Market activity on the Trinidad & Tobago Stock Exchange on Wednesday resulted in 14 securities changing hands compared to 12 on Monday with 4 stocks rising and 3 declining but IC Insider indicator show more stocks closing with offers that were lower than the last traded price than those with bids being higher.
The market closed with 274,613 shares exchanged for $2,047,725 compared to Monday’s 224,838 shares valued at $1,570,480 as the market was closed for public holiday on Tuesday.
The Composite Index advanced 1.96 points to 1,216.25, the All T&T Index gained 0.05 points to 1,793.50 and the Cross Listed Index was up 0.53 points to close at 85.66.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 2 stocks with bids higher than last selling prices and 7 with lower offers.
Gains| Grace Kennedy gained 5 cents to close at $2.90, with 23,186 shares changing hands, Guardian Holdings traded 7 cents higher to close at a $16.10, with 9,297 shares, 
JMMB Group closed at $1.28, with a 1 cent gain trading 38,716 shares and NCB Financial Group added 5 cents, closing at $4, with an exchange of 142,278 shares valued at $569,073.
Losses| Massy Holdings traded 20 cents lower, closing at $51.25 in exchanging 879 shares, National Flour closed 5 cents lower to $2.30, with 1,063 shares trading and Scotiabank closed at $58, losing 1 cent trading 50 shares.
Firm Trades| Angostura Holdings held firm at $15 exchanging 17,500 shares, Clico Investment closed at $22.51, with trades of 21,500 shares valued at $483,965, First Citizens traded 11,448 shares at $31.85 valued at $364.626. National Enterprises exchanged 100 shares at $10.50, Trinidad Cement traded 7,866 shares at $4.20, Trinidad & Tobago NGL closed at $20.75 trading 718 shares and West Indian Tobacco exchanged 12 shares at $126.40.
Archives for May 2017
TTSE rise with soft underbelly
Juniors slip but Knutsford at new high
Knutsford Express traded at a new high of $15 on Wednesday after the 5 for 11 stock split took effect.
The Junior Market index declined moderately on Wednesday but after Knutsford Express hit a new all-time high of $15 after the stock started trading ex split with investors now having 5 units where they had 1 before.
The market index slipped 12.77 points to close at 3,331.90 to be up 28.5 percent for 2017 to date. A total of 20 securities traded of which 7 advanced and only 4 declined as 1,267,600 units valued $7,528,786 traded compared to 22 securities trading on Tuesday with 2,377,774 units valued $14,077,973 changing hands.
At the close of trading, 8 stocks having bids higher than their last sale prices and 3 with lower offers.
The Junior Market ended trading with an average of 63,380 units for an average value of $376,439 compared to 108,081 units for an average value of $639,908, on the previous trading day. The average volume and value for the month to date are 89,339 units and $596,722 while at the close of the prior trading day it was 90,467 units and $607,211, well below the levels for April with averages of 502,597 units and $2,768,003.
At the close of the market, AMG Packaging fell 44 cents and ended at $4.55 with 2,111 units changing hands, Blue Power closed at $53.50 with 1,330 units changing hands, after climbing $1.50, CAC 2000 lost 80 cents and closed at $7.20 with 3,000 shares trading, Caribbean Cream closed trading with 413,469 units to end at $7.50, after dropping 90 cents, Caribbean Flavours ended trading 1,355 units to end at $12, Caribbean Producers rose 29 cents with 100,407 units changing hands at $3.79, Consolidated Bakeries rose 30 cents trading 6,000 shares to close at $2.75, Eppley had 69,369 units changing hands to close of $12, General Accident closed trading with 19,600 shares to end at $2.90, Honey Bun had just 260 shares changing hands and closed at $6.93 after falling 57 cents,
Iron Rock Insurance gained 5 cents in trading 61,538 shares to end at $3.20, Jamaican Teas dropped 69 cents and closed trading with 50,567 shares, at $4. Jetcon Corporation climbed $1.30 to end at $14.80 with 44,161 shares trading, Knutsford Express started trading for the first time after the 5 for 1 stock split and closed with 5,262 shares trading at $15 with a gain of $1.40. Lasco Distributors rose 24 cents and ended with 1,150 units trading at $7.20, Lasco Manufacturing closed at $5.20 in trading 81,983 shares. Main Event fell 70 cents and ended trading of 42,690 shares at $6.50, Medical Disposables dropped 65 cents after posting earnings of 38 cents per share compared to 37 cents in 2016 and ended at $5.15 with 24,215 units trading, Paramount Trading ended with a fall of 20 cents as 344,936 shares changed hands at $3.10 and tTech had 3,665 units changing hands at $7.50.
