IC Insider.com article stings JSE into action

Marlene Street Forrest – General Manager of the JSE is said to have intervened to reset the price Express Catering could trade at on Tuesday.


The article, The stock exchange needs radical overhauling seems to have stung the exchange into action as all the errors that were left unattended for months, are now corrected.
Delisted stocks that were being carried as if they were still listed are now out of the trading sheet. Eppley 7.5% preference share that was recently listed, is now correctly placed in the preference section. Barita Investments 52 weeks’ high is now at $33.50 instead of $60 that was being carried for weeks. Hopefully, the exchange would have corrected all other erroneous highs and lows that resulted from cancellation of trades in the past. Importantly, the errors in the All Jamaica Composite Index for the early days of November are now correctly stated.
The Stock Exchange is to be commended for moving speedily to correct the errors that were brought to their attention. It would also be good in order to better protect their integrity that compensated investors who were firstly advised of an allocation of 16.56 percent of Seprod shares only to see it adjusted down to 16.26 percent. That would be the correct thing to do in the circumstance that prevail that led to the adjustments that took place. The phrase, the customer is right is still a valid principle to operate by.
When all is said and done just correcting the errors IC Insider.com pointed out is only a first step, the exchange needs to put in place quality control mechanisms to prevent such occurrences. It also appears that the exchange needs a qualified lawyer and accountant on board with sufficient securities experience to help police the systems effectively. If they do it could prevent matters such as prospectuses and financial statements being issued with the types of errors that are showing in the public space.

Big gains push TTSE index – Monday

Market activity on the Trinidad & Tobago Stock Exchange ended on Monday with trading in 17 securities against 13 on Friday, with 4 advancing, 4 declining and 9 remaining unchanged.
At close of the market, the Composite Index gained 8.62 points to close at 1,301.07, the All T&T Index climbed 22.32 points to 1,697.73, while the Cross Listed Index declined 0.75 points to close at 122.22. Trading ended with 199,899 shares at a value of $3,145,094 compared to 113,059 shares at a value of $1,694,615 on Friday.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with stocks with bids higher than the last selling price and 1 with a lower offer.
Stocks closing with gains|Agostini’s rose 40 cents to $23.40, after exchanging 300 shares, Angostura Holdings added 20 cents to settle at $16, with 100 stock units changing hands, Ansa Mcal increased by 45 cents to $55.45, with 71 units trading and Massy Holdings rose 95 cents and completed trading at $47, after exchanging 182 shares.
Stocks closing with Losses| Clico Investments fell 2 cents and settled at $20.18, with 117,121 stock units changing hands, Guardian Holdings closed with a loss of 5 cents at $16.95, with an exchange of 4,007 units, NCB Financial Group shed 10 cents and ended at $8.50, after exchanging 1,175 shares and Sagicor Financial lost 5 cents and settled at $9.45, with 850 stock units changing hands.
Stocks closing firm| First Citizens ended at $33.15, after exchanging 289 shares, Grace Kennedy settled at $3.05, with 2,740 stock units changing hands, JMMB Group completed trading at $1.77, after exchanging 40,300 shares, National Enterprises settled at $8, with 70 stock units changing hands, National Flour concluded trading of 17,352 units at $1.65, Prestige Holdings concluded at $7.50, with 250 units trading, Republic Financial Holdings completed trading at $107, after exchanging 1,443 shares, Trinidad & Tobago NGL ended at $29.24, in exchanging 13,449 shares and Unilever Caribbean settled at $22.95, with 200 stock units changing hands.

