Archives for October 2017

Junior Market climbs 11 days in a row

October 30, 2017 by

Bulls at large in down town Kingston

The Junior Market on Monday closed for the 11th consecutive day with unbroken gains leading the market index climbing 25.55 points to close at 3,169.26.
Trading on the Junior Market of the Jamaica Stock Exchange closed on Monday with 19 securities changing hands, resulting in an exchange of 974,360 units valued at $6,318,914 compared to 554,767 units valued at $2,609,944 on Friday. At the close of market activities, the prices of 5 securities advanced, 9 declined and 5 remained unchanged.
Trading ended with an average of 51,282 units for an average of $332,574 in contrast to 26,417 units for an average of $124,283 on Friday. The average volume and value for the month to date amounts to 74,450 units valued at $357,987 and previously, 75,683 units valued at $359,339. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks with bids higher than their last selling prices and 3 with lower offers.
At the close of the market, AMG Packaging finished at $3.50, with 14,360 units trading, Blue Power dropped $4 to $45, with 1,780 shares, CAC 2000 lost 5 cents to end at $6.95, with 1,520 units, Cargo Handlers ended trading at $11.09, with 2,824 units changing hands, Caribbean Producers closed with a loss of 1 cent at $3.70, with 900 stock units. Express Catering ended trading 28,000 shares with a gain of 29 cents at $4.94, Prices of securities trading for the day are those at which the last trade took place.
Daily Trading,Honey Bun concluded trading at $4.90, with 1,000 stock units, Iron Rock closed 1 cent higher at $3.21, while exchanging 5,698 units, Jamaican Teas ended trading at $4.10, with 54,000 shares, Jetcon Corporation traded with a loss of 12 cents at $4.68, as 39,000 stock units were exchanged. Knutsford Express closed with a loss of 19 cents at $14.80, with 5,585 units, Lasco Distributors closed at $7.20, with 629,096 units changing hands, Lasco Financial finished trading 4 cents higher at $4.40, with 29,060 units, Lasco Manufacturing finished trading with a loss of 30 cents at $4.20, with 56,941 units. Main Event ended with a loss of 28 cents at $5.02, with 35,000 shares, Paramount Trading traded 10 cents higher at $3, with 31,990 stock units, Stationery and Office concluded trading with a loss of 11 cents at $5.36, with 18,344 shares, tTech settled with a loss of 10 cents at $7.50, with 10,536 stock units and in the junior market preference segment, Derrimon Trading settled 5 cents higher at $2, with 8,726 units.

Prices of securities trading for the day are those at which the last trade took place.

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

Jamaican $ gains against 3 majors – Monday

October 30, 2017 by

Trading in the foreign market on Monday resulted in more strengthening of the Jamaican dollar as US$43.91 million of the US dollar was sold by dealers at an average rate of $127.21 to the US dollar, compared to US$30.91 million at an average rate of $127.37 on Friday.
US currency purchases amounted to US$40.76 million on Monday, at an average rate of $126.14 compared to Friday, with US$31.74 million at $126.22.
Dealers purchased US$53.29 million, versus US$42.62 million on Friday in all currencies in Jamaica’s forex market and sold US$54.67 million compared with US$53.93 million previously.
At Midday, dealers bought US$22.9 million at J$126.81 and sold US$16.4 million at J$126.99 compared to the buying of US$10.97 million at J$126.67 and selling of US$5.9 million at J$127.24 at the same time on Friday.
The selling rate for the Canadian dollar rose to J$101.81 from J$99.73 at the close on Friday. The selling rate for the British Pound declined to J$165.89 versus J$166.41 on Friday and the euro fell in value against the Jamaican dollar, to J$147.64 to buy the European common currency, versus J$149.12 previously.

Filed Under: FX Market Tagged With: , , , , , , , , , ,

Modest stock trading in Port of Spain

October 30, 2017 by

West Indian Tobacco dropped $1.96 on Monday.

