Archives for July 2017

Record & more record for JSE on Monday

July 31, 2017 by IC Insider.com

The JSE main market has broken through resistance at 265,000 on the AJI but new resistance is not far away – see black line in upper right.

It was another record close for the Jamaica Stock Exchange main market index, which was joined by the All Jamaican Composite index surpassing the previous high reached in mid-May. At the All Jamaica Composite Index climbed 1,531.90 points to close at 266,708.84, the JSE Market Index surged 1,395.73 points to 243,001.95 for a third consecutive days of record close.
The JSE US dollar market index lost 4.65 points to close at 183.77 with 1 stock trading in the US dollar market. The market closed out July with gains of more than 26 percent for the year to date.
At the close of trading, 24 securities changed hands in the main market leading to 14 stocks advancing and 8 declining. The main market ended with 24,165,397 units valued at $225,427,641 changing hands compared to 2,406,199 units valued at $41,645,948 at the close on Friday. Trading in the US dollar market accounted for 323,789 units valued at US$75,331 bringing the total of all trades to J$235,070,022.
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 10 stocks with bids higher than their last selling prices and just 1 with a lower offer.
The main market ended trading with an average of 1,006,892 units valued at $9,392,818 for each security traded compared to an average of 96,248 units valued at $1,665,838. The average volume and value for the month to date ended at 160,668 units with an average value of $2,691,438 compared with an average of 118,357 units with an average value of $2,356,369 on the previous trading day.

138 Student Living had the largest volume trading on Monday with 15M units.

The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints traded 70 cents higher, closing at $18.70 exchanging 21,998 shares, Caribbean Cement closed at $31.20, with a loss of 30 cents trading 509,604 shares, only 376 units of Carreras were traded but the shares of the sellers of cigarettes closed at $92.50, with an increase of $1.30. Lumbering conglomerate Grace Kennedy, gained 75 cents to close at $41.75, with an exchange of 67,541 shares. Chicken processors Jamaica Broilers close down 49 cents to $19.01 while trading 214,505 shares, Jamaica Producers food processors and wharf operators, gained 94 cents and closed at $15.92 with 36,928 shares traded. Jamaica Stock Exchange gained 39 cents exchanging 32,036 shares to end at $6.39, JMMB Group traded $1.30 higher to $20.95, with 97,100 shares traded, Kingston Properties closed at $8 exchanging 2,200 shares, Kingston Wharves closed lower by $1.91 to $27.10, with 1,118 units switching owners. Mayberry Investments lost 2 cents to close at $4.60 trading 3,333 shares, NCB Financial Group traded $1 higher to a record close of $81, after exchanging 324,498 shares, 138 Student Living closed at $5.01, gaining 1 cent with 15,003,952 units having traded, PanJam Investment closed at $34 trading 111,124 shares, Pulse Investments gained 14 cents to close at $2.45, with an exchange of 7,425 shares, Radio Jamaica lost 4 cents, closing at $1.41 with 1,500 shares exchanged. Sagicor Group jumped $2.50 to $33.50, with 321,349 shares changing hands, Sagicor Real Estate Fund traded $1.22 higher to $12.02, closing trading with 6,527,000 shares, Salada Foods gained 33 cents to close at $9.33, with 20,000 shares changing owners, Scotia Group closed at $44.98, gaining 18 cents with trades of 35,300 shares, Seprod closed at $30.01, with a gain of 1 cent exchanging just 100 units, Supreme Ventures lost 19 cents to close at $7.80 with 805,910 shares exchanged. Proven Investments US ordinary shares closed at 22 US cents, losing 2 US cents in trading 323,789 units, JMMB Group 7.50% preference share closed at $1.17, with a loss of 2 cents exchanging 500 units and Jamaica Money Market Brokers 7.5% preference share lost 9 cents to close at $1.90 trading 20,000 units.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: 138 Student Living, Berger Paints, Caribbean Cement, Carreras, Daily Trading, Emerging markets, Grace Kennedy, Jamaica Broilers, Jamaica Producers, Jamaica Stock Exchange, Jamaican stocks, JMMB, JMMB Group, JPS, Kingston Properties, Kingston Wharves, Mayberry Investments, NCB Financial Group, PANJAM Investment, Proven Investments, Pulse Investments, Radio Jamaica, Sagicor Group, Sagicor Real Estate Fund, Salada Foods, Scotia Group, Seprod, Supreme Ventures, Trading Activity