JSE majors jump again on Wednesday
The main indices of the main market of the Jamaica Stock Exchange surged again on Wednesday pushing them within striking distance from the record high reached recently. At the close 27 securities changed hands in the main market with 3 trading in the US dollar market with 9 stocks advancing and 6 declining.
Trading levels in the main market ended at 1,782,575 units valued at $37,905,161 compared to 7,796,244 units valued at $62,297,173 at the close on Tuesday. Trading in the US dollar market accounted for 37,630 units valued at US$13,624.
The All Jamaica Composite Index advanced 2,152.18 points to close at 262,458.74, the JSE Market Index rose 1,960.88 points to finish at 239,129.62 and the JSE US dollar market index gained 9.71 points to close at 215.66.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, 
the Investor’s Choice bid-offer indicator reading shows 6 stocks with bids higher than their last selling prices and none with lower offers.
The main market ended trading with an average of 66,021 units valued at $1,403,895 for each security traded, compared to an average of 311,850 units valued at $2,491,887 on Tuesday. The average volume and value for the month to date ended at 358,008 units with an average value of $9,037,303 compared with an average of 371,912 units with an average value of $7,355,047 on the previous trading day. The average volume and value for April ended at 382,748 units with an average value of $5,254,387In market activity, Barita Investments closed at $7.20 trading 809 shares,Berger Paints gained 2 cents to close at $18.54 exchanging 1,118 shares, Cable and Wireless closed at $1.34, with trades of 111,000 shares, Caribbean Cement traded 1,879 shares at $29.99. Carreras lost $1 and closed at $83, with 16,045 shares changing hands, Grace Kennedy gained 10 cents to close at $41 trading 72,235 units, Jamaica Broilers exchanged 80,541 shares at $18, Jamaica Producers traded $1.39 cents higher to close at $16.99, with 36,431 shares trading, Jamaica Stock Exchange closed at $7.20, with 7,880 shares changing ownership. JMMB Group advanced $1.15 to $20 exchanging 1,028,499 units, Kingston Wharves lost 40 cents to close at $31.60, with 11,066 shares traded, Mayberry Investments exchanged 10,695 shares at $4.80, with a loss of 70 cents. 
NCB Financial Group closed at $71, with gains of 40 cents after exchanging 29,295 shares, 1834 Investments traded 3,304 shares at $1.40,138 Student Living exchanged 3,772 shares at $4.49. PanJam Investment closed at $34.90, after a loss of 10 cents with 41,600 shares traded, Portland JSX exchanged 600 shares at $10.15, Pulse Investments traded 15,460 shares at $14.50, Radio Jamaica closed at $1.70, while 44,844 shares traded, Sagicor Group exchanged 36,564 shares at $34, Sagicor Real Estate fund closed at $11, with 14,795 units changing hands. Scotia Group jumped $2.50 and closed at $45, in exchanging 93,110 units, Scotia Investments gained $1.35 to close at $37.85 trading 600 shares, Seprod exchanged 15,669 shares at $30, Supreme Ventures added 25 cents to close at $7.50 trading 93,457 shares. Margaritaville Turks closed at 34 US cents exchanging 730 units, Proven Investments traded at 28.50 US cents, with an exchange of 33,500 ordinary shares, JMMB 7.5% preference share lost 18 cents to close at $1.82 trading 8,507 units and JMMB Group USD 6% preference share gained 0.01 US cent, closing at $1.13 with 3,400 units changing hands.
More profit for Proven
Proven Investments reported profit to owners of the company of US$8.721 million up from $2.344 million in 2016, but it is not as simple as it first appears. To get a good picture as to what is the true ongoing earnings investors have to dissect to numbers and add to and deduct to get the real picture.
First, there is an US$8 million gain from the difference in net value $20.63 million acquired from Bank of St. Lucia International, over the amount paid of $12.6 million. The managing director got shares in the new subsidiary which resulted in a charge to income of $3,244 million, adjusting for these two items would leave shareholders with profit of $4 million. Reversal of Impairment loss on investments resulted in profit being boosted by $921,000 in 2017 compared to a hit of $1.744 million in 2016 and realized gains on investment of $10.756 passed through other comprehensive income and not reflected in the regular profit.According to Proven Chief Executive Officer, Christopher Williams, there are expenses incurred in the acquisition of Bank of St. Lucia amounting to US$2 million and some of the preference share dividend was incurred as a result of the planned acquisition and would need to be adjusted for.