Trading on the Trinidad & Tobago Stock Exchange remained subdued on Monday with only 9 securities changing hands compared to 8 on Friday and closed with a sharp fall in the price of West Indian Tobacco.
At the close, 4 stocks advanced, 2 declined and 3 were unchanged as 401,886 shares traded at a value of $3,227,519 compared to Friday’s trades of 184,060 valued at $2,231,341.
The Composite Index fell 0.49 points to 1,261.73, the All T&T Index declined by 1.17 points to 1,759.98 and the Cross Listed Index inched higher by 0.03 points to close at 102.78.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stocks with bids higher than last selling prices and 4 with lower offers.
Gains| At the end of market activity, Clico Investment climbed 46 cents to $21.46, in exchanging 8,380 shares, Grace Kennedy gained 1 cent to close at a 52 weeks’ high of $2.90 with 26,184 shares changing hands, Massy Holdings traded $1 higher to $50 with 1,011 units and Trinidad & Tobago NGL ended with gains of 9 cents, at $23.49 with 4,311 shares traded.
Losses| At the close of trading Sagicor Financial ended at $7.95, with a loss of 5 cents after 2,500 shares changed hands and West Indian Tobacco dropped $1.96 and closed at a 52 weeks’ low of $123, having traded 406 units.
Firm Trades| At the close of trading,Ansa McAL closed at $63.01, with 17,870 shares valued at $1,125,989, First Citizens remained at $31.80 with 9,427 shares and Trinidad Cement closed at $4 with 331,797 shares valued at $1,327,188.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , , , , ,

Tough economics hit West Indian Tobacco

October 30, 2017 by
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Tough economic conditions, flowing from an ongoing recession in Trinidad, together with increased Excise and Corporation Tax, the business environment resulted in significant changes in consumption patterns adversely affecting revenue of West Indian Tobacco.
The situation seems to have worsened with illicit cigarettes in the country. According to the Chairman, Anthony Phillip “the Company continues to engage with relevant authorities and stakeholders on the issue of the increased presence of suspected illicit products in the market which has negatively affected our business.”
Against this backdrop, West Indian Tobacco has recorded profit before taxation of $398 million and net profit of $276 million for the nine months to September, down from $373 million in 2016. Revenues fell from $891 million to $787 million but revenues inched just higher in the quarter to $274 million from $272 million in 2016 and revenues net of excise tax was slightly down for the quarter.
Profit after tax for the September quarter fell from $123 million to $97 with tax increasing to $44 million from $43 million in 2016.
The Company continues to proactively respond to the evolving market conditions with ongoing reviews of its Brand Portfolio, Trade Marketing, and Distribution strategies, as well as careful cost management across its operation.
The Board approved the payment of a third interim dividend of $1.14 per ordinary share payable on 24 November 2017, the payment is down compared to $1.44 paid in 2016.
Earnings per share came out at $1.16 for the quarter compared to $1.46 for the similar period in 2016 and for the nine months period $3.27 versus $4.42 in 2016 and should end around $4.75 for the full year giving it a PE ratio of 26 and should result in more decline for the stock. In 2016, earnings amounted to $6.12 per share.
The stock that traded at $127.01 earlier in the year is down to $124.96 on the Trinidad and Tobago Stock Exchange.

Filed Under: Company News, Company Results Tagged With: , ,

Knutsford Express revving up

October 30, 2017 by

One of Knutsford Express buses.

Jamaica’s intra island transport company, Knutsford Express, is enjoying extraordinary times, with a sharp increase in revenues and profits but the company’s management is not sitting on their laurels as they actively seek areas for future growth and profits.
In the latest quarter to August, revenues jumped a strong 37 percent, to $237 million and spawned a 57 percent rise in profit of $57 million. Of interest is the continued growth, on top of previous year’s increases. For while revenues in the August 2016 quarter rose 21 percent with flat profit, by the second quarter revenues climbed 37 percent over the 2015 levels, to $176 million and profit rose 19 percent to $30 million.
Revenues rose 33 percent for the third quarter to $203 million and profit almost doubled to $53.7 million, thanks partially to an $8.5 million gain on sale of fixed assets. Excluding the one off gain, profit would be up 63 percent for the quarter. Expenses increased 25 percent, quite a bit slower than revenues, helping in the growth in profit. Knutsford, unfortunately does not break out direct operating expenses from administration cost but data shows that certain direct cost not counting labour cost, to be around a third of revenues. Increased revenues would have added close to 50 percent of the increase in overall cost.

Knutsford’s New Kingston depot

By the end of 2017 fiscal year revenues climbed 29 percent over 2016 and profit by 28 percent, just below the 35 percent increase for the nine months to February. Operating revenues for the last quarter of the just concluded fiscal year was in line with the amount generated in the third quarter.
When the company went public, it had 54 employees in 2013, up from 47 in the previous year, climbing to 100 by May 2016, and remaining there to May this year, resulting in some economies of scale.
IC Insider.com is forecasting revenues to pass the $1 billion mark for the first time, by the end of the fiscal year with profits ended up around $280 million or 50 cents per share, with the next fiscal year’s earnings hitting 90 cents per share. The stock trades on the Junior Market of the Jamaica Stock Exchange around $15 with a PE ratio of 27 and 16 times 2019 earnings versus 14 for the market currently.
Knutsford generated $73 million in cash flow for the quarter and expended $69 million on the acquisition of fixed assets to end up with $85 million in cash and bank balances and investments $92 million. The company owes $55 million in loans and boast net worth of $539 million.

