Archives for December 2013

Knutsford Express share allotment

December 31, 2013 by IC Insider.com

Knutsford Express Services’ IPO of 20,000,000 ordinary shares at the price of J$5,11 per share was oversubscribed on Friday December 27,2013 with only 66 applications received.

All Reserved Share applicants will receive 100% of the amount of the Shares for which they applied. Applicants for the general pool with 5,000 or less units will receive the full amount. The remaining applications will be allocated at approximately 97.477 percent of the application amount. Refund cheques will be available for collection from Proven Wealth Ltd on Monday January 6, 2014.

The Jamaica Stock Exchange voted today, Tuesday December 31, to block the listing of the company’s shares that should have started trading this morning. IC Insider understands that the company had moved a belated resolution to allot shares to some directors thus increasing the amount of shares in issue, as well as the value of those shares, in an attempt to get listed before the year closed. That resolution, however, would have been improper as it conflicted with the terms of the prospectus, which incorporated all material contracts the company had at the time Investors would have applied for shares in the public offer, and the change would in all probity, require the approval of the new investors to approve same.

Filed Under: Company News, Initial Public Offers, JSE Main Market, Stock Market Tagged With: JSE Company, Knutsford Express

FX: 2013 ends with increased rates

December 31, 2013 by IC Insider.com

Tuesday, 31st December 2013 | The final trading day of 2013 ended with the rates for all three main currencies trading with higher rates against the Jamaican dollar.

The day ended with a total of the equivalent of US$43,119,322 purchased while selling accounted for the equivalent of US$39,407,647. Purchasing of the United States currency amounted to US$30,575,681 as the rate moved up 4 cents to $105.72 and selling of US$35,715,149 as the rate inched up 6 cents, to $106.38. Trading of the Canadian dollar resulted in purchases of C$7,318,927 as the rate increased by $1.61 to $98.99, selling amounted to C$1,046,853 with the rate climbing 34 cents to $99.72. Purchasing of the British Pound amounted to £3,251,560 with rate moving up by $1.35 to $173.56 and £982,390 was sold, the rate moved up 57 cents to $175.84.

Highs & Lows | The US dollar highest buying rate moved up by 50 cents to $107.50 and lowest and remained unchanged at $86.01 while the highest selling rate moved up 54 cents to $110.75 and the lowest selling rate increased by $2.04 to $88.05.

The Highest buying rate for the Canadian dollar remained unchanged at $101.50, the lowest buying rate increased by 8 cents to $79.51. The highest selling rate fell 50 cents to $102.50 and the lowest moved down by 70 cents to $95.30.

The highest buying rate for the British Pound increased $1 to $177.30 but the lowest remained unchanged at $138.61. The highest selling rate increased by 63 cents to $ 179.12 and the lowest jumped $1.10 to $168.10.

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

JSE: Market closes year positively

December 31, 2013 by IC Insider.com

Tuesday, 31st December 2013 | Knutsford Express, the latest IPO to hit the market, was scheduled to be listed on JSE market today bit it never made it after frantic attempts were made so to do after the Listing Committee turned down the application to list.

IC Insider understands that the company had moved a belated resolution to allot shares to some directors thus increasing the amount of shares in issue, as well as the value of those shares, in an attempt to meet the $50 million minimum capital figure to get listed before the year closes. The funny thing is that based on the junior market rules, the company does meet the conditions set out for listing.

The last day of trading for the market for 2013 saw 10,865,481 shares changing hands with a value of $71,844,965 as 9 stocks recorded price gains to 8 that declined. Jamaica Money Market Brokers dominated trading with 8,045,488 units as the price closed at $7.50 with a total value of $60,341,160.

The junior market index, which had a gain of 17 percent for the year, ended at 757.86 but declined by 10.20 on the last trading day of the year. The all Jamaica index ended the year at 81.850.04, gaining 2,061.32 on the final day of the year and the main market index finished the year at 80,633.55, up by 1,185.67.

Main Market | The main stocks to trade were Barita Investments that closed at $2.50 with 8,497 shares changing hands; Caribbean Cement with 10,000 shares closing firm at $3.50; Carreras with 18,240 shares closing at $36.75 up by 75 cents; Gleaner Company 63,000 shares to close at $1.10; Hardware & Lumber 1,000 to close at a 52 weeks high of $6.10 as the price rose $1; National Commercial Bank 52,545 units closing up by $1 to end at $18; Sagicor Group 58,852 closing up by $2.20 at $10.60; Sagicor Real Estate X Fund 14,241 shares to close at $6.05, down 44 cents; Scotia Group 23,480 units closing up 73 cents at $20; Scotia Investments 9,904 closing at $25.50, declining by 38 cents; Proven Investments 229,200 units unchanged at 13 US cents.

