Profit almost doubles for JSE

Profit at the Jamaica Stock Exchange (JSE) almost doubled for the half year to June with profit after tax jumping 97 percent in the June quarter to $90 million and up 88 percent for the half year to $191 million.
Revenues grew 34 percent for the quarter to $316 million and 39 percent to $666 million. Expenses rose 14 percent for the quarter to $191 million and is up 21 percent for the half year to $398 million. Earnings per share for the June quarter ended at 13 cents and 37 cents for the six months period and should end the year around 70 cents per share. The stock that trades around $7.50 is therefore attractive with eys focused on 2019 when business should increase with more listings and hopefully more business activities.
The JSE ended the quarter with total equity of $1.03 billion. Cash and investments stood at $420 million. Property and other fixed assets climbed to $410 million from $264 million.

Collapse of the JSE US market

Amazingly, while the JSE main market has been recording several record highs this year and the Junior market is up more than 10 percent for the year, the US dollar market has gone in the opposite direction.
The US dollar based market index is at its lowest level since February 2010 and also at levels not seen since mid-2016, with the index closing at 139.56 on Tuesday this week.
In February 2017, Margaritaville hit a high of 37 US cents and Proven Investments reached a high of 32 US cents, both have been sliding since, and hitting a 52 weeks’ low of 15 cents recently. Interestingly, Proven, the darling of many investors in the past, had very little buying interest in recent times. Margaritaville trades at 15 US cents and have lost 60 percent from the high and Proven has fallen 53 percent. Margaritaville suffered last year from dislocation that two hurricanes had on Turks and Caicos Islands and by extension on its operations while Proven picked up losses from the revaluation of the Jamaican dollar, but should recover from it, for the current year. In addition, the company raised capital by way of a rights issue that has not been put to work to avoid a dilution in returns on investment. With the fall in the price of Proven the stock is now IC Insider.com’ TOP 10 buy listed. At the same time, that the US issue has fallen the Proven Jamaica dollar listing still has a bid for 1,830 units at J$26.50 or almost 20 US cents.
Also dragging down the market is Sterling Investments US dollar listing that have fallen from 12 US cents to 8.55 US cents.
For the fiscal year to March, Proven reported US$5.68 million or 0.94 cents per share for shareholders versus $8.85 million in 2017. $8 million of the 2017 earnings was non-recurring, coming from gain on acquisition of a subsidiary. Importantly, the company suffered from the revaluation of the Jamaican dollar in the last half of the fiscal year, resulting in a loss of $444,000 but resulted in a $3.3 million turn from gains of $2.9 million in 2017. Even without the benefit of foreign exchange gains profit from ongoing operations was up nearly 100 percent from $6.6 million to $12.6 million for the year. The first quarter results that are expected to be released next week should show recovery from the FX losses. “All our segments are doing well and this year should be our best ever” Christopher Williams, President of the Company told IC Insider.com. “We await regulatory approval for the investment brokerage company in the Cayman Island,” Williams stated.
Margaritaville reported a loss of US$88.5 thousand in the February quarter, from revenues of US$1.8 million and US$4.06 million for the nine months period that delivered profit of $147,324 versus $339,122 in 2017.

