Small profit for JN Life

JNBSA relatively new kid on the block in the life insurance industry – JN Life Insurance recorded increased policy holder liabilities of $35.6 million last year that helped push assets of this fledgling entity to $253 million according to the 2013 audited financial statements of the company, up from $198 million in 2012. Shareholders’ equity of $203 million is backed up mostly by cash and investments.

Income for 2013, came mostly from premium of $51 million which was inadequate to make an underwriting profit leaving an underwriting loss of nearly $5 million. Investment income and foreign exchange gains of $15 million helped to land a profit after tax of $3.8 million compared with a profit of $4 million in 2012.

JN Life is fully owned by Jamaica National Building Society, it started underwriting insurance in July last year, the audited financial statements stated, having obtained license from the Financial Securities commission in December 2012 to conduct ordinary life business and group mortgage blanket protection policy.

More inflows than outflows but Ja$ slips

The Jamaican dollar lost further ground against the US dollar with the selling rate rising as well as against the Canadian dollar but gained against the Pound sterling in Monday’s trading.FX sum 9-6-14

Trading levels on the market on Monday were above Friday’s as dealers bought the equivalent of US$50,757,616 compared to US$44,386,802 on Friday and sold the equivalent of US$43,628,758 versus US$41,450,934.

In US dollar trading, dealers bought US$46,175,243 compared to US$41,028,885 on Friday as the buying rate for the US dollar fell 15 cents to $110.85 and they  sold US$40,725,949 versus US$38,828,427 on Friday with the rate closing up by 3 cents at $111.40.

The Canadian dollar buying rate rose by 22 cents to end at $100.72 with dealers buying C$2,113,617 and selling C$1,742,238 with the rate rising 27 cents to end at $102.01.

The Pound closed at $184.39 for the purchase of £1,519,322 as the rate fell 17 cents while £679,265 was sold with the rate falling by 61 cents to $186.59

Other currencies bought amounted to the equivalent of US$134,869 while selling accounted for the equivalent of $169,598.

Highs & Lows| The highest buying rate for the US dollar declined 40 cents to $111.60 but the lowest buying rate gained 42 cents to close at $90.60, the highest selling remained unchanged at $116.09 and the lowest fell by $18.32 to be back at $90.18.FX HL -9-6-14

The highest buying rate for the Canadian dollar rose 23 cents to $102.13, the lowest buying rate increased by 4 cents to $80.51 but the highest selling rate inched up 21 cent to $104 and lowest selling rate was up by a mere 5 cents to $97.

The highest buying rate for the Pound fell 35 cents to $187.15 while the lowest buying rate climbed $1.08 to $149.36. The highest selling rate declined by $1.90 to $192.55 while the lowest rate remained unchanged at $179.95.

Market gives back much of Friday’s gains

JSE -9-6-14.docxIn Monday’s trading on the Jamaica Stock Exchange, the prices of 5 stocks rose and 9 declined as 25 securities traded, resulting in 4,449,542 shares trading valued at $16,025,184. At the end of trading a large portion of the gain the market enjoyed on Friday was given back and two stocks closed at 52 weeks low.

Main Market| The prices of 4 companies in the main market rose and 6 declined as the indices fell as the JSE Market Index dropped 1,509.52 points to 70,483.49 and the JSE All Jamaican Composite index fell 1,687.91 points to close at 77,521.54.

Gains| Stocks recording gains at the end of trading in the main market are Grace Kennedy with 17,745  shares to close with a 50 gain at $54, Mayberry Investments 5,000 shares to close with a gain of 6 cents at $1.87, Sagicor Group with 490,713 units, closed 6 cents higher at $9.11 and Scotia Group with only 1,802 shares closed with a 90 cents gain at $20.

Firm| There were only 5 ordinary stocks in the main market to close without a price change with Berger Paints having 3,799 shares changing hands at $1.70, Desnoes & Geddes 100,000 shares closing at $4.25, Gleaner 210,666 shares closing at $1.10, Jamaica Money Market Brokers with 224,000 shares closing at $6.70 and National Commercial Bank 45,354 shares closing at $17.50.

