Trading in the foreign exchange on Wednesday was heavier than the large volumes going through the market on Monday and Tuesday as dealers continue to sell off excess US dollars.
The market closed with inflows of all currencies, ending at US$66.33 million, versus US$56.40 million on Tuesday. Dealers sold US$60.51 million in contrast to US$61.03 million, previously.
The buying and selling rates continue to fall in US dollar trading. The rate to buy the US dollar fell against the Jamaican dollar by 25 cents while the buying rate by dealer was down by 6 cents.
In US dollar trading, dealers sold US$56.68 million at a rate of J$126.08 at the close, compared to US$50.24 million at a rate of J$126.33 on Tuesday. Purchases of the US currency by dealers, amounted to US$61.86 million at an average of $125.19, compared to US$43.96 million at an average of $125.25 on Tuesday.
At mid-day on Wednesday, dealers purchased US$18.4 million at an average rate of J$125.63 and sold US$16.6 million at an average of J$125.96. At mid-day on Tuesday dealers purchased US$14.77 million at an average rate of J$125.53 and sold US$15.72 million at an average of J$126.18.
The selling rate on Wednesday, for the Canadian dollar slipped to J$98.20 from J$99.02 at the close on Tuesday, the selling rate for the British Pound increased to J$177.21 from J$178.38 previously and the euro fell against the Jamaican dollar to J$156.64 to buy the European common currency, versus the prior selling rate of J$156.73.
Archives for March 2018
Sharp price changes hit JSE main market – Wednesday
Palace Amusement fell $300 to $1,300 on Wednesday.
The Jamaica Stock Exchange main market activity closed on Wednesday with sharp price changes in a number of the stocks, including a $300 fall in the price of Palace shares.
The main market closed with 26 securities changing hands and ended with 11 securities rising, 9 falling and 6 trading firm. At the end, the JSE All Jamaican Composite Index shed 1,851.50 points to 320,861.99 and the JSE Index dropped 1,686.92 points to 292,341.55.
In main market activity, Barita Investments closed 5 cents higher at $9.50, with 9,750 shares, Cable & Wireless concluded trading at $1.16, with 41,885 units, Carreras finished at $10.90, with 595,645 shares, Caribbean Cement settled $1.44 higher at $39.94, with 17,731 shares, Ciboney Group ended trading 2 cents higher at $0.14, with 91,700 shares. Grace Kennedy traded $1.95 higher at $49.45, with 19,051 stock units, Jamaica Broilers finished trading 97 cents higher at $20, with 143,137 units, 
Jamaica Producers closed with a loss of 5 cents at $14.95, with 14,000 shares, Jamaica Stock Exchange ended with a loss of 19 cents at $6.80, with 30,200 shares. JMMB Group concluded trading with a loss of 95 cents at $25.50, with 244,649 shares, Kingston Wharves settled with a loss of 50 cents at $38, with 573 units, Mayberry Investments ended trading 20 cents higher at $6.40, with 113,221 shares, NCB Financial Group traded 1 cent higher at $98.71, with 75,906 shares. 1834 Investments finished trading 4 cents higher at $1.19, with 14,029 shares, Palace Amusement dropped $300 and closed at $1,000, with 250 stock units, PanJam Investment ended with a loss of 4.98 cents at $37.12, with 113,088 units, Radio Jamaica settled with a loss of 1 cent at $1.09, with 62,491 shares.
Sagicor Group ended trading with a loss of 15 cents at $36.10, with 833,093 stock units, and Sagicor Real Estate Fund ended trading at $15.45, with 8,592 shares. Scotia Group finished trading $50.85 higher at $50.85, with 345,681 shares, Seprod closed $1.50 higher at $33.50, with 1,000 shares, Supreme Ventures concluded trading 45 cents higher at $11.95, with 524,028 stock units. Victoria Mutual Investments finished with a loss of 27 cents at $4.11, with 600,506 units, Wisynco Group settled 1 cent higher at $10.50, with 789,638 shares trading. In the main market preference segment, JMMB Group closed at $1.02, with 224,002 shares, Proven Investments settled at $5.15, with 100,000 units, changing hands.
Prices of securities trading for the day are those at which the last trade took place. For more details of market activities, see “JSE Investors slam cabinet changes – Wednesday.”
Modest trading on TTSE on Wednesday
There was no change in the number of securities trading Wednesday, compared to Tuesday, as 14 securities changed hands on the Trinidad & Tobago Stock Exchange.
