Archives for December 2018

Jamaica’s growth crawls along at 1.8% PA

December 28, 2018 by

Construction secrtor contributed to increased growth in Q3.

Economic growth in the Jamaican grew 1.8 percent in the third quarter of 2018 over the similar quarter of 2017. The performance result in gains in the Goods Producing and the Services Industries.
The goods producing sector grew by a strong 5.1 percent but the services sector was up just 0.7 percent over the similar period in 2017, the report from the Statistical Institute of Jamaica (Statin) stated in their release on the performance on the local economy for the third quarter of the year.
According to Statin, all industries within the Services Industries recorded higher levels of output with the exception of Electricity & Water Supply which declined by 0.1 percent and the Producers of Government Services which remained unchanged for the period. Increases were recorded for: Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (0.8 percent ), Hotels & Restaurants (2.1 percent ), Transport, Storage & Communication (1.4 percent ), Finance & Insurance Services (0.7 percent ), Real Estate, Renting & Business Activities (0.5 percent ) and Other Services (1.2 percent ).

Mining was the biggest contributer to GDP gains in Q3.

Hotels & other short-stay accommodation benefited from a 3.8 percent increase in foreign national arrivals, the report stated. The Goods Producing Industries grew due to increased output in Mining & Quarrying, up 51 percent due mainly to the reopening of Alpart refinery and Construction up by 3.7 percent due to increased activities in the civil engineering sub-group. The major contributor to this growth was work associated with the continued expansion of road infrastructure. However, Manufacturing declined by 0.3 percent due mainly to lower production levels, in petroleum refining and non-metallic minerals. Agriculture, Forestry & Fishing remained unchanged. The growth for the third quarter brings real growth for the year to September to 1.8 percent over 2017. Gross domestic product for the calendar year, grew 0.9 percent in 2015, 1.4 percent in 2016 and 1 percent in 2017.

Filed Under: Breaking News, Economy, Feature Stories Tagged With: , ,

JSE in big rise Friday morning

December 28, 2018 by

The main market of the Jamaica Stock Exchange surged 11,371 points on the All Jamaica Composite index (AJI) with nearly 2 hours of trading on Friday with the index at 408,686.63 points but pulled back to be at 406,567 points at 11:30 up 9,251.52 points.
The JSE Index climbed 10,360.40 points to 370,428.51 but the Junior Market Index slipped 5.01 points to 3,184.75. The rise so far still leaves the AJI short of the 11,126.51 points lost over the past two trading days.
NCB Financial traded at $146.83, Barita Investments traded at a new high of $50, Sagiccor Real Estate Fund jumped to $13.95 while Salada Foods traded at a new high of $35 but pulled back to $30 after. JMMB Group that traded 327 million shares traded 20.7 million shares today.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , , , , , ,

JMMB big sale dominates JSE trading  

December 27, 2018 by

NCB Financial sale of 327 million shares in JMMB Group dominated trading on the main market of the Jamaica Stock Exchange on Thursday swelling the total amount of stocks trading to $9.3 billion.
At the close of trading, the market suffered a big fall, as the All Jamaican Composite Index dropped 7,385.56 points to close at 397,315.48 and the JSE Index dived 6,729.08 points to 361,999.33. Trading ended with 329,919,002 units valued at $9,327,532,031 compared to 21,522,449 units valued at $497,625,550 changing hands on Monday.
JMMB Group led trading for the second consecutive day with 327,137,347 units and accounted for 99 percent of the day’s volume, followed by Carreras with 561,455 units.
The main and US dollar markets, had 30 securities changing hands with prices of 12 rising, 10 declining with 8 remaining unchanged, compared to 30 securities trading on Monday. Barita Investments ended at record high with the price moving to $48.60 at the close after it hit an intraday high of $49.50.
An average of 11,782,822 units valued at over $333,126,144, in contrast to 768,659 units valued at $17,772,341 on Monday. The average volume and value for the month to date, amounts to 846,209 units with a value of $26,801,946, compared to 189,073 units valued at $7,264,184, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 3 stocks ending with bids higher than their last selling prices and 4 closing with lower offers.
In main market activity, Barita Investments jumped $2.10 and ended at an all-time closing high of $48.60, with an exchange of 82,575 shares, Caribbean Cement lost 20 cents to close at $41.80, trading 25,150 shares, Grace Kennedy climbed $1 in trading 5,523 shares to close at $61. Jamaica Broilers fell $1.75 in exchanging 149,033 shares at $26, Jamaica Producers gained 53 cents trading 57,369 shares to close at $23, Kingston Wharves shed 50 cents and finished trading 452 stock units at $77, Mayberry Investments lost 75 cents to close at $9.25, with 11,020 stocks units trading. Mayberry Equities gained 35 cents to close at $9.55, with 9,576 stocks units changing hands, NCB Financial Group jumped $2.80 as 284,630 shares changed hands to close at $146.80, Sagicor Real Estate Fund rose $1 and traded 300,883 stock units to end at $11. Scotia Group fell 50 cents to close at $52.01, with 275,519 units changing hands and Supreme Ventures lost 40 cents and closed at $15.60 trading 81,392 shares.
Trading in the US dollar market amounted to 63,148 units valued at $11,894 with Proven Investments ended trading 61,848 shares at 19 US cents and Sygnus Credit Investments rising 2 cent and ended at 11 US cents with 1,300 shares changing hands. The JSE USD Equities Index rose 2.31 points to close at 157.35.