19,000 newly employed

July 31, 2017 by IC Insider.com

The total number of workers employed in March climbed by 19,100 persons to 1,204,800, up from 1,185,700 in December and led to the unemployment rate falling to 12.2 percent.
The current rate declined from 12.7 percent in December last year and 13.3 percent in December 2015 with the number of persons employed then put at 1,163,800.
The job seeking rate is down to 7.8 percent, from 8.1 percent in December and in late 2015 at 8.4 percent. The number of persons unemployed is down to 166,700 from 185,900 in March 2016.
The unemployment rate after it started to rise after rise with the decline in the economy after 2008, peaked 16.3 in March 2013 with 215,100 persons listed as unemployed and 1,107,300 persons employed.

Filed Under: Economy

Net forex inflows end July at US$189M

July 31, 2017 by IC Insider.com

Trading in the Jamaican foreign exchange market on Monday resulted inflows of US51 million in contrast to US$44.4 million on Friday and outflows of US$39.7 million compared to US$30.4 million of all currencies on previously and resulted in net inflows for July ended at US$189 million.
In USA dollar trading, inflows ended at US$45 million versus US$37.9 million on Friday, with outflows of US$35.7 million compared to US$25.5 million.
The value of the Jamaican dollar rose modestly in value against the US dollar, with the selling rate for the US dollar ending at J$128.22 from J$128.39 previously. At the end of June dealers were selling the Jamaican dollar at J$128.62 to the US dollar. Dealers bought the US currency at an average of J$126.99, down from J$127.26 on Friday.
The selling rate for the Canadian dollar declined to J$103.09 from J$103.34 at the close on Friday, while the British Pound was more costly at the close, with J$167.54 buying the British currency versus J$166.90 and the euro, rose in value against the Jamaican dollar, with it taking J$151.38 to buy the European common currency, versus J$150.66 previously.

Filed Under: Feature Stories, FX Market Tagged With: Bank Of Jamaica, BOJ, British Pound, Canadian dollar, Daily trading activity, Emerging market, euro, euro v J$, FX trading, jamaican dollar, US Dollar

GOJ runs at surplus for fiscal Q1

July 31, 2017 by IC Insider.com

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Minister of Finance Audley Shaw carried on from where Phillips left off.

An increase of $7.76 billion in revenues and grants and $1.5 billion fall in expense payments resulted in Government of Jamaica running the country’s finances at a surplus for the 3 months to June, this year.
The surplus of $1.6 billion is $9.3 billion better than the deficit projected at $7.67 billion.
The cost of interest fell $3 billion below forecast to end at $29 billion versus projections of $32 billion. Company profit tax delivered $2.76 billion more revenue than the $8.4 billion forecasted but PAYE brought in $952 million less than the $13.9 billion budgeted. Production and consumption taxes brought in $4.3 billion more than the $41.4 billion planned but imports delivered $478 million less than the $43.96 billion projected, due mainly to a drop of $2.5 billion in Special Consumption tax.
The primary surplus set at $24.4 billion is now at $30.6 billion. Although, the fiscal is running at a surplus ahead of forecast the government borrowed $5.5 billion more than planned and pay back $6 billion less than originally projected.

Filed Under: Economy, Feature Stories Tagged With: Audley Shaw, Jamaica Government fiscal, PAYE, Special Consumption Tax