Market activity ended with just 2 rising, 4 falling and 8 closing with prices unchanged. Market activity resulted in 156,799 shares valued at $1,663,812 changing hands, compared to 225,853 shares valued at $6,610,658 on Tuesday.
At close, the Composite Index declined 1.29 points to 1,262.83, the All T&T Index gained 0.47 points to 1,698.51, while the Cross Listed Index rose shed 0.29 points to close at 111.58.
IC bid-offer Indicator|At the end of trading, on Wednesday, the Investor’s Choice bid-offer indicator reading shows 2 stocks with bids lower than their last selling prices and 4 with lower offers.
Gains| Massy Holdings rose 10 cents and ended at $47.40, with 1,241 stock units changing hands and National Enterprises closed with a gain of 10 cents and completed trading at $9.75, with 145 units.
Losses| Clico Investments closed with a loss of 34 cents at $20.16, with 11,797 units, Grace Kennedy shed 5 cents and completed trading at $3.25, with 19,000 units, Guardian Holdings lost 1 cent and settled at $16, after exchanging 2,656 shares and 
Trinidad & Tobago NGL ended trading 25 cents lower at $27.50, after exchanging 8,638 shares.
Firm Trades| Ansa Merchant settled at $40, after exchanging 30 shares, First Caribbean International Bank settled at $9.35, after trading 25,000 shares, First Citizens concluded trading at $32.50, after exchanging 5,929 shares, JMMB Group ended at $1.85, with 11,211 stock units changing hands, National Flour settled at $1.70, after exchanging 9,000 shares. Sagicor Financial completed trading at $7.75, with 59,542 units, Trinidad Cement ended at $2.60, with 1,500 stock units changing hands and West Indian Tobacco settled at $88.50, after exchanging 1,110 shares.
Prices of securities trading for the day are those at which the last trade took place.
BOJ to buy US$17m from market
Bank of Jamaica will start the purchase of foreign exchange through their B-fxitt auctions with two weekly purchases scheduled for April announced in the banks four week forecast.
Since the end of November last year, Bank of Jamaica has had just two auctions of foreign exchange amounting to a total sale of $40 million.
The latest release on the banks foreign exchange market activity, show no sale planned over the next four weeks. The bank for the first time will have an auction to buy foreign currency from the market. Two B-fxitt auctions are so far announced for April, amounting to US$17 million, broken down into US$5 million on Wednesday April 11 and US$12 million on April 18.
BOJ holds policy rate
Bank of Jamaica maintains the policy interest rate at 2.75 percent, the central bank stated on Tuesday. The rate is paid by the central for the placement funds overnight placements with Bank of Jamaica and helps in guiding the setting of rates in the wider economy.
“This policy stance reflects the Bank’s assessment that headline inflation for the next eight quarters should remain within the target of 4 percent to 6 percent, with the risks assessed to be balanced. Over the next three quarters, inflation is expected to track close to the lower bound of the target, primarily reflecting a decline in food prices as a result of a recovery in agricultural supplies. Thereafter, headline inflation is expected to converge towards the centre of the target,” the central bank stated.
Jamaica’s Central Bank in downtown Kingston.
“The outlook for inflation continues to be underpinned by the expectation that the Government will maintain a strong fiscal performance in alignment with the fiscal rules. There remains a risk that GDP growth will be slower than anticipated given the influence of external events.”
Bank of Jamaica stated that the “decision to maintain an accommodative policy stance is aimed at supporting further credit expansion and faster GDP growth. When adjusted for expected inflation, the policy rate remains negative in real terms in a context of high liquidity in financial markets. These conditions are considered to be appropriate at this time given the weaker-than-desirable pace of credit expansion. The policy stance has supported downward adjustments to yields on medium and long-term GOJ bonds in recent times and these downward adjustments are expected to flow through to loan rates.
Jamaica’s macroeconomic indicators remain positive. Inflation expectations remain low and anchored around Bank of Jamaica’s target, international reserves are increasing, the current account of the balance of payments is low and projected to remain at sustainable levels, market interest rates are falling and fiscal performance continues to be strong.”
Palace is much more than Black Panther
Carib Cinema, the flagship for Palace Amusement.
Revenues and profit are getting a big lift from the strong showing of the Black Panther movie currently playing at the Palace Amusement cinemas in Jamaica.
The stock jumped sharply in March, more than doubling the previous price of $560. Some investors are of the view that interest in the stock is purely as a result of the movie. While it may be a factor, Palace’s story goes well beyond that.
