economy Tagged With: CPI, Economy, Inflation, Statin

Balance of payment improves

November 19, 2013 by IC Insider.com

Jamaica’s central bank, Bank of Jamaica, is reporting that the country’s Current Account deficit for January to June 2013 improved by US$268 million to US$519 million compared to the corresponding period in 2012. The outturn for the review period represents a continuation of the improvement in this indicator since 2011 the report said. The enhanced outturn for the six months period to June emanated from all sub-accounts, mainly Goods and Primary Income (formerly Goods & Services) which improved by US$141 million and US$50 million respectively.

Change in presentation | The Balance of Payments (BOP) has been modified from what used to be published in the past. The major change in presenting the report is that the Capital Account will no longer be grouped with the Financial Account, but with the Current Account instead. The overall balance from the Current and the Capital account is now referred to as Net Lending or Borrowing. Also, the use of debits and credits for the Financial Account is replaced by Net Acquisition of Financial Assets and the Net Incurrence of Liabilities. There is also introduction of categories of Primary and Secondary Income, which are conceptually consistent with the System of National Accounts (SNA). Primary Income encompasses returns that accrue to institutional units for their contribution to the production process or for the provision of financial assets and renting of natural resources, while Secondary Income represents Current Transfers between residents and non-residents.

Goods producing | For the Goods sub-account, the deficit improved by US$1401 million to US$1.899 billion, versus the corresponding period in 2012. Imports of Goods fell by US$133 million to US$2.779 billion, primarily driven by a US$218 million decrease in Mineral Fuel imports and partially offset by a US$132 million increase in Chemical Imports. Imports of food decreased by US$37.0 million in the period.

Goods Exported increased by US$7.5 million to US$880 million, primarily as a result of a US$66 million increase in Chemical Exports, particularly ethanol.

The balance on the Services sub-account increased by US$50 million to US$453 million for the review period. This resulted primarily from an improvement of US$48 million in the net inflows to the insurance and pension services accounts.

The Primary Income sub-account improved by US$50 million during the review period. This emanated primarily from a US$83 million increase in net investment income flows. Relative to the corresponding period in 2012, the balance on the Secondary Income sub-account improved by US$27 million to US$1 054.1 million. The improvement mainly resulted from a US$18 million increase in the net flows to Financial Corporations, Nonfinancial Corporations, Households, and Non-Profit Institutions Serving Households.

The deficit on the Capital Account improved by US$6.4 million to US$7.7 million for the review period. This outturn together with the balance on the Current Account yielded a net borrowing position of US$527 million, an improvement of US$273.9 million relative to the January-June 2012 period.

The Financial Account recorded a net borrowing position of US$197.4 million, an improvement of US$278.6 million compared to the corresponding period of 2012. The largest contributing subcomponent of the net borrowing balance was Other Investments, which had a net borrowing balance of US$181.2 million. This was primarily due to a decline in the net acquisition of loan assets by US$369 million, coupled with an increase of US$253.8 million in the net incurrence of loan liabilities.

Flows from official and private sources were insufficient to finance the net borrowing balance from the Current and Capital accounts; consequently, the NIR declined by US$100.0 million for the review period.

Related posts | Non-Traditional exports up | NIR up in September

Image courtesy of arztsamui/FreeDigitalPhotos.net

Filed Under: Economy Tagged With: BOJ, Economy, GOJ

FX: Rate fall for GBP up for US$ & CD$

November 19, 2013 by IC Insider.com

Add your HTML code here...

Tuesday, 19th November 2013 | On the ForEx market, the rate of exchange for the British Pound declined on Tuesday while rates for the United States and Canadian dollar increased against the Jamaican dollar.

Dealers purchased US$24,901,729 as the rate moved up 18 cents to $104.99 and they sold US$25,543,836 with the rate increasing by 7 cents to $105.76. There was buying by dealers of C$1,096,978 as the buying rate went down 79 cents to $99.23 but as they sold C$1,752,851, the selling rate increased by 76 cents to $102.24. There was buying of £1,201,514 with the rate declining by 39 cents to $168.19 and selling of £883,957, the rate was down 15 cents to $171.31. Other currencies bought, amounted to the equivalent of US$1,194,848 and selling of US$1,062,777.

