Ghana stock market continues to recover from the decline the market suffered since peaking in February. For the week ending May 30, the market closed with the composite index at 2,319.12 with 8 stocks rising while 7 declined. For the previous week the composite index closed at 2,243.70 as the prices of 7 stocks climbed and 11 that declined. The financial services index closed the week at 2,033.20, up from 1,916.77 at the close of the prior week. During the week 3,235,500 shares were traded versus 10,128,018 in the week before. At the end of trading there were bids for 20 securities and offers for 31, an indication of weakness in the overall market.
Sic Insurance gained 6 percent to close at GH¢0.37 and Societe Generale Ghana was up 20 percent to GH¢0.83.
The big losers are African Champion Industries down 25 percent to close at GH¢0.03, Enterprise Group with a loss of GH¢0.17 to close at GH¢1.99 for an 8 percent decline, Produce Buying Company fell 13 percent to GH¢0.14.
Archives for May 2014
Jamaica stocks fall again
In Friday’s trading on the Jamaica Stock Exchange there were more prices declining than rising as 24 securities traded, 6 stocks rose and 10 declined resulting from 3,903,650 shares trading valued at $25,770,886.
Main Market| 5 companies in the main market advanced and 8 declined as the indices lost altitude with the JSE Market Index erasing 599.73 points to close at 70,257.92 and the JSE All Jamaican Composite index falling 670.61 points to close at 77,269.32.
Gains| Stocks recording gains at the end of trading in the main market are Carreras in exchanging 326,379 shares to close with a gain of 20 cents at $$34.20, Mayberry Investments with 4,280 shares changing hands, gained 5 cents to close at $1.70, Sagicor Group with 78,268 units changing hands, rose by 5 cents to end at $8.95, Sagicor Real Estate Fund had just 710 units changing hands at $6.70 for a 20 cents gain and Scotia Group with 102,134 shares closed at $19.60 with a 60 cents gain, minutes before trading ended.
Firm| There were only 5 stocks in the main market to close without a price change as Cable & Wireless with 122,189 shares changing hands closed at 28 cents, Gleaner traded 50,000 units and closed at $1.10, Jamaica Money Market Brokers traded only 2,700 shares in closing at $7, followed by Jamaica Money Market Brokers 7.50% preference share with 154,000 units to end at $2 and the Jamaica Money Market Brokers 8.75% preference share traded 141,925 shares to close at $3.03.
Declines| The number of stocks that declined in the main market are Barita Investments with 5,000 shares to close at $2.25 while losing 5 cents, Desnoes & Geddes 28,300 units to close at $4.25 with the price slipping by 20 cents, Grace Kennedy traded 69,030 to close a cent lower at $54, Jamaica Broilers 24,927 shares to close at $4.70 while losing 5 cents, Jamaica Producers traded only 2,700 units in closing at $18.25 with a fall of a cent, National Commercial Bank 159,772 shares to close at $17.45, down 5 cents, Scotia Investments had 44,161 shares changing hands to close at $23 falling back by the same amount it gained the previous day of $2.49 and Supreme Ventures 60,000 units in closing at $2 but fell by a cent.
Junior Market| The JSE Junior Market Index declined by 1.33 points to close at 721.71 as only 6 stocks traded with one advancing and 2 declining.
Gains| Lasco Manufacturing traded 2,429,994 shares to close at $1.12 and gained 2 cents as the only stock to record a gain in the junior market.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the previous trading day are Consolidated Bakeries which traded just 1,000 units to close at 80 cents, Jamaican Teas 15,839 shares as the price closed at $3.21 and Lasco Financial put through 14,400 units at $1.15.
Declines| Stocks declining in the junior market at the end of trading are Blue Power with 50,942 shares to close at $9.01 with 9 cents decline and Caribbean Producers 15,000 units to close down 10 cents at $2.65.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.
H&L profit up 310%
Profit after tax at Hardware & Lumber (H&L) was $40 million for the three months ending March this year, a 310 percent increase over the $10 million for the same period in 2013 resulting in earnings per share of 50 cents, compared to 12 cents for the comparative period in 2013. Return on equity based on the first quarter results is 13.6 percent, based on IC Insider’s projection of $434 million or $5.40 per share for profit after tax for 2014, the return on equity should hit a strong 31 percent.
Revenue| Sales for the 2014 quarter was $1.81 billion, 17 percent more than the $1.55 billion achieved in 2013. According to management in their report to Jamaica Stock Exchange” revenue in the ‘Household, Hardware and Building Products’ segment increased by 16.7 percent while the ‘Agricultural Products and Equipment’ segment recorded growth of 17.7 percent. All of our merchandise categories did well, led by the building supplies division which delivered significant revenue growth, albeit at lower margins. The overall improved performance was realized in both the wholesale and retail divisions of the business through the expansion of product assortment, improvements in availability and by working closer with our customers to better understand and supply their needs”.