Although in the public eyes daily, the shares of Palace are not the focus of attention for many . One main reason is the 1,437,000 shares issued by the company, resulting in limited liquidity in the stock. The other is that historically profit can be a bit erratic. Management’s failure to split the stock for greater liquidity only adds to investors’ concerns.
Palace is reminiscent of Lascelles deMercado back in 1983 when the stock hardly traded due to liquidity issues and a lousy dividend policy. Asked then why the stock was so cheap, around $6, a broker responded —no one buys
A seen from Black Panther
Lascelles’ shares. That of course was a terrible error by investors as the stock went on to deliver one of the best returns on the local market with Campari ultimately buying out the company.
Stocks that are not sexy don’t get much attention from investors, but in many cases, these are the ones to record massive gains when the story is fully told. A reader of IC Insider.com indicated that a look at the last two years’ results revealed flat revenues. That prompted a review of the numbers. The history may not be spectacular but closer examination shows a high degree of attractiveness that is not based solely on the pile of added income Black Panther will rake in.
Revenues have been climbing since 2014 when it reached $833 million, rising to $916 million in 2015, with a slight dip in 2016 to $909 million. Revenues rose 9 percent in 2017 to $990 million and for the half year to December 2017, growth was 11 percent to $493 million with profit rising 138 percent.
Revenues will hit the billion mark for the first time in the company’s history, for the current fiscal year and remain over that level going forward. The performance of the economy is critical to the future fortunes and to a lesser degree, the quality of films. Data indicates that with a tight economy, patronage in Kingston suffered badly with the downturn in the economy from 2008 onwards. At the same time, strong growth, said to be around 7 percent per annum in the Montego Bay economy, showed up in strong revenue gains there compared to Kingston for a number of years. With the overall economy recovering and employment growing, Palace is benefitting and it’s reflected in the numbers to December 2017.
Palace Multiplex in Montego Bay.
Segment results tell the story of the strong impact of the economy on operations. For the six months to December, Box office patronage at Carib Cinema in Cross Roads rose 14 percent to $147 million, while at Palace Cineplex, the gains were 10 percent to $55 million and 8 percent at Palace Multiplex in Montego Bay to $77 million. Sales from the concessionaires surged 29 percent to $80 million at Carib, 22 percent at Cineplex to $27 million and 21 percent to $34 million at Multiplex. The fact that Carib has outgrown the other two cinemas is not an accident but is reflective of the recovery in disposable income of a large number of Jamaicans.
While revenues are on the rise, cost has been kept under control. Direct operating cost increased by 6 percent to $190 million for the quarter and 8 percent for the half year.
Another Palace movie – Bruce Willis and Cole Hauser star in Acts of Violence.
Administrative Expenses rose just 4 percent to $37 million in the December quarter and 7 percent for the six months to $76 million. Depreciation for the six months period rose just 5 percent to $17 million. If the trend continues into 2019 fiscal year earnings should be close to $100 per share range. Prior to Black Panther, earnings were set to reach around $45 per share but the phenomenal success of Black Panther is Projected by IC Insider.com to push 2018 earnings to be well over $100 per share when the fiscal year closes in June.
The company concluded the year with equity capital of $343 million, borrowings at just $25 million with cash funds of $130 million helping to push Current assets to $242 million as Current liabilities stand at $110 million.
The stock traded at $1,300 earlier in the month is poised to fall back with the lowest offer being $1,000. Palace trades on the main market of the Jamaica Stock Exchange at a PE around 10 times projected 2019 earnings and much lower based on the 2018 earnings.
Junior Market softens on Tuesday
Lasco Distributors traded 3.385 million shares on Tuesday.
The Junior Market Index shed 26.16 points to close at 2,904.96 on Tuesday, one day after the government announced a new Minister of Finance, closing prices in the main market of the exchange also reflected negative reaction.
At the close of market activities, 24 securities changing hands, the prices of 8 securities advanced, 9 declined and 7 remained unchanged compared to a total of from 18 securities changing hands on Monday.
Trading ended with an exchange of 7,383,582 units valued at $28,485,859, compared with 1,101,351 units valued at $3,914,113.37 from 18 securities changing hands on Monday.
Market activity ended with an average of 307,649 units for an average of $1,186,911 compared to an average of 61,186 units for an average of $217,451 on Monday. The average volume and value for the month to date, amounts to 149,286 units at $625,633, compared to an average of 139,878 units at $592,290 on the previous trading day. February closed with an average of 338,697 units at an average value of $1,495,774 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows just 4 stocks ending with the bid higher than the last selling price and 6 with lower offers.