Trading up on Junior Market

July 31, 2017 by IC Insider.com

Trading in the Junior Market of the Jamaica Stock Exchange closed on Monday with a number of stocks declining just edging out those rising and led to a small fall in the market index. At the close the volume of stocks and value of stocks traded increased compared to that on Friday.
Trading ended with 4,581,201 units valued at $21,905,678 changing hands, with the market index falling 7.65 points to close at 3,155.46. On Friday, trading closed with 3,193,325 shares changing hands valued at $14,765,053.
A total of 22 securities traded, versus 20 on Friday with 7 stocks gaining and 8 declining and trading closed with 10 stocks having bids higher than the last traded prices and 2 closing with lower offers.
The Junior Market ended trading with an average of 208,236 units for an average value of $995,713 in contrast to 159,666 units for an average value of $738,253 on Friday. The average volume and value for the month to date amounts to 536,395 units valued at $1,905,441 compared to 552,021 units valued at $1,948,762 previously. In contrast, June closed with averages of 395,969 units valued at $1,799,200 for each security traded.
At the close of the market, stocks trading with their last traded prices are: AMG Packaging closed at $3.50 with 18,840 units changing hands, CAC 2000 traded 30 cents higher to $7 with a 32,193 shares being exchanged, Caribbean Cream had a loss of 15 cents, to close at $6.85 with a 731,500 shares trading, Caribbean Flavours closed at $12 with a 3,500 shares trading, Caribbean Producers rose 10 cent to $3.35 with a 618,208 shares traded, Consolidated Bakeries closed at $2.62 with a 15,000 shares being exchanged. C2W Music shed 1 cent to close at 39 cents with a 8,000 shares being switched, Express Catering fell 20 cents and closed at $5 with 1,302,903 shares being swapped,General Accident closed at $2.90 with a 61,215 shares traded, Honey Bun closed at $5.56 with a 2,000 shares changing hands. Iron Rock Insurance ended trading with a loss of 20 cents, at $3 with a 327,174 shares traded, ISP Finance closed at $16 with a 4,582 shares being traded, Jamaican Teas closed 25 cents higher to $4.50 with a 12,000 shares changing hands, Jetcon Corporation traded 15 cents higher, to close at $5.20 with a 442,571 units being swapped. Knutsford Express declined 5 cents, to close at $14.95 with a 5,184 shares switching owners, Lasco Distributors traded 30 cents higher to close at $6.80 with 325,195 shares changing owners, Lasco Financial rose 40 cents in trading 79,365 units to close trading at $4.20, Lasco Manufacturing traded with a lost 47 cents, and ending at $4.33 with a 6,963 shares being transferred, Main Event declined by 10 cents to close with 34,541 shares trading, to close at $5.50. Medical Disposables closed 45 cents higher at $5.95 with a 5,000 shares traded, Paramount Trading lost 49 cents to close at $2.50 with a 537,401 shares changing hands after the company posted a sharp fall in profits for the year to May and tTech lost 6 cents and closed at $9 with 7,866 shares trading.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: AMG Packaging, C2W Music, CAC 2000, Cargo Handlers, Caribbean Producers, Consolidated Bakeries, Daily Trading, Emerging stock market, Express Catering, Honey Bun, ISP Finance, Jamaican stocks, Jamaican Teas, Jetcon Corporation, junior market, Knutsford Express, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Main Event, Medical Disposables, Paramount Trading, Trading Activity, tTech

Value traded jumps 60% on TTSE – Monday

July 31, 2017 by IC Insider.com

Trading volume on the Trinidad & Tobago Stock Exchange picked up a bit on Monday but the value traded climbed 60 percent over Fridays levels. Overall trading resulted in 13 securities changing hands compared to 10 on Friday.
At the close, 4 stocks advanced, 2 declined and 7 were unchanged as 439,332 shares were exchanged at a value of $8,004,289 compared to Friday’s trades of 393,123 valued at $5,048,449.
The Composite Index advanced 0.55 points to 1,210.40, the All T&T Index rose 0.27 points to 1,792.03 and the Cross Listed Index gained 0.11 points to 84.26.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stocks with bids higher than last selling prices and 6 with lower offers.
Gains| Grace Kennedy closed at $2.85, with gains of 4 cents exchanging 5,465 shares, Guardian Holdings added 1 cent to close at $16.21 with 3,000 shares changing hands, Trinidad & Tobago NGL traded at an intraday52 weeks’ high of $23.78, but closed at $23.70 after gaining 10 cents trading 161,384 shares, valued at $3,837,260 and West Indian Tobacco gained 1 cent to close at $125.51, with an exchange of 2,500 shares valued at $313,775
Losses| Angostura Holdings closed at $15.01, with a loss of 9 cents, exchanging 49,180 shares valued at $738,618 and Clico Investment lost 1 cent to close at $22.39 with trades of 27 units.
Firm Trades| First Citizens traded 1,903 shares at $31.65, JMMB Group held firm at $1.20 with an exchange of 4,311 shares, Massy Holdings remained at $49 trading 20,025 shares valued at $981,226. Point Lisas exchanged 6,745 shares at $3.87, Republic Financial Holdings closed at $101.90, with trades of 15,752 shares valued at $1,605,129, Scotia Investments held firm at $2.20 trading 169,000 shares valued at $371,800 and Trinidad Cement exchanged just 40 units at $4.14.