Gross profit| H&L achieved $411.5 million in gross profit or a meagre one percent gain over the corresponding period in the prior year. “The average margins declined by 3.6 percent, due primarily to the sales mix and higher product costs. Total operating expenses were $376 million or 4.6 percent lower than the comparative period in the prior year. The company realized savings in pension and other retirement benefits costs from the changes to the benefits programmes implemented at the end of 2013. In addition, several categories of expenses including staff costs, utilities and repairs and maintenance expenses were reduced through ongoing process improvement and cost containment”
“Net current assets increased by 12.4 percent to $1.05 billion, caused mainly by increased inventory and accounts receivable balances. The value of inventory increased to $1,448.4 million, partly due to the higher cost of the United States dollar as well as a desire to maintain adequate inventory levels to ensure consistent product availability for our customers” management indicated.
At the end of March, cash was $313 million representing a decline of $45 million when compared to the balance at March, 2013, equity stood at $1.2 billion.
JPS profit climbs
Profit at the Jamaica Public Service Company jumped in the March 2014 quarter even as revenues fell. Profit came out at US$7 million from revenues of US$262.6 million versus only US$877,000 in the 2013 quarter from revenues of US$271.7 million in 2013. Gross profit amounted to US$69.8 million down marginally from US$70.6 million in 2013.
Expenses| Operating expenses fell 8 by percent to reach US$45.7 million and finance cost declined from $17.65 million down to $14.65 million. JPS provided $3.56 million for corporation tax on the profit of $10.7 million.
Shareholders equity stood at US$336 million at the end of March and loans at $366 million.
Remittance growth continues
Net remittances rose US$11 million or 7.8 percent in February this year over the similar period in 2013, ending at US$152 million. The growth in net remittance inflows reflected an increase in inflows and a contraction of outflows.
Gross inflows for the month amounted to US$168 million, an increase of US$8 million or 5.1 percent versus the corresponding month of 2013. The rise in total remittance inflows emanated from an increase of US$11 million in inflows through Remittance Companies. The increase in these flows was partly offset by a reduction of US$2.4 million in inflows from Other Remittances.
Net remittances for the two months to February this year was US$290 million, an increase of US$19 million or 7.0 per cent relative to 2013 and emanates from an increase in gross remittance inflows and a contraction in outflows.
For the review period, total remittance inflows amounted to US$327 million, an increase of US$12 million or 3.9 percent.
Carreras to pay $1.75
Carreras declared an interim dividend of $1.75 per stock unit to be paid on June 26 to stockholders on June 12, 2014. The X dividend date is June 10. The coming dividend brings the total payment for the 12 months to June this year to $6.55, providing a dividend yield from July last year to 12.4 percent. Since July last 2013, the value of the stock declined by 17 percent over the same period.
The company paid an interim dividend of $1.62 per share on March 13, 2014. Interim dividends of a dollar per share each were paid in August and November last year. A special capital cash distribution of $1.18 was also paid on January 30, this year. In June 20, 2013, an interim dividend of $1.30 per share and a special dividend of 94 cents per share were paid.
Jamaica Money Market Brokers (JMMB) declared a dividend of 17 cents per ordinary share payable to shareholders on record as at June 12 to be paid on June 26, 2014. The X dividend date is June 10. Last year a dividend of 10 per share was paid on March 28 and 16 cents per share was paid on December 18.
Mayberry Investments approved an ordinary dividend payment of 12 cents per share payable on June 18, 2014 to shareholders on record as at June 10, 2014. The X dividend date is June 6. The company paid a dividend of 12 cents per share on December 27, 2013.
Dolphin Cove declared an interim dividend of 15 cents per share, payable on Monday June 30, 2014 to shareholders on record at Thursday June 12, 2014 with the X dividend date being June 10. An interim dividend of $0.15 per share was last paid on April 9, on December 4, last year, 10 cents per share was paid, 10 cents per share on September 16, 10 cents per share on June 6 and 10 in March 28 last year.
Proven Investment will be paying a dividend of US$0.0020 per share to all ordinary shareholders on record on June 10, 2014 with the payment date of June 24, 2014. The X dividend date is June 6th. A dividend payment of $J0.10 was declared for preference shareholders with a record date of June 9 and payment date of June 23, 2014. X dividend date June 5th, 2014.
Honey Bun to consider Honey Bun directors will be meeting on June 2, 2014 to discuss dividend payment.