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

Junior Market in modest gain – Thursday

December 27, 2018 by
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Trading on the Junior Market of the Jamaica Stock Exchange remained low keyed on Thursday, with low volume and a rise in the market Index by 12.87 points to close at 3,189.76.
Trading ended with 27 securities changing hands with the prices of 10 rising, 10 falling and 7 remaining unchanged. The market closed with 678,952 shares, valued at $3,223,519 changing hands, compared to 1,192,642 units valued at $4,117,828 on Monday, from 25 securities that traded.
Trading ended with an average of 25,146 units for an average of $119,390 in contrast to 47,706 units for an average of $164,713 on Monday. The average volume and value for the month to date amounts to 147,500 units at a value of $806,936, versus 156,428 units at a value of $857,109, previously. November, ended with an average of 190,475 units valued at $653,358 for each se curity traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 3 stocks ended with higher bids than their last selling prices and 4 with lower offers.
At the close of the day’s activity, AMG Packaging ended trading 5 cents higher at $1.90, with 15,608 stock units changing hands, Blue Power ended trading 10,637 units with a rise of 50 cents to $5.50, Caribbean Cream closed trading of 2,978 shares at $5.82, Caribbean Producers traded 5,092 units at $5.44. Consolidated Bakeries closed with a fall of 20 cents to a 52 weeks’ low of  $1.70, with an exchange of 4,454 shares, Derrimon Trading fell 7 cents and ended at $2.50, with 49,226 shares trading, Dolphin Cove concluded trading of 317 shares but fell $1 to $15, Elite Diagnostic rose 13 cents to finished $3, with 35,425 stock units changing hands, Everything Fresh ended trading 7,930 shares to close at $1.40. Express Catering ended trading 188,327 shares at $8, FosRich Group lost 10 cents to end at $3.95, trading 32,559 shares, General Accident ended trading $3.50 with an exchange of 55,000 shares, GWest Corporation finished trading $1.60 with an exchange of 1,618 shares. Honey Bun closed $3.20 after falling 20 cents as 63,349 stock units traded, Indies Pharma rose 10 cents and ended trading 22,153 shares to close at $3.20, Jamaican Teas jumped 80 cents to end at $4.70, with 5,000 shares changing hands. Jetcon Corporation gained 30 cents to settle at $3.40, with 25,100 shares traded, Knutsford Express fell $1.20 and finished trading 7,653 shares at $11.80, Lasco Distributors rose 19 cents and closed at $3.99, with 27,426 shares changing hands, Lasco Financial ended 53 cents higher to $4.50, trading 7,858 shares. Lasco Manufacturing concluded trading 35 cents higher to $3.45, with the trading of 69,805 stock units, Main Event finished 10 cents down to $5.90, with an exchange of 10,332 units, Medical Disposables lost 20 cents to end at $6.50, with 957 shares trading. Paramount Trading ended trading 45 cents higher to close at $2.90, with an exchange of 12,901 shares, Stationery and Office lost 40 cents, trading 3,417 shares, to close at $8.10 and tTech dropped 60 cents to close $4.59 higher at $4.59, with 130 units changing hands.