Filed Under: Company News, Company Results Tagged With: , , , ,

Big jump in Paramount profit

October 29, 2017 by

Paramount new designed offices.

Junior Market listed Paramount Trading, enjoyed a big turn-around in profit for the first quarter to August this year, with an increase of 126 percent, to $34 million from a 31 percent increase in revenues to $331 million.
Importantly, Paramount incurred exceptional expenses in the first quarter, last year, as the company celebrated its 25 anniversary, IC Insider.com estimates the cost to be around $20 million, excluding this one off cost, profit would have been flat, in both periods.
Administrative and other expenses jumped from $44 million to $62.7 million, but selling and marketing cost dropped from $24 million to $2.8 million. Direct cost rose 35 percent, reducing gross profit margin with gross profit rising slower than the increase in revenues, at 23 percent to reach $101 million.
Earnings per share amounts to 2.2 cents. IC Insider.com places full year’s earnings at 19 cents and for the 2019 fiscal year to May 30 cents with the coming on stream of the joint venture lubricant plant.
The directors’ report stated that they have “an optimistic outlook for the rest of the year and is very excited by the opportunities that will be realized. The construction of the blending plant and laboratory, in conjunction with Alllegheny Petroleum is slated to be complete during the next quarter.”
The balance sheet shows net current assets of US$463 million, including inventories of $338 million, receivables of $283 million and cash funds and investments at $97 million. Borrowings are at $55 million up from only $16 million in August 2016.
The stock currently trades at a PE ratio of 15 with the price at $2.90 on the Junior Market against the market average of 14 and seems to be line with the market. What is true, is the nimbleness of management to identify new income generated opportunities that makes staying close to the stock potentially profitable.

Filed Under: Company News, Company Results Tagged With: , , , ,

Cement to head out of TOP 10

October 29, 2017 by

Caribbean Cement increased sales by 14% in Q3 2017.

IC Insider.com BUY RATED Caribbean Cement that showed all the signs of a big pay day is set to break out of the TOP this coming week as investors belated respond to this year’s results.
The company posted earnings of 88 cents for the September quarter, from a 15 percent increase in volume sales and should earn over $3 per share for 2017 and seems set to earn more than $4 in 2018 as it benefits from an upsurge in construction activity that will accelerate next year. The stock climbed to trade at a 52 weeks’ high of $40 on Friday, but closed at $36.10, a strong 33 percent ahead of the close of the previous week. Berger Paints is up 21 percent from last week’s close and is heading higher with very good prospects for increased profits this fiscal year and the next, as construction activity continues to benefit from increased demand, helped by falling interest rates that will make home ownership less costly than before.
Pulse Investments dropped out of the Top tier and Cable and Wireless has returned, the next set of results should help to move this stock higher. The Junior Market saw one change with Main Event entering, just edging out Stationery and Office Supplies.
The main market enjoyed the fourth consecutive weekly record close, driving the All Jamaica Composite Index to a record 321,000.17. The market is well clear of resistance around 300,000 points on the all Jamaica Index and continues heading to the next major resistance at the 360,000 points range, on its way to the 500,000 points mark in 2018.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 8.3 and a PE at 8 for the main market TOP 10. The average PE for the overall main market trades at 14.2 and 13.8 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average of the market for Junior Market Top stocks and 44 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless, NCB, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident, Paramount Trading and Stationery and Office.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , ,