JSE falls again on Wednesday

The main market of the Jamaica Stock Exchange suffered more declines on Wednesday, following losses on Tuesday and the All Jamaican Composite Index lost 724.91 points to close at 336,508.12 and the JSE Index declined 660.48 points to 306,596.88.
Trading in the main market ended with 2,665,607 units valued $71,318,160 compared to 2,832,561 units valued at over $81,949,830 on Tuesday.
Activities in the main market and US dollar market resulted in 26 securities trading including 2 from the US dollar market, compared to 30 securities trading on Tuesday. At the end of trading, the prices of 10 stocks advanced, 12 declined and 4 closed unchanged.
The day’s volume was led by, Caribbean Cement led with 37.64 percent of trading in an exchange of 1,003,349 shares, followed by Barita Investments with 500,653 units and Sagicor Group with 461,652 shares.
Stocks with major price changes are, Berger Paints lost $1.50 to close at $19.50 trading just 1,637 shares, Caribbean Cement lost $2.14 and finished at $39.01, exchanging 1,003,349 shares, Grace Kennedy rose $1.48 to $53, trading 1,000 shares, Jamaica Producers added 50 cents to $17.50 trading 116,704 units. Kingston Wharves dropped $3.12 and closed at $50.85 with 350 stock units, NCB Financial Grouprose $1.75 to $98, trading 14,980 shares, Pulse Investments rose 65 cents trading 25,000 shares to close at $2.95, Sterling Investments fell 51 cents to $10.50 with the trading of 2,700 units.
Trading resulted in an average of 111,067 units valued at an average of $2,971,590 for each security traded. In contrast to 108,945 units for an average of $3,151,917 on Tuesday. The average volume and value for the month to date amounts 152,906 units valued at $3,041,409 compared to 155,968 units valued at $3,046,939 on Tuesday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market closed with 62,614 units valued at $7,800 as Proven Investments rose marginally to close at 15.01 US cents trading 22,614 shares and Sygnus Credit traded 40,000 units and inched up to 11.01 US cents. The JSE USD Equities Index rose 0.09 points up to 139.65.
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 4 closing with lower offers.

Indies Pharma IPO 2.5 times over

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Indies Pharma went to the capital market last week Thursday to raise $248.4 million from 174 million shares for its own use while existing shareholders offered 92.5 million units to raise nearly $139 million.
Information reaching IC Insider.com indicates that the offer that closed on Friday attracted some 2,800 applications, covering over than $1 billion and was about 2.5 times oversubscribed. GK Capital the lead broker pulled in about 50 percent of the inflows, our source indicates. The number of applicants sits just below the amount attracted by Victoria Mutual Investments which was in excess of 3,000.
The shares were mostly priced at $1.50 each with lower prices for shares reserved for selected groups. Only 60 million shares were set aside for the general public. The proceed for the shares sold by the company is expected to be used to pay off loans to its parent company and banks, working capital and funds the cost of the issue. The total issued shares currently amount to 1,158,553,500 units and the issue of 173,983,149 shares, raises the total shares to 1,332,536,649 units.
Indies Pharma is a pharmaceutical distribution company out of Montego Bay, which sold its first pharmaceutical 2005, and today distributes over 150 prescription and over the counter pharmaceutical formulations for Bioprist Holdings under the ‘Bioprist’ brand and operates the Trident Pharmacy located nearby in Sam Sharpe Square, Montego Bay.

The chairman and founder of Indies Pharma

The Company currently services customers across the island, including over 400 pharmacies, private and public hospitals and government agencies including the National Health Fund as well as medical practitioners and directly to individuals.
Investors demand has pushed prices in the post IPO period to peak around 15 times current year’s earnings. On this basis, it seems likely that Indies Pharma will peak around $2.5 based on IC Insider.com’s projected earnings in 2018, of 17 cents per share, it could go higher with the high level of applicants for the shares.
For the half year to April, revenues rose 10 percent to $301 million over the similar period in 2017 but profit is only up 6 percent to $73 million from $69 million before tax. IC Insider.com’s forecast is for a 16 percent increase in pretax profit to $200 million for the current year. The company could pick up additional sales and profit as a result of the publicity that emanates from the IPO and subsequent listing.

Treasury bill rates plunged

Treasury bill rates plunged at the latest auction to raise $1.4 billion for Government of Jamaica held today.
At the latest Treasury bill auction the rate on the 91 days bill declined by just over 58 basis points to just 1.9596 from to 2.544 percent at the June auction, while the 182 days instrument average rate dipped 65 basis points to 2.07 percent from 2.656 percent from the June Auction. The two offerings of $700 million each attracted a total of just over $6.2 billion up from $5.3 billion in June, an indication of continued high liquidity in the market. The latest fall in rate follows a recent 50 basis point drop in Bank of Jamaica’s (BOJ) overnight rate to 2 percent and is almost certain to trigger another cut in the BOJ overnight rate.
The continued fall in rates comes against the back ground of negative inflation of 0.3 percent for the first half of the year. The sharp fall in rates is bound to be reflected in increased demand for stocks and real estate going forward as investors seek higher returns on their investments. Technical indicators point to a big break out for local stocks starting in August and the recent fall in rates will be a critical fuel for it.