In the preference sector Jamaica Money Market Brokers 7.50% traded 75,000 units firm at $2.

Junior Market | The junior market ended 2013 with several of the listings with strong gains during the year. Caribbean Cream, which was listed during the year, closed the year at the IPO price of $1 as 126,300 units traded on the final trading day of the year. Caribbean Producers Jamaica exchanged 335,448 units as the price moved up 5 cents to a new 52 weeks high of $2.70, Consolidated Bakeries closed down 4 cents to end at $1.16 with 15,000 units; Lasco Financial Services 36,900 traded at $1.20 with a fall of 11 cents; Lasco Manufacturing saw 24,762 units changing hands to close at $1.20, off by 10 cents; Medical Disposables & Supplies had 1,613,853 units switching ownership as the price eased 5 cents $2.20 and Paramount Trading traded 78,663 units as the price gained 5 cents to close at $3.55.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 11 stocks with bids that were higher than the last selling prices versus only 1 stock with the offer that was lower.

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

TTSE: Stocks end year up 18%

December 31, 2013 by IC Insider.com

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Tuesday, 31st December 2013 | The Trinidad & Tobago Stock Exchange ended 2013 on a positive note with more stocks rising than declining. Additionally, the market recorded a positive year with the two main indices advancing during the year.

The Composite Index advanced by 0.29 points on Tuesday to close at 1,185.05 compared to 1,064.98 at the end of 2012, gaining 11 percent for the year. The All T&T Index advanced by 0.20 points on the last day of the year to close at 1,993.72 and gained 17.7 percent over the 1,694.27 at the close of 2012. The Cross Listed Index advanced by 0.05 points to close at 49.43 on Tuesday but was down 12 percent from the 56.33 at the end of 2012 closed.

2014 Up Market | The overall market seems poised to move higher in 2014 with the IC Insider Buy Rated list having several stocks that should trade much higher during the year.

Trading activity on the First Tier Market registered a volume of 161,914 shares valued at $3,369,575 as the price of 3 stocks advanced, while 1 declined and 5 remained firm.

First Citizens traded 3,915 shares to close at $40.25; Guardian Holdings traded 75,267 shares changing hands for a value of $1,053,738 and closed firm at $14; Neal & Massy Holdings, with a volume of 15,147 shares, traded for $908,987 and the price closed at $60.00; Jamaica Money Market Brokers traded unchanged at 51 cents and contributed 8,000 shares with a value of $4,080; National Enterprises added 5,800 shares valued at $101,790 and the price inched up a cent to $17.55; Sagicor Financial Corporation traded 2,713 shares as the price gained 6 cents to end the day at $7.25.

There was trading in 50,937 Clico Investment Fund’s shares valued at $1,119,945, the price advanced by 2 cents to end at $22.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with bids that were higher than the last selling prices versus only 1 stock with the offer that was lower.

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

JSE rejects Knutsford Express

December 31, 2013 by IC Insider.com

Investors in the latest IPO to hit the market Knutsford Express may have to wait awhile to see their shares listed on the junior market as the Jamaica Stock Exchange (JSE) this morning rejected the application to list only a few days after the sponsoring broker Proven Investments advised the stock exchange that the IPO was officially closed at 4:00 pm Friday, December 27, 2013 and that the offer has been fully subscribed. The company was trying to beat the December deadline in order to enjoy the ten years tax holiday.

The stock exchange deliberated for a long time on Monday but came to no decision as the company did not meet the minimum requirement of issued share capital of $50 million. The stock was included in the list of companies for trading at the end of Monday with the symbol KEX, but when trading started today, it was no longer in the list of tradable companies.

This is the first time in the stock exchange history that a company has gone to the public and raised the required sum as set out in the prospectus that the stock exchange has refused to approve the application. The development is black eye on the Jamaica Stock Exchange and the sponsoring broker. The stock exchange and the Financial Services Commission would have reviewed the prospectus and ought to have been aware of any deficiencies that could have derailed the listing before giving the approval.

It appears that the stock exchange could have sanction the go ahead for listing as Section 502 of the rules governing listing of junior market companies states:

An eligible company shall, for the purposes of its initial admission, issue participating voting shares by way of an initial public offering subject to a prospectus seeking a minimum subscription of new shares (or allotment of existing shares) of not less than J$50 million and not more than J$500 million only.

It appears that the company complies with this provision. The problem is that the issued value of the shares on its books after such issue would only amount to $25 million even as the equity of the company would be more than $100m.

Related Posts | Knutsford IPO gets in before door closes

Photo courtesy of Knutsford Express social media

Filed Under: Company News, General Business News, Initial Public Offers, JSE Main Market, Stock Market Tagged With: JSE Company, Knutsford Express

Scotiabank T&T making headway slowly

December 31, 2013 by IC Insider.com

Most banks in the English speaking Caribbean are facing challenging economic environment with slow growth and moderate increase in profits.

