Modest gains for TTSE stocks – Tuesday

All three main indices of the Trinidad & Tobago Stock Exchange, closed higher on Tuesday, with the Composite Index rose 0.81 points to 1,219.68, the All T&T Index gained 0.93 points to 1,689.70, while the Cross Listed Index gained 0.09 points to close at 100.70.
At close, 12 securities changed hands, with the price of 3 rising, 2 declining and 7 remaining unchanged, against 12 trading on Monday.
The market ended trading of just 24,947 shares valued $1,118,165, compared to 34,976 shares valued $774,551 changing hands on Monday.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading closed with 4 stocks ending with higher bids than the last selling prices and 2 with lower offers.
Stocks closing with gains| One Caribbean Media rose 1 cent and settled at $12.11, after exchanging 404 shares, Trinidad & Tobago NGL closed with a gain of 1 cent and completed trading at $29.01, after exchanging 2,525 shares and Trinidad Cement gained 5 cents and settled at $2.75, after exchanging 5,926 shares.
Stocks closing with losses| Clico Investments shares fell 4 cents and ended at $19.95, with 1,500 stock units changing hands and Prestige Holdings closed at a 52 weeks’ low with a loss of 10 cents and ended at $9.40, trading 210 units.
Stocks trading with no price change| Ansa Mcal completed trading at $56.00, with 700 units changing hands, First Citizens completed trading at $32.60, after exchanging 500 shares, JMMB Group settled at $1.68, after exchanging 2,941 shares, Massy Holdings settled at $47.20, after exchanging 1,485 shares, Republic Financial Holdings settled at $103.67, after exchanging 6,099 shares, Scotiabank closed at $64.94, trading 200 units and West Indian Tobacco ended at $87.60, with 2,457 units traded.
Prices of securities trading for the day are those at which the last trade took place.

One-off gains push up Scotia’s profit

Scotia Group reports growth of 24 percent in net profit to $11.2 billion for the nine months to July, but importantly, profit jumped a strong 37 percent in the July quarter, over that of 2017 to $4.4 billion as net revenues climbed in the quarter by $940 million and costs were effectively flat.
While the results are impressive, especially in light of recent years of weak growth, the improvement is boosted by what could be considered as one-off income. The nine months profit that grew by $2.2 billion over the similar period in 2017, inclusive of gains on the sale of a subsidiary of $750 million. In addition, the group enjoyed above average foreign exchange trading gains, partially as a result of the relatively sharp slippage in foreign exchange rate of the Jamaican dollar. Excluding, the exceptional income profit would be modestly up from the results of the prior year.
The year’s operations was impacted by lower cost and lower income in some areas while income for some other segments grew. Total revenues excluding impairment losses on loans for the nine months to July increased 10.7 percent to $33 billion, over the prior year. “While there were increased loan and transaction volumes across the business lines, this was offset by reduced net interest margins as a result of lower interest rates,” the group’s CEO and President, David Noel stated in the report to shareholders. Net interest income after impairment losses for the period was $17.9 billion, compared to $18.44 billion the same period in 2017. For the quarter, net interest income declined by nearly $460 million before loan impairment losses, to $6.3 billion and by $427 million after to $5.68 billion.

David Noel new Scotia Group’s CEO.