More Junior Market losers than winners

Trading on the Junior Market of the Jamaica Stock Exchange declined on Wednesday compared with Tuesday’s levels as only 20 securities trading and no company contributing a large trade as occurred on Tuesday.
Trading resulted in an exchange of 1,512,347 units valued at $7,031,079 compared to 3,567,155 units valued at $16,970,111 on Tuesday as 20 securities changed hands, compared to 21 on Tuesday. At the close of the market the prices of 4 securities rose, 7 declined and 9 traded unchanged leading to the market Index declining 8.96 points to close at 3,020.98.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 9 stocks ending with bids higher than their last selling prices and 3 with a lower offer.
Trading closed with an average of 75,617 units for an average of $351,554 in contrast to 169,865 units for an average of $808,100 on Tuesday. The average volume and value for the month to date amounts to 223,946 units valued at $899,898 and previously 235,400 units valued at $942,241. June closed with an average of 139,543 units, valued at $671,002 for each security traded.
At the close of trading, AMG Packaging ended market activity with a loss of 5 cents at $2.01, trading 5,000 stock units, Caribbean Flavours lost 7 cents to close at $11.60, with 1,500 stock units, Caribbean Producers finished trading 1 cent higher at $5.36, with 734 units, Derrimon Trading concluded trading at $20, with 21,004 shares, Elite Diagnostic settled at $2.95, with 16,011 units. Everything Fresh traded 23,000 shares and lost 5 cents to close at $2.10, FosRich Group finished trading at $2.60, with 8,415 shares, GWest Corporation ended trading 10,919 units at $2.40, Honey Bun closed 2 cents higher at $5.02, trading 10,000 shares, Jamaican Teas ended trading 1,770 stock units at $5.30. Jetcon Corporation traded with a loss of 10 cents at $4, exchanging 35,000 units, KLE Group closed at $2.85, with 550 shares changing hands, Knutsford Express ended at $11.50, with 1,158 shares, Lasco Distributors closed 20 cents higher at $4.20, trading 825,000 stock units. Lasco Financial finished with a loss of 20 cents at $4.90, after exchanging 50,000 units, Lasco Manufacturing settled with a loss of 5 cents at $3.85, with 17,000 shares, Medical Disposables traded 7 cents higher at $5.07, with 423,467 shares being exchanged, Paramount Trading finished trading 3,105 stock units at $2.98 and Stationery and Office closed with a loss of 10 cents at $8, after trading 50,073 units. In the junior market preference segment, Eppley 9.5% preference share ended trading at $6, with 8,641 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Just 10 TTSE securities trade – Wednesday

Witco share fell $1.49 to $87 on Wednesday.

Trading activity fell on the Trinidad & Tobago Stock Exchange on Wednesday with trading in only 10 securities against 18 on Tuesday, leading to just 98,449 shares valued at $2,541,743 compared to 308,275 units valued $3,718,664 changing hands on Tuesday.
Trading closed with 5 securities advancing, 4 declining and 1 remaining unchanged and the Composite Index slipped 0.08 points to 1,223.89, the All T&T Index lost 0.48 points to 1,720.55 and the Cross Listed Index put on 0.04 points to close at 97.65.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 1 stock ending with a higher bid than the last selling prices and 2 with lower offers.
Gains| At the close, Agostini’s concluded trading and rose 1 cent to close at a 52 weeks’ high of $21.11, after exchanging 61,500 shares, trading closed with 853,607 shares on the bid at $21.10 and had of stock of offer. First Caribbean International Bank added 1 cent and completed trading at $8.01, trading 167 units, Massy Holdings increased 5 cents to $47, after exchanging 125 shares, Prestige Holdings rose 1 cent and completed trading at $10.01, with 1,000 units and Scotiabank closed with a gain of 5 cents and completed trading 4,251 units at $65.10.
Losses| Clico Investments traded with a loss of 7 cents and ended at $20.43, with 24,865 stock units changing hands, First Citizens closed with a loss of 1 cent and settled at $35, after exchanging 1,000 shares, Trinidad & Tobago NGL closed with a loss of 20 cents and ended at $29.55, with 950 stock units changing hands and West Indian Tobacco shed $1.49 and concluded trading at $87, after exchanging 273 shares.
Firm Trades| Republic Financial Holdings traded at an intraday 52 weeks’ high of $102.79 but concluded trading at $102.77, after exchanging 3,266 shares .
Prices of securities trading for the day are those at which the last trade took place.