Filed Under: Stock Market, TTSE Market Tagged With: Angostura Holdings, Clico Investment, Daily Trading, Emerging markets, Emerging Stock, First Citizens, Grace Kennedy, Guardian Holdings, JMMB Group, Massy Holdings, Point Lisas, Republic Financial Holdings, Scotia Investments, Trading Activity, Trinidad & Tobago NGL, Trinidad Cement, TTSE, West Indian Tobacco

NCB & Express Catering drop out

July 31, 2017 by IC Insider.com

NCB Financial Group jumped to $80 on Friday & exited the top 10.

Shares of Express Catering were in strong demand during the week, with price closing at $5.20 for gains of 247 percent from the initial public issue price of $1.50. At the close of the week the stock was out of the TOP 10 and so was NCB Financial Group with the price climbing to a record $80, at the close on Friday.
Stationery and Office Supplies (SOS) will not start trading until August 9, when it is expected to surge in price based on the heavy over subscription of 3.5 times oversubscribed with more than 1,200 applications.
Trading in the past week returned to a bullish mood, with the Jamaica Stock Exchange main market index hitting new highs on Thursday and Friday. The trend is expected to continue this coming week as investors react to some new results.
Caribbean Flavours and CAC 2000 that fell out of the top listing at the end of the prior week return this week with the exit of Express Catering , Lasco Financial that rose to $3.80 and Caribbean Cream that returned to $7.
The only movement in and out of the TOP 10 in the main market were Salada Foods coming in as NCB dropped out with gains in the price in the past week.
The average PE ratio for the Junior Market Top stocks is down at 7 with SOS in at a PE of 5 times 2017 earnings. The PE for the main market TOP 10, holds at 7.3. The average PE for the overall main market, remains at 13 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 Junior Market stocks now trade at an average discount of 42 percent to the Junior Market average, while those in the main market are trading at a 44 percent discount, to the average of the market, leaving stocks with room for growth in the months ahead.
NCB Financial and Express Catering the two stocks IC Insider.com listed as our market watch make gains during the past week. NCB has clearly broken out from a triangle of consolidation and seems to be heading higher. Express Catering could possibly rise higher but appears to be fully valued at a PE of 20 currently.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Cement, Caribbean Producers, Carreras, Express Catering, General Accident, Grace Kennedy, Jamaica Broilers, Jetcon Corporation, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery and Office Supplies, tTech

Paramount chops profits by $72M

July 31, 2017 by IC Insider.com

Paramount’s new look

Paramount Trading chops its 2017 profits by $72 million according to a release by the company published over the week end to $101 million. According to the release sales revenues climbed 12.8 percent to $1.156 billion for an increase of $132 million.
Gross profit margin declined by 2.1 percent cutting $23 million from profit compared to 2016 and operating cost rose 16 percent or $31 million from $193.8 million in 2016. “This resulted mainly from investments to build capacity to facilitate business growth in line with strategic direction of the company” the report stated. “The company will maintain a leading position in chemical raw materials, while accelerating growth in lubricants due to our investments in fixed assets including a joint venture with Allegheny Petroleum to manufacture oils locally the report went on to say.”
In the fourth quarter revenues grew 17.65 percent to $320 million from $272 million in 2016 and profit ended at $20 million in the 2017 final quarter versus $42 million in 2016. The final 2017 quarter results deteriorated sharply from performance for the February 2017 quarter, with revenues of $297 million and profit $29.5 million. The one year delay in starting to operate the lubricant plant has been costly. The profit result translates to only 6.5 cents per share. The stock last traded on the Junior Market of the Jamaica Stock Exchange at $2.99 per share with a PE ratio of 46.