Net fees and commission income was $6.1 billion, down $477 million or 7 percent compared to last year, impacted by the ongoing shift from branch transactions to online and mobile transactions which Scotia states, “attract lower fees,” Insurance revenue increased by $135 million to $2.4 billion or 6 percent, due to growth in core insurance business and actuarial reserve releases from changes in assumptions on valuation of the portfolios. Net gains on foreign currency activities and financial assets amounted to $4.6 billion, up $2.5 billion, more than 100 percent compared to last year based on increased market activities and revaluation gains. For the quarter, net fees and commission income dipped to $2 billion from $2.17 billion, gains on foreign trading jumped sharply from $570 million to $1.95 billion due partially to the sharp depreciation of the Jamaican dollar. Gains in financial assets rose from $228 million to $598 million but insurance revenue fell from $567 million to $525 million.
Operating Expenses of $16.3 billion for the nine months, increased $145 million or just 1 percent compared to prior year. Salaries and staff benefit costs declined $414 million, while other operating expenses grew by $575 million. For the quarter cost rose from $5 billion to $5.07 billion as staff cost dipped slightly to $2.45 billion from $2.68 billion.
Loans and advances grew 6.3 percent, with loans after impairment losses increasing to $176.9 billion since the end of the previous fiscal year in October but grew a stronger 3.7 percent between April and July quarter. Impairment losses on loans were down $310 million or 21 percent from last year, due to lower provisioning requirements on a reduced non-accrual loan portfolio as the quality of credit portfolio continues to improve.
An interim dividend of 48 cents per stock unit payable on October 24, was declared. Scotia is trading on the Jamaica Stock Exchange at $62 on Tuesday with a PE of 13.5 times 2018 earnings from continuing operation around $4.50 per share.

All Jamaica less than 9000 points from 400K

The Jamaica Stock Exchange climbed more than 5,000 points after 25 minutes of opening with the All Jamaican Composite Index surging to just under 9,000 points from big resistance point of 400,000.
By just 4 minutes after 10 am, the All Jamaican Composite Index surging 5,502.66 points to a record 391,34026 points and JSE Index surged 5,013.54 points to a record 356,555.23. The Junior Market rose 2.53 points to a record 3,405.01.
The rise in the main market is due to large movement in Jamaica Broilers that traded at a new record of $33, NCB Financial that traded at $121, PanJam Investment trading at $57 and Scotia Group trading at $62.

12 straight record close for JSE stocks

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More records got shattered in trading on The Jamaica Stock Exchange on Monday as the All Jamaica Composite Index (AJI) reached a new high during the trading session at 389,650.08 points, with less than 37 minutes before the close.
While the AJI was pushing closer to the 400,000 mark, JSE Index hit a new high of 355,015.30 having gained 3,504.55 points at 12.23 in the afternoon, before investors pushed down the price of National Financial to the $113 level after it traded for most of the day around the $126-130 level.
The main market closed with just modest gains in the indices and pushed the consecutive daily record close to 12. Monday’s close brings to 35, the number of record close for the year and 23 since the start of July.
The market closed with the All Jamaica Composite Index rising 33.96 points higher to a record close at 385,837.60 and the JSE Index gaining 30.94 points to a record close of 351,541.69.
Market activities resulted in just 33 securities trading, including 1 in the US dollar market compared to 25 securities trading on Friday. At the end of trading, the prices of 15 stocks rose, 8 declined and 10 closed trading, unchanged. Two stocks closed at 52 weeks’ high and while Mayberry Equities traded at a record high of $10.57 but failed to hold on at the close.
The main market ended with 10,670,045 units valued $110,767,731 compared to 2,715,718 units valued at $59,199,085 changing hands, on Friday.
The day’s volume was led by, Wisynco Group with 4,737,868 units 44.4 percent of the volume traded followed by 138 Student Living with 3,333,333 units and 31.24 percent of main market volume and Victoria Mutual Investments with 487,461 units and 4.57 percent of the day’s volume.
Trading resulted in an average of 333,439 units valued at over $3,461,492, in contrast to 118,075 shares valued at $2,573,873 on Friday. The average volume and value for the month to date amounts to 443,910 shares valued $4,190,129, compared to 443,910 shares valued $4,190,129 traded on the immediately preceding trading day. August closed, with an average of 224,564 shares valued at $4,310,285, for each security traded.
In the main market activity, Barita Investments climbed $2.65 to close at a record high of $15.60, trading 3,100 shares, as investors show increased interest in the stock with the new majority owners took control after the recent acquisition of the majority shares. Berger Paints ended at $21.45 after gaining 44 cents with 5,025 stock units trading, Grace Kennedy lost 40 to end at $58, trading 26,924 shares, Kingston Properties rose 25 cents in concluded trading 7,450 shares at $6, Mayberry Investments fell 80 cents and settled at $8 in trading 31,000 units, NCB Financial Group fell $3 and ended trading 147,486 shares at $126, PanJam Investment shed $2 and closed at $54 trading 12,200 stock units, Pulse Investments declined 41 cents and concluded trading of 17,050 shares at $2.39, Sagicor Group fell 85 cents and settled at $39, trading 13,496 shares. Sagicor Real Estate Fund climbed 77 cents and settled at $11.77, trading 352,320 shares. Scotia Group jumped $4.38 to end at a record close of $60.51, after trading 244,840 units, Seprod climbed $3.10 to end at $50 in trading 3,855 units, Stanley Motta jumped 51 cents in trading 41,600 shares close at $5.31 and Wisynco Group rose 25 cents and finished trading 4,737,868 units at $9.10.
Trading in the US dollar market closed with 220,794 units valued at $50,765 as Proven Investments the sole stock trading in this segment of the market, rose 0.5 cents and ended trading at 23 US cents. The JSE USD Equities Index increased 1.74 points to close at 169.52.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading is very strong for continuation of the market’s rally and shows 5 stocks ended with bids higher than their last selling prices and 2 closing with lower offers.