JSE jumps sharply to record close – Friday

October 27, 2017 by

The main market of the Jamaica Stock Exchange surged on Friday to the fourth week record closing in as many weeks. At the end the All Jamaica Composite Index pushed sharply higher by 4,673.29 points to close at record 321,000.17.
The JSE Index climbed considerably by 4,257.90 points to close at record 292,467.45, with market ended on Friday with 25 securities changing hands with 2 trading in the US dollar market leading 12 advanced, 5 declined and 7 traded firm with 2,104,737 units valued at $70,790,40. Trading in the US dollar market ended with 156,714 units valued at US$36,816 with the index remaining unchanged at 183.13 points.
In the main activity, Barita Investments ended at $9, exchanging only 730 shares, Berger Paints closed 25 cents higher at $17, with 90,738 units, Cable & Wireless rose 4 cents and closed at $1.06, with 539,939 stock units, Caribbean Cement ended $3.10 higher at $36.10, with 22,557 units, Carreras ended with a loss of $1.50 at $11.50, with 129,369 shares. Ciboney Group ended trading with a loss of 3 cents at 15 cents, with 10,600 stock units, Grace Kennedy ended at $42.83, trading 6,745 units, Jamaica Broilers finished with a loss of 43 cents at $18.06, with 7,883 shares, Jamaica Producers closed at $16, with 2,637 units, Jamaica Stock Exchange traded with a loss of 5 cents at $6.45, with 9,838 shares. JMMB Group concluded trading at $28, with 224,609 stock units, Kingston Properties finished 80 cents higher at $8, with 1,244 units, Kingston Wharves gained 50 cents to end at $33, with 20,949 stock units, Mayberry Investments concluded trading 10 cents higher at $4.30, with 2,993 stock units. NCB Financial lost 65 cents and closed at $105 with 157,631 shares trading, 138 Student Living settled at $5.40, with 2,119 units, 1834 Investments ended with a loss of 3 cents at $1.37, with 22,200 stock units, PanJam Investment finished 1 cent higher at $42.01, with 250,435 shares, Portland JSX settled at $9.15, with 2,000 units. Pulse Investments finished 10 cents higher at $1.90, while trading 34,000 stock units. Radio Jamaica added 2 cents and ended at $1.15, with 123,400 shares, Sagicor Group jumped $4.47 to $39, with 29,209 stock units, Sagicor Real Estate Fund finished 10 cents higher at $14.50, with 18,319 shares, Scotia Group ended trading at $50, with 139,016 units and Supreme Ventures ended 1 cent higher at $12, with 45,257 shares.
In the US dollar market while Proven Investments traded 156,614 ordinary share at 23.5 US cents and Sterling Investments traded 100 US dollar denominated ordinary shares at 12 US cents.
Prices of securities trading for the day are those at which the last trade took place.

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

Jamaican $ gains against all majors – Friday

October 27, 2017 by

Trading in the foreign market during the past week was the highest for the month with US$289 million purchased by dealers of all currencies and selling of US$279 million, while US currency purchased amounted to $228 million and US$210 was sold.
Trading on Friday resulted in more strengthening of the Jamaican dollar as US$30.91 million of the US dollar was sold by dealers at an average rate of $127.37 to the US dollar, compared to US$33.84 million at an average rate of $127.49 on Thursday.
US currency purchases declined from the previous day, to US$31.74 million on Friday, at an average rate of $126.22 compared to Thursday, with US$35.96 million at $126.59.
Dealers purchased US$42.62 million, versus US$46.14 million on Thursday in all currencies in Jamaica’s forex market and sold US$53.93 million compared with US$43.23 million previously.
At Midday, dealers bought US$10.97 million at J$126.67 and sold US$5.9 million at J$127.24 compared to the buying of US$10.58 million at J$126.80 and selling of US$5.35 million at J$127.43 at the same time on Thursday.
The selling rate for the Canadian dollar dropped to J$99.73 from J$100.21 at the close on Thursday. The selling rate for the British Pound declined to J$166.41 versus J$168.47 on Thursday and the euro fell in value against the Jamaican dollar, to J$149.12 to buy the European common currency, versus J$151.76 previously.

Filed Under: Feature Stories, FX Market Tagged With: , , , , , , , , , ,

NCB climbs to new high on TTSE

October 27, 2017 by

NCBFG trading at a record high of $6 on the Trinidad Stock Exchange.

NCB Financial Group closed 5 cents higher at a record high of $6 while trading 9,542 shares on Trinidad & Tobago Stock Exchange while Trinidad & Tobago NGL controlled 68 percent of the value of the securities exchanged at the closed on Friday.
The market closed with 8 securities changing hands compared to 12 on Thursday as 2 stocks advanced, 1 declined and 5 remained unchanged with 184,060 shares traded at a value of $2,231,341 compared to Thursday’s trades of just 134,005 valued at $1,152,320.
The Composite Index was down 0.05 points to 1,262.22, the All T&T Index slid 0.89 points to 1,761.15 and the Cross Listed Index topped its previous gains by 0.11 points to close at 102.75.
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| Apart from NCB Financial Group that rose on Friday Trinidad & Tobago NGL advanced 28 cents to close at $23.40 with 64,553 shares valued at $1,510,048 trading.
Losses| The only security declining is Scotiabank that closed at $58.10, after losing 40 cents exchanging 612 units.
Firm Trades| The latest prices and the volumes of securities trading unchanged at the close of the market are, Clico Investment that closed with 13,215 shares at $21, First Citizens ended at $31.80 with 563 units, Grace Kennedy exchanged 57,103 shares at $2.89, JMMB Group held firm at $1.85 with 36,410 shares trading, but closed with the bid at $1.191 and Massy Holdings closed at $49 with 2,062 units.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , , , ,