On Monday, the Jamaican dollar mostly rose against the three major currencies it normally trades against, in the foreign exchange market. Purchasing by dealers was slightly more than the funds they sold. At the close of trading, dealers bought the equivalent of US$44,621,458 and sold the equivalent of US$41,429,650, compared with US$40,251,301 they purchased and US$39,350,916 sold on Friday.
In US dollar trading , dealers bought US$40,585,146 compared to US$36,593,430 on Friday. The buying rate for the US dollar fell 20 cents to $119.25 and US$39,341,893 was sold versus US$37,420,311 on Friday, the selling rate fell 4 cents to $119.93.
The Canadian dollar buying rate fell 55 cents to end at $86.81 with dealers buying C$1,993,998 and selling C$752,076, at an average rate that dropped 54 cents to $88.15. The rate for buying the British Pound declined $1.90 to $177.01 for the purchase of £1,658,881, while £513,635 was sold, with the rate rising 61 cents to $179.81. At the end of trading, it took J$127.10 to purchase the Euro, a fall of 26 cents from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.66 for a rise of 25 cents from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$122,185 being bought, while US$764,928 was sold. Highs & Lows| On Monday, the highest buying rate for the US dollar rose 15 cents to $120.25 
while the lowest buying and the highest selling rates were unchanged at $98.66 and $126.42 respectively and the lowest selling rate jumped $1.94 to $100.60. The highest buying rate for the Canadian dollar fell 40 cents to end at $89.60, the lowest buying rate rose 58 cents to $71.38, the highest selling rate dipped 15 cents to $92.02 and the lowest selling rate eased by 30 cents to $84.50. The highest buying rate for the British Pound, declined by 60 cents to end at $180.40. The lowest buying rate fell gained 17 cents to $144.59, the highest selling rate jumped $3.24 to $187.50 and the lowest selling rate fell $1 to $173.
Archives for November 2015
J$ makes gains on Monday
Cayman could be lucrative for Grace
Grace Kennedy Money Services will be expanding operations into the Cayman Islands through GraceKennedy Money Services (Cayman) Limited (GKMS Cayman), a member of the GraceKennedy Group and authorized agent of Western Union, CEO Don Wehby announced recently.
With this new market, Grace Kennedy through its money services subsidiaries now represents Western Union in ten countries across the Caribbean, the other nine being . Jamaica, Trinidad and Tobago, Guyana, St. Vincent and the Grenadines, St. Kitts and Nevis, Antigua and Barbuda, Anguilla and Montserrat and the British Virgin Islands. The market should be quite lucrative for the Grace Kennedy group, as it is the fourth largest country from remittances into Jamaica with US$124 million entering the island from the tiny group of island, according to Bank of Jamaica data, but the market could be a challenging the going forward with concern about money laundering within the region.
Scotiabank will be partnering with Grace Kennedy and Western Union to deliver money transfer services to the residents of the Cayman Islands.
GKMS Cayman will initially have a total of four locations in Grand Cayman and one in Cayman Brac, all opening Monday to Saturday. “There is a vibrant community in the Cayman Islands and we look forward to not only welcoming our new customers into the GKMS family, but working with all stakeholders and contributing to the development of their communities,” Allen added.
It’s official, NCB to buy into Guardian
It is now official National Commercial Bank (NCB) will be acquiring nearly 30 percent of Guardian Holdings subject to regulatory approvals, making them the largest shareholder in the Trinidad based company that was previously controlled by Jamaica Mutual Life.
The announcement now confirms the ICInsider.com report earlier in the year of NCB’s strong interest in the insurance group of companies. The move is in keeping with IC Insiders’ earlier understanding that both NCB and Proven Investments were targeting approximately 36 percent of Guardian, with the targets being – Tenetic Limited block of 35.84 million which, amounts to 15.46 percent of the company and Arthur Lok Jack’s direct holding of 6.29 percent or 14.59 million units. Arthur Lok Jack’s is listed as having a beneficial interest in Tenetic. Royal Insurance Trinidad holds 22.33 million units or 9.63 percent and RBC Trust T&T controls 4.99 percent or 11.57 million shares. The release from the Guardian shareholders indicates that IFC, who recently bought into Group, is one of the sellers, with no mention of RBC.
The acquisition of Guardian would be a complete reversal, returning the company to its Jamaican roots. Guardian was once majority owned by Jamaica Mutual Life, who sold out their holdings sometime before they ran into problems in Jamaica and folded. The Jamaican entities consider the company to be clean, well run and considerably undervalued. Guardian last traded in Trinidad at TT$13.90.