Record close for Junior Market – Monday

The Junior Market recorded gains of 5.39 points at the close of trading on Monday, to end at record close of 3,402.48, within 3 minutes of opening, to take out the old record of 3,392.58 on Monday.
Trading rose from 25 securities on Friday to 29 on Monday, leading to 7 advancing, 12 declining and 10 remaining unchanged, as investors exchanged 2,777,946 units valued at $11,467,683 compared to 2,279,431 units valued at $9,238,268 on Friday.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading had 5 stocks ending with bids higher than their last selling prices, 2 closed with lower offers.
Trading closed with an average of 95,791 units for an average of $395,437 in contrast to 91,177 units for an average of $369,531 on Friday. Trading for the month to date averages 613,186 units for an average of $3,682,880 and on the prior trading day, an average of 670,895 units for an average of $4,049,556. Trading in August, averaged 244,613 units at $1,348,298 for each security traded.
At the close of trading, AMG Packaging ended 1 cent higher at $1.90, with 186,246 stock units changing hands, Blue Power concluded trading at $6.50, trading 150 units, Caribbean Cream jumped to a 52 weeks’ high of $8 after gaining 50 cents and trading 58,059 shares, Caribbean Flavours traded 18,519 stock units with a loss of 30 cents at $19, Caribbean Producers finished trading at $6.10, with 12,934 units changing hands. Consolidated Bakeries traded 2,000 shares to close with a loss of 1 cent at $2.49, Derrimon Trading ended with a loss of 2 cents at $3.18, in exchanging 262,810 shares, Elite Diagnostic finished with a loss of 10 cents at $3.40, with 56,916 stock units being exchanged, Eppley settled with a loss of 5 cents at $10, trading 13,305 units. Everything Fresh shed 10 cents in trading 32,468 shares to end at $2.30, Express Catering ended trading 52,500 shares with a loss of 39 cents at $8, FosRich Group traded 32,340 shares 1 cent higher at $3.01, General Accident finished trading with a loss of 40 cents at $4, with 98,778 shares, GWest Corporation closed at $2.15, with 15,000 stock units. Honey Bun ended at $4.05, with 25,386 units, Indies Pharma lost 5 cents and closed with 1,098,497 shares changing hands at $3.95. Iron Rock concluded trading of 81,500 shares for 50 cents higher at $4, Jamaican Teas settled with a loss of 5 cents at $4.60, exchanging 38,064 shares, Jetcon Corporation gained 6 cents to close at $3.96, with 250 stock units changing hands. KLE Group finished trading 91,858 shares at $3, Knutsford Express closed $1.20 higher at $12.70, exchanging 1,800 shares, Lasco Distributors ended at $4, with 32,479 shares, Lasco Financial gained 10 cents to $5.60, trading 110,888 stock units. Lasco Manufacturing finished at $3.90, with 6,289 units, Main Event settled with a loss of 1.80 cents at $5.20, in the exchange of 14,000 shares, Stationery and Office finished trading 15,900 stock units at $9 and tTech ended at $6, changing 309,410 shares. In the junior market preference segment, Derrimon Trading ended with a loss of 26 cents at $2.25, with 5,100 stock units changing hands.
Prices of securities trading for the day are those at which the last trade took place.