When all adjustments are factored in the investment company enjoyed earnings of $15.8 million from normal operations or earnings per share of 28.7 us cents. Stripped of all the one off type income and expenses, earnings come out at $5.04 million, excluding the added preference share dividend. The company has nearly $12 million of losses relating a fall in the value of investments and foreign exchange translation losses, not booked through normal profits.
Christopher Williams, Proven Investments CEO.
The foreign exchanges losses Williams states relates to the acquisition of Access has gone up in value but is on the books at cost of J$9 per share versus $50 currently. The regular profit statement shows earnings adjusted for one off items coming, in at 0.09 cents per share and puts the PE ratio at 2 times 2017 earnings, falling to 14 times estimated 2018 earnings.
Access Financial Services is playing an increasing role in the financial fortunes of the company with a 47 percent increased profit in Jamaican dollars, for the 2017 fiscal year, according to Williams Bank of St. Lucia which made US$3 million profit for 2017 is expected to deliver US$4 million in 2017. If Proven maintains the performance of its core business and delivers on the promise of Access and Bank of St. Lucia then earnings from ongoing operations should end up around US$12 million or 0.021 US cents per share. The stock traded at 28.5 US cents on Tuesday on the Jamaica Stock Exchange.
Cable Bahamas list on JSE Friday
This Friday June 2, will see the latest listing of a new company on the Jamaica Stock Exchange. The Bahamian based Cable Bahamas will see its shares available for trading on the local exchange for the first time.
Earlier this month the exchange approved the listing of the company’s shares. Information available to IC Insider.com is that the list will be on the US dollar exchange and will comprise ordinary and preference shares.
According to the company’s financials there are 43,884,754 ordinary shares and 8 different category of preference shares issued. The net asset value of the ordinary shares are around BH$2 each but the stock trades in the Bahamas at BH$4.05, with 1,000 units trading. Selling by investors is at $4.40 and above with buying interest at $4.05 and below. The 52 weeks high is $6.76 on June 9, 2016 and a low of $3.80, on the 9th of February, this year.
Revenue earned for the 2016 December quarter, was BH$47.887 million compared to BH$41.730 million and for the year to December BH$180.588 versus BH$165.678. The company reported losses of BH$9.2 million in the December quarter inclusive of a fixed asset write off of BH$5.8 million and $7.8 million for the year. Total shareholders’ equity stood at BH$91 million at the end of December 2016 and losses incurred in the March 2017 quarter of BH$7 million pushed shareholders’ equity down to BH$84 million at the end of March this year. Revenues in the March 2017 quarter rose 17 percent to $51 million up from $43.7 million in 2016 but operating cost jumped even faster by 60 percent to $46.6 million from $29 million with depreciation and amortization rising from $9 million to $16.8 million.
Two other listing should be heading to the market within weeks as Stationery and Supplies and the Musson subsidiary Productive Business Solutions with operations in the Caribbean, Central America and the USA come to the market with a US$41 million offer of ordinary shares.
Carreras pays $7B to government
Carreras grew profit by 27% in the fiscal year to March.
According to the last audited financials to March this year, Carreras will contribute $7 billion in taxes to the government of Jamaica coffers, excluding payroll taxes.
For the current fiscal year, the company is expected to contribute in excess of a billion more in taxes as government increased taxes on cigarettes earlier this year and profit grows thus contributing more in profit tax. The cigarette distributors paid 15 percent more in Special Consumption Tax during the fiscal year, than the year before, with $5.9 billion being paid while operating revenues grew 12.8 percent to $13.5 billion.
The financial results to March show profit for the year rising 27 percent to $3.8 billion or $7.84 per share with earnings versus $6.20 in 2016. Carreras incurred $1.2 billion in corporate taxes. In achieving the improved results the company not only increased revenues net of consumption taxes but cut operating cost as well. Administrative cost fell from 1.21 billion to $1.07 billion, as staff cost fell from $211 million down to $163 million and Business support services cost declined from $386 million to $302 million. Distribution cost from $723 million to $622 million as $81 restructuring cost incurred in 2016 was eliminated in 2017. Occupancy cost fell from $56 million to $45 million Security fell from $74 million to $57 million and other expenses declined by $23 million to just $4 million. Staff cost rose from $316 million to $332 million.