Guardian is primarily a Life Insurance company but also owns a general insurance arm. NCB operates the well known OMNI Life Insurance Company. Part of the likely synergy in future would be a merger of general insurance companies that both entities own, with Omni to be sold to the Life Insurance arm, resulting in economies of scale. The possibility exists that an expanded general Insurance company could be listed on the stock exchanges within the Caribbean, thus spreading the risk associated therewith. Guardian’s profit attributable to equity shareholders for the nine months to September was $235 million, down from $286 million for 2014.
Net Income from Insurance Activities grew by $80 million to $533 million from $453 million in 2014, however. Investment activities generated net income of $527 million as against $629 million in 2014, a result significantly affected by the fair value losses of $66 million (2014 gains $27 million) that were occasioned by extreme market uncertainty during the month of September. IC Insider estimates that NCB could see profits rising around 40 cents per share for the 2016 financial year if the deal is finalized soon and on the assumption that the price is around the last traded price of the stock.
Caribbean Flavour(ing) future profits
“With the price of the stock, trading at $2.55 for a PE of just over 3 and 2.3 based on IC Insider’s forecast, (is) indicative of much upside potential,” was how Caribbean Flavours was assessed back in August this year, as the stock was elevated to the BUY RATED ranking after the company released its full year results to June.
In the June posting, IC Insider stated, “The company seems poised to hit earnings of 65 cents per share, for the June 2015 financial year, making it attractive for some short-term gains, with the current price of $2.09, at a PE ratio of 3 times earnings.”
Focusing on the end results of Caribbean Flavours & Fragrances for the year to June 2015 with increased profit of 22 percent over 2014 would lead one to look elsewhere, but that would be a big error. For while the nine months to March showed profit down marginally to $39 million from $40 million, profit for the March quarter was up 20 percent over March 2014 quarter, the June quarter increased by 143 percent to $18.77 million from just $7.6 million for June 2014.
The company followed up the improved results for the March and June quarters, with another quarter of strong performance to September, with a 51.3 percent increase in net profit to $20.36 million over the $13.46 million recorded for the similar period in 2014. The improved profit flowed from sales for the quarter jumping 38.20 percent to $87.46 million, compared to the $63.29 million recorded for the same period in 2014.
Caribbean Flavours’ produce with ingredients – the stock closed at a new high.
“The gross profit showed an increase of 28.91 percent moving from $25.487 million to $32.856 million as per our first quarter’s performance. The Company will continue to refine and improve our purchasing strategy in order to extract the necessary efficiencies and improve our cost of sales and gross profit.
The company continues to manage its administrative and general expenses within budget and compared to the 2014 quarter, there was only a 4.4 percent increase,” the report went on to state.
The future looks much brighter than the past year, for the company that manufactures and distributes flavours mainly for the beverage, baking and confectionery industries and also sells food colouring and fragrances. In responding to questions posed at the annual general meeting held on Wednesday 25 of November, directors indicated that the strong performance enjoyed in the September quarter continues into the December quarter.
“We have hardly scratched the surface of the potential market” Derrick Cotterell indicated, “we have moved into the Dominican Republic and Canada where there is much potential for growth and with renewed efforts and products the locally Jamaican market as well”. Cotterell stated that they have increased research into new products such as fragrances and this has opened up new opportunities for them. Trinidad, Cuba and Haiti are countries with potential for growth, they indicated but Haiti is said to be a difficult market to break into but they have contacts there that should make it possible. In addition to the focus on research and developments for new products and new customers the company said they were able to source some of its raw material more cheaply than before.
According to the company’s board, in their comments on the 2015 annual results “the economic environment has allowed the company to grow its revenues and profits by securing new markets for fragrances and increasing the volume of sales of flavours to existing and new customers in foreign markets. Based on the outlook for the coming year, it is expected that the company will continue to improve its profits whilst increasing its market share in the domestic and overseas markets”.
IC Insider projects profits for 2016 at $99 million or $1.10 per share with increased sales and improving profit margins and $1.50 for the 2017 fiscal year. Company is free of interest bearing debt and has net current assets of $221 million including cashfunds of $103 million.
Bulls retreat again from JSE – Monday
The Jamaica Stock Exchange main market suffered another day of losses in the indices on Monday. The market closed with a volume of 6,907,239 units valued at only $20,441,816 changing hands, in all market segments. Activity took place in 37 securities, leading to 11 rising and 12 declining with 3 stocks ending at 52 weeks’ closing high but with just 1 from the main market.
The JSE Market Index lost 451.99 points to 140,173.97, the all Jamaica Composite Index fell 505.12 points to end at 155,608.61 and the JSE combined index declined 315.54 points to end at 146,975.93.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 10 stocks with bids higher than their last selling prices and 3 with lower offers.
