The Junior Market of the Jamaica Stock Exchange traded up more than 129 points after midday on Tuesday.
The market index hit a new intraday record high of 3,261.11 points with Lasco Manufacturing trading at a new high of $6.25 with over 4 million shares trading and Lasco Distributors trading up to $7.30 with 569,000 shares. The Junior Market index has since slipped back to 3,212.92, up 81.29 for the day at 12:30 but the All Jamaica Composite index dropped 3,016.25 points to 248,857.65.
Archives for April 2017
Junior Market jumps sharply to new record
April T-Bill cacelled as GOJ cash surges
Regular issue of Treasury bills would normally be held by the 19th of April but none were offered this time around based on the absence of an announcement by the Central Bank of Jamaica.
When the last issue of Treasury bill closed on Friday, 15 March 2017, the Bank of Jamaica stated that applications for the next offer of Government of Jamaica Treasury Bills must be lodged at the Bank of Jamaica by 10:45 a.m. on Wednesday, 19 April 2017. Bank of Jamaica acting on behalf of the government would make an announcement of the date and amounts for the upcoming issue. The website of Bank of Jamaica carries information when the public is being offered news bills and the result of the issue, a check on the site throws no information on the April issue, with no announcement no explanation for cancelation of the issue.
At the end of February, data out of the Ministry of Finance showed a budgetary surplus of $17.5 billion in revenues above forecast and a cash deficit of $5.5 billion. With March projected to generate large net inflows of revenues over outflows, the central government would not need to borrow from the financial market. Inflows was projected at $72 billion and expenditure at $35 billion for March, if achieved would result in a surplus of $30 billion for the financial year.
TTSE ends with moderate trading
Trading levels on the Trinidad & Tobago Stock Exchange fell back on Monday resulted in 9 securities exchanged compared to 17 on Friday with lower volume and value than on Friday.
At the close, 2 stocks advanced, 3 declined and 4 were unchanged with just 50,550 shares changing hands valued at $1,371,638 compared to Friday’s 229,684 shares valued at $1,612,238.
The Composite Index gained 0.55 points to 1,233.85, the All T&T Index added 0.77 points to 1,803.10 and the Cross Listed Index gained 0.05 points to close at 89.18.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 10 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| Republic Financial Holdings gained 10 cents to close at $102 trading 120 units and Trinidad & Tobago NGL advanced 49 cents, closing at $22.49, with an exchange of 15,579 shares valued at $350,504.
Losses| Massy Holdings closed at $51.43, with a loss of 2 cents exchanging 369 shares, National Flour Mills lost 1 cent to close at $2.55 with 200 shares changing hands and Unilever Caribbean closed $1.25 lower to $57, with an exchange of just 100 units.
Firm Trades| Ansa McAL closed at $66.50 with 1,833 units changing owners, Clico Investments closed at $22.51 with trades of 400 shares, First Citizens closed at $32 trading 26,424 shares valued at $845,568 and JMMB Group exchanged 5,525 shares at $1.31.
Blue Power back in TOP stocks
In another shortened trading week on the Jamaica Stock Exchange, there was only one new entry to the TOP 10 listings. Lasco Distributors rose to $7.29 at the end of the week and was replaced by former top tenner Blue Power that remains a prime candidate for s stock split.
NCB Financial Group which IC Insider.com said last week was worth watching, hit an all-time high of $75 but did not hold at that level and ended the week at $65 as some supply come to the market. Berger Paints is another stock that IC Insider.com said was worth watching pulled back during the week to make it more attractive.
The average PE ratio of the Junior Market are currently at an average of 12 and the main market at 13 based on this year’s estimated. At the close of the week, IC Insider.com’s TOP 10 Junior Market stocks continue to trade at an average discount of just under 35 percent to the Junior Market average, those in the main market are trading at a 52 percent discount, to the average of the market, leaving several stocks with good room for growth for the rest of the year.
The coming week should be dominated by the release of 2017 second quarter results for NCB Financial Group and the announcement of a dividend payment. IC Insider.com projects an increase in the payment based on increased profits.
Overall, bid volumes for junior market stocks remained low excepting for Caribbean Cream, with 181,732 units on the bid at $7.50, Key Insurance with 72,023 units at $3.05, Jamaican Teas with 68,000 shares with a bid of $4.60, and the next highest being Lasco Financial with 22,352 units at $4. Offers are buoyant with 2.7 million units being offered for Eppley at $12, over 400,000 for C2W Music at 50 cents, 200,000 for Jamaican Teas at $4.99, Knutsford Express with a bid of $41 for 229,236 shares and 140,000 shares of Lasco Manufacturing at $6.