The stalemate in the Trinidad & Tobago economy has not left Scotiabank out of its reach. The bank is reporting net income after tax of $561 million for the year ended 31 October 2013, an increase of $15.6 million or 2.9% over the same period last year. The profit flowed from revenues of $1.389 billion in net income versus of $1.287 billion in 2012. Of note is the increase in income in the last quarter of $384 million or 16 percent over the $331 earned in 2012. The increased income came all from other income not net interest.

Profits after tax rose by 11 percent or a faster pace than the full year’s growth and may be an indication that the pace of growing profits may well be picking up. However, the pace is so low that a clearer picture may have to await the first quarter results. There was no growth in the main income generator of lending with loans standing at $10.576 billion at the end of the year compared to $10.45 as of July but from $9.96 billion at the end of October 2012. Total Assets ended the period at $19.5 billion, representing growth of 10.2% or $1.8 billion over the comparative period in 2012.

“Conditions in the domestic economy remain challenging, with continuing margin compression due to persistently low interest rates and high liquidity. It is against this backdrop that the Bank continues to focus on growing income through building and maintaining strong customer relationships and diversification of its revenue base through the launch of new products and services. Our strategies to manage credit quality and recoveries continue to bear fruit as evidenced by the reduction in credit losses year over year. Finally, we continue to manage expenses while ensuring we invest in our brand, people and infrastructure” management reported to shareholders.

On the basis of the results, Directors resolved that the Bank pay a fourth interim dividend of 40 cents per ordinary share and a special dividend of 30 cents (32 cents in 2012, plus a special dividend of 28 cents) on 7 January 2014 to shareholders on record at 9 December 2013.

Filed Under: Company News, Company Results Tagged With: Scotia, TTSE

FX: Big trading day greets week

December 30, 2013 by IC Insider.com

Monday, 3oth December 2013 | The first day of the last week of the year enjoyed a big day of forex trading with a total of the equivalent of US$56,567,718 purchased while selling accounted for the equivalent of US$44,805,418.

The purchasing of the United States currency amounted to US$49,217,733 as the rate moved up 29 cents to $105.67 and selling of US$41,565,468 as the rate inched down 6 cents, to $106.32. Trading of Canadian dollars amounted to purchases of C$2,468,790 as the rate declined by 36 cents to $97.38; there was selling of C$1,391,396 with the rate dropping $1.25 to $99.38. Purchasing of the British Pound was £2,914,703 with rate down by 29 cents to $172.21 and £917,667 was sold and the rate moving up 64 cents to $175.27.

Highs & Lows | The US dollar highest and lowest buying and highest selling rates remained unchanged at $107.00, $86.01 and $110.21 respectfully, while the lowest selling rate dropped $16.39 to $86.01.

The highest buying rate for the Canadian dollar increased by 60 cents to $101.50, the lowest buying rate remained unchanged at $79.43 while the highest selling rate increased 50 cents to $103.00 and the lowest moved up 30 cents to $96.00.

The highest buying rate for the British Pound remained unchanged at $176.30 but the lowest fell 21 cents to $138.61, the highest selling rate fell 26 cents to $178.49 and the lowest jumped $19.60 to $167.00.

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

JSE: NCB trades 27m units for $475m

December 30, 2013 by IC Insider.com

Monday, 30th December 2013 | The penultimate day of JSE trading for the year saw 29,063,554 shares changing hands with a value of $486,844,554 as 7 stocks recorded price gains to 5 that declined. National Commercial Bank dominated trading with 27,122,196 units as the price closed at $17 with a total value of $474,632,832.

The junior market index declined by 7.03 to close at 768.06. The all Jamaica index ended at 79,788.72, gaining 431.32 and the main market index finished at 79,447.88, up 248.10.

Main Market | In the main market, trading took place in Cable & Wireless with 210,000 shares to close firm at 16 cents; Caribbean Cement 133,880 shares with the price closing up 20 cents at $3.50; Carreras 12,865 units to close firm at $36; Grace Kennedy 5,645 units closing down $3.75 at $55; Jamaica Money Market Brokers 497,752 shares at $7.50; Sagicor Group 20,428 units to close at $8.40 up 30 cents; Scotia Group 86,673 units at $19.27 for a gain of 21 cents; Proven Investments 288,050 shares at 13 US cents,

In the preference sector Jamaica Money Market Brokers 7.50% traded 74,000 units at $2 and the 8.75% exchanged 32,370 shares at $3.

Junior Market | Derrimon Trading exchanged 27,400 units at $2.45; General Accident Insurance traded 74,000 units at $1.62; Lasco Manufacturing 208,060 units at $1.30 and Medical Disposables & Supplies 237,069 shares at $2.25 up 7 cents, a new high.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 8 stocks with bids higher than the last selling prices versus only 1 stock with an offer that was lower.