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

 

Big drop for JSE stocks on Monday

The main market of the Jamaica Stock Exchange closed mixed on Monday, with declining stock just edging out advancers but the market indices dropped sharply.
A total of 36 securities changed hands in the main and US dollar markets, with prices of 12 rising, 14 declining with 10 remaining unchanged compared to 28 securities trading on Friday. At the close of the market, the All Jamaican Composite Index dived 4,293.22 points to 408,935.58. and the JSE Index dropped 3,911.61 points to close at 372,586.56.
Trading ended with 3,443,415 units valued at $195,803,075 changing hands, compared with 3,068,694 units valued at $164,573,042 on Friday.
At the close, an average of 114,781 units valued at over $6,526,769 traded, in contrast to 113,655 units valued at over $6,095,298 on Friday. The average volume and value for the month to date, amounts to 122,630 units with a value of $4,870,814, compared to 123,423 units with a value of $4,686,819, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
NCB Financial led trading for the third consecutive day with 702,122 units in accounting for 20.4 percent of the day’s volume, followed by Grace Kennedy with 606,009 units or 17.6 percent of the overall volume and Sagicor Group with 530,562 units and 15.4 percent of the day’s volume.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 7 stocks ending with bids higher than the last selling prices and 5 closing with lower offers.
In main market activity, Barita Investments lost 96 cents and ended at $32.49, with an exchange of 31,329 shares, Berger Paints rose $1.20 to close at $23.20, with just 5,000 stock units changing hands, Caribbean Cement fell 43 cents to close at $42.52, as 21,950 shares traded, Grace Kennedy ended trading 606,009 shares with an increase of $2 to end at $62. Jamaica Producers finished trading 17,375 units with a decline of $2.20 to close at $22.50, Jamaica Stock Exchange lost 89 cents to close at $9.16, in trading 15,650 shares, JMMB Group shed $1.50 in trading 178,591 shares to close at $32.50. Kingston Wharves finished at $73, after falling $2.30 trading 15,042 stock units, NCB Financial Group rose 90 cents in ending trading of 702,122 shares at $148, PanJam Investment rose $2 to close at $74, with an exchange of 20,835 stock units, Sagicor Group fell $1.01 to close at $40.99, with 530,562 shares changing hands, Scotia Group climbed $1.99 in trading 240,745 units to close at $56 and Seprod fell $2.09 trading 142,852 shares to close at $29.51.
Trading in the US dollar market amounted to 116,255 units valued at $31,628 with Margaritaville gained 1 cent and ended at 25 US cents with 100 shares trading, Productivity Business ended trading 100 shares and increased 3 cents to 59 US cents, Proven Investments traded 100 stock units and lost 2 US cents to end at $20 us cents and Sygnus Credit Investments US dollar based ordinary share traded 719 units and rose 2 cents to end at 11 US cents. The JSE USD Equities Index declined by 0.33 points to close at 166.55.