Volume up prices down on JSE on Tuesday

Trading picked up on the Jamaica Stock Exchange on Tuesday, compared to the very modest level on Monday. Trading ended with an exchange of 2,832,561 units valued at over $81,949,830 compared to a mere 1,455,806 units valued just $24,016,207 on Monday.
The pickup in trading did not result in the continuation of a rise in the indices that occurred on Monday and the All Jamaican Composite Index lost 865.50 points to close at 337,233.03 and the JSE Index declined 788.57 points to 307,257.36.
Activities in the main market and US dollar market resulted in 30 securities trading including 4 from the US dollar market, compared to 28 securities trading on Monday. At the end of trading, the prices of 7 stocks advanced, 14 declined and 9 closed unchanged.
The day’s volume was led by, Sagicor Group with 758,030 shares, settling at $38.75 followed by Wisynco Group trading 584,757 units and finished at $9.35.
Stocks with major price changes are, Caribbean Cement lost $1.35 and finished at $41.15, exchanging 933 shares, Grace Kennedy dropped $1.48 and ended at $51.52, trading 40,825 shares, Jamaica Broilers lost 55 cents to $23.95 trading 101,933 units. Kingston Wharves jumped $1.97 finished at a 52 weeks’ high of $53.97 with 9,631 stock units, NCB Financial Grouprose 25 cents to $96.25, trading 251,351 shares, PanJam Investment dropped $1.50 and closed at $53, as 14,820 stock units traded. Pulse Investments lost 70 cents as 27,498 shares traded down to $2.30, Sagicor Group fell $1.25 to $38.75 with the trading of 758,030 units, Sagicor Real Estate Fund jumped $1.05 and settled at $15.10, exchanging 8,443 shares, Seprod lost 49 cents to $34.01 in trading 3,092 units and Supreme Ventures lost 95 cents and ended at $15.05, as 134,214 shares traded and Sygnus Credit traded 6,998 units and rose 45 cents to close at $13.20.
Trading resulted in an average of 108,945 units valued at over $3,151,917, in contrast to 60,659 shares valued at $1,000,675 on Monday. The average volume and value for the month to date amounts 155,968 units valued at $3,046,939 compared to 160,016 units valued at $3,037,085 on Monday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market closed with 207,453 units valued at $17,742 as JMMB Group 5.75% preference share completed trading at $1.03 with 20,000 stock units, Sterling Investments lost 0.5 cents and finished at a 52 weeks’ low of 8.5 US cents with 190,000 shares changing hands, Proven Investments closed at 15 US cents trading 346 shares, an attempted trade at 9 cents was cancelled as it would have exceeded 30 percent move in a day and Sygnus Credit traded 14,000 units at 11 US cents. The JSE USD Equities Index dropped 9.82 points up to 139.56.
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 closing with lower offers.

Lasco Financial grabs 77% of trading

Lasco Financial traded 77% of Tuesday’s volume.