GSE advancing stocks just ahead
Societe Generale Ghana HQ – The stock gained 20% in the week
Ghana stock market continues to recover from the decline the market suffered since peaking in February. For the week, the market closed with the composite index at 2,319.12 with 8 stocks rising while 7 declined. For the previous week the composite index closed at 2,243.70 as the prices of 7 stocks climbed and 11 declined. The financial services index closed the week at 2,033.20 up from 1,916.77 at the close of the week before.
During the week 3,235,500 shares were traded versus 10,128,018 in the week before. At the end of trading there were bids for 20 securities and offers for 31, an indication of weakness in the overall market.
The stocks with the largest gains are, Sic Insurance that gained 6 percent to close at GH¢0.37 and Societe Generale Ghana up 20 percent, to GH¢0.83.
The big losers are African Champion Industries down 25 percent to close at GH¢0.03, Enterprise Group with a loss of GH¢0.17 to close at GH¢1.99 for an 8 percent decline, Produce Buying Company fell 13 percent to GH¢0.14.
Market records more gains
In Thursday’s trading on the Jamaica Stock Exchange the prices of 10 stocks rose, 5 declined as 25 securities traded resulting in only 1,688,152 shares changing hands valued at a mere $4,985,668.
Main Market| 6 companies in the main market recorded gains following yesterday’s moderate recovery, 4 declined with the indices recording moderate gains as the JSE Market Index rose 462 points to 70,857.65 and the JSE All Jamaican Composite index recovered 516.61 points to close at 77,939.93.
Gains| Stocks recording gains at the end of trading in the main market are Cable & Wireless with 230,108 units changing hands with a cent increase to close at 28 cents, Caribbean Cement 14,250 shares to close up by 34 cents at $2.85, Carreras 500 shares to close with a gain of 50 cents to $34, Desnoes & Geddes 100 shares to close at $4.45 with a 15 cents gain, Grace Kennedy with 6,600 units closed at $54.01, just a cent ahead of the previous day’s close and Scotia Investments 17,000 shares to close with an increase of $2.49 to end at $25.49.
Firm| There were only 5 stocks in the main market to close without a change in price with Jamaica Broilers trading 18,000 shares in closing at $4.75, Jamaica Money Market Brokers 25,000 units and closed at $7, Jamaica Money Market Brokers 7.50% preference share, traded 50,000 units and closed at $2 and the 8.75% preference share 152,194 units and closed at $3.03 as National Commercial Bank put in 32,397 units and closed at $17.50.
Declines| The number of stocks that declined in the main market are Jamaica Money Market Brokers 8.50% preference share with 10,000 units as the price closed with a loss of a cent to end at $3.50, followed by Mayberry Investments with 428,310 shares as the price closed at $1.65 with a 6 cents decline for a new 52 weeks low, Sagicor Group with 12,555 shares to close at $8.90 for a 10 cents drop and Scotia Group 37,016 units as the price ended at $19 with a fall of 30 cents.
Junior Market| The JSE Junior Market Index rose by 2.74 points to close at 723.04 as 10 stocks traded with 4 advancing and one declining.
Gains| Stocks recording gains at the end of trading in the junior market are Blue Power with 10,202 units to close at $9.10 with an increase of 9 cents, Caribbean Producers with 30,388 units changing hands to close at $2.75 for 10 cents gain, Lasco Financial 5,915 shares as the price rose 2 cents to end at $1.15 and Lasco Manufacturing with 313,059 units to close at $1.10 with a 5 cents gain.
Firm Trades| 5 stocks in the junior market traded to close at the same price as the day before with Cargo Handlers trading 4,227 units to close at$14.01, Derrimon Trading with 20,450 units to finish at $2.28, Dolphin Cove 1,500 shares to close at $8.50, Lasco Distributors exchanging 126,839 shares to close at $1.35 and Medical Disposables closing with 121,542 shares at $2.
Declines| Jamaican Teas with 20,000 shares changing hands while losing 28 cents as the price settled at $3.21 was the only stock declining in the junior market at the end of trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
BOJ flushing out US$ hoarded by banks
Banks held back from selling all the foreign exchange purchased from the public in past two weeks, forcing the country’s central bank to intervene on three occasions in an attempt to flush out the excess funds. Banks hoarded the equivalent of $12 million up to Wednesday last week and at the close of trading on Thursday after Bank of Jamaica intervened, the surplus climbed to US$13.5 million. On Monday and Tuesday this week, US$8 million was added to the surplus from last week putting it at near $22 million. Thursday’s intervention by the central bank saw a net selling of only US$3.3 million leaving $19 million to come back into the system. It may take a few more days of selling by the central bank and a determination by them to flush out the rest. The central bank have not only sold funds to the market, they have out a range of open market instruments in the market to pull out Jamaican dollars as well as to attract US dollars from those wanting to place surplus funds for 4 or 5 years to yield between 5 and 5.50 percent.