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

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

6 stocks rose on TTSE Thursday

December 27, 2018 by

Trading ended after closing for the Christmas break with 13 securities changing hands on Thursday, against 16 on Monday and finished with 6 advancing, 3 declining and 4 remaining unchanged.
At close of the market, the Composite Index rose 0.75 points to 1,303.34, gained 0.80 points to 1,703.24, while the Cross Listed Index added 0.10 points to close at 122.08. Trading ended with 101,149 units valued at $3,433,867 compared to 106,024 units valued at $4,839,646 on Monday.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 4 stocks with bids higher than their last selling prices and 2 with lower offers.
Stocks closing with gains| First Citizens gained 48 cents to close at $33.63 after exchanging 1,103 shares, Grace Kennedy advanced 5 cents and ended at $2.90, with 14,500 stock units changing hands, Republic Financial Holdings gained just 1 cent to end at $107.26, after exchanging 30 shares. Scotiabank gained 25 cents to complete trading of 17 units at $64.25, Trinidad & Tobago NGL rose just 1 cent and settled at $29.25, after exchanging 35,914 shares and West Indian Tobacco concluded trading with a gain of 15 cents to close trading of 22,500 units at $95.25.
Stocks closing with Losses| Calypso Macro Index Fund fell 50 cents and ended at $15, with 2,000 stock units changing hands and JMMB Group lost 2 cents to finish at $1.76 after exchanging 22,000 shares and Unilever Caribbean lost 5 cents ended at $22.95, with 18 stock units changing hands.
Stocks closing firm| Ansa Merchant Bank  settled at $38.26, after exchanging 200 shares, Clico Investments concluded trading at $20.20, with 1,985 stock units changing hands, Massy Holdings closed at $47 after exchanging 845 shares and Sagicor Financial ended at $9.45, with 37 stock units changing hands.

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

 

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

Proven buys NCB’s block of JMMB shares

December 27, 2018 by

NCB Financial Group sold all the JMMB Group shares amounting 326.7 million units amounting to 20 percent of the total issues shares of the money market brokerage.
The shares were put through the Jamaica Stock Exchange only a few minutes after trading opened today, at $28.25 each and resulting in a consideration of $9.2 billion.. In September this year, PanJam Investment purchased 100 million or 6.1 percent of JMMB shares from NCB, leaving the block that was traded today. A spoke person for PanJam, indicated that they are not the buyers of today’s trade. Our sources indicate that Proven Investments are the buyers of the block today.

Filed Under: Breaking News Tagged With: , , , , ,

Fontana listing in January

December 27, 2018 by

Artist impression of Fontana Waterloo Road

Fontana shares are not likely to start trading until January. Feedback from the Jamaica Stock Exchange indicates that the listing committe that has to meet to approve the listing wont meet until next week. 

IC Insider.com had previously reported that it would list today which was based on information gleaned from our sources. The shares allocated for the public pool that seems to be at variance with the terms of the propectus would need sorting out, before the shares are listed if in fact the allocation announced is different from the terms of the prospectus.

Filed Under: Initial Public Offers Tagged With: , , ,

Rita’s 14% of Barita value exceeds 62%

December 26, 2018 by

Rita Humphries-Lewin and husband Carl.

Rita Humphries-Lewin sold 81.56 percent of her shares in Barita Investments and collected $2.64 billion for it, but the amount she retained is now valued more than the amount sold in August this year, to Conerstone Investments Holdings.
Up to early part of August, Humphries-Lewin owned 339,975,664 in Barita Investments or 76.25 percent of the total issued shares. At the takeover price of $9.20 that was valued at $3.13 billion. She retained 62.7 million shares representing 14.06 percent of the issued shares, now valued by the market at $2.92 billion.
With the price of the stock reaching $46.50 on Monday, the vastly reduced ownership is worth almost what the full 76 percent holding in the company was priced at, based on the acquisition price, when Conerstone acquired 75 percent of the company.
Humphries-Lewin would have collected from the shares she sold but the amount she retained
On the other hand,Cornerstone paid $3.07 billion for 75 percent of Barita but based on the latest price for the stock the block is now valued at $15.5 billion representing a huge gain of $12.4 billion in a matter of 4 months.
The new majority owners have big plans for the company that could well push the valued much higher in the not too distant future.