Steady Junior Market

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The Junior Market of the Jamaica Stock Exchange just inched higher at the close of trading on Monday with the Junior Market Index rising a mere 0.38 points to close at 3,113.66.
The market closed with 25 securities changing hands, resulting in an exchange of 1,343,967 units valued at $5,105,838 compared to 1,109,020 units valued at $4,743,095 on Friday from trading in 26 stocks.
 Market activities, saw the prices of 8 securities rising, 7 falling and 10 remaining unchanged. Lasco Manufacturing traded at an intraday 52 weeks’ low of $2.95 but closed at $3.05.
Trading ended with an average of 53,759 units for an average of $204,233 in contrast to 42,655 units for an average of $182,427 on Friday. The average volume and value for the month to date amounts to 204,672 units at a value of $1,149,992, versus 221,591 units at a value of $1,256,019, previously. November, ended with an average of 190,475 units valued at $653,358 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with higher bids than their last selling price and 6 with lower offers.
At the close of the day’s activity, Access Financial closed at $50.50, trading 100 shares, AMG Packaging ended at $1.70, after 90,000 stock units were traded, Blue Power concluded trading of 12,926 units with a loss of 13 cents at $6.20, Cargo Handlers settled 10 cents higher at $15, with an exchange of 6,060 shares, Caribbean Cream ended trading of 6,600 shares at $5.40. Caribbean Producers finished trading 208,181 units, with a loss of 10 cents at $5.30, Derrimon Trading ended with a loss of 2 cents at $2.55, trading 236,354 shares, Eppley settled at $9, with 1,765 units changing hands, Express Catering ended trading 36,313 shares with a loss of 10 cents at $7.50. FosRich Group traded 6 cents higher at $3.85, with an exchange of 45,100 shares, Everything Fresh gained 3 cents in trading 132,000 shares to close at $1.30, Honey Bun ended at $3.50, with an exchange of 17,196 units, Indies Pharma traded 14,760 shares and added 6 cents to close at $3.20, Jamaican Teas settled at $3.70, with an exchange of 4,434 shares, Jetcon Corporation ended trading 17,400 stock units at $3. Key Insurance traded 30,823 units at $4,  Knutsford Express  closed $1.50 higher at $11.50, with an exchange of 34,985 shares, Lasco Distributors  ended with a loss of 15 cents at $3.75, trading 254,188 shares, Lasco Financial  concluded trading 1,400 stock units with a loss of 90 cents down to $4. Lasco Manufacturing  finished 3 cents higher at $3.05, with 101,942 units after trading at a low of $2.95, Main Event  settled with a loss of 60 cents at $5.90, with 19,374 shares changing hands, Medical Disposables  ended trading of 10,445 shares, with a rise of 10 cents to close at $6.50,  SSL Venture Capital traded 47,156 shares and ended at $2, Stationery and Office finished trading with 12,314 stock units with a rise of 40 cents to $8.50 and tTech ended at $5.19, as 2,151 shares were traded.
Prices of securities trading for the day are those at which the last trade took place.

Relative stability descends on IC Top 10

The volatility in the Jamaican stock market seems to have ended with the closure of the very popular Fontana IPO.
The main market rose towards the end of the week while the junior market declines have slowed sharply. IC Insider.com expects the usual Christmas rally to take hold and drive prices higher, ahead of 2019.
The attractively underpriced Fontana would be a sure pick for the TOP 10 list but it seems unlikely to be listed before January.
Lasco Financial came re-entered the TOP 10 last week is out having risen from $4.15 to $4.90 at week end. Replacing it is Jamaican Teas that could get a boost from gains in their equity portfolio. In the main market TOP 10, Sagicor Group that came into the list this past week, is now out and is replaced by Sterling Investments that fell in price at the end of the week to $4 from $4.49 the week before.
The main market closed the week with the overall PE remains at 15.7, the PE of the Junior Market remains at 15.8. The PE ratio for Junior Market Top 10 stocks average 8.8 and the main market PE is now 9.8. The top Junior Market stocks are selling at a discount of 13 percent to those of the main market stocks even as the overall average PE for both markets are almost equal. This is an indication that there may be more gains to be had from these Junior market stocks than those in the main market.
The TOP 10 stocks now trade at an average discount of 44 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. The main market stocks trade at a discount of 37 percent to the overall 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.

No inflation

Fall in the price of fuel and appreciation of the Jamaica dollar helped in pushing inflation down in November with data out of Statistical Institute of Jamaica (STATIN) showing zero inflation.
According to Statin, the result was influenced by a 0.3 percent increase in the index for the division Food and Non-Alcoholic Beverages. This was as a result of higher prices for vegetables, starchy foods and fruits but was tempered by a 0.8 percent decline in the division Housing, Water, Electricity, Gas and Other Fuels due mainly to reduced rates for electricity despite the increased rates for water and sewage. The Transport division declined by 0.7 percent as a result of a decrease in the price for petrol. The calendar year-to-date inflation was 3.5 percent while the movement in the index for the fiscal year-to-date was 3.8 percent and the movement for the past 12 months comes out at 4.1 percent.

