Archives for April 2023

Rising stocks beat out losers on TTSE

April 3, 2023 by IC Insider.com

Trading resulted in mixed results at the close of the Trinidad and Tobago Stock Exchange on Monday, after a decline in the volume of stocks and the value traded compared to that on Friday, the total volume dropped 70 percent below trading on Friday as the value dipped 40 percent, resulting in 20 securities trading compared with 21 on Friday, with seven stocks rising, five declining and eight remaining unchanged.
Trading accounted for 346,209 shares for $3,145,595 down from 454,057 stock units for $7,929,953 on Friday. An average of 17,310 shares were traded at $157,280 compared to 21,622 shares at $377,617 on Friday. The average trade for March amounted to 23,611 shares at $241,670.
The Composite Index popped 0.47 points to 1,312.82, the All T&T Index dipped 2.12 points to 1,972.50, the SME Index dipped 0.46 at 61.06 and the Cross-Listed Index added 0.46 points to close at 84.94.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than their last selling prices and none with a lower offer.
At the close, Agostini’s closed trading of 170 shares at $58.54, Ansa McAl traded 158 shares at $52, Calypso Macro Index Fund jumped $1.75 to end at $22.50 after investors exchanged just 55 units. Cinema One lost 40 cents after trading 15 shares at $7.50. First Citizens Group ended with an exchange of 1,967 stocks with the price closing at $50, FirstCaribbean International Bank gained 10 cents in ending at $7.25, with 26,166 stock units clearing the market. LJ Williams B share ended an exchange of 1,000 shares at $2.75, GraceKennedy slipped 1 cent $4.44 after an exchange of 3,046 units, JMMB Group gained 3 cents to close at a $1.70 with a transfer of 1,250 shares, Massy Holdings rose 6 cents in ending at $4.56 after an exchange of 116,851 stock units, National Enterprises exchanged of 38,734 stock units in closing at $3.60 after rising 5 cents, National Flour fell 1 cent in trading 992 shares to $1.49. One Caribbean Media closed at $3.70, with 163 units changing hands, Prestige Holdings ended at $7.40 after an exchange of 7 shares. Republic Financial lost 50 cents to close at $137.50 after 1,602 shares were traded, Scotiabank slipped 10 cents in ended at $77.85 while exchanging 1,248 stock units, Trinidad and Tobago NGL had an exchange of 5,292 shares at $20, Trinidad Cement rose 2 cents after trading 42,180 stock units in closing at $3.53, Unilever Caribbean ended trading at $14.79 with an exchange of 105,173 stocks and West Indian Tobacco added 5 cents to end at $16.80 after trading 140 shares.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Filed Under: Stock Market, TTSE Market Tagged With: Agostini's, Ansa Mcal, Calypso Micro Index Fund, Cinemaone, Daily Trading, Emerging markets, Emerging Stock, First Caribbean International Bank, First Citizens, GraceKennedy, Guardian Media, JMMB Group, LJ Williams, Massy Holdings, National Enterprises, National Flour, One Caribbean Media, Prestige Holdings, Republic Financial Holdings, Scotiabank, Trading Activity, Trinidad & Tobago NGL, Trinidad Cement, TTSE, Unilever Caribbean, West Indian Tobacco

ICTOP10 rides big weekly JSE rally

April 3, 2023 by IC Insider.com

The JSE Main market surged sharply in the past week.

While the Main and Junior Markets rebounded sharply during last week, ICTOP10 stocks ended with varying movements, with gains and losses in both markets hitting 16 percent. It was an interesting week in which the main market gained over 18,000 points for the week with all days closing with gains including the Friday of the previous week, but it sits at a resistance level and is a signal worth watching.
The Junior Market put on 200 points since Thursday, March 23 and had one minor negative trading day during the period, however, the last day accounted for nearly half of the above gains.
While Bank of Jamaica held their overnight rates at 7 percent, their CD rate that fell 16 percent in the previous week to an average of 8.85 percent from over 10 percent where it stood for several months, BOJ offered a huge $35 billion this past week, but the average rate fell to 8.49 percent after $70 billion chased the amount offered. Importantly, the central bank cut the stock of CDS it holds from a peak of $109.5 billion on March 3, but at the latest auction, it amounted to $88.85 billion, marginally up from $82 billion on the 17^th.
At the end of the past week, in the Junior Market TOP10 four stocks gained and five declined. KLE Group jumped 16 percent to $1.69 and Tropical Battery rose 7 percent to close at $2.08. General Accident dropped 16 percent to $5 and Everything Fresh fell 6 percent to close at $1.45.
The Main Market TOP10 JMMB Group climbed 15 percent to $33.25, Jamaica Broilers gained 12 percent to $37.10, Caribbean Producers popped 7 percent to $9.70 and NCB Financial with a rise of 6 percent to $75. Berger Paints fell 10 percent to $8.20 and 138 Student Living with a fall of 6 percent to $5.05.
The Junior Market has a long term pattern, with the market starting to rise around a month before quarterly results are due and declining shortly after results are released. This is a pattern worth noting that can be built into investment decisions that can improve returns.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.2, while the Junior Market Top 10 PE sits at 5.8 compared with the market at 11.4. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 248 percent and the Main MarketTOP10 by an average of 267 percent, by May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15 to 28, averaging 20.4, well above the average of the market. The top half of the market has an average PE of 16, suggesting that this may be a logical value for junior market stocks currently.
The Main Market 19 highest valued stocks are priced at a PE of 15 to 115, with an average of 29 and 21 excluding the most valued stocks and 20.5 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: 138 Student Living, AMG Packaging, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Daily Trading, Emerging markets, General Accident, Guardian Holdings, Honey Bun JMMB Group, Image Plus Consultants, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, junior market, Key Insurance, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Main Event, NCB Financial, One on One, Paramount Trading, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Tropical Battery