In trading, Berger Paints had 61,778 units trading at $3.60 for a gain of 45 cents, 
Cable and Wireless closed with 1,748,946 units changing hands at $1.60 after the price gained 8 cents, Caribbean Cement slipped 20 cents to end at $19, with 68,922 shares changing hands. It closed with a bid at $19.05 to buy 25,450 units, with bids at $19 to buy 26,411 units and 10,000 shares at $16.55, on offer are 4,000 at $19.99, beyond this, are 11,500 units at $20 and 150,000 units at $20.44. Carreras rose 90 cents to close at $56 with 17,739 units trading. Ciboney gained 5 cents to close at a new 52 weeks’ high of 21 cents with 35,200 shares. Desnoes & Geddes ended with 14,723 shares trading at $30, Gleaner fell by 2 cents in trading 20,427 units at $1.93, Grace Kennedy traded with a loss of 44 cents to close at $75.06 with 36,734 shares, Jamaica Broilers lost 60 cents as it traded 189,334 shares to close at $8. Jamaica Stock Exchange traded 94,365 units to end at $13.45 with a gain of 30 cents, 
JMMB Group gained 7 cents while trading 11,071 shares to close at $10.18,Mayberry ended with 9,600 shares changing hands at $4.85 after rising 35 cents. National Commercial Bank closed with a loss of 25 cents as 62,323 shares changed hands to end at $35.75. After the market closed news broke that the banking group is to acquire nearly 30 percent of Guardian Holdings shares, from a group of shareholders, subject to regulatory approval. Radio Jamaica declined by 39 cents to end at $5.11 with 11,100 units changing hands. Sagicor Group fell 11 cents in trading 12,143 units to end at $16.54. Scotia Group had 6,023 shares changing hands and closed at $27, Supreme Ventures had 58,975 units changing hands at $4.80 and Jamaica Money Market Brokers 7.50% preference share traded 25,000 units with the price ending at $1.81.
Junior index up Monday but…
Caribbean Flavours’ produce with ingredients – the stock closed at a new high on Monday.
The signs are pointing to prices heading mostly higher, with a tight supply of stocks being dominant in this market. At the close, there was only 1 security ending with no bid to buy and 11 securities had no stocks being offered for sale. A total of 5 stocks closed with bids higher than the last traded prices and one closed with a lower offer.
In trading, C2W Music ended with 1,600 units changing hands at 38 cents, Caribbean Flavours gained 28 cents while trading 16,512 units to end at a 52 weeks’ high at $6.75, Caribbean Producers gained 10 cents, in trading 44,922 units to end at $5.80 for a 52 weeks’ closing high, Consolidated Bakeries ended trading with 30,192 shares at $1.30.
General Accident ended with 504,997 shares changing hands and closed at $1.99 after declining by 1 cent, KLE Group ended with 24,467 units with a gain of 5 cents at 75 cents, Knutsford Express traded 500 units at $9. Lasco Distributors closed with 622,630 shares changing hands, to end at $4.05, Lasco Financial ended at $2.95, with 76,650 shares changing hands after losing 5 cents. Lasco Manufacturing fell 3 cents to $3.68 with 163,003 shares trading and Derrimon Trading preference share ended with 400,000 units changing hands with a loss of 10 cents at $2.10.
Big jump in TCL bid price – Monday
Trinidad Cement closed with a bid at $4.61 to buy 69,626 units on Monday
At the close, the Composite Index ending with a fall of 1.35 points at 1,157.31 the
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.
Gains| Clico Investment Fund posted 42,154 shares valued at $956,066 and closed with a gain of 1 cents at $22.69, National Flour ended with 37,040 shares changing hands at $2.50, after rising 22 cents to a 52 weeks’ high and Sagicor Financial Corporation closed with 25,100 shares changing hands at $6.06 with a gain of 1 cent.
Declines| Agostini’s traded 1,010 shares as the price slid 20 cents to end at $18, a 52 weeks’ low,
National Commercial Bank lost 10 cents in trading 35,000 shares at $1.85 and Trinidad and Tobago NGL slipped 30 cents in trading, to close at $21.70 with 38,821 units valued at $ $844,535 changing hands.Firm Trades|, Berger Paints had 50 shares changing hands and ended at $3.67, First Citizens Bank traded 3,617 shares to close at $35, Grace Kennedy closed with 25,000 shares changing hands at $3.75, JMMB Group had just 400 shares changing hands at 50 cents and One Caribbean Media ended with 5,623 shares changing hands to close at $22.
Juniors up set to climb
In early trading on the Jamaica Stock Exchange, the junior market had a healthy gain in the index, lack of supply, could give a bid lift to prices in the upcoming sessions. After more than an hours trading, 11 junior market securities or 40 percent of listings, had no stock on offer, an indication that buyers in these stocks may need to move their buying prices higher to get the stocks they want.