At the close of the market, AMG Packaging ended 20 cents higher at $2.20, with 103,890 stock units, Caribbean Flavours fell 6 cents to $10.96, with 8,100 stock units, Caribbean Producers finished trading at $4.67, with 3,399 units, Consolidated Bakeries closed with a loss of 2 cents at $2.02, trading 24,587 shares, Dolphin Cove lost 10 cents and close at $17.90, with 318 stock units. Elite Diagnostic settled 5 cents higher at $3.25, with 181,010 units, Eppley ended trading with a loss of 64 cents at $9.50, with 2,096 shares, Express Catering traded at $5.10, with 152,823 shares, FosRich Group finished trading 10 cents higher at $2.50, with 77,438 shares. General Accident closed 6 cents higher at $3.19, with 151,930 stock units, GWest Corporation ended with a loss of 5 cents at $2.70, with 1,500 units, Honey Bun concluded trading with a loss of 33 cents at $4.40, with 55,099 shares, Iron Rock finished at $3, with 225,500 shares. 
Jamaican Teas ended trading with a loss of 6 cents at $4.45, with 48,552 stock units, Jetcon Corporation traded at $4.25, with 45,338 units, Key Insurance finished trading with a loss of 25 cents at $3.85, with 1,002,431 shares, Knutsford Express ended with a loss of $1 at $13, with 17,804 shares. Lasco Distributors concluded trading at $4.05, with 3,385,845 stock units changing hands, Lasco Financial finished at $4.92, with 106,216 units, Lasco Manufacturing settled 25 cents higher at $4.25, with 1,693,871 shares, Main Event ended trading 9 cents higher at $5.90, with 36,685 shares. Medical Disposables traded at $5, with 5,746 shares, Paramount Trading finished trading with a loss of 15 cents at $3, with 50,677 stock units and Stationery and Office closed at $5.50, with 2,727 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.
Heavy foreign exchange trading – Tuesday
There was heavy trading in the foreign exchange on Tuesday with volumes exceeding the amounts purchased and sold on Monday as dealers continue to sell off excess US dollars.
The market closed with inflows of all currencies, ending at US$56.40 million, versus US$47.24 million on Monday. Dealers sold US$61.03 million in contrast to US$54.79 million, previously.
The buying and selling rates fell in US dollar trading but with smaller movements than on Monday. The rate to buy the US dollar fell against the Jamaican dollar by 12 cents while the buying rate by dealer was down by 11 cents.
In US dollar trading, dealers sold US$50.24 million at a rate of J$126.33 at the close, compared to US$50.75 million at a rate of J$126.45 on Monday. Purchases of the US currency by dealers, amounted to US$43.96 million at an average of $125.25, compared to US$44.27 million at an average of $125.36 on Monday.
At mid-day on Tuesday, dealers purchased US$14.77 million at an average rate of J$125.53 and sold US$15.72 million at an average of J$126.18. At mid-day on Monday dealers purchased US$19.12 million at an average rate of J$125.86 and sold US$27.58 million at an average of J$126.37.
The selling rate on Tuesday, for the Canadian dollar rose to J$99.02 from J$98.33 at the close on Monday, the selling rate for the British Pound increased to J$178.38 from J$176.63 previously and the euro fell against the Jamaican dollar to J$156.73 to buy the European common currency, versus the prior selling rate of J$158.26.
JSE Investors slam cabinet changes – Tuesday
Investors seem not to like the switch in the Ministry of Finance.
Investors reacted negatively to cabinet changes driving down main market Jamaica Stock Exchange stock prices with just 6 rising and 15 falling.
At the close, the all Jamaican Composite Index lost 1,326.19 points to 322,713.49 and the <strong>JSE Index </strong> shed 1,208.31 points to 294,028.47.
Trading closed with 30 securities changing hands, up from 25 on Monday, leading to 6 advancing, 15 declining and 9 trading firm, in the main and US dollar markets. Securities closing with sizable price changes include, Berger Paints that shed $1.45 to end at $16.50, Caribbean Cement lost $2.50 to close at $38.50, JMMB Group climbing by $1.75 to $26.45, Kingston Wharves dropping $1.50 to $38.50, NCB Financial down $1.15 to $98.70 and lost $1.30 to end at $24.70 and Seprod falling $1.50 to $32.