Jamaican economy grew 5.2% in 2022

April 2, 2023 by IC Insider.com

The Jamaican economy grew 5.2 percent in 2022, preliminary data released by the Statistical Institute of Jamaica (Statin) states, with GDP marginally surpassing the previous highest fourth quarter performance in 2019. The latest results reflect an increase of 6.3 percent in Services and 2.1 percent in the Production of goods, the release states.
During the fourth quarter of last year, the total value added at constant prices for the Jamaican economy grew by 3.8 percent, compared to the fourth quarter of 2021 and resulted from growth in the Services and Goods Producing Industries of 3.6 percent and 4.7 percent, respectively.
According to Statin, all industries within the Services Industries grew, except the Producers of Government Services, which fell by 0.8 per cent. The main area for growth was increased activities in Hotels & Restaurants 21.6 percent, Other Services 10.4 percent, Transport, Storage & Communication 5.9 percent.

Tourism is Jamaica’s largest earner of foreign exchange.

The growth in Hotels & Restaurants was mainly influenced by a 36.5 percent increase in foreign national arrivals during the period. The increase in the Goods Producing Industries was primarily due to higher output levels in Agriculture, Forestry & Fishing 5.9 percent, Manufacturing 5.4 percent and Mining & Quarrying, 99 percent due to the resumption of operations at the JAMALCO plant, impacted the performance of the Mining & Quarrying industry. The Construction industry that has been buoyant in the past few years, declined 4.8 percent in the December quarter.

Filed Under: Economy Tagged With: GDP, GDP growth for Jamaica in 2022, Jamaica's gdp growth, Jamalco

Supreme increased profits

April 1, 2023 by IC Insider.com

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Profits jumped 32 percent to $3 billion from a 15.6 percent jump in revenues to $50.77 billion at Jamaica’s leading gaming company, Supreme Ventures, for 2022 over 2021, following a virtual stagnation in profits since 2019.

Supreme Ventures moved up from $24.25 at the end of last week to over $30.50 after the results.

Gross profit rose 20 percent to $11.3 billion, from $9.38 billion in 2021, as direct cost climbed slower than revenues, with a 14.4 percent increase in direct cost to $39.6 billion from $34.6 billion in 2021.
Selling, general and administrative expenses increased by 13 percent to $7 billion from $6.2 billion in 2021 and finance cost jumped to $535 million from just $30 million in 2021 was reduced by $374 million foreign exchange gains in 2021 compared with a loss of $82 million in 2022. Taxation fell to $781 million from $951 million in 2021, with the reduction due mainly to a credit of $203 million relating to losses at a subsidiary that was recognized in 2022.
“We have maintained our ongoing focus on managing costs”. “Our successful implementation of significant cost-saving initiatives has allowed us to continue our investment in the buildout of the company’s infrastructure,” the chairman Gary Peart advised shareholders in his update on the Group’s performance for 2022.
Segment results show the Lottery division generating a 19 percent increase in revenues to $23.6 billion and a profit of $5.1 billion compared with $19.85 billion and a segment profit of $3.28 billion in 2021. Sports Betting delivered a 20 percent rise in revenues of $14.4 billion for 2022 versus $12 billion in 2021 with a profit of $1.17 billion in 2022, up from $681 million, revenues for Pin Codes rose just 6 percent to $12.3 billion up from $11.6 billion with a profit of $333 million up from $214 million for 2021.

Gary Peart, Chairman

Current assets slipped from $7.6 billion in 2021 to $7 billion in 2022, while current liabilities climbed from $5.15 billion to $6.8 billion, primarily due to a $1.1 billion increase in prize and other liabilities owing. Shareholders’ equity rose to $4.69 billion, borrowed funding amounts to $5.8 billion due beyond a year and amounts due within a year stand at $540 million.
Earnings per share for the year amount to $1.15 is up from 87 cents in 2021, ICInsider.com projects earnings of $1.50 per share for 2023, with the price of the stock currently trading at $30, now at PE of 20 times earnings.
The Group paid four dividends of 67 cents last year, amounting to $2.45 billion, up from $2.1 billion in 2021 and just announced an interim dividend due to be paid in April of 34 cents per share, that will bring the total payment per share to $1.01 or 88 percent of profit.
The Group generated positive cash flows from operations of $3.66 billion to close 2022, with a cash and bank balance of $2.97 billion, representing a decrease from $44 billion at the end of the prior year.
“Digital innovations such as our lottery online platform SV Games, access to sports betting online through Just Bet Mobile, casino type games with Acropolis Online and horseracing through MBet are all growing mobile channels, from which we expect great things to continue. Our flagship lottery products continue to grow and the rebirth of the Instants product, “Scratchaz” has been an overwhelming success, introducing new market segments to the gaming sector. In addition, SVL has introduced the universal top up channel, “Charge Up”, which will ultimately become the source of top up for a variety of products and services from education to transportation. The SVL group’s digitization is comprehensive and its potential for growth is exponential,“ Peart informed investors.