The Jamaica Stock Exchange had one of its largest fall with the JSE All Jamaican Composite Index dropping 10,996.27 points to 422,043.60 and the JSE Index nosediving 10,018.84 points to close at 384,529.46 at the close.
Earlier in trading the market had slipped appreciably but dived in the last few minutes of trading with NCB Financial trading at $150 before moving back to last trade at $159 and Sagicor Group down to $140 but last traded at $144. The Junior Market inched higher by 2.46 points.
Scotia Group reported poor final quarter profit and that could weight on the market on Friday.
Sharp drop in JSE Indices
5 stocks rise 5 fall on TTSE – Thursday
In market activity on the Trinidad & Tobago Stock Exchange on Thursday ended with trading in 17 securities against 16 on Wednesday, with 5 advancing, 5 declining and 7 remaining unchanged on a day when both the volume a value of trading fell below Wednesday’s levels.
At close of the market the Composite Index gained 4.49 points on Thursday to 1,310.21. The All T&T Index inched 1.07 points higher to 1,696.96, while the Cross Listed Index rose 1.09 points to close at 124.87.
Trading ended with 224,227 shares at a value of $4,223,600 compared to 920,887 shares at a value of $4,495,578 on Wednesday.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 1 stock with the bid lower than the last selling price and 4 with lower offers.
Stocks closing with gains| First Caribbean International Bank rose 25 cents and completed trading 47,493 units at $8.30, First Citizens added 4 cents and settled at $32.80, after exchanging 1,000 shares, JMMB Group increased 3 cents and concluded market activity at $1.80, after exchanging 12,000 shares, Republic Financial Holdings rose 26 cents and ended at $107.26, after exchanging 1,000 shares and Trinidad Cement closed with a gain of 3 cents at $2.65, after trading 6,236 shares.
Stocks closing with losses| Clico Investments shares fell 5 cents and ended at $20.15, with 10,821 stock units changing hands, National Flour closed with a loss of 2 cents and completed trading 32,351 units, at $1.63, NCB Financial Group shed 1 cent and settled at $8.92, after exchanging 7,000 shares, Trinidad & Tobago NGL lost 10 cents and closed at $29.15, after exchanging 65,990 shares and West Indian Tobacco ended trading of 5,167 units 43 cents lower to $95.07.
Stocks closing firm| Angostura Holdings ended at $15.80, with 2,000 stock units changing hands, Gaurdian Media concluded trading at $15, after exchanging 50 shares, Grace Kennedy ended at $3, with 7,042 stock units changing hands, Guardian Holdings completed trading of 201 units at $18, Massy Holdings ended at $45, after exchanging 5,350 shares, One Caribbean Media concluded market activity at $10.50, after exchanging 13,514 shares and Scotiabank completed trading at $64.74, with 7,012 units.
Prices of securities trading for the day are those at which the last trade took place.
New Elite branch now in black
Elite Diagnostic lost money at the Liguanea branch in the first quarter of the 2019 fiscal year but the CEO Warren Chung told shareholders at the company’s annual general meeting held at the Knutsford Court Hotel on Wednesday, that October and November were two very good months at the branch.
The audited financial report on the fiscal year to June 2018 show revenues of $297 million compared to $263 million in 2017 resulting in profit of $45 million after tax credit of $9 million and $44 million in 2017 after tax expense of $15 million.
Liguanea has moved from a loss into profit and will not be a drag on profit from the original operation from now, the CEO confirmed. Data for the first quarter shows profit before tax dipped sharply from $14 million to $1.8 million the direct result of a loss at the Liguanea branch as well some cost involved in the early purchase of MRI machine to be used in the St. Ann Bay branch to be set up in mid-2019.
While revenues rose, a number of categories climbed sharply partially due to the expansion into a new location on Hope Road. Big increases were experienced in legal and professional fees that moved from just $38,000 to $3 million due primarily to the IPO in 2017, rental expense more than doubled to hit $15.8 million from $7.9 million and Utilities moved from $7.3 million to $17.5 million partially as a result of the new branch as well as some cost for storing the MRI machine to be installed in St Ann Bay location.
Cost to set up St Ann Bay is put at $20-22 million plus U$375,000 for the MRI machine. The company bought the MRI equipment early because it became available locally, but it comes at a cost as it is being stored and incurring cost as it has to be stored in certain conditions resulting in the consumption of electricity along with rent. The MRI Machine for St Ann is being stored with rental cost being incurred as well as electricity cost to maintain it at a cool temperature.
While the company has 3 other MRI competitors in Kingston, there will be no immediate competitor within 50 miles in St Ann. Operating cost at this location will less than at Liguanea with the former being staffed by 7 employees versus a planned staffing of 4 or 5 for St Ann.
For the Liguanea location to move into profit would require revenues around $36 million per quarter or 50 percent above that of the first quarter and that would likely move the profit in the second quarter well above the $1.8 million earned in the first quarter.