The total amount of US dollar equivalent of currencies bought amounted to US$29,057,997 and the equivalent of US$29,733,194 was sold.

Highs & Lows | The highest and lowest rates for the three main traded currencies all moved upwards except in two cases. There was no change to the lowest buying rate for the US dollar at $85.50, but the highest buying rate moved up by 12 cents to $107 and the highest selling rate was up 10 cents to $109.97 and it was 5 cents up for the low at $85.51.

The Canadian dollar saw a 10 cent slippage in the highest buying rate at $102.20 and a 33 cents rise in the lowest buying rate at $80.51. The highest selling rate moved up 22 cents to $103.79 and the low was up by 40 cents to $97.

The British Pound moved up 15 cents to reach $172.15 for the high and up $19.62 for the low to hit $135.87. The high for the selling rate reached $175.16 an increase of 11 cents while the low was up 10 cents to $163.70.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, Trading Activity, TTSE

Businesses see J$ at $110 late 2014

November 19, 2013 by IC Insider.com

According to a survey undertaken by Bank of Jamaica in September, senior officers in the business sector anticipate an upturn in the pace of depreciation of the Jamaican dollar for the 3-month, 6-month and 12-month periods beyond the survey date.

This was relative to the August 2013 survey, which showed a lower expected pace of depreciation over all the time horizons. In the September 2013 survey, the exchange rate was expected to depreciate by 1.8 percent, 3.0 percent and 4.7 per cent for the 3-month, 6-month and 12- month horizons, respectively.

By comparison, the August survey had expected depreciation of 1.5 per cent, 2.6 percent and 4.3 percent over the respective horizons.

If the expectations of the interviewees were to materialise, then the exchange rate would be around J$110 to the US dollar but then that is not quite consistent in the September 2013 survey where the respondents’ expectation of inflation 12-months ahead increased to 10.4 percent in the September 2013 survey, relative to 10.3 per cent in the August 2013 survey. This inflation expectation would suggest an exchange rate adjustment closer to 7 or 8 percent.

The Statistical Institute of Jamaica (STATIN) undertakes surveys of businesses on behalf of the Bank of Jamaica to ascertain the expectations about variables which are likely to have an impact on inflation in the near-term. In this regard, the survey captures the perception of Chief Executive Officers, Managing Directors and Financial Controllers about the future movement of prices, current and future business conditions and the expected rate of increase in wages/salaries.

Filed Under: Economy Tagged With: BOJ, Economy, FX Market, Statin

Will Tessanne boost RJR fortunes?

November 19, 2013 by IC Insider.com

Important RJR update | RJR earnings per share for the six months improved to 4 cents compared with a loss of 6 cents in 2012. IC Insider has revised its forecast of earnings and is now forecasting 20 cents per share for the full year ending March 2013 and around 30 cents for 2014, which suggest that the price of the stock has room for growth from the current level of $1.34. It is quite possible that the group could be a big beneficiary of the popularity of Tessanne Chin’s success on the NBC The Voice with RE TV’s broadcast of the program, especially if Chin goes much further in the competition.

==========

RJR recently released results for the six months to September, but they have the exclusive rights to the telecast of the NBC The Voice program that features Tessanne Chin and is being telecast locally on RETV. Could she give the stalled bottom line a real kick in the butt? The next quarterly figures will shed some light on that.

The economic environment has not been kind for many in the communication sector. We have Cable & Wireless losing market share from high legacy cost, complacency and poor customer service plunging the operations in to huge losses stretching back for a number of years, then there is the staid and age-old Gleaner Company whose main business has not seen a profit for some time as both the state of the local and global economies has conspired against it, pushing up cost without a commensurate level of income.

Then there is RJR who raised capital to invest in a newspaper only to write-off all of it, plus their own old-fashioned management practises in some areas that has seen the once prominent and dominant AM radio loose its dominant market share. They are now fighting amongst the rest try to recoup market share from the new leader, Irie Radio.

Interestingly, all three of these companies were once very dominant in their respective markets but not so any longer. What went wrong and where will they be heading?