Filed Under: Company News, General Business News Tagged With: , ,

Barita defies broker’s sell recommendation

December 25, 2018 by

Barita climbs to a new closing high of $46.50 on Monday.

Barita Investments closed at $46.50 on Monday with a gain of 450 percent for the year so far, to be the best performer of any stock listed on the Jamaica Stock Exchange. Since late 2016, the stock gained 1,400 percent.
In late 2016, a leading brokerage house concluded their assessment of Barita Investments as follows, “we expect just a marginal increase in year on year net profit. Given this expectation, we estimate BIL shares to be valued at approximately $2.35 by applying the market average P/E to estimated EPS. Therefore at a current market price of $3.10, we are recommending a SELL on BIL.” Interestingly, while they recommended a sale, IC Insdier.com placed a BUY RATING on it and it occupied the number 2 spot on the main market BUY RATED list. That is a huge contrast.
That year, while reported profit was down to $207 million from $242 million, in 2015 total comprehensive income, the better measure of profitability was $691 million or $1.55 per share, compared to $201 million, a huge increase. In 2017, traditional profit slipped to $172 million after an impairment on investments charge of $81 million, total comprehensive income ended at $492 or $1.10 per share. For 2018, reported profit jumped to $374 million and total comprehensive income moved to $736 million or $1.65 per share.
Investors who sold their stock in 2016 lost out big time. Information gleaned by IC Insider.com is that the gains experienced in 2018, may not be over. The company may have pocketed around $100 million from the placement of a US$10 million bond issue recently, both the company’s equity portfolio and the equity-linked Unit Trust would have benefitted from the rise in local stock prices and resulted in increased profits for the December quarter. Then there are other fees that should have increased that will add to the profit for the quarter and for the fiscal year. Importantly, unlike in the past, when unrealized gains on securities was treated as other comprehensive income from the current year, all

Barita Investments 2017 AGM held on March 23, 2017

gains or losses will be treated as a part of regular profit and that is likely to make a big difference in how investors value the company.
The new majority owners, in the eyes of investors have brought new life to the company. At least, that is what from the meteoric rise in the stock price is saying. The company is to raise over $4 billion by way of a rights issue at a price of $15.50 each. The directors have not yet stated publicly, what the funds from the rights issue, will be used. There is talk that some of it will be invested in an expanded portfolio of equities, to take advantage of what is being seen as an improving Jamaican economy that should lead to a rise in stock prices and a role out of services to the wider Caribbean region.
Apart from the company’s stock that seems set to be 2018 number one performer, the equity linked units trust is the best performing for 2018 and seems set to cop the number one spot for the year. Their other funds have trailed the rest of the market by a mile, with the real estate and FX Growth funds down more than 20 percent.

Filed Under: Company News, General Business News

Fontana allocation varies from prospectus

December 25, 2018 by

The Fontana prospectus states that multiple applications by any person whether in individual or joint names will be treated as a single application, but the information included in the broker’s release regarding allocation seems at variance with this.
The brokers indicated that, “multiple applications from a single person or entity were removed except where they were entitled to apply for shares in a reserved and the public pool. Once that process was completed, 2,770 applications remained for 944,150,335 shares”.
It would appear that had the allocation been done in conformity with the terms of the prospectus, the number of shares applied for would still remain at 982,194,569. All multiple applications are to be merged to be one, as such investors

Fontana Waterloo Road

in the public pool should be allocated differently than what has been announced.
Contracts once consummated, are expected to be adhered to, accordingly, the terms set out in the Fontana prospectus, need to be satisfied as far as the allocation of the shares is concerned.
The broker needs to explain to the public if in fact the allocation for the public pool is in keeping with the terms set out on page 14 of the prospectus and if not why not and what will be done to comply with the terms that investors signed on for. It appears that the brokers are trying to unilaterally vary the contract that investors signed on to and they cannot do that.

Filed Under: Feature Stories, Initial Public Offers Tagged With: , , , ,