Barita proposes $15.50 rights issue

The directors of Barita Investments on December 13, passed a resolution for a Rights Issue of 10 shares for each 17 owned at the record date, to take effect in early January which if taken fully will results in 258 million new shares and bring the capital issued to 707 million units.
The board resolution states:- The Board approves the issue of 258,064,516 ordinary shares (in this resolution “New Ordinary Shares”) part of the authorised capital, the same to be offered to the holders of Ordinary Stock Units by way of a Non-Renounceable Rights Issue on the following terms:
(i) Offer Price of J$15.50 per New Ordinary Share. (ii) Offer to Stockholders of the Company as at a Record Date of December 31, 2018. (iii) Offer to Open on January 8, 2019
(iv) Last date for splitting to be January 15, 2019. (v) Offer to Close on January 22, 2019 for acceptance by Existing Ordinary Stockholders/Renouncees
(vi) Offer to Close on January 25, 2019 for acceptance by applicants for Excess Shares (not taken up by Allottees under the Letter of Provisional Allotment).
2. The Directors are hereby authorized to dispose of all such New Ordinary Shares not taken up by Allottees on terms and conditions as the Directors may consider expedient in their absolute discretion, in consultation with the Arranger for the Rights Issue, Sagicor Investments. BIL further advised that the share ratio allocation for the Rights Issue will be as follows: Ten (10) additional shares for every seventeen (17) shares owned by existing stockholders of Ordinary Shares in Barita Investments.
Apart from a rights issue, the above resolution speaks to the last date for splitting being January 15, which raises the question if a stock is to be considered as well.
Barita stocks that trades on the Jamaica Stock exchange at $33.45 on Friday and is up 346 percent for the year to date.

Scotia hikes dividend

David Noel new Scotia Group’s CEO.

Scotia Group delivered below par performance in that final quarter of the 2018 fiscal year, with profit falling to just $1.6 billion from $3.36 billion in 2017.
The quarterly results, however, is not an indication for what can be expected for the 2019 fiscal year as one time fall in revenues and in some cases, expenses are unlikely to be reflected for the full year to come. In keeping with expected pick up in profit the banking group hiked their dividend from the usual 48 cents per share to 51 cents in their latest announcement. Based on Scotia’s long held policy, when dividends are raised it is usually an indication that future dividend payments will continue at the elevated level for the ensuing period. Investors in the stock can therefore look forward to at least $2.04 cents for all of 2019. That will be a return on the latest stock price of $54.01 of 3.8 percent. Dividends paid in 2018 amounted to $1.92 per share. The total amount of dividends to be paid in January will be $1.59 billion which is alomost all the profit reported for teh quarter. The dividend will be paid on January 18, 2019, with the ex-dividend date set for December 24.

The stock exchange needs radical overhauling

The Jamaica Stock Exchange is thriving with many investors making good money from their investments in the stocks on the market and companies raising fresh capital as a result of the attractiveness of the capital market. But the growth in the market belies some deep concerns and failures in the system.
The reality is that the capital market is in a state that is far from healthy and those in authority are no moving to fix it. It is difficult to understand why.
An example is that some directors think they can override the Company’s Act and do things that they are not empowered to do. An example is that the directors of GWest Corporation in their wisdom decided that a resolution passed at a general meeting prior to going to the public was only to be partially disclosed to potential shareholders. The stock exchange sees nothing wrong with the lack of disclosure which amounts a variation in the terms of the contract. “So public” was the information, that not even the company’s auditors who reported on the financial statements, months after the public issue, included the information of the resolution that was to give rise to the issue of preference shares, in the audited accounts.
In October, just under 92 million Seprod shares were offered to the public for purchase. Some of the shares were reserved for then existing shareholders of Seprod. Subsequent to the closure of the issue, NCB Capital Markets, the brokers that handled the issue announced that all applications for Reserve Shares in the offer were fully allocated. Several shareholders of Seprod found that they did not get their full allocation and contacted NCB, it was then that they seem to have discovered errors made at the stock exchange.
On November 8, NCB Capital Markets “advises and due to the large number of subscribers for the Offer, the process is taking longer than anticipated.” NCB Capital Markets advised that it is in the process of reconciling the applications and verifying payments received and has requested approval to provide the Basis of Allotment on Monday, November 12, 2018. The broker advised the Stock Exchange on the date promised, that in addition to the full allocation of reserve shares, subscribers from the general public will receive up to the first 5,000 units for which they applied, with the balance greater than 5,000 units allocated approximately 16.56 percent. Subsequent to the allocation