Image courtesy of watcharakun/FreeDigitalPhotos.net

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

TTSE: Moderate price changes

December 30, 2013 by IC Insider.com

Monday, 30th December 2013 | Overall market activity on the T&T Stock Exchange resulted from trading in 12 securities of which 3 advanced, 1 declined and 8 traded firm.

The Composite Index advanced by 0.17 points to close at 1,184.76, the All T&T Index advanced by 0.02 points to close at 1,993.52 and the Cross Listed Index advanced by 0.04 points to close at 49.38. Trading activity saw 366,230 shares changing hands valued at $3,384,914.

First Citizens Bank added 27,383 shares valued at $1,102,185 and closed at $40.24; Guardian Holdings contributed 34,733 shares with a value of $486,262, with the closing price of $14; Jamaica Money Market Brokers saw 237,601 shares changing hands for a value of $121,177 as the price closed at 51 cents; National Flour Mills traded 6,000 units and fell 2 cents to close at 95 cents; Republic Bank stock price gained 2 cents to close at $115.84 while trading 10,370 shares with a value of $1,201,260; Sagicor Financial Corporation traded 43,174 shares for $310,421 as the price closed firm at $7.19.

Clico Investment Fund had a volume of 5,878 shares valued at $129,180 and advanced by 5 cents to end at $21.98.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than the last selling prices versus only 1 stock with an offer that was lower.

Image courtesy of StuartMiles/FreeDigitalPhotos.net

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

FCIB gets punched

December 30, 2013 by IC Insider.com

For the fiscal year ending October 2013, First Caribbean International Bank generated $530 million in revenue, down from $543 million in 2012 but reported lousy net results of a loss for the year of $27.5 million compared with a profit of $72 million in the prior year.

The Bank would have generated $29.6 million of net income for the year but results were affected by a number of factors. Of note they incurred $37.6 million ($35.5 million after-tax) of restructuring expenses and an increase in the collective allowance for loan losses of $25 million ($21.6 million after-tax). The bank took a $151 million loan loss hit, an increase from $120 million in 2012. The 2013 write off is 2.4 percent of the net loan of $6.3 billion with loans falling from $6.8 billion in 2012.

FCIB saw operating expenses going in the opposite direction to income as expenses grew from $348 million in 2012 to $403 million but the 2013 amount would include the restructuring cost mentioned above.

Total assets also declined to $11.4 billion from $11.5 billion in 2012. Customers’ deposits remained at $9.6 billion, roughly the same as the year before. (All figures are in US dollars).

The bank, in its report to shareholders, states that “Many of the economies in which we operate rely heavily on tourism and foreign direct investments. The overhang from the economic crisis continues to impede growth and by extension has negatively affected our results. Loan loss provisions this quarter were higher than normal and include an increase in the collective allowance. The Bank is focused on pursuing risk-controlled growth and has taken considerable steps during the year toward the goal of becoming a lower risk bank. While never easy in these difficult times, we have also taken the decision to right size the organization, to redefine how we operate and to address our cost structure. The restructuring we are undertaking will position us for future cost savings and give us the ability to serve our customers better. As we continue to pursue our strategic priorities, our Bank has recorded some significant successes this year. We have introduced new and relevant products to better serve our clients and continue to leverage the capabilities of our parent and majority shareholder, CIBC.

Our focus on addressing operational and administrative concerns has also led to improvements in the client experience”.

“Our Wholesale Banking segment has recorded significant strides in client service delivery. During 2013, we have significantly removed operational and administrative activities away from the front-line personnel to ensure Corporate Managers and Client Service Officers allocate more time to work and interact with, and provide solutions to clients. We have also streamlined and strengthened our credit adjudication processes to further enhance efficiency. In our Retail and Business Banking segment we have invested heavily in developing a series of products and services to enhance our customer experience”.

The bank states that, “We have also continued our investment in upgrading our branches and network of Instant Teller machines. Focusing on customer experience, we have expedited our account opening times through an innovative continuous improvement process. In the Wealth Management segment we have leveraged the strong Axiom Mutual Funds capability in our parent and majority shareholder, CIBC, to manufacture a Caribbean based version of these funds suitable for international investors who have funds and wealth managed through the Caribbean. We have also strengthened our capability to service our Wealth Management clients with the integration into our bank of the CIBC Bank & Trust business, located in the Cayman Islands and the Bahamas, further widening the scope of clients we can assist and the range of services we can provide”.

A final dividend for the year of $0.015 per share was declared. With some of the cost not likely to recur and reduction in others flowing from the restructuring, profits should pick up in 2014 if the asset base can be held and no more major loan write down.