4 TTSE stocks rise 1 decline – Monday

Trinidad & Tobago Stock Exchange Head Quarters

The main indices of the Trinidad & Tobago Stock Exchange, closed mixed on Monday, with the Composite Index rose 1.57 points to 1,218.87, the All T&T Index fell 0.50 points to 1,688.77, while the Cross Listed Index gained 0.51 points to close at 100.70.
At close, 12 securities changed hands, with the price of 4 rising, 1 declining and 7 remaining unchanged, against 11 trading on Friday.
The market ended trading of just 34,976 shares valued $774,551, compared to 161,575 shares valued $7,040,684 changing hands on Friday.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading closed with 4 stocks ending with higher bids than the last selling prices and 3 with lower offers.
Stocks closing with gains| Grace Kennedy rose 1 cent and settled at $2.71, with 300 stock units changing hands, NCB Financial Group added 7 cents and ended at $5.75, after exchanging 5,000 shares, Sagicor Financial gained 9 cents to settled at $7.61, with 1,272 stock units changing hands and West Indian Tobacco rose 4 cents and concluded trading of 55 units at $87.60.
Stocks closing with losses| Republic Financial Holdings lost 1 cent in completing trading at $103.67, after exchanging 9 shares.
Stocks trading with no price change| Ansa Mcal concluded trading of 110 units at $56, Clico Investments settled at $19.99, with 4,251 stock units changing hands, First Citizens ended at $32.60, after exchanging 940 shares, Guardian Holdings concluded exchanging 4,858 units at $17, JMMB Group completed trading at $1.68, after exchanging 3,084 shares, Massy Holdings ended trading at $47.20, after exchanging 4,531 shares and Trinidad & Tobago NGL ended at $29, after exchanging 10,566 shares.

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

85% of Scotia’s transactions now online

Scotia Group branches now being used less with more use of electronic banking by customers.

Scotia Group is reporting major breakthrough in customers switching much of their banking operations outside the banking halls.
According to the banking group in their report to shareholders, “We continue to simplify our operating model to focus on growing our core businesses, enhancing our digital capabilities, and reducing our structural costs.”
Scotia stated that “Our digital strategy continues to deliver new milestones as evidenced by a 24 percent increase in the number of mobile banking customers.” mobile, online, ATM and Point of sale continue to grow and now account for more than 85 percent of all transactions as at July. The banking group is reporting lower operating cost and fee income as a result of the switch.
The sharp fall in branch transactions come against and 7 percent increase in total to $535 billion over assets on the books in July 2017.

Barita is stock to watch this week

The main stock of interest this week is Barita Investments that came into buying interest this past week leading the price to move to $12.95, this one seems headed higher in the short term as the supply that  is on the market has been taken out with few stocks on offer now.
Bulls pushed the Jamaican stock market, to new heights last week, with the main market having 11 straight days of record highs and the Junior Market cleared the historical high reached in 2017, in the past week as well.
NCB Financial that was in the spotlight for the past two weeks, still has buying interest but seems to be having most bids around the $120 mark and may find it tough to break over the $130 mark where it traded during the past week.
While the stock is trading close the $130 mark in Jamaica, it is trading in Trinidad around J$115 and that may hold back the price from moving much higher locally until the price in the twin island state picks up. Scotia Group reported profit that showed gains, some of it was non-recurring income and exceptional foreign exchange gains that seems unlikely to repeat anytime soon.
While the supply of several of the main market stocks being scarce, the main market is just under 15,000 points from a major resistance level at 400,000 points and that could stymie much more movement in the short term, with some prices having moved quite a bit recently. There are several stocks priced well below the market’s average and that could encourage buying interest in them.

NCB stock closed at $129 on Friday.

