Archives for May 2014

J$ slips vs the US

May 28, 2014 by

Trading on the forex market on Wednesday saw a fall from Tuesday’s level as dealers bought the equivalent of US$36,191,438 compared to US$56,613,960 on Tuesday and sold the equivalent of only US$39,497,951 versus US$50,084,398 on Tuesday. Trading activity lead to the local currency losing ground against the US dollar but remained mixed against the Canadian dollar and the Pound Sterling.

Dealers bought US$30,528,721 compared to US$48,291,916 bought on Tuesday as the buying rate for the US dollar rose by 2 cents to $110.72 and sold US$36,248,389 versus US$42,234,288 on Tuesday with the rate closing 12 cents lower to $111.26. The Canadian dollar buying rate fell by 81 cents to end at $101.08 with dealers buying C$1,567,082 and selling C$1,870,817 with the rate rising by 35 cents to end at $102.87. The Pound closed at $185.61 for the purchase of £2,198,845 with the rate increasing by 60 cents while £857,183 was sold with the rate rising by $1.47 cents to $185.85. Other currencies bought amounted to the equivalent of US$545,898 while selling accounted for the equivalent of only $88,005.

Highs & Lows| The highest buying, the lowest buying and the highest selling rates for the US dollar remained unchanged at $111.50, $90.18 and $115.56 respectively but the lowest selling rate fell by $1.41 to $90.18

The highest buying rate for the Canadian dollar lost 10 cents to $102.45, the lowest buying rate ended up by 29 cents to $80.72. The highest selling rate eased by 5 cents to $104.34 and the lowest selling rate increased by 5 cents to $97.30.

The highest buying rate for the Pound rose 40 cents to $187.90 while the lowest buying rate fell by 29 cents to $148.90. The highest selling rate declined by $2.59 to $189.74 while the lowest selling rate fell 35 cents to $179.40.

Filed Under: FX Market

More pension realignment sales

May 27, 2014 by

Prices slipped further In Tuesday’s trading on the Jamaica Stock Exchange as Scotia Investments as broker sold most of the major stocks that fell in price as the prices of only 5 stocks rose and 14 declined as 26 securities traded resulting in 16,284,114 shares trading valued at $156,443,054 and with two stocks hitting 52 weeks lows.
JSE 27-5-14Main Market| 10 companies in the main market declined as the indices moved down sharply for yet another day as the pension fund realignment sales continued into Tuesday and the JSE Market Index fell by 1,078.83 points to 70,277.02 and the JSE All Jamaican Composite index dropped 1,206.33 points to close at 77,290.67, the lowest since the index closed at 77,377.08 on 18th of December last year. IC Insider gathers that the sales relating to the realignments exercise ended with the close of trading.
Gains| Stocks recording gains at the end of trading in the main market are Jamaica Broilers trading 9,499 shares to close with a gain of 5 cents at $4.75, National Commercial Bank gained $1 to close at $18 while 565,930 units changing hands as the vast majority of the shares traded at $17, Pan Jamaican Investment traded 338,806 shares to end 15 cents higher at $48.20 and Supreme Ventures had just 1,000 shares changing hands to close up by a cent at $2.01.
Firm| There were only 4 stocks in the main market to close without a change in price with Berger Paints trading only 300 units to close at $1.67, Jamaica Money Market Brokers trading 13,453 stock units to close at $7.10, Kingston Wharves 5,018 shares to close at $5 and Radio Jamaica with a mere 126 units to close at$1.29.
Declines| The number of stocks that declined in the main market are Cable & Wireless with 300,846 shares closing at 30 cents after the company reported a loss for the 12 months to March of $3.5 billion from $18.4 billion in revenues, the loss includes a staff separation cost of $1.5 billion. Carreras traded 148,816 shares as the price closed by shedding $1.76 to end at $33.50, Desnoes & Geddes 676 shares closing 20 cents lower at $4.30, Grace Kennedy closed with a $1.50 loss while trading 20,915 shares in closing at $53.50, a new 52 weeks low, Kingston Properties traded 32,835 units and closed at $3.50 as the price slipped 50 cents, to end at a 52 weeks slow, Sagicor Group saw 13,546,391 units going through the market with the price closing down 25 cents at $8.75, Sagicor Real Estate Fund lost 10 cents in trading 77,940 units and closed at $6.50 followed by Scotia Group with 97,720 shares to close off 30 cents at $19, Scotia Investments 25,000 units resulted in a close at $23 for a 10 cents fall and Seprod had a mere 211 units changing hands and closed at $10.80 for a decline of 20 cents.
Junior Market| The JSE Junior Market Index declined by 22.33 points to close at 708.64 as 8 stocks traded with one advancing and 4 declining.
Gains| Caribbean Cream was the sole junior market stock to record a gain at the end of trading with 1,400 units changing hands to close up by 4 cents at 74 cents.
Firm Trades| 3 stocks in the junior market that traded to close at the same price as the day before with Dolphin Cove trading 3,000 units to end at $8.10, Medical Disposables traded 800,000 units to close at $2 and Lasco Distributors 50,610 units to close at $1.40.
Declines| Stocks declining in the junior market at the end of trading are Blue Power with 11,122 shares in closing at $9.01 for a 9 cents fall, Caribbean Producers 25,000 units to close 10 cents lower at $2.65, Jamaican Teas 100,000 shares to close with a cent shaved off the price at $3.49 and Lasco Manufacturing 107,500 stock units to end 12 cents lower at $1.
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.

