The Jamaican dollar fell 13 cents from Monday’s closing selling rate, but remained above J$125, to the United States currency in foreign exchange trading on Tuesday but the buying rate inched higher by a cent.
The local dollar fell against the Canadian dollar and the euro but rose against the British Pound.
Inflows of all currencies, totaled US$39.18 million, versus US$45.83 million on Monday with the selling of US$49.93 million down from US$42.11 million on Monday.
In US dollar trading, dealers sold US$43.04 million at an average of $125.07 at the close, compared to US$39 million at an average of $125.20 on Monday. US currency purchases by dealers, amounted to US$34.17 million at an average of $123.81 at the close, compared to US$40.47 million at an average of $123.81.
At mid-day on Tuesday dealers purchased US$11.9 million at an average rate of J$124.49 and sold US$13.89 million at an average of J$124.52. On Monday at midday dealers purchased US$21.3 million at an average rate of J$124.35 and sold US$15.08 million at an average of J$125.07.
The selling rate for the Canadian dollar jumped to J$104.69 from J$101.55 at the close on Monday. The selling rate for the British Pound fell on Tuesday, to J$174.55 from J$175.34 previously and the euro rose in value against the Jamaican dollar at J$156.03 to buy the European common currency, versus the prior selling rate of J$155.05.
Archives for January 2018
Jamaican$ makes gains vs US$
TTSE stocks reverse most of Monday’s gains
The Trinidad & Tobago Stock Exchange continues to show some signs that prices of most stocks will likely move higher. On Monday, 14 securities changed hands against 15 on Monday, with the prices of just 2 advancing, 4 declining and 8 remaining unchanged.
At close the Composite Index lost 3.05 points on Tuesday to 1,273.03, the All T&T Index fell 5.48 points to 1,704.76, while Cross Listed Index inched 0.08 points lower to close at 113.53.
Market activity ended with 194,026 shares with a value of $4,409,625 traded, compared to 283,597 shares with a value of $4,409,625 on Monday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 5 with lower offers.
Gains| Trinidad & Tobago NGL closed with an increase of 5 cents and ended at $27.55, with 4,176 units and West Indian Tobacco rose 1 cent to end at $88.51, with 1,437 stock units changing hands.
Losses| Clico Investments shed 5 cents and ended at $20.90, trading 2,553 units, First Citizens had 10,200 shares changing hands, with a loss of 5 cents to close at $32.01, Scotiabank declined by 1 cent to close at $62.00, with 11,600 stock units changing hands, after trading as low as $61.20 and Unilever Caribbean shares fell 1 cent, in concluding trading at $28.99, with an exchange of 79 shares.
Firm Trades| Ansa Mcal ended trading at $60, with 6,458 units changing hands, First Caribbean International Bank finished at $9.30, trading 47,200 shares, Grace Kennedy finished at $3.47, with 12,000 units, JMMB Group finished at $1.85, with 28,930 stock units changing hands. Massy Holdings closed at $47.50, with 25,476 stock units changing hands, NCB Financial Group concluded trading at $6.60, with 27,021 shares, Republic Financial Holdings finished at $101.50, with 735 stock units changing hands and Sagicor Financial concluded trading at $7.90, with 16,161 units.
Prices of securities trading for the day are those at which the last trade took place.
Lasco Financial beats 2017 profit in 9 months
Profit after tax, suffered a decline in the third quarter, falling to $54.7 million from $62 million in 2016, as revenues increased by 36 percent to $405 million from $298 million in the 2016 period. The results reflect just one month’s of CrediScotia’s operation.
Responding to the growth in the December quarter results, Lasco’s Managing director, Jacinth Hall-Tracey stated in her report to shareholders, “This is attributed to seasonally strong remittance and cambio inflows bolstered by the income from its new acquisition of CreditScotia, renamed LASCO Microfinance. After recognizing some direct expenses for the acquisition and normal seasonal operational increases, profit from operations for the quarter closed at $91.4 million, an increase of 18.5 percent.” Interest cost associated with the funding of the acquisition was pushed up by $20 million in the quarter and reduced the positive gains in operating profit below pretax profit in 2016 of $75 million to $69 million.