Trading on the Junior Market of the Jamaica Stock Exchange climbed over 200 percent on Tuesday over Monday’s levels, with Lasco Financial accounting for 2,755,556 units and 77.25 percent of the volume of 3.57 million units traded.
Lasco traded the largest volume, one day after the company released first quarter results with profit rising 59 percent before tax and 25 percent after tax to $100 million from a 73 percent rise in revenues, to $555 million.
Trading resulted in an exchange of 3,567,155 units valued at $16,970,111 compared to 1,119,859 units valued at $4,503,207 on Monday as 21 securities changed hands, compared to 28 on Monday. At the close of the market the prices of 5 securities rose, 11 declined and 5 traded unchanged leading to the market Index declining 6.18 points to close at 3,029.94.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 11 stocks ending with bids higher than their last selling prices and 1 with a lower offer.
Trading closed with an average of 169,865 units for an average of $808,100 in contrast to 39,995 units for an average of $160,829 on Monday. The average volume and value for the month to date amounts to 235,400 units valued at $942,241 and previously 241,183 units valued at $954,077. June closed with an average of 139,543 units, valued at $671,002 for each security traded.
At the close of trading, Access Financial lost 10 cents to end at $46.40, with 867 shares traded, Cargo Handlers settled with a rise of 15 cents to close at $9.65, with 5,226 shares changing hands, Consolidated Bakeries closed with a loss of 1 cent at $2, with 151,300 shares, C2W Music ended with a loss of 13 cents at $1.52, as 2,540 shares traded, Elite Diagnostic settled with a loss of 1 cent at $2.95, with 168,000 units. Express Catering traded at $7.30, with 125,878 shares trading, FosRich Group finished trading with a loss of 11 cents at $2.60, in exchanging 86,940 shares, Honey Bun concluded trading 500 shares at $5, Jamaican Teas ended trading at $5.30, with 31,320 stock units. KLE Group closed with a loss of 5 cents at $2.85, after 5,000 shares trading, Knutsford Express ended at $11.50, with 2,500 shares changing hands, Lasco Distributors concluded trading at $4, with 29,809 stock units, Lasco Financial rose 7 cents to $5.10, in the trading of 2,755,556 units. Lasco Manufacturing settled with 64,732 shares trading at $3.90, Main Event ended trading with a rise of 3 cents to $6.85, in exchanging 12,220 shares, Medical Disposables traded 1 cent higher at $5, with 27,389 shares, Paramount Trading finished trading 9,130 stock units at $2.98, Stationery and Office closed at $8.10, with 16,666 units and tTech concluded trading with a loss of 40 cents at $5.50, after 2,392 shares were exchanged. In the junior market preference segment, Derrimon Trading 9% preference share ended at $2.50, with 18,308 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.

18 stocks trade on TTSE – Tuesday

Trading picked up on the Trinidad & Tobago Stock Exchange ended on Tuesday with trading in 18 securities against 16 on Monday, leading to 308,275 shares valued $3,718,664, changing hands compared to 355,041 shares on Monday valued at $3,374,053.
Trading closed with 3 securities advancing, 4 declining and 11 remaining unchanged. The Composite Index slipped 0.16 points to 1,223.97, the All T&T Index lost 0.39 points to 1,721.03 and the Cross Listed Index put on 0.01 points to close at 97.61.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 2 stocks ending with higher bids than the last selling prices and 2 with lower offers.
Gains| Clico Investments rose 20 cents and completed trading at $20.50, with 37,010 stock units changing hands, First Citizens added 1 cent and ended at $35.01, after exchanging 581 shares and Sagicor Financial gained 1 cent and completed trading at $7.80, with 5,000 stock units changing hands.
Losses| At the close, the price of Massy Holdings shares fell 5 cents and ended at a 52 weeks’ low of $46.95, after exchanging 2,341 shares, Point Lisas fell 1 cent and completed trading at $3.80, with 1,104 stock units changing hands, Republic Financial Holdings shed 3 cents and ended at $102.77, after exchanging 3,494 shares and Scotiabank lost 5 cents and settled at $65.05 as 3,996 units traded.
Firm Trades| Agostini’s ended at $21.10, after exchanging 10,000 shares, Ansa Merchant Bank concluded market activity at $40, after 349 shares traded, Guardian Holdings settled at $16.51, with 3,190 units, JMMB Group ended at $1.85, exchanging 3,500 shares, National Enterprises completed trading at $9.55, with 10,980 stock units changing hands, National Flour settled at $1.80, with just 100 units trading, NCB Financial Group concluded trading at $5.40, after exchanging 200,000 shares, One Caribbean Media ended at $12, after 4,300 shares changed hands, Trinidad & Tobago NGL completed trading at $29.75, with 19,618 stock units changing hands, Trinidad Cement settled at $2.95, with 512 units and Unilever Caribbean traded 2,200 shares at $29.23.
Prices of securities trading for the day are those at which the last trade took place.