The Jamaica Stock Exchnage subsidiary

announcement, IC Insider.com gathers that investors from the general public who attempted to sell their shares after being allocated, had the Seprod shares in their accounts blocked, so they could not be traded. No one thought it prudent to advise them that the shares were blocked. This publication is seeing an increasing practice where persons in control take unilateral action to alter contractual arrangements. Someone or entity made a big mistake in not computing the allocation correctly in the first place. Information IC Insider.com has, clearly points to the error being made by the Stock Exchange subsidiary. Having done the allocation and credited investors, accounts and refunded excess funds, the Stock Exchange in the view of this publication has no authority to vary a concluded contract. Investors on November 26, were informed that the public got the first 5,000 shares and 16.25 percent of the excess. The letter from the Jamaica Central Securities Depository stated that “ we advise that initially, allocations had been calculated and posted to accounts, however, we detected a glitch in processing that resulted in shares of some clients being incorrectly allocated. Steps were taken to make the necessary adjustments that also included a change in the pro-rated percentage initially published from 15.56 percent to 16.25 percent. When an organization with the prestige of the Jamaica Stock Exchange fowls up matters, one expects that they would handle the matter in a professional manner and absorb the cost, and not opening themselves up to potential law suits.
The Stock Exchange has done the same illegal thing by blocking investors account from trading, as usual the Stock Exchange did not a have the decency to communicate with the investors about that matter. The sad thing is that they wanted the TRN numbers, but the reason they want it is spurious at best. It was just needed to try and clarify that more than one account that seem to belong to one person actually is so. But there is nothing in law that requires them to make such demands and worse the investors have no agreement with the JSE to provide such information as a condition of opening an account. Sadly, the JSE don’t need TRN to sort out limited liability companies, as the Company Office of Jamaica gives each company a unique number that can be used for that purpose. That the Stock Exchange is acting in questionable manner should not be surprising as one or maybe more of their dealer members, have wantonly breached agreements that they have with clients, refusing to comply with the contractual terms.
The Jamaica Stock Exchange release relating to an article IC Insider.com published in connection with the Seprod share allocation states:  “The JSE wishes to advise the public that the article published on ICInsider.com on Friday, November 23, 2018 entitled”, “Seprod stock allocation fowl up to cost JSE” incorrectly stated that the JSE was expected to absorb a loss in respect of the recent allocation of Seprod shares.
“The JSE advises that the JSE Group (The Jamaica Stock Exchange and its subsidiary, the Jamaica Central Securities Depository (JCSD) did not suffer any loss in relation to the foregoing.
“There was a delay in the final allotment of the Shares, but this was not due to any malfunction of our systems. We further advise that the allotment of the Shares was successfully completed, as communicated by the JCSD to the relevant investors.
“We wish to underscore that we continue to work tirelessly to maintain the confidence of participants in the market as we deliver our services to our valued customers,” states JSE.
The Stock Exchange may be “trying to work tirelessly to maintain the confidence of participants in the market,” but there are a plenty that they need to speedily do to convince the public that they are seriously tackling the many issues that require sorting out to enhance its reputation. The problems and inadequacies of the present trading platform is just one of them that has lasted far to long. Then there are errors in the trading report. Currently, delisted securities are still showing up in the reports and Eppley 7.5% preference shares for example that has been recently listed is being reported in the ordinary share section rather than in the preference share section where it belongs.
On November 1, the trading report shows the All Jamaica Composite Index of the main market closing at 396,907.46 but the report for the 2nd of November the Index was said to have closed at 387,739.58 with a rise of 832.12 but that was not possible. On the 5th of November the index was said to fall by 5,472.20 to close at 392,267.38. To date the erroneous information is still on the Stock Exchange website.