Filed Under: Company News, Company Results Tagged With: Allegheny Petroleum, Jamaica Stock Exchange, junior market, Paramount Trading

Ciboney out of cash shortly

July 31, 2017 by IC Insider.com

Ciboney’s latest audited report shows yet another year of loss, with the company burning $5.2 million of assets, albeit an improvement over a $7.5 million lost in 2016. On the surface the numbers don’t appear much until viewed against the fact that they have very little current assets.
The year’s results mean that the company burnt up $5.3 in cash, leaving it with just $3.6 million at the end of May and no indication when the draining will end, with management being silent on this critical area. The company has no income with the cash being used up and this was the only area for inflows in recent years for some time.
In 2011, the company had $40 million in cash funds, but poor management of resulted in a high cost for shareholders. Ciboney Group minority shareholders should be considering legal action against the directors for negligence in managing the affairs of the company.
The company had a legitimate offer in 2012 that would have transformed it, but they failed to take it further than the board room. Since then, the company has lost money each year paying out management fees and other expenses and has virtually wiped out the near $30 million cash it had when the offer was made. Had the company accepted the offer, it would have transformed it and made big gains for Ciboney’s shareholders, in all likelihood.
Now that the money has virtually run out there is no known plan to turn things around while they await the sale of a property it holds. There have been talks about a sale of the property but so far shareholders have no indication if this is so and if so how serious the offer is. The latest report on the sale is that there was an offer but the contractor Generals department want the offer for sale to be again opened to the public by way of public advertisement.

Filed Under: Company News, Company Results

NCB Q3 profit jumps 33%

July 30, 2017 by IC Insider.com

NCB Financial Group HQ.

NCB Financial Group delivered net profit of $14.7 billion for the nine months ended June 30, 2017, an increase of 48 percent over the prior year’s nine months profit of $9.9 billion. For the June quarter net profit climbed from $3.94 billion to $5.25 billion in 2016 for the group.
The overall performance resulted in earnings per share of $2.14 for the latest quarter and $5.98 for the nine months. Loans and advances, net of provision for credit losses, increased by $32 billion or 18 percent to $212.0 billion at June 30, 2017. The growth was primarily driven by a 23 percent increase in the Retail Banking portfolio. Non-performing loans totaled $5.6 billion at June 2017, representing 2.6 percent of the gross loans compared to 4.8 percent at the end of June 2016 amounting to $8.8 billion.
The board of directors in their report on the nine months results stated that, “Operating income increased by $6.2 billion or 16 percent over the prior year, to $44.2 billion. The improved revenues were primarily driven by: Net fee & commission income growing by 31 percent or $2.4 billion. The growth stemmed from our continued focus on sale effectiveness, improving the penetration into our Investment Banking services, and growing the Unit Trust portfolios, coupled with increases in pension management fees. Additionally, our focus on providing our customers with non-branch channel and digital options has led to volume growth in point of sale and e-commerce transactions. Gains on foreign currency and investment activities growing by $2.5 billion or 80 percent. Net interest income increasing by 5 percent or $1.2 billion, as a result of growth in the loan portfolio.”
“Operating expenses of $28 billion grew by 9 percent or $2.3 billion over the prior year, driven by: Staff costs increasing by $1.9 billion or 18 percent mainly as a result of the negotiated increases in salaries, wages, allowances & benefits. Other operating expenses growing by $1.1 billion or 11 percent primarily as a result of increased asset tax charges, property and ABM maintenance expenses and professional fees resulting from the execution of strategic initiatives.”
The banking group segments delivered strong gains in revenues and profit except for General Insurance. Retail and SME segment enjoyed an increase of 13 percent in net revenues to $13.86 billion and segment profit rising 33 percent to $1.6 billion.

Advantage General suffered a fall in profit for the NCB Group.

Payment Services recorded an increase of 15 percent in net revenues to $5.2 billion with segment profit rising 31 percent to $1.75 billion, Corporate Banking net revenues grew 39 percent to hit $3.6 billion with segment profit climbing a very strong 64 percent to $2.47 billion. Treasury and Correspondent Banking net revenues increased 35 percent to $6.98 billion and segment profit rose 41 percent to $5.67 billion, Wealth, Asset Management and Investment Banking saw an increase of 25 percent in net revenues to $6.6 billion and segment profit rising 27 percent to $4.6 billion, Life Insurance and Pension Fund Management net revenues grew 14 percent to $5.6 billion, with segment profit rising 22 percent to $3.48 billion. Revenues at the General Insurance segment fell 7 percent to $4.4 billion with segment profit slipping 7 percent to $893 million and Other contributed an increase of 34 percent in revenues to $195 million and segment profit rising 55 percent to $126 million.
The Board of Directors, declared an interim dividend of $0.60 per ordinary stock unit payable on August 29, for stockholders on record as at August 15, 2017. The NCB stock closed on the Jamaica Stock Exchange at $80 on Friday having traded earlier the day at $81 after the release of the results.