Main market activity ended with 21,289,061 units valued at $268,573,132 compared to 19,076,584 units valued at $210,708,799 changing hands on Monday.
Jamaica Stock Exchange shares traded 15,104,462 units and accounted for 70.8 percent of the day’s volume, followed by Jamaica Producers Group with 2,394,964 units and 11.25 percent of the volume traded and with 1,013,952 units and Kingston Wharves with 1,025,513 units with 4.82 percent of the day’s trade.
Trading resulted in an average of 760,324 shares valued at $9,591,898 for each security traded, compared to 706,540 shares valued at $7,804,030 on Monday. For the month to date, an average of 661,120 units with an average value at $21,229,208 traded, compared to 655,542 units with an average value at $21,921,023 changing hands on the previous trading day. In contrast, February closed with average of 213,336 units valued at $3,392,475 for each security traded.
Trading in the US dollar market on Tuesday ended with 86,812 units valued at US$17,344 with the market index closing with a gain of 0.85 points to 163.80.
Caribbean Cement drooped $2.50 on Tuesday, the day after cabinet changes were announced.
Proven Investments ordinary share ended trading 86,500 units at 20 US cents and Sterling Investments closed with 312 units trading with a gain of 3 US cents at 13 US cents.
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 3 with a lower offers.
For more details of market activities see – JSE shares grab 71% of main market trades – Tuesday.
JSE shares grab 71% of main market trades- Tuesday
Shares in the Jamaica Stock Exchange accounted for 71% of trading on Tuesday.
The Jamaica Stock Exchange ordinary stock ended trading with 15,075,000 shares, changing hands accounted for 70.8 percent of the day’s volume of 21,289,061 units valued at $268,573,132, in main market activity on Tuesday.
The main market closed with 28 securities changing hands and ended with only 5 securities rising, 15 falling and 8 trading firm. At the end, the JSE All Jamaican Composite Index fell by 1,326.19 points to 322,713.49 and the JSE Index declined by 1,208.31 points to 294,028.47.
In main market activity, Barita Investments closed at $9.45, with 3,003 shares, Berger Paints ended with a loss of $1.45 to $16.50, with 14,099 stock units, Cable & Wireless concluded trading 1 cent higher at $1.16, with 186,742 units, Carreras finished at $10.90, with 97,427 shares, Caribbean Cement lost $2.50 to close at $38.50, with 30,416 shares. Ciboney Group ended trading at 12 cents, with 8,000 shares, Grace Kennedy traded with a loss of 50 cents at $47.50, with 27,863 stock units, Jamaica Broilers finished trading with a loss of 22 cents at $19.03, with 36,071 units, Jamaica Producers closed with a loss of 15 cents at $15, with 2,394,964 shares.
Jamaica Stock Exchange ended with a loss of 1 cent at $6.99, with 15,075,000 shares, JMMB Group concluded trading $1.75 higher at $26.45, with 62,418 shares, Kingston Wharves settled with a loss of $1.50 at $38.50, with 1,025,513 units, Mayberry Investments ended trading with a loss of 5 cents at $6.20, with 41,500 shares. NCB Financial Group traded with a loss of $1.15 at $98.70, with 400,433 shares, 1834 Investments finished trading at $1.15, with 10,580 shares, 138 Student Living ended at $5.50, with 1,500 shares, PanJam Investment ended 45 cents higher at $42.10, with 223,507 units, Radio Jamaica settled at $1.10, with 43,613 shares. Sagicor Group ended trading $36.25 higher at $36.25, with 284,764 stock units, Sagicor Real Estate Fund settled 40 cents higher at $15.45, with 13,000 shares. 
Scotia Group finished trading at $52.90, with 259,811 shares, Seprod finished trading with a loss of $1.50 at $32, with 48,554 shares, Supreme Ventures ended with a loss of 49 cents at $11.50, with 142,310 shares, Victoria Mutual Investments concluded trading with a loss of 12 cents at $4.38, with 379,300 stock units. Wisynco Group finished with a loss of 1 cent at $10.49, with 285,911 units trading. In the main market preference segment, Jamaica Money Market 7.5% traded at $1.95, with 45,172 stock units, JMMB Group 7.5% closed with a loss of 8 cents at $1.02, with 147,000 shares, changing hands.
Prices of securities trading for the day are those at which the last trade took place. For more details of market activities, see “JSE Investors slam cabinet changes – Tuesday.”