Preference| The fixed income market saw trading in Jamaica Money Market Brokers 7.50% preference share with 2,320 units closing at $2, Jamaica Money Market Brokers 8.75% preference share 173,050 units in closing at $3.03, Eppley 9.5% preference share 52,600 units to close at $6.10, Proven Investments 8% preference share, 4,000 units to close at $5.09 and in the bond market, Jamaican Teas secured debenture 13,000 units at $100 each.

Declines| The number of stocks that declining in the main market are Caribbean Cement with 121,833 units and closed at 30 less at $2.40, Carreras 50,108 units and closed at down $1.79 at $33.46 the day before the stock traded X dividend with the payment of $1.76, Ciboney 44,000 shares as it closed with a 3 cent loss at 7 cents, Jamaica Broilers 37,273 units and closed at a cent lower at $4.55, Pan Jamaican Investment, 7,400 shares to close down 45 cents at $48.05, Supreme Ventures 55,350 units and closed 10 cents down at $1.90 for a 52 weeks low.

Junior Market| The JSE Junior Market Index declined by 16.48 points to close at 711.93 as 5 stocks traded with 1 advancing and 3 declining and one bond traded.

Gains| Lasco Manufacturing was the sole stock trading in the junior market with 1,635,481 units to close at $1.01 as the price inched up by a cent.

Firm Trades| Consolidated Bakeries with 610,177 units closed at 90 cents as the only stocks in the junior market stocks that traded unchanged in price at the close of trading.

Declines| Stocks declining in the junior market at the end of trading are Caribbean Cream with 266,000 units to close at 70 cents, 5 cents lower at the close, Caribbean Producers traded 72,871 shares and closed 20 cent lower at $2.65 and Lasco Distributors 218,000 units, 14 cents lower at $1.18 a new 52 weeks low.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 10 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.

Easy Monday as 1 stock rose 4 fell

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TTSE sum 9-6-14

Only one stock recorded gain in trading levels on the Trinidad stock market on Monday with 14 securities changing hands. The prices 5 stocks declined and 9 traded firm with 648,623stocks trading with a value of $2,283,252. The Composite Index lost 0.28 points to close at 1,182.92, the All T&T Index declined by 0.56 points to close at 2,030.31 and the Cross Listed Index remained at 43.96.

Gains| The only stocks increasing in price at the close is Point Lisas Industrial Port Development that climbed 14 cents to end the day at $4 as 539 units traded.

Declines| The stocks declining at the end of trading are ANSA McAL with 2,300 units with the loss of a cent to close at $66.29, First Citizens Bank closed at $37.99 in trading 1,314 shares as the price slipped by a cent, Scotiabank fell 10 to close at $69.80 as 4,785 of the banks shares were traded and Trinidad Cement had only 100 units changing hands as the price slipped to $1.95 after falling by 4 cents.

Firm Trades| Stocks closing with prices unchanged at the end of trading are Angostura Holdings with 3,000 units to end at $12.75, Clico Investment Fund 5,124 shares valued at $110,869 to end at $21.64, Grace Kennedy 470 shares to close at $3.45, Guardian Holdings 6,500 with a value of $95,875 shares to close at $14.75, Guardian Media 128 shares to close at $19.75, National Commercial Bank with 597,239 shares changing hands for a value of $627,101 to close at $1.05, Sagicor Financial Corporation with 20,750 shares traded for $140,063’ closed at $6.75, Prestige Holdings 370 units in closing at $9.40, while Republic Bank added 6,004 shares valued at $724,683 to close at $120.70.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 2 stocks with offers that were lower.

Jamaican $ slips to $111.37 for US$

The Jamaican dollar lost further ground against the US dollar and the Pound sterling but gained against the Canadian dollar in Friday’s trading. The selling rate for the US dollar was up by a cent to $111.37 as a total of US$41 million was bought by dealers and $38.8 million was sold.  FX PIC sum 6-6-14The rates for the Canadian dollar settled at $100.50 buying and $101.74 selling and the Pound traded at $184.56 buying with the selling rate ending at $187.20.

Trading levels on the market on Friday were above Thursday’s as dealers bought the equivalent of US$44,386,802 compared to US$26,366,025 on Thursday and sold the equivalent of US$41,450,934 versus US$27,249,283. Trading activity led to the local currency losing ground against the US dollar and the Pound Sterling but it was mixed against the Canadian dollar.

