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.
Proven buys NCB’s block of JMMB shares
Fontana listing in January
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.
Barita defies broker’s sell recommendation
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
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.
Steady trading on TTSE Monday
Trading ended with 13 securities changing hands on Monday against 16 on Friday, and finished with 4 advancing, 3 declining and 6 remaining unchanged.
At close of the market, the Composite Index fell 2.01 points on Monday to 1,302.59, the All T&T Index fell 3.96 points to 1,702.44, while the Cross Listed Index remained unchanged. Trading ended with just 106,024 units valued at $4,839,646 compared to 213,145 units valued at $7,380,542 on Friday.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 2 stocks with bids higher than their last selling prices and 2 with lower offers.
Stocks closing with gains| Clico Investments finished 5 cents higher, to settle at $20.20, with 6,605 stock units changing hands, Guardian Holdings rose 27 cents and concluded trading of 4,867 units, at $18. Republic Financial Holdings added 25 cents and completed trading at $107.25, after exchanging 29,928 shares and Trinidad Cement rose just 1 cent and completed trading at $2.72, after exchanging 1,480 shares.
Stocks closing with Losses| First Citizens shed 45 cents and ended at $33.15, after exchanging 31,834 shares, Prestige Holdings lost 20 cents and concluded trading of 10,000 units at $7.30 and Trinidad & Tobago NGL ended trading 1 cent lower at $29.24, after exchanging 3,650 shares.
Stocks closing firm|Angostura Holdings settled at $16, with 6,615 stock units changing hands, JMMB Group completed trading at $1.78, after exchanging 10,000 shares, Massy Holdings completed trading at $47, in exchanging 300 shares. NCB Financial Group ended at $8.54, after trading just 345 shares, Sagicor Financial settled at $9.45, with 200 stock units changing hands and Scotiabank concluded market activity at $64, with 200 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.
Declining stocks dominate TTSE Friday
Trading ended with 16 securities changing hands on Friday against 17 on Thursday, and finished with 1 advancing, 7 declining and 8 remaining unchanged.
At close of the market, the Composite Index fell 1.81 points on Friday to 1,304.60, the All T&T Index rose 1.46 points to 1,706.40, while the Cross Listed Index shed 0.71 points to close at 121.98. Trading ended with 213,145 units valued at $7,380,542 compared to 138,424 units valued at $3,799,658 on Thursday.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 2 stocks with bids higher than their last selling prices and 2 with lower offers.
Stocks closing with gains| First Citizens added 45 cents and ended at $33.60, after exchanging 2,140 shares.
Stocks closing with Losses| Ansa Mcal shares fell 45 cents and concluded trading of 149 units at $55, Clico Investments closed with a loss of 5 cents and settled at $20.15, with 34,124 stock units changing hands, Grace Kennedy shed 15 cents and settled at $2.85, in trading 3,252 stock units, NCB Financial Group lost 6 cents and ended at $8.54, after exchanging 98 shares, Republic Financial Holdings ended trading 8 cents lower to $107, after exchanging 41,226 shares, Scotiabank lost 25 cents and concluded trading of 40 stock units at $64 and West Indian Tobacco traded with a loss of 30 cents and concluded trading of a mere 20 units at $95.10.
Stocks closing firm| Agostini’s completed trading at $23.40, after exchanging 20 shares, Ansa Merchant Bank ended at $38.26, in an exchange of 12,456 shares, JMMB Group completed trading of 8,465 shares at $1.78, Massy Holdings completed trading at $47, after exchanging 16,147 shares, National Enterprises settled at $8, with 84,672 stock units changing hands, One Caribbean Media exchanged 2,000 shares, at $10.50, Trinidad & Tobago NGL ended at $29.25, after trading 7,918 shares and Trinidad Cement completed trading 418 shares at $2.71.
Prices of securities trading for the day are those at which the last trade took place.