The Stock Exchange in its wisdom continues with the circuit breaker that serves no useful purpose. Not only does it have no useful purpose it is making a mockery of the exchange but they seem to have their heads in the sad oblivious as to what is going on around them. Take an example Barita Investments traded at $60 recently but the trade was cancelled as it breached the circuit breaker rules daily limitation, yet it is still being carried as the 52 weeks’ high price. That of course makes no sense, but this is just one of similar errors showing up all over. The stupidity of the circuit breaker is that stocks are frozen for an hour and if a stock breaches the level at a minute after 12 in a day it cannot trade again for the balance of the day. If there is need for it why not have the breaks for 15 or 20 minutes so that trading can take place fairly freely. After all the Stock Exchange still has the power to halt trading in a stock or the market if they consider it prudent to do so. The reality is that the Stock Exchange is not handling what they now have to mange and they want to go into new trading areas that is not really in demand.

Big bounce for JSE stocks on Friday

Barita climbs to a new closing high of $33.45 on Friday.

Advancing stocks finally had the upper hand over declining ones, on the main market of the Jamaica Stock Exchange, leading the market indices to rise on Friday, at a faster pace than on Thursday.
At the close of the market, the All Jamaican Composite Index climbed 3,172.73 points to 413,228.80 and the JSE Index advanced by 2,890.71 points to end at 376,498.17.
Trading ended with 3,068,694 units valued at $164,573,042 changing hands, compared with 5,840,821 units valued at over $422,371,897 on Thursday. A total of 28 securities changed hands in the main and US dollar markets, with prices of 13 rising, 11 declining and 4 remaining unchanged compared to 29 securities trading on Thursday. At the end of trading two stocks ended at record closing highs.
At the close, an average of 113,655 units valued at over $6,095,298 traded, in contrast to 224,647 units valued at $16,245,073 on Thursday. The average volume and value for the month to date, amounts to 123,423 units with a value of $4,686,819, compared to 124,399 units with a value of $4,530,322, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
NCB Financial led trading for the second consecutive day with 743,620 units in accounting for 24.2 percent of the day’s volume, followed by Sagicor Real Estate Fund with 462,923 units or 15 percent of the overall volume and Sagicor Group with 400,607 units and 13 percent of the day’s volume.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 5 stocks ending with bids higher than the last selling prices and 3 closing with lower offers.
In main market activity, Barita Investments climbed $1.45 and ended at a all-time closing high of $33.45, with an exchange of 17,698 shares, Berger Paints dipped $2.50 to close at $22, with just 2,500 stock units changing hands, Caribbean Cement fell $1.05 to close at $42.95, with 67,450 shares traded, Jamaica Broilers rose 50 cents in trading 38,920 stock units at $29.50, Jamaica Producers finished trading 114,650 units with a fall of $1 to close at $24.70, Jamaica Stock Exchange  rose 55 cents to close at $10.05, in trading 104,874 shares, JMMB Group added $1 in trading 25,977 shares to close at $34. Kingston Wharves  finished at $75.30, after falling by 70 cents in trading 4,300 stock units, NCB Financial Group  rose $2.09 in ending trading of 743,620 shares at $147.10,  PanJam Investment rose $2 to close at $72, with an exchange of 25,544 stock units, Sagicor Real Estate Fund rose 30 cents to close at $10.50, with 462,923 shares changing hands, Salada Foods gained $1 and ended trading of just 100 stock units at a record close of $31 and Scotia Group dropped $1.99 in trading 35,026 units to close at $54.01.
Trading in the US dollar market amounted to 90,900 units valued at over $50,904 with Productivity Business being the sole stock trading as the price ended trading with a loss of 3 cents to end at 56 US cents. The JSE USD Equities Index declined by 2.34 points to close at 166.88.