The un-audited results showed that RJR recording a profit in the 2nd quarter ended September, 2013 of $13 million and marginally more for the six month a profit of $14.6 million, which is a major turnaround from a loss of $23 million in the 2012 six month period and a small profit of $2.3 million in the 2012 September quarter.

Revenues | Operating revenues were down $21 million for the September quarter to $458 million but was flat for the six months at $899 million. Other Income showed a 63 percent increase for the six months to $52 million and 19 percent increase for the quarter to reach $17.5 million, resulting management said, “from new transmitter site rental income.”

The 2nd quarter performance was driven by a $29 million or 5.9 percent reduction in expenses for the comparative period in 2012 moving from $489 million down to $460 million.

Direct expenses fell $14 million to $212 million for the quarter and but was up $30 million for the six months; selling expenses were marginally down $2.6 million for the quarter and $9 million for the six months while administration expenses fell by $18 million to $84 million and by $21 million for the six month period to reach $183 million. Finance costs rose from $3 million in the six months to $11 million.

Earnings per share | RJR earnings per share for the six months improved to 4 cents compared to a loss of 6 cents in 2012, IC Insider is forecasting 13 cents for the full year ending March 2013 and around 20 cents for 2014, which suggests that the current price of the stock is fully valued at $1.30. It is quite possible that the Group could be a big beneficiary of the popularity of Tessanne Chin’s success on the NBC The Voice and could be a big boost for RETV. Management has also mentioned a new project that should be on stream before the end of the fiscal year but no details have been given.

At the end of September, there was $84 million invested in FIFA rights to broadcast and televise World Cup matches in Jamaica; $446 million of receivables or nearly one quarter’s revenues; cash funds of $230 million and payables of $223 million. Shareholders’ equity stood at $1.2 billion and long term loans increased by $226 million.

Photo courtesy www.nbc.com/the-voice/

Filed Under: Company News, Company Results Tagged With: JSE Company, RJR

JSE: Scotia dominates Tues 19th

November 19, 2013 by IC Insider.com

Tuesday, 19th November 2015 | Scotia Group was by far the dominant stock to traded days ahead of 2013 final results as 5,598,433 units traded as the price closed down 39 cents at $17.11. It also accounted for the bulk of the value of trading with $97,970,828 out of a total of $113.15 million.

Trading activity on the Jamaica Stock Exchange resulted in 7 stocks advancing to 6 that declined as the indices mostly rose with JSE Market Index closing at 77,428.29 up 241.79, JSE All Jamaican Composite closed at 76,416.74 up 420.34 and JSE Junior Market Index closed at 719.97 down 5.11.

Main Market stocks | Cable & Wireless traded 213,611 units unchanged to close at 15 cents; Desnoes & Geddes put through 504,974 shares to close firm at $4.80; First Caribbean International Bank had 2,404 units trading at $90.01; Grace Kennedy 66,104 at $56.51; Jamaica Broilers traded only 7,623 shares and it closed unchanged at $4.19; Jamaica Money Market Brokers lost 5 cents as it traded 479,609 units to close at $7.85; Mayberry Investments had 20,000 units changing hands at $1.91, unchanged at the end of trading; National Commercial Bank had only 15,540 units as the price closed at $17.80 the same as the day before; Sagicor Life put in 111,256 units and closed at $7.75, for a gain of 5 cents; Sagicor Real Estate X Fund traded 23,628 units to close at a new high of $5.20 as the price put on 5 cents.

In the preference shares segment Jamaica Money Market Brokers 8.50% traded 102,200 units at $3.50.

Junior Market | Caribbean Producers 100,001 at $1.95; Consolidated Bakeries 9,000 at $1.20; Dolphin Cove 19,406 units helped in pushing to price 50 cents to $7.50; General Accident Insurance swapped 10,000 units at $1.60; Lasco Distributors had a good day with 555,966 units trading to close at $1.45. Lasco Financial Services traded well with 1,979,075 units to close at $1, up 3 cents and Lasco Manufacturing traded 55,253 units and closed down 2 cent to $1.38.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 6 stocks higher and 4 stocks with offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

TTSE: Buy Rated Neal & Massy up $1

November 19, 2013 by IC Insider.com

Tuesday, 19th November 2013 | Buy Rated conglomerate Neal & Massy Holdings closed up in trading on the Trinidad Stock Exchange as there was trading in 3,895 shares valued at $229,805 as the price closed up $1 to end at $59. On another day of light trading in small lots, the overall market activity had trading in 12 securities of which 2 advanced, 1 declined and 9 traded firm as 259,777 shares traded with a value of $1,674,227.