Investors should keep their eyes on a number of stocks this week. NCB Financial that closed on $115, should move higher this week as demand continues to build and with limited supply on offer.
Grace Kennedy may not be ready to break out of the $60 range as yet but it’s a stock to keep an eye on. Caribbean Cement keeps trading between $46 to $50, but there appears no real desire to move the price forward. Kingston Wharves traded at a record high of $75 on limited volume in the past week but pulled back slightly to $72 at the close with a PE ratio of 46 is compared to a market average of 14.6. Supply of the stocks remain low, but some investors keep on buying. Sygnus Credit Investments picked up last week and moved back within a cent of the IPO price, buoyed by full year results of US$1.4 million. The PE ratio is 11.4, well below the market average of 14.6, that will encourage more interest in the stock. Jamaica Producers has very limited volume on offer and that could help buying at higher prices in spite of a PE of 28, twice the market average. Stanley Motta with a PE of 11 based on 2019 earnings has been recovering for the recent decline and is one to watch.
In the Junior Market, Indies Pharma, came in for continued buying that pushed the price to a record high of $4.10 on Friday against very limited supply. Some selling came into the market on Friday to ease the buying pressure on the price which could stick around the current level of $4 for a while. Bulls came in and bought out a big parcel of Access Financial that was on offer for weeks but the $50 level seems a barrier in the short term. Demand is building for Elite Diagnostic while supply has waned.

Jamaica Producers stock in demand in spite of high price.

General Accident could move higher as more demand comes in for it with limited selling, but investors may not want to be more aggressive with this stock at this time. If the company were to announce expansion into the Eastern Caribbean it may well make a difference.
Stocks with scarce supplies that could spring surprises include, Grace Kennedy, NCB Financial, Berger Paints, Caribbean Cement, Kingston Wharves, PanJam Investment, Sagicor Group, Salada Foods, Seprod and Scotia Group.
The Junior Market supplies continue to be limited for many of the listings. The list includes, Caribbean Flavours, Cargo Handlers, Derrimon Trading, Express Catering, General Accident, ISP Finance and Medical Disposables.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below, but the 400,000 points resistance could likely stall the rally in the main market for a while. The Junior Market now at an all-time high, is being steared by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

Carib Producers returns to IC TOP 10

Caribbean Producers back in TOP 10

Caribbean Producers climbed back into the Junior market IC TOP 10 stock listing but there was no change to the main market list. Main Event dropped out of the top list having recovered from a big price fall in the previous week.
Caribbean Producers recently released full year results that were slightly lower than the year before but with a 10 percent rise in revenues. A lower profit margin by 2 percent and an increase of 10 percent in administrative and selling expenses resulted in lower profit but forecast suggest that earnings for 2019 should be up strongly to around 65 Jamaican cents. The company will have to report new results to see the likely increased earnings start to show up in the stock price.
During the past week, the main market of the Jamaica Stock Exchange, racked up 5 consecutive days of record close on Friday and 11 record close in a row, while the Junior market closed the week for with two record close, for the first time since May 2017.
The gains in the two markets is driving the PE ratio of the market higher with the overall PE for the Junior Market rising from to 13 and the main market from 13.7 last week to 13.7 and 14 respectively, this week. Recent movement in the PE suggest that average PE for the market will end 2018 around 18 and 20 by the end of January as conditions continue to favour stocks as the preferred investment of choice along with real estate.
The PE ratio for Junior Market Top 10 stocks average 8.9 up from 8.7 last week, as the market continues to revalue the multiple higher. The latest valuation compares to an average PE for the overall market of 14.3, based on 2018 estimated earnings. The main market PE is now 8.8 and is the up from 8.5 last week, for the top stocks, compared to a market average of 14.6.
The TOP 10 stocks now trade at an average discount of 38 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 40 percent to the market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

Earth quake in upper St Andrew

Citizens fell an earthquake in upper St Andrew around 1.43 PM on Sunday. The quake that lasted a few seconds shook buildings in the area but there was no immediate signs of physical damage.

The quake that was first felt as a minor tremor, subsequently increased in intensity, to a level that the rattling of buildings could be heard.  Reports so far, are that it was felt as far as Clarendon.