Administrative and other expenses, jumped a sharp 63 percent to $179 million in the third quarter, but for the nine months, it rose by a more moderate 41 percent, to $531 million, well ahead of the increased revenues. Marketing cost rose 22 percent in the quarter to $135 million and 20 percent for the nine months, to $389 million.
Total assets jumped from $1.55 billion at the end of March 2017 to $3.3 billion with the acquisition of the CrediScotia shares, funded by $1.27 billion from by short-term loans, from related companies. The short-term loans will be repaid in full from a long term instrument being arranged.
The acquisition pushed Lasco’s assets to the same amount that Access Financial had at the end of September. There are two differences, Access Financial is valued by the stock market at twice the market value of Lasco’s market value of $6.6 billion, with Access at $11.55 billion. Access’s loan portfolio stood at $2.68 billion at September while Lasco is less than $1.5 billion at the end of December last year.
According to the quarterly report, in the coming months, the loan business will be combined into the subsidiary company. The combined businesses own a network of 13 branches, a large customer base and a billion dollar loan portfolio.
The company looks like it will end 2018 fiscal year with profits around $300 million level with earnings per share of 25 cents. The stock last traded on the Junior Market of the Stock Exchange at$5.24 at a PE around 20 times current fiscal year’s earning, but the focus will be on the next fiscal year when the full benefits of the acquisition of the CrediScotia is fully reflected in the results and one off cost are removed.
Jamaican$ lost grounds vs US$
The Jamaican dollar remained above J$125, to the United States currency In foreign exchange trading on Monday, rising 9 cents over Friday’s closing rate.
The local dollar fell against the Canadian dollar and fell against the euro but gained against the British Pound.
Inflows of all currencies totaled US$45.83 million, versus US$37.1 million on Friday with the selling of US$42.11 million down from US$29.06 million on Friday.
In US dollar, trading, dealers sold US$39 million at an average of $125.20 at the close, compared to US$27.72 million at an average of $125.11 on Friday. US currency purchases by dealers, amounted to US$40.47 million at an average of $123.81 at the close, compared US$32.76 million at an average of $123.87.
At mid-day on Monday dealers purchased US$21.3 million at an average rate of J$124.35 and sold US$15.08 million at an average of J$125.07.
On Friday at midday dealers purchased US$12.6 million at an average rate of J$124.13 and sold US$8 million at an average of J$124.91.
The selling rate for the Canadian dollar dropped to J$101.55 from J$100.78 at the close on Friday. The selling rate for the British Pound fell on Monday, to J$177.34 from J$177.56 previously and the euro rose in value against the Jamaican dollar at J$155.05 to buy the European common currency, versus the prior selling rate of J$154.10.
6 Trinidad stocks rise 1 falls – Monday
The Trinidad & Tobago Stock Exchange continues to show some signs that prices of most stocks will likely move higher. On Monday, 15 securities changed hands against 16 on Friday, with the prices of 6 advancing, 1 declining and 8 remaining unchanged.
At close the Composite Index rose 3.87 points on Monday to 1,276.08, the All T&T Index gained 6.06 points to 1,710.24, while Cross Listed Index inched 0.22 points up to close at 113.61.
Market activity ended with 283,597 shares with a value of $4,409,625 traded, compared to 153,453 shares with a value of $1,756,529 on Friday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ended with bids higher than their last selling prices and 5 with lower offers.
Gains| First Citizens Bank gained 6 cents and finished at $32.06, trading 1,610 shares, Grace Kennedy closed with a rise of 2 cents and ended at a 52 weeks’ high of $3.47, with 150,000 units, JMMB Group ended trading with a rise of 4 cents to $1.85, with 6,000 stock units, National Enterprises finished trading 2 cents higher to $9.67, with 8,574 units, Prestige Holdings rose by 1 cent to finished at $10.50, trading 17,643 shares and Scotiabank jumped $1.85 and finished at a 52 weeks’ high of $63, with 1,000 stock units changing hands.