Filed Under: JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , ,

C&W Q4 income up 14%

May 27, 2014 by

cable&wireless280x150Cable & Wireless reported a loss for the 12 months to March of $3.5 billion from $18.4 billion in revenues, down from revenues of $19 billion in 2013 but the most important news hidden in the figures is a 14 percent increase in revenues in the March quarter compared with the 2013 same quarter. This is the first major increase since the June 2012 quarter versus the 2011 period when revenues hit $4.8 billion. This year’s quarterly increase is only the third such, since calendar year 2010 and is critical when assessing the companies immediate future prospects. The loss reported by the company includes a staff separation cost of $1.5 billion, without this the loss for the year would be $1.9 billion, still large but with the growth in revenues as reflected in the March quarter losses from ongoing operations looks to be headed for oblivion sooner than later. In all likelihood Cable & Wireless should enjoy a profit from ongoing operations in the current year that should flow form cost savings and increased revenues.
The reduction in revenue for the full year flowed from a change in the manner directory income is accounted for with the company moving from the booking of revenues and cost associated with its publication to one in which it only books a franchise income. In addition, the reduction in interconnection rates resulted in lower income charged to customers for termination on other networks resulting in less gross income being booked per minute particularly on landlines calls.
C&W increased the rates for monthly rental charge and business internet services effective at the beginning of April with increases ranging from 12.5 percent for the business flat rate voice plan to 2.44 percent for business internet premier extreme, the simple average increase being 5.85 percent. The growth in revenue experienced for the March quarter which should carry over into succeeding quarters and the increase rates effected in April coupled with the likely cut in cost to flow from the staff restructuring should see the company enjoying improving bottom line numbers going forward. The gains in revenues should see revenues in the $20 billion per annum mark again during the current fiscal year and it should get even better as they now move aggressively to continue to grow the mobile base from the 705,000 as of the end of March to a much higher level, with that, revenues should continue to climb moving net results from the red to black in the not too distant future.
On the negatice side interest cost should rise as local interest rates increase over that of 2014 fiscal year with most of the funding incurring interest at government of Jamaica Treasury bill rates which has risen in recent months over that of last year.
IC Insider still holds the stock as BUY RATED.