Trading on the forex market on saw a rise from Wednesday’s levels as dealers bought the equivalent of US$42,107,395 compared to US$36,191,438 on Wednesday and sold the equivalent of only US$50,291,235 versus US$39,497,951 on Wednesday. Trading activity lead to the local currency gaining ground against the US and Canadian dollars but remained mixed against the Pound Sterling.
Dealers bought US$38,312,075 compared to US$30,528,721 bought on Wednesday as the buying rate for the US dollar rose by 15 cents to $110.87 and sold US$46,530,185 versus US$36,248,389 on Wednesday with the rate closing 2 cents lower at $111.24. The Canadian dollar buying rate fell by 24 cents to end at $100.83 with dealers buying C$1,360,463 and selling C$1,162,573 with the rate falling by 86 cents to end at $102.01. The Pound closed at $184.36 for the purchase of £1,432,783 with the rate declining by $1.25 while £1,206,987 was sold with the rate rising by $2.62 cents to $188.48. Other currencies bought amounted to the equivalent of US$175,431 while selling accounted for the equivalent of $649,918.
Highs & Lows| The highest buying rate for the US dollar fell by 15 cents to end at $111.35 but the lowest buying and the highest selling rates remained unchanged at $90.18 and $115.56 respectively but the lowest selling rate rose by $1.43 to $91.61.
The highest buying rate for the Canadian dollar put on 55 cents to $103, the lowest buying rate ended unchanged at $80.72. The highest selling rate rose by 5 cents to $104.39 and the lowest selling rate increased by $1.60 to $98.90.
The highest buying rate for the Pound dropped $1.92 to $185.98 while the lowest buying rate fell by 66 cents to $148.24. The highest selling rate rose by $1.36 to $191.10 while the lowest selling rate gained $1.60 to $181.
Market enjoys small recovery
In today’s trading on the Jamaica Stock Exchange the prices of 6 stocks rose and 8 declined compared with to 5 advancing to 14 falling on the previous trading day. Overall 26 securities traded resulting in 6,005,633 shares trading valued at $34,810,227.
Main Market| 4 companies in the main market increased and 6 declined as the indices moved up marginally with the JSE Market Index inching up by 118.63 points to 70,395.65 and the JSE All Jamaican Composite index advanced by 132.65 points to close at 77,423.32.
Gains| Stocks recording gains at the end of trading in the main market are Grace Kennedy with 73,961 shares to close with a gain of 50 cents at $54, Kingston Wharves with 500 units changing hands and closed at $5.04 with a 4 cents gain, Sagicor Group with 12,380 shares in closing at $9 for a gain of 25 cents and Scotia Group 229,226 units to close at $19.30, up by 30 cents.
Firm| There were only 8 stocks in the main market to close without a change in price are Desnoes & Geddes 106,929 shares closing at $4.30, Gleaner with 1,000 units in closing at $1.10, Jamaica Money Market Brokers 8.75% preference share with 1,294,783 units in closing at $3.03, Kingston Properties 264,965 shares with the price closing at $3.50, Mayberry Investments 62,000 shares while closing at $1.71, Pan Jamaican Investment with 63,526 shares closing at $48.20, Sagicor Real Estate Fund 31,700 units to close at $6.50 and Supreme Ventures 51,000 shares as the price finished at $2.01.
Declines| The number of stocks that declined in the main market are Berger Paints with 117,000 units and closed at $1.66 for a one cent gain, Cable & Wireless 1,185,108 shares to close down 3 cents at 27 cents, Caribbean Cement 4,607 shares as the price dipped 49 cents in closing at $2.51, Jamaica Money Market Brokers with 2,112,342 units to close down 10 cents at $7, National Commercial Bank with 47,985 units to end with a 50 cents decline at $17.50 and Seprod with 72,214 units changing hands at 30 cents lower at $10.50.
Junior Market| The JSE Junior Market Index gained by 11.66 points to close at720.30 as 8 stocks traded with 2 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Dolphin Cove with 2,000 at $8.50 with a gain of 40 cents at the end and Lasco Manufacturing that traded 42,000 units to close at $1.05, up by 5 cents.
Firm Trades| 4 stocks in the junior market stocks that traded to close at the same price as the day before with Access Financial trading 5,000 units at $12, Caribbean Producers with 24,955 units at $2.65
General Accident Insurance 122,372 units at $1.50 and Medical Disposables 3,800 units at $2.
Declines| Stocks declining in the junior market at the end of trading are Lasco Distributors with 71,280 shares to close with a 5 cents fall to $1.35 and Lasco Financial with only 3,000 shares as the price closed at $1.13 and was off by 2 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