In US dollar trading, dealers bought US$41,028,885 compared to US$20,697,117 on Thursday as the buying rate for the US dollar rose 24 cents to $111 and sold US$38,828,427 versus US$23,213,516 on Thursday with the rate closing up by a cent at $111.37.

The Canadian dollar buying rate fell by 30 cents to end at $100.50 with dealers buying C$1,211,058 and selling C$973,786 with the rate falling 29 cents to end at $101.74.

The Pound closed at $184.56 for the purchase of £1,052,437 as the rate fell 90 cents while £343,895 was sold with the rate climbing by 50 cents to $187.20.

Other currencies bought amounted to the equivalent of US$511,612 while selling accounted for the equivalent of $1,154,906.

Highs & Lows| The highest buying rate for the US dollar rose 25 cents to $112 but the lowest buying rate remained unchanged at $90.18, the highest selling gained 53 cents to $116.09 and the loFX pic high 6-6-14west selling rose by $18.32 to $108.50.

The highest buying rate for the Canadian dollar fell 15 cents at $101.90, the lowest buying rate increased by 37 cents to $80.47 but the highest selling rate inched up 1 cent to $103.79 and lowest selling rate was up by 45 cents to $96.95.

The highest buying rate for the Pound gained 20 cents to $187.50 while the lowest buying rate remained unchanged at $148.28. The highest selling rate declined by 51 cents to $190.65 while the lowest gained $1.30 to $179.95.

 

Trinidad & Tobago PE Ratio

The use of standards is vital in the assessment of stock values as investors are constantly comparing one investment with another. The price earnings ratio is the most popular measure investors use to compare and determine stocks values. It is computed by dividing the price of a stock by the earnings per share. It allows investors to compare the value of one company with others in order to decide which ones are to be bought sold or held on to. TTSE 6-6-14 pic

Pass developments also inform seasoned investors as markets tend to have familiar recurring patterns over time. When the market moves markedly away from the norm it is usually time for investors to move. Nowhere is this truer than PE ratios. Investors should therefore keep track of historical price earnings ratios and compare them with the current ones. Ratios that have been high in the past and are now low, may indicate potential.

Use of the PE ratio| There is a tendency to look at the earnings per share of companies and apply a price earnings ratio to them to arrive at the value of a stock. This is one approach, but we should go further, with companies having hidden values the purist approach will miss the underlying value that could surface at any time. Astute investors will take into account the difference in treatment of accounting policies could have on earnings in assessing company value. It usually takes a longer time for such concepts to gain investor acceptance, but once widely accepted, the patient investor is usually rewarded. increase in value for the stock or vice versa.In looking at good buying opportunities the crude measure is to buy those stocks with low PEs compared to the market or to stocks in the same sector.

The Trinidad market has several stocks that are priced at a PE that is below the market, this has been so from early 2013 and continues to present.

 

 

 

 

 

Ghana stocks up for another week

Ghana Commercial Bank 2013 annual general meeting - the bank's stock rose 27% for the week

Ghana Commercial Bank 2013 annual general meeting – the bank’s stock rose 27% for the week

The Ghana stock market continues to recover from the decline the market suffered since peaking in February. During the week the market closed with the composite index at 2,343.98 with 11 stocks rising while 7 declined, a marked change over the previous week when the composite index closed the previous at 2,319.12 points with the prices of 8 stocks climbing and 7 declining.
The financial services index closed the week at 2,066.58 up from 2,033.20 the week before. During the week, 1,868,436 shares were traded, down from 3,235,500 units in the week before. At the end of trading there were bids for 18 securities and offers for 28, an indication of weakness in the overall market.
GSE sum 6-6-14Gains| The stocks closing with strong gains include, Benso Oil Palm Plantation that rose by 6 percent to close at GH¢2.48, Ecobank Ghana gained GH¢0.55 or 8 percent to reach GH¢7.05, Ecobank Transnational Incorporation gained GH¢0.03 or 15 percent to close at GH¢0.23, Ghana Commercial Bank closed at GH¢5.35 as the price jumped by 27 percent or GH¢1.14, HFC Bank closed up GH¢0.11 to GH¢1.45 for an 8 percent gain, Produce Buying Company gained 8 percent to GH¢0.14, Sic Insurance gained 14 percent to close at GH¢0.42, Societe Generale Ghana was up 11 percent to GH¢0.92 and Sam Wood gained 33 percent to end at GH¢0.04.