First Citizens Bank closed firm at $36 while trading 650 units; Trinidad Cement with 225,344 shares valued at $496,607 changing hands as the price drifted down by a cent to $2.20; Sagicor Financial Corporation 20,057 shares traded for $145,413 with the price holding firm at $7.25; Republic Bank contributing 5,220 shares with a value of $600,552 and the price gained 4 cents to end at $115.05; while Scotiabank had trading in 1,470 units and closed firm at $72.01.

Clico Investment Fund had of 2,143 shares valued at $46,075 as the price remained unchanged at $21.50.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 3 stocks higher and 3 stocks with offers lower than their last selling price.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

FX: Buoyant flows as rates climb

November 18, 2013 by IC Insider.com

Monday 18th November 2013 | In forex trading on Monday, the collective buying of the various currencies translated to US$42,616,118 or $7 million more than the US$35,482,491 that was sold.

For individual currencies there was buying of US$35,094,952 at a rate that was 15 cents lower than on Friday at $104.82, while there was sale of US$30,042,915 at $105.69 up 10 cents in spite of the US$5 million excess purchase over the amount sold.

The Canadian dollar gained $1.04 to end at $100.02 as dealers bought C$2,983,573 while they sold C$2,061,610 at $101.49 for a 60 cents increase. £2,571,594 was bought at $1.10 more than on Friday at $168.58 and £1,925,535 was sold at $171.47 up 51 cents.

Highs & Lows | US dollar was bought for 8 cents more than on Friday at the highest level of $106.88 but there was no change to the low which ended at $85.50; the highest selling rate moved up 58 cents to $109.57 with no change to low at $85.46.

The Canadian dollar was up $1.15 to $102.30 for the highest buying rate, up 25 cents to $80.18 for the lowest buying rate and up 23 cents for the highest selling rate of $103.57 with the lowest selling rate jumping by $14.71 to $96.60.

The British Pound was bought as high as $172.00, up $1 but was down $18.50 to $116.25 for the lowest buying rate and up $1.34 to $175.05 for the highest selling rate and up $1.25 to $163.60 for the low.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

JSE: Low trading

November 18, 2013 by IC Insider.com

Monday, 18th November 2013 | It was another slow trading day and low volumes on the Jamaica Stock Exchange. Scotia Group stood out while trading 2,294,482 shares valued at $40,156,819 with the final price ending at $17.50. No other stock came close to the volume or value of the Scotia trades. A total of 3,253,336 shares changed hands valued at $45,405,974 as the indices fell once more; the main market closing down 480.87 to 77,186.50; the all Jamaica index 75,996.40 down 835.97 and the junior market index down less than a percent to 712.08.

Overall 23 stocks traded with 8 declining and the price of 5 increasing.

Caribbean Cement traded 5,300 units to close down 35 cents at $2.35; Jamaica Broilers had 257,686 units as the price closed at $4.19 down 31 cents; Jamaica Money Market Brokers traded 53,600 shares to close at $7.90, up by 4 cents; Jamaica Producers 10,513 units were all traded at $18.25, unchanged from Friday’s close; National Commercial Bank struggled to trade 78,312 units as the price closed at $17.80, down 20 cents, but it traded as low as $16.75; Sagicor Life 57,000 units to close at $7.70; Supreme Ventures had 223,154 units trading at $2.59.

Jamaica Money Market Brokers 7.50% preference share traded 95,000 units firm at $2.

Eight stocks traded in the junior market but only three had any volume to write home about as Caribbean Producers Jamaica traded 20,477 at $1.92; Lasco Distributors 63,572 shares to close at $1.45 and Lasco Manufacturing 53,576 to close at $1.40.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 6 stocks higher and 5 stocks with offers lower than their last selling price.