Brokerage house, Barita Investments ended the week with 90,004 units offered at $7.10 and only 100 units on the bid of $7, Berger Paints ended the week with an offer of 24,070 units at $14.15 while 3,850 units are on the bid at $13.52. Caribbean Cement continues to trade with a heavy sell bias notwithstanding evidence of increased building activity and that this year’s first quarter results could be out at any time to provide direction for the stock. The cement producer had a bid to buy 27,600 units at $31 and offers of 67,879 shares at $32. JMMB Group’s buying interest picked up his past week and now has a bid at $19 to buy 256,195 units with an offer to sell 50,000 shares at $19.50, NCB Financial Group closed the week with a bid to buy only 1,400 shares at $65, with 261,390 units on offer at $65. Pulse Investments has offers to sell 98,000 units at $8.05 with buying at $7 for 1,000 shares. Radio Jamaica bid is at $1.75 to buy 26,159 units with 85,791 units on offer at $1.79 while investment banker and Scotia Group’s subsidiary, Scotia Investments, closed the week with only 10,000 units on the bid to buy at $37.01 and ended with 4,180 units offered at $39.40.
Profit for C2W Music
Things seem to be looking up at financially challenged C2W Music. The company reports profit of US$42,573 for the 2016, a major improvement over the years of losses since it listed on the Junior Market of the Stock Exchange a few years ago. In 2015 the company lost US$18,510.
Profit arose from fees and royalties amounting to US$$40,569, up from US$7,048 in 2015 and other income of US$26,180 compared to US$14,476 in 2015. Operating and administrative expense declined to US$17,849 almost half of the US$33,693 incurred in 2015. Cost was cut in bad debts to zero from $3,517 in 2015, drop in depreciation and amortization from $8,759 to $423 and travel expenses was wiped out in 2016 compared to $6,577 in 2015 but development and song writing expenses added $13,275 versus a credit of $4,440 in 2015.
The company ended with cash at bank of US$42,728, up from $21,417 at the end of 2015. Shareholders’ equity moved up to US$67,114 from US$24,541, Current liabilities stood at US$190,062 versus US$173,012 in 2015, including loans of $89,312. Current assets are much less than liabilities with only US$44,140 in this category.
If the 2016 results is anything to go by, the stocks is worth watching but the company’s auditors, Baker Tilly Strachan Lafayette, in their report made a number of observation about the contents of the financial report, “We were unable to obtain sufficient appropriate audit evidence about the completeness of royalty income due to the inability of the external monitoring agencies to properly document the company’s repertoire of works with their current technological systems. Additionally, due to difficulties with the systems of performing rights societies in the region and the reporting by them to the company, we were unable to determine completeness of sub-publishing revenues. Accordingly, we were unable to determine whether any adjustments to the amounts recorded were necessary.”
“Further, the company derives a portion of its income from sponsorship which cannot be controlled until they are recorded in the accounting records and are, therefore, not susceptible to independent audit verification. Accordingly, we were unable to satisfy ourselves as to the completeness of the contributions recorded.”
“It has been established that the Performing Rights Societies of the Caribbean legally owes C2W Music publishing and sub-publishing, royalties for the years 2012, 2013, 2014, 2015 and 2016, and are working to rectify systems issues so such royalties could be identified and paid. In addition, the company has moved into a 360 all Rights revenue model which will increase revenues based on numerous other revenue streams other than music publishing revenue, which was previously the Company’s primary source of revenue. The expectations are that the company will generate adequate cash flows and profitability to allow the company to continue in operational existence in the foreseeable future. On this basis, the Directors have maintained the going concern assumption in the preparation of these financial statements.”
TTSE still consolidating
Trading volume picked up in trading on the Trinidad & Tobago Stock Exchange on Friday from Thursday’s low level but the value of stocks traded ended up just slightly lower as the number of securities rose.
Market activity resulted in 17 securities changing hands compared to 12 on Thursday with 5 stocks advancing, 2 declining and 10 holding firm. Trading closed with an exchange of 229,684 shares valued at $1,612,238 compared to Thursday’s 70,937 shares valued at $1,807,695.
The Composite Index gained 1.71 points to 1,233.30, the All T&T Index advanced 8.77 points to 1,802.33 and the Cross Listed Index lost 0.74 points to close at 89.13.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 10 stocks with bids higher than last selling prices and 6 with lower offers.
Gains| Angostura Holdings gained 10 cents to close at $15 exchanging 5,000 units, Clico Investment closed at $22.51, with a 1 cent gain, trading 1,000 units, Guardian Holdings closed at $15.45, gaining 45 cents with an exchange of 20,186 shares valued at $311,597. National Enterprises traded 49 cents higher to close at $10.50, with 1,038 shares changing hands and Readymix closed at $12.62, gaining 12 cents in the process with 600 units trading.
Losses| First Caribbean International Bank closed at $8.60, with a loss of 15 cents exchanging 11,851 shares and Sagicor Financial lost 10 cents to close at $9, with 10,494 shares changing owners.
Firm Trades| Ansa McAL closed at $66.50 trading 650 units, First Citizens traded 590 shares at $32, Grace Kennedy closed at $2.70 with trades of 135,978 units valued at $367,141, JMMB Group exchanged 31,617 shares at $1.31, National Flour Mills closed at $2.56 with an exchange of 520 shares. Scotia Investments traded 1,955 units at $2.70, Scotiabank exchanged 7,027 shares at $58 valued at $407,816, Trinidad Cement held firm at $4.22 with just 10 shares changing hands. Trinidad & Tobago NGL was unchanged at $22 trading 430 shares and West Indian Tobacco closed at $127 with 738 units traded.