Filed Under: Company News, Company Results, JSE Main Market

Portfolio adjustment pressure prices

May 26, 2014 by
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A realignment of pension portfolio following the merger of Sagicor Investments with Sagicor Group In placed pressure on the prices of some stocks as the pension fund disposed of shares to bring the portfolio in line with the pension requirement. The realignment was not completed at the end of trading IC Insider sources advised.
JSE 26-5-14sumIn trading on the Jamaica Stock Exchange the prices of a mere 3 stocks rose and 10 declined as 23 securities traded resulting in 8,747,969 shares trading valued at $91,511,864.
Main Market| Only 2 companies in the main market rose and 8 declined as the indices lost altitude for yet another day with the JSE Market Index inching fell by 925.16 points to 71,355.85 and the JSE All Jamaican Composite index erased 1,034.48 points to close at 78,497, this is the lower the index has reached since December 20 last year went it closed at 78,575.66.
Gains| Stocks recording gains at the end of trading in the main market are Barita Investments with 3,780 shares to close with a gain of a cent to end at $2.30 followed by Seprod with 98,565 units changing hands as the price closed with a 20 cents gain at $11.
Firm| There were only 5 stocks in the main market to close without a change in price with Berger Paints trading 65,394 shares as the price closed at $1.67, Grace Kennedy with 56,859 units and closed at $55, Jamaica Money Market Brokers 8.75% preference share 128,400 units to close at $3.03, Kingston Wharves 5,000 shares to close at $5 and Mayberry Investments with 66,992 units in closing at $1.71.
Declines| The number of stocks that declined in the main market are Cable & Wireless 62,277 shares while losing 4 cents to close at 35 cents, Carreras traded 1,329 units at $35.26 while losing 54 cents, Hardware & Lumber 20,000 shares to close down 20 cents at $10, Jamaica Broilers 1,486,786 units in closing at $4.70 for a 5 cents fall, National Commercial Bank 2,614,665 units to close down 56 cents at $17, Sagicor Group 3,508,391 as the price lost 30 cents to end at $9, Scotia Group with 95,460 shares with the price closing down by 30 cents at $19.30 and Scotia Investments 28,235 units to close at $23.10 with a 40 cents fall.
Junior Market| The JSE Junior Market Index declined by 0.74 points to close at 730.97 as 8 stocks traded with 1 advancing and 2 declining.
Gains| The only stock recording gain at the end of trading in the junior market is General Accident with 10,000 units to close at $1.50 with a 2 cents rise.
Firm Trades| 5 stocks in the junior market stocks that traded to close at the same price as the day before with Caribbean Producers exchanging 540 shares to close at $2.75, Consolidated Bakeries 301,953 shares to end at 80 cents, Knutsford Express Services 37,868 shares at $5.16, Lasco Financial Services 2,500 units to close at $1.15 and Paramount Trading 2,575 units to close at $2.68.
Declines| Stocks declining in the junior market at the end of trading are Caribbean Cream traded 100,000 units to close at 70 cents with a 3 cents fall and Lasco Manufacturing with 50,400 units lost 2 cents to close at $1.12.
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 6 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , ,

BOJ intervention squeezes buying

May 26, 2014 by

bOJ building #4Trading on the forex market did not match or come close to the levels of funds traded in the market on Thursday last week, the last day of the holiday shortened week. For Monday, dealers bought the equivalent of US$25,375,062 compared to US$72,581,952 on Thursday and sold the equivalent of only US$22,862,624 versus US$71,142,957 last week Thursday. In spite of the lower purchases all the spot rates fell against the local currency except for a one cent rise in the selling rate for the Canadian dollar.  “Bank of Jamaica intervened in the market last week Thursday selling dealers all the forex funds they needed” IC Insider source indicated as to the reason for the big increase in trading on that day. The big amount bought on Thursday may be the reason why buying on Monday after the holiday was so low. The purchase on Monday was in contrast to nearly US$45 million bought on the previous Monday as well as the week before.

Dealers bought US$20,649,053 compared to US$68,621,498 bought on Thursday as the buying rate for the US dollar declined by 76 cents to $110.15 and sold US$19,573,771 versus US$67,344,895 on Thursday with the rate closing 2 cents lower to $111.17. The Canadian dollar buying rate fell 2 cents to end at $100.40 with dealers buying C$1,928,329 and selling C$1,600,232 with the rate rising by a cent to end at $101.97. The Pound closed at $184.25 for the purchase of £1,651,343 with the rate declining by 91 cents while £908,165 was sold with the rate declining by 87 cents to $186.96. Other currencies bought amounted to the equivalent of US$206,180 while selling accounted for the equivalent of $293,819.

Highs & Lows| The highest and the lowest buying rates for the US dollar and the highest selling rate remained unchanged at $111.70, $90.18 and $115.56 respectively but the lowest selling rate fell by $2.14 to $90.18.

The highest buying rate for the Canadian dollar lost 30 cents to $102.30, the lowest buying rate was unchanged at $80.43. The highest selling rate rose by 50 cents to $104.29 and the lowest selling rate fell $2.10 to $96.90.

The highest buying rate for the Pound fell 10 cents to $187.40 while the lowest buying rate rose by 29 cents to $149.44. The highest selling rate declined by 27 cents to $192.65 while the lowest selling rate fell $3.20 to $180.05.

Filed Under: Feature Stories, FX Market

Dolphin boost Profit 26% – Buy Rated

May 25, 2014 by

dolphin150X150In a period when many junior market companies reported lower profits, the entertainment company Dolphin Cove enjoyed a robust 26 percent increase in profit in the first quarter of 2014 with profits after tax rising to $148 million an increase of $33 million compared to the 2013 March quarter from an 11 percent increase in revenues to $436 million over the 2013 first quarter amount of $394 million. While overall revenues climbed 11 percent it was the attractions that delivered increases with an 18 percent gain as the other main income source was flat with earnings of $149 million in both the 2013 and 2014 periods. Management indicated that their investment in sales and marketing helped to produce the favourable results. The revenue gains took place in the period that did not include the Easter holiday which fell in April this year compared with March last year.
Operating expenses for the quarter was held to 8 above the prior year although there was increased Expenses in sales and marketing and devaluation of the Jamaican dollar. There was a reduction in the direct cost of dolphin attractions due to savings in the rental costs as a result of the purchase of seven previously rented dolphins, offset by additional depreciation and interest cost.
The company would have benefited from the fall in the value of the local currency as its income is denominated in United States dollars but much of its cost is ion Jamaican dollars. But the end in not yet in sight for the fall of the local currency as the country will enter the low inflows and high demand period starting in September, Dolphin stands to further benefit from this movement with income increasing and local cost kept under control.
The company’s income is substantially reliant on developments in the tourism sector as it get the bulk of its income from overseas visitors.
IC Insider’s forecast for earnings is $1.20 per share for the current year which end in December, last year the company earned 82 cents and paid out almost 50 percent of profit as dividends.
Equity stood at $1.44 billion at the end of March with borrowed funds at only $316 million.
The company owns properties in the Turks & Caicos Island and St Lucia where it intends to operate its attractions when implemented and fully operational these should add to revenues and profit down the road.

Filed Under: Company News, Company Results, JSE Main Market, Stock Market, Stocks to watch

CI 4G LTE network complete

May 25, 2014 by

Cable & Wireless Communications’ business in the Cayman Islands, which trades as Cable & Wireless Cayman, has completed the roll-out of its new 4G LTE network. This has resulted in higher capacity, and enhanced mobile data services.
The increased capacity has enabled new and better services to the Cayman customers such as video streaming, interactive TV and advanced games. Cable & Wireless Cayman customers in the Cayman Islands can now enjoy download speeds over five times faster than were available previously. This will enable Cable & Wireless Cayman customers to download a music track in three seconds or a film in 40 seconds.
A 4G LTE mobile data service will also complement users of the latest smartphones like the iPhone 5, which Cable & Wireless Cayman has the exclusive rights to provide in the Caribbean.
Since the upgrade took place, average data traffic on Cable & Wireless Cayman’s mobile network has increased by 68 times. Over the last 18 months there has been a significant increase in video, streamed TV and social networking usage.
The solution included the deployment of a new Evolved Packet Core (EPC) and new HSS (Home Subscriber Server), as well as new radio base stations for 4G/LTE.
Cable & Wireless Antigua & Barbuda, plans to launch fourth generation Long term Evolution (4G LTE) mobile data services having been awarded radio spectrum.
The new 4G LTE services will improve the mobile data services available to their customers. The speeds at which customers will be able to download online services and applications will increase by more than 50 times. Customers will be able to surf the web and stream music and video wherever they are, on any compatible mobile device.

Filed Under: Company News, General Business News

Sagicor Group shares purchase

May 23, 2014 by

Sagicor Group advised the Jamaica Stock Exchange that an Executive purchased 1,061,291 shares under the Executive Long Term Incentive Scheme on May 22, 2014
A senior manager purchased 254,705 National Commercial Bank shares on May 9, 2014 and a director purchased 10,000 shares on April 25, 2014, the bank advised the Jamaica Stock Exchange while the exchange was also advised that a director purchased 574,651 Jamaica Broilers Group shares on March 28, 2014.

Filed Under: Company News, General Business News, Insider Trades

Declines more than gains

May 22, 2014 by

In Thursday’s trading on the Jamaica Stock Exchange the prices of 4 stocks rose, 6 declined and 14 traded remained unchanged as 24 securities traded resulting in 13,949,574 shares trading valued at $90,497,198.
JSE 22-5-14Main Market| 4 companies in the main market advanced and 3 declined as the indices lost ground with the JSE Market Index inching fell by 571.31 points to 72,281.01 and the JSE All Jamaican Composite index lost 638.83 points to close at 79,531.48.
Gains| Stocks recording gains at the end of trading in the main market are Cable & Wireless trading 300,000 shares to close with a gain of 5 cents at 39, Jamaica Broilers 4,019,136 shares valued at $18,899,952 and closed 5 cents higher at $4.75, Scotia Group gained 2 cents to close at $19.60 with 139,656 shares changing hands and Seprod with only 1,000 units to close up 5 cents at $10.80.
Firm| There were 8 stocks in the main market to close without a change in price Berger Paints with 3,480 shares units in closing at $1.67, Caribbean Cement 1,133 shares with the price closing at $3, Carreras with 6,295 shares to close at $35.80, Jamaica Money Market Brokers 7.50% preference share, 347,829 units in closing at $2, Proven Investments 300 shares while closing at 18US cents, Radio Jamaica 7,025 units in closing at $1.29, Scotia Investments 665 shares to close at $23.50 and Supreme Ventures 45,900 units in closing at $2.
Declines| The number of stocks that declined in the main market are Jamaica Money Market Brokers with 167,634 shares to close at $7.10 while falling 11 cents, National Commercial Bank traded 38,099 units to end at $17.56 with 24 cents fall and Sagicor Group 5,351,670 units valued at $49,768,031 to close with a 20 cents fall to $9.30.
Junior Market| The JSE Junior Market Index declined by 4.79 points to close at 731.71 as 9 stocks traded with none advancing and 3 declining.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before are Access Financial with 3,005 shares to close at $12, Caribbean Cream 50,000 units in closing at 73 cents, Caribbean Flavours 1,936 shares with the price ending at $2.50, Caribbean Producers only 1,072 units in closing at $2.75, Knutsford Express with 3,019,025 shares valued at $15,577,980 to close at $5.16 and Lasco Distributors with 7,504 units in closing at $1.40.
Declines| Stocks declining in the junior market at the end of trading are Consolidated Bakeries 289,710 units to close at 80 cents for a new 52 weeks low as the price slipped by 10 cents, Lasco Financial with 43,000 units to end at $1.15 with a 10 cents decline and Lasco Manufacturing with 104,500 units to close a cent down at $1.14.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: , , , , , , , , , ,

US$72.6 million hits market

May 22, 2014 by

The Jamaican lost a small bit of ground against the US dollar on Thursday as US$72.6 million hit market with dealers buying the US dollars higher than on Wednesday and selling just less than the amount purchased for almost the same rate as the previous day. The Pound sterling rates were mixed as more pounds were purchased than sold but rates for the Canadian dollars rose even with more buying than selling. The market is closed on Friday for the Labour Day holiday.

Dealers bought US$68,621,498 compared to US$28,672,969 bought on Wednesday as the buying rate rose by 34 cents to $110.91 and they sold US$67,344,895 versus US$23,946,596 on Wednesday with the rate closing up a cent to $111.19.

The Canadian dollar buying rate rose 60 cents to end at $100.42 with dealers buying C$973,284 and selling C$885,222 with the rate rising by 44 cents to end at $101.96.

The Pound closed at $185.16 for the purchase of £1,333,514 with the rate declining by 83 cents while £1,298,352 was sold with the rate rising by 19 cents to $187.82.

Other currencies bought amounted to the equivalent of US$853,012 while selling accounted for the equivalent of $793,131.

Purchases of all currencies by dealers amounted to the equivalent of US$72,581,952 up from only US$33,892,702 on Wednesday and selling amounted to the equivalent of US$71,142,957 versus US$27,038,237 sold on Wednesday.

Highs & Lows| The highest buying rate for the US dollar fell 10 cents to $111.70 while the lowest buying rate at $90.18 and the highest selling rate at $115.56 remained unchanged but the lowest selling rate rose $2.14 to $92.32.

The highest buying rate for the Canadian dollar gained 60 cents to $102.60, the lowest buying rate fell 8 cents to $80.43. The highest selling rate declined by 27 cents to $103.79 and the lowest selling rate gained $2 to $99.

The highest buying rate for the Pound fell 80 cents to $187.50 while the lowest buying rate was unchanged at $149.15. The highest selling rate increased by $3.47 to $192.92 while the lowest selling rate was up $3.55 to $183.25.

Filed Under: FX Market