The big losers are Enterprise Group with a loss of GH¢0.57 to close at GH¢1.42 for a 29 percent decline, Mega African Capital lost 11 percent in value to close at GH¢3.10 and Mechanical Lloyd ended at GH¢0.29 down by 12 percent.

J$111.37 to buy a US$

The Jamaican dollar lost further ground against the US dollar and the Pound sterling but gained against the Canadian dollar in Friday’s trading. The selling rate for the US dollar was up by a cent to $111.37 as a total of US$41 million was bought by dealers and $38.8 million was sold.  The rates for the Canadian dollar settled at $100.50 buying, down by 30 cents and selling at $101.74 down by 29 cent. The Pound traded 90 cents lower at $184.56 buying and was 50 cents higher in the selling rate of $187.20 for each pound.

Net International Reserves Down

Jamaica’s Net International Reserves (NIR) fell by US$120 million in May. The NIR moved from US$1.285 billion to US$1.165 billion and is now at the equivalent of 12.66 weeks of Reserves in Weeks of Imports of Goods and  Services.

 

Scotia, Sagicor & Jamaica Producers dominate

In today’s tradinJSE sum 06-06g on the Jamaica Stock Exchange the prices of 3 stocks rose and 5 declined as 21 securities traded, resulting in 4,480,674 shares changing hands valued at $60,967,296. Three stocks account for the bulk of trading as the market traded heavily in Scotia Group shares from the start of trading as 952,700 units of the stock were bought up to $22 each at 9.33 in the morning session as Scotia Investments bought all but 81,019 units up to that point. In the end the stock saw trading in 1.4 million units with the price closing back down at the $19 level and an offer at $19.30.  With the early trading in Scotia Group the price gain helped to push the JSE All Jamaican Composite Index 2,475.52 points to 79,451.52 while the JSE Index was up 2,213.90 to 72,209.50.

Main Market| Only the prices of 2 companies in the main market rose and 4 declined as the indices moved up with the JSE Market Index jumping by 1,744.16 points to 71,993.01 and the JSE All Jamaican Composite index gained 1,950.27 points to close at 79,209.45. The big increase was driven primarily by the Scotia Group price movement but with the price ending at $19.10 when trading resumes on Monday the main market indices are likely to drop.

Gains| Stocks recording gains at the end of trading in the main market are Jamaica Producers 433,941 shares with a value of $7,593,968 to close with 50 cents gain at $17.50 and Sagicor Group 2,112,491 shares changing hands at $19,117,659 as the price closed up 5 cents at $9.05.

Firm| There were 10 stocks in the main market to close without a change in price as Berger Paints traded 3,799 shares and closed at $1.70, Caribbean Cement 8,500 units and closed at $2.70, Desnoes & Geddes with 8,379 shares closed at $4.25, Jamaica Money Market Brokers with 24,019 units, closed at $6.70, Kingston Properties traded 7,320 shares to close at $4, Kingston Wharves 2,649 units at $5.05, National Commercial Bank 101,320 shares and closed at $17.50, Sagicor Real Estate Fund 11,420 shares at $6.50, Scotia Group 1,408,904 shares valued at $29,844,734 to close at $19.10 and Scotia Investments 2,000 units as the price closed at $23.

Declines| The number of stocks that declined in the main market are Carreras with 3,325 shares while losing 5 cents to close at $35.25, Grace Kennedy with 3,906 units to close 50 cents down at $53.50, Jamaica Broilers 9,318 shares with the loss of 4 cents to end at $4.56 and Pan Jamaican with 31,595 units as the price slipped back by $1.50 to $48.50.

Junior Market| The JSE Junior Market Index declined by 0.16 point to close at 728.41 as the stocks of only 5 companies traded with one advancing and one declining.

Gains| The only stock gainig at the end of trading in the junior market is Consolidated Bakeries that gained 5 cents to close at 90 cents with 120,000 units changing hands.

Firm Trades| 3 stocks in the junior market stocks that traded to close at the same price as the day before are Lasco Financial with 4,300 units to end at $1.15, Lasco Manufacturing 39,322 shares at $1 and Medical Disposables with 109,387 units to close at $2.

Declines| The only stock declining in the junior market at the end of trading is General Accident with 34,779 units to close at $1.50 with the loss of 2 cents.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.