Losses|> Clico Investments shed 4 cents and concluded at $20.95, trading 5,605 units.
Firm Traded| Ansa Mcal ended at $60, with 39,934 units, Ansa Merchant close at $40, trading 1,168 shares, Strong> Guardian Holdings finished with $17, trading 1,619 shares, LJ Williams B share ended at $0.7, trading 3,454 shares, NCB Financial Group finished at $6.6, trading 18,714 shares. Sagicor Financial finished at $7.9, with 58 units, , Trinidad & Tobago NGLconcluded at $27.5, with 27,174 units and Unilever Caribbean finished at $29, trading 1,044 shares.
Prices of securities trading for the day are those at which the last trade took place.
Elite Diagnostic IPO opens February 5
Elite Diagnostic initial Public offer that was put off due to errors in the prospectus seems set to open this week, according to the brokers for the issue an advertisement in the Sunday Gleaner states.
According to the advertisement, the issue will open on Monday February 5 and is scheduled to close on February 12. The updated prospectus is expected to be posted on the Jamaica Stock Exchange website this Monday.
The issue was slated to have opened on January 22 at a price of $2 per share with the share and was scheduled to close on January 29 for a total of 70.68 million shares being offered to raise $141 million. Omission of depreciation charge from the profit statement, resulted in an overstatement of the profit for the September quarter resulting in an addendum to the report being released. The addendum did not address errors in the balance sheet relating to fixed assets and some other items, resulting in the cancellation of the opening of the issue. IC Insider.com gathers that the Jamaica Stock Exchange and the Financial Services Commission were reviewing the report last week to ensure that it reflected the correct position.
Of the shares available for subscription in the IPO, 18 million units are reserved for subscription at $2 each. The company currently has 282 million issued shares. The proceeds of the IPO will put the company in a position to repay a substantial part of the debt due lenders amounting to $202 million.
For the financial year ended June last year, the audited financial statements show revenues increasing to $263 million and net profits moved to $44.2 million from $29 million in 2016. Gross Profit margin is very attractive at 67 percent for the 2017 fiscal year with administrative expenses at 31 percent of revenues, excluding depreciation.
Notwithstanding the errors in the interim figures, Elite shares remain BUY RATED with IC Insider.com forecasting profit of 22 cents per share for the current year to June and 35 cents for 2019. The shares are expected to be listed on the Junior Market.
BOJ cuts compulsory take
Foreign exchange dealers and cambio operators will surrender 5 percentage points less foreign exchange to Bank of Jamaica, (BOJ) effective 7 February. Jamaica’s central bank announced the reduction on Friday, the second time within three months.
The amount required to be sold to the central bank will be 20 percent by Authorised Dealers and 15 percent for cambios of daily purchases.
According to BOJ, “the continued reduction in surrender requirements, in conjunction BOJ Foreign Exchange Intervention and Trading Tool (B‐FXITT)with the , is in keeping with BOJ’s ongoing reform programme to make its interaction with the foreign exchange market more transparent and to improve the efficiency and transparency of the FX market in general. The central bank expects this reduction in surrender requirements to improve liquidity conditions in the FX market and contribute to its deepening. Going forward, the central bank will conduct periodic reviews of market conditions and other factors to determine the scope for further reductions in the surrender requirements, concurrently with further enhancements to B‐FXITT.”
In October, Bank of Jamaica stated that the present arrangement requiring foreign exchange dealers to surrender around 25 percent to 30 percent of their daily intake is to be phased out. The central bank now considered that the market is deep and liquid enough for government entities to go directly into the market for their needs. After that announcement the central bank followed up with a 5 percentage points cut in the amount to be surrendered in October.
In other developments within the FX market the central bank notified the market that they do not intend to have any auction of foreign exchange for the period ending February 13. The last B‐FXITT auction was on Wednesday, 29 November 2017 for the sale of US$4 million. Since then the central bank bought foreign currency from the market.