Interesting trades, with 75 minutes having elapsed, are Cable & Wireless trading 501,500 units and last traded at $1.55 for a 3 cents gain from Friday’s last traded price, Ciboney Group with 28,200 units at a 52 weeks’ high of 19 cents, with a bid to buy 45,830 units at 21 cents, National Commercial Bank with a fall to $35.75 with 28,750 units, Caribbean Flavours at a new high of $6.75 with 16,512 shares trading and General Accident Insurance with 500,000 shares changing hands at $1.97.
At 10.45am, the all Jamaica Composite Index is up 72.22 points to 156,185.95, the JSE Market Index gained 64.62 points to 141,690.58, the JSE combined index rose 247.76 points to be at 147,539.23 and the junior market index rose 20.91 points to 1,646.92.
In trading, 26 securities have changed hands with a volume of 1,526,763 units as 9 stocks gained and 9 declined.
J$ slips against all on Friday
On Friday, the Jamaican dollar slipped against the three major currencies it usually trades against, in the foreign exchange market. Purchasing by dealers was just slightly more than the funds they sold. At the close of trading, dealers bought the equivalent of US$40,251,301 and sold the equivalent of US$39,350,916, compared with US$16,888,330 they purchased and US$24,496,549 sold on Thursday.
US dollar trading , dealers bought US$36,593,430 compared to US$14,549,371 on Thursday. The buying rate for the US dollar rose 51 cents to $119.45 
and US$37,420,311 was sold versus US$20,657,823 on Thursday, the selling rate rose 4 cents to $119.97. The Canadian dollar buying rate fell 3 cents to end at $87.36 with dealers buying C$1,562,984 and selling C$1,203,103, at an average rate that dropped 87 cents to $88.69. The rate for buying the British Pound jumped $1.75 to $178.91 for the purchase of £1,598,967, while £622,047 was sold, with the rate falling $1.36 to $179.20. At the end of trading, it took J$127.36 to purchase the Euro, a rise of 27 cents from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.41 for a fall of 15 cents from Thursday’s rate. The US dollar equivalent of other currencies traded, amounts to US$120,061 being bought, while US$111,998 was sold.
Highs & Lows| On Friday, the highest and lowest buying rates for the 
US dollar and the highest and the lowest selling rates were all unchanged at $120.10, $98.66, $126.42 and $98.66 respectively. The highest buying rate for the Canadian dollar fell $1 to end at $90, the lowest buying rate dipped 83 cents to $70.80, the highest selling rate rose 49 cents to $92.17 and the lowest selling rate was unchanged at $84.50. The highest buying rate for the British Pound, remained at $181. The lowest buying rate fell by 83 cents to $144.42, the highest selling rate dropped $2.99 to $184.26 and the lowest selling rate was unchanged at $174.
Bulls retreat on JSE – Friday
Carib Cement closed at a new 52 weeks’ high on Friday.
The JSE Market Index lost 480.67 points to 140,626.96, the all Jamaica Composite Index fell 537.18 points to end at 156,113.73 and the JSE combined index declined 149.43 points to end at 147,291.47.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 8 stocks with bids higher than their last selling prices and 7 with lower offers.
In trading, Cable and Wireless closed with 1,389,853 units changing hands at $1.52 after the price gained 9 cents, Caribbean Cement climbed 20 cents to end at a 52 weeks’ high of $19.20, with 75,115 shares changing hands, Carreras rose 90 cents to close at $56 with 13,048 units trading. Ciboney did not trade but had a bid to buy 125,000 units at 19 cents and just below, are bids between 16 cents and 18 cents to buy 2.38 million units. Desnoes & Geddes ended with 44,130 shares trading at $30, Gleaner traded 23,325 units at $1.95, Jamaica Broilers lost 60 cents as it traded 266,093 shares to close at $8. Jamaica Producers traded 18,661 shares to end at $31, JMMB Group lost 14 cents while trading 5,400 shares to close at $10.11. Kingston Wharves ended with 76,220 shares changing hands at $11.30 after losing 17 cents, 
National Commercial Bank closed with a loss of $1.19 as 105,766 shares changed hands to end at $36. Pan Jamaican Investments declined by $1 to end at $89 with 12,618 units changing hands. Pulse Investments traded 10,000 shares and ended at $2.50 after falling 50 cents, Sagicor Group fell 5 cents in trading 39,505 units to end at $16.65. Scotia Group had 19,600 shares changing hands and closed at $27, Supreme Ventures had 250,643 units changing hands but the price rose 10 cents to $4.80. Proven Investments ended at 22.9 US cents with 108,528 changing hands, Jamaica Money Market Brokers 7.50% preference share traded 75,000 units with the price ending at $1.80.