Cash funds stood at $2.58 billion compared to $2.6 billion in 2016 and shareholders’ equity at $2.1 billion. IC Insider.com is forecasting profit for the year to March 2018 of $4.4 billion with earnings per share of $9.
Dividends paid during the year to March 2017 amounted to $3.45 billion or 91 percent of profit. The stock traded at $84 on Tuesday on the Jamaica Stock Exchange.
47% surge in Access profit
Looking at the Access Financial results to March without dissecting it would lead to a conclusion that things have slowed with earnings per share of $2.49 versus $2.19 as the comparative reported in the audited financial statements for 2107.
Those numbers disguise the full impact of the 2017 fiscal performance that is up nearly 47 percent after tax, compared to the previous twelve months period. The company that made its name lending workers supported by employers making payroll deductions for repaying the loans, made profit after tax of $678 million versus $463 million when the 15 month period is adjusted for the extra 3 months. The growth continues the strong growth of the company as loans keeps on growing year after year and being up $514 million in the last twelve months to $$2.6 billion. Access has shareholders’ equity of $1.7 billion and should exceed the $2 billion mark during the current fiscal year as profit for the current fiscal year.
IC Insider.com is forecasting profit for the year to March 2018 to exceed $1 billion with earnings per share of $4 with $6 for the 2019 fiscal year.
Dividends paid during the year to March 2017 amounted to $178,431,396 or 26 percent of profit. The stock traded at a record high of $50 on Tuesday on the Junior Market of the Jamaica Stock Exchange.
JSE Main market surges
The main market of the Jamaica Stock Exchange enjoyed a big bounce at the close of trading on Tuesday with 25 securities changing hands and 2 trading in the US dollar market. At the close, 7 stocks advanced and 10 declined.
Trading levels in the main market ended at 7,796,244 units valued at $62,297,173 compared to 836,055 units valued at $14,784,987 at the close on Monday. Trading in the US dollar market accounted for 51,155 units valued at US$13,984.
The All Jamaica Composite Index advanced 2,095.53 points to close at 260,306.56 the JSE Market Index rose 1,909.26 points to finish at 237,168.74 and the JSE US dollar market index lost 9.64 points to close at 205.95.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 311,850 units valued at $2,491,887 per security traded, compared to an average of 34,836 units valued at $616,041 on Monday. 
The average volume and value for the month to date ended at 371,912 units with an average value of $7,355,047 compared with an average of 374,915 units and $5,236,889 on the previous trading day. The average volume and value for April ended at 382,748 units with an average value of $5,254,387.
In market activity, Barita Investments closed at $7.20 trading 2,000 shares,Berger Paints closed at $18.52, with a loss of $1.48 exchanging 21,400 shares, Cable and Wireless gained 4 cents to close at $1.34, with 54,006 shares trading, Caribbean Cement added $1.99 cents, closing at $29.99 in exchanging 56,002 shares. Carreras jumped $4 and advanced to $84, with 599 shares changing hands, Grace Kennedy lost 10 cents to close at $40.90 trading 95,341 units, Jamaica Broilers traded 6,774 shares at $18, Jamaica Producers traded 41 cents lower to close at $15.60, while trading 39,000 shares, Jamaica Stock Exchange closed at $7.20, with a loss of 10 cents while exchanging 57,952 shares. JMMB Group slid 95 cents to $18.85 trading 403,790 units, Kingston Properties lost 50 cents to close at $11.50, with 3,006 shares traded, Mayberry Investments exchanged 10,000 shares at $5.50, with gains of 60 cents. NCB Financial Group closed at $70.60, losing 40 cents after exchanging 6,478 shares, 1834 Investments traded 500 shares at $1.40, PanJam Investment closed at $35, with a loss of 50 cents in the trading of 8,800 shares. 