Elite last traded on the Junior Market of the Jamaica Stock Exchange at $2.85.
More TTSE stocks rise than fall – Wednesday
In market activity on the Trinidad & Tobago Stock Exchange on Wednesday ended with trading in 16 securities against 18 on Tuesday, with 4 advancing, 2 declining and 10 remaining unchanged on a day when both the volume a value of trading rose above Tuesday’s levels.
At close of the market the Composite Index gained 8.17 points on Wednesday to 1,305.72. The All T&T Index inched 0.38 points higher to 1,695.89, while the Cross Listed Index rose 2.21 points to close at 123.78.
Trading ended with 920,887 shares at a value of $4,495,578 compared to 261,740 shares at a value of $3,498,832 on Tuesday.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 7 stock with the bid lower than the last selling price and 2 with lower offers.
Stocks closing with gains| Clico Investments finished trading with a rise of 5 cents at $20.20, with 70,564 stock units changing hands, Grace Kennedy closed with an increase of 15 cents at $3, with 46,000 stock units trading, Sagicor Financial ended trading 9,000 stock units with a rise of 24 cents to end at $9.24 and Trinidad & Tobago NGL finished 9 cents higher to $29.25, after exchanging 6,575 shares.
Stocks closing with losses| National Flour fell 3 cents and ended at $1.65, with 216,535 units changing hands and One Caribbean Media closed with a loss of 49 cents at a 52 weeks’ low of $10.50, after exchanging 9,350 shares.
Stocks closing firm|Ansa Mcal ended at $55 trading 111 units, First Citizens completed trading at $32.76, after exchanging 4,272 shares, JMMB Group settled at $1.77, with 538,692 shares changing hands, Massy Holdings settled at $45, in an exchange of 594 shares, NCB Financial Group completed trading 8,252 shares at $8.93, Prestige Holdings ended trading at $7.50, with 1,000 units being swapped, Republic Financial Holdings settled at $107, after exchanging 8,944 shares, Scotiabank ended at $64.74, trading 250 units, Unilever Caribbean concluded market activity at $23, with 620 stock units changing hands and West Indian Tobacco ended at $95.50, with an exchange 128 units.
Prices of securities trading for the day are those at which the last trade took place.
Equityline the latest JSE IPO
Equityline Mortgage Investment Corporation a Canadian company is the latest company offering shares to the public to take up. MPC Caribbean Clean Energy IPO to raise US$50 million is currently opened with a price per share of J$130 or US$1 in the Trinidad market.
Equityline is issuing up to 5 million Series A preferred shares to raise US$10 million at a price of US$2 per share. With the opening of the issue set from December 10, 2018 and scheduled to close on December 31.
If the Invitation is successful in raising at the minimum capital of 2,500,000 shares is met, the shares will be listed on the Jamaica stock exchange. If fully subscribed to, US$9.4 million of the proceeds will be used to acquire a portfolio of mortgages.
The Corporation has specifically targeted investments in mortgages where the yield and other fees generated will enable it to pay out a cumulative monthly dividend at a rate of 8% per annum on the shares. For each fiscal year ending December, the Corporation intends to pay a surplus special dividend equal to the taxable income for that fiscal year and capital gains dividends equal to the Corporation’s taxable capital gains for that fiscal year, less dividends previously paid.
The Corporation was incorporated in January 2018 under the Business Corporations Act (Ontario) with the intention of qualifying as a mortgage investment corporation under the Income Tax Act (Canada). The Corporation has not undertaken any commercial activity since incorporation.
The principals behind the Corporation have a history of operating in the mortgage lending business in Ontario. The Manager believes that it has a specialized skill set in this sector of the mortgage lending market, and therefore has established the Corporation for the purpose of bringing those business skills to the public. The Corporation focuses its investments primarily in urban markets and their surrounding areas, which the Corporation believes are typically more liquid and provide less volatile security for mortgage loans. The Corporation focuses its investment in Ontario, however, the Corporation’s Asset Allocation Model permits the Corporation to invest in mortgages across Canada if the Manager deems it to be advisable. The Corporation intends to further grow its portfolio by periodically raising capital through equity offerings and using the proceeds of such offerings to fund additional mortgages generated through the Manager or other sources. As a MIC, when calculating its income tax payable in Canada, the Corporation may deduct dividends that are paid from income to reduce corporate income tax. The Corporation intends to pay out all of its net income and net realized capital gains as dividends with the result that the Corporation will not pay any income tax. To reduce its tax owing to zero, the Corporation may pay surplus dividends, after payment of all dividends on any Preferred Shares, at the end of the fiscal year. Taxable dividends, other than capital gains dividends, are treated as interest income to Shareholders for Canadian tax purposes.
Both IPO offers are more aligned with persons looking for income than for capital appreciation, the same could also be true for other energy based entities to come that have no expansion plans that will be funded by internally generated or borrowed funds.