Portland JSX exchanged 1,567 shares at $10.15, Pulse Investments traded 11,400 shares at $14.50, Radio Jamaica closed at $1.70, trading 47,634 shares, Sagicor Group added 50 cents to close at $34 exchanging 990,823 shares, Sagicor Real Estate Fund gained 40 cents, closing at $11, with 114,491 units changing hands. Scotia Group closed at $42.50, with gains of 50 cents exchanging 9,544 units, Supreme Ventures closed at $7.25 trading 4,837 shares. Margaritaville Turks closed at 34 US cents trading 2,500 units, Proven Investments closed at 28.5 US cents, with trades of 48,655 ordinary shares, JMMB 7.5% preference share lost 5 cents to close at $2, with an exchange of 4,799,500 units, JMMB Group 7.5% preference share closed at $1.10 trading 1,000,000 and Proven Investments 8.25% preference share traded 80 cents lower to close at $5.20, with 50,000 units changing owners.
Juniors recover sharply on Tuesday
Access jumped $6 to a new high of $50 on Tuesday ahead of release of record profits.
The Junior Market index jumped 60.41 points on Tuesday, 3,344.67 as 22 securities traded of which 10 advanced and only 4 declined as 2,377,774 units valued $14,077,973 traded compared to 903,666 units valued at $5,900,159 changing hands on Monday.
At the close of trading, 6 stocks having bids higher than their last sale prices and 2 with lower offers.
The Junior Market ended trading with an average of 108,081 units for an average value of $639,908 compared to 47,561 units for an average value of $310,535, on the previous trading day. The average volume and value for the month to date are 90,467 units and $607,211 while at the close of the prior trading day it was 89,667 units and $605,576, well below the levels for April with averages of 502,597 units and $2,768,003.
At the close of the market, Access Financial jumped $6 and closed at an all-time high of $50 with 2,500 units changing hands, AMG Packaging rose 19 cents and ended at $4.99 with 21,148 units changing hands, 
Caribbean Cream closed trading with 300 units to end at $8.40, after gaining 40 cents, Caribbean Flavours lost 5 cents in trading 2,700 units to end at $12, Caribbean Producers had 32,513 units changing hands and remained at $3.50, Consolidated Bakeries dropped 7 cents trading 19,500 shares to close at $2.45, Eppley had 19,015 units changing hands to close of $12, General Accident closed trading with 19,600 shares to end at $2.90, had 13,586 shares changing hands and closed at $7.50 after gaining 50 cents,ISP Finance ended at $28 with 343 units changing hands. Jamaican Teas rose 4 cents and closed trading with 234,436 shares, at $4.69. Jetcon Corporation dropped $1.40 to end at $13.40 with 11,900 shares trading, Key Insurance traded 2,415 units to close at $3.05 after rising 25 cents, 
Knutsford Express that will start trading with the 5 for 1 stock split on Wednesday, closed with 13,295 shares trading at $68. Lasco Distributors lost 14 cents and ended with 505,170 units trading at $6.96, Lasco Financial gained 35 cents to end with 63,888 shares changing hands at $4.40, Lasco Manufacturing rose 20 cents to close at $5.20 while trading 1,378,624 shares, Main Event ended trading of 9,107 shares at $7.20, Medical Disposables gained 15 cents and ended at $5.80 with 1,000 units trading, Paramount Trading ended with a rise of 50 cents as 17,234 shares changed hands at $3.30 and tTech had 8,700 units changing hands at $7.50 and Derrimon Trading preference share ended with 800 units changing hands to close at $2.20.
Where are the Main Event figures?
Three directors of Main Event, including the mentor who is responsible to ensure compliance with the JSE rules.
Main Event went to the market in January this year in its Initial Public offering. The prospectus reported figures up to September 2016, one months ahead of the year end.
The stock was listed in February but investors have not yet seen the April quarterly report which is due by the 15th of June, not to speak of those for January quarter this year and the audited accounts for 2016, that is far too long between reports.
Players in the capital market ought to know that markets thrive on credible and timely information. In the absence of new financial data that in a normal market should be released at least for the January quarter, investors have been trading in the dark, not knowing what is happening financially. That is not good enough.
There are not quarterly no audit accounts and no disclosure as to when these will be made available, with the March quarter results passed due from May 15.
One take the view that the Stock Exchange requires report post listing, that would require the April quarterly report only, those rules are old fashioned. the fact is that the company got the go ahead for the IPO before the end of the first quarter of 2017. All new listings should be required to file all financials, that cover the period since the last one included in the prospectus so that investors are adequately informed.
A check with the Jamaica Stock Exchange have so far not disclosed that the first report is for the April quarter which is due by mid-June. Regardless of what the JSE rules require good corporate governance suggest that the company should have released both the audited report as well as the January quarterly, nevertheless it is time the Stock Exchange change the rules in the interest of investors.