The main market of the Jamaica Stock Exchange suffered further declines at the close of trading on Tuesday as declining stocks edged out advancing ones but with securities trading ending with slightly higher volume and value than on Monday.
The main market ended with 4,528,396 units valued at over $129,629,406 trading, compared with 4,388,637 units valued at $106,879,255 changing hands on Monday. A total of 26 securities changed hands in the main and US dollar markets, with prices of 9 rising, 10 declining and 14 remaining unchanged compared to 33 securities trading on Monday.
At the close of the market, the All Jamaican Composite Index lost 1,387.52 points to 409,742.96 and the JSE Index declined 1,264.19 points to close at 373,322.19.
The main market ended with Jamaica Broilers trading 2,226,854 units, accounting for just over 49 percent of the volume, followed by JMMB Group with 908,724 units, 20 percent of the day’s volume and JMMB Group 7.5% preference share with 386,688 units or just 8.5 percent of the day’s volume.
Trading resulted in an average of 181,136 units valued at $5,185,176, in contrast to 137,145 units valued at $3,339,977 on Monday. The average volume and value for the month to date, amounts to 119,777 units with a value of $3,292,648, compared to 111,829 units with a value of $3,007,628, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 4 stocks ending with bids higher than the last selling prices and 3 closing with lower offers.
In main market activity, Caribbean Cement gained $2.50 and finished trading 5,000 shares at $46, Grace Kennedy lost 50 cents and ended trading 80,913 shares at $59, Jamaica Producers finished trading of 13,659 units with a rise of $1 to close at $25, Jamaica Stock Exchange closed with a gain of 80 cents at $10, after trading 102,000 shares, JMMB Group lost $1.48 and ended trading 908,724 shares at $32.52. Kingston Wharves closed at $74.20, with a loss of 80 cents in trading 620 stock units, Mayberry Investments rose 40 cents and settled at $9.50, with 138,069 units changing hands, PanJam Investment lost $4.50 to close at $62.50, with an exchange of 23,764 stock units, Sagicor Group gained $2.54 to finish trading of 1,880 shares at $42.70, Sagicor Real Estate Fund fell 50 cents to settle at a 52 weeks’ low of $10, with 17,300 shares changing hands, Scotia Group fell 50 cents in trading 164,214 units to close at $54.01, Seprod traded 64,730 shares in dropping 45 cents to close at $31.40, Sterling Investments lost 35 cents and closed at $4.13, with 915 shares, Sygnus Credit Investments lost 44 cents and ended at $10.06 with 16,120 shares changing hands.
Trading in the US dollar market amounted to 4,700 units valued at $470 as Sygnus Credit Investments lost 1 cent and ended at 10 US cents with 4,700 shares changing hands. The JSE USD Equities Index declined by 1.05 points to close at 170.47.
Trading picks up on TTSE – Tuesday
Trinidad & Tobago Stock Exchange market activity on Tuesday ended with trading in 17 securities against 12 on Monday, with 4 advancing, 6 declining and 7 remaining unchanged on a day when the volume a value of trading rose sharply on Monday’s levels.
Mora Ven Holdings traded for the first time since March 2016 and suffered a loss at the end of trading. At close of the market, the Composite Index declined 5.48 points on to 1,301.43, the All T&T Index fell 3.14 points to 1,694.14, while the Cross Listed Index lost 1.08 points to close at 122.83.
Trading ended with just 256,224 shares at a value of $4,449,130 compared to 45,974 shares at a value of $849,166 on Monday.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stock with the bid lower than the last selling price and 4 with lower offers.
Stocks closing with gains| First Citizens added 4 cents and settled at $32.80, after exchanging 676 shares, Massy Holdings increased 5 cents and ended at $46.05, in exchanging 100 shares, National Flour rose 5 cents and completed trading of 14,494 units at $1.70 and Trinidad & Tobago NGL closed with a gain of 3 cents and settled at $29.23, with 20,169 shares trading.
Stocks closing with Losses| Guardian Holdings shares fell 75 cents and completed trading at $17.25, with 3,000 units, JMMB Group closed with a loss of 5 cents and closed at $1.75, after exchanging 64,810 shares, Mora Ven Holdings that is listed on the Second Tier Market, exchanged 1,000 shares and declined by $2.01 to end at 52 weeks’ low of $12.48. NCB Financial Group shed 10 cents and settled at $8.60, after exchanging 200 shares, Sagicor Financial lost 25 cents and ended at $9.50, with 700 stock units changing hands and Scotiabank ended trading of 205 units after falling by just 1 cent to close at $64.73.
Stocks closing firm| Clico Investments ended at $20.20, with 88,083 stock units changing hands, Grace Kennedy ended at $3, trading 300 stock units, LJ Williams B share settled at 75 cents, after exchanging 33,500 shares, One Caribbean Media concluded at $10.50, in trading 3,790 shares, Prestige Holdings completed trading of 10,484 units at $7.50, Republic Financial Holdings closed at $107.26, after exchanging 15,613 shares and West Indian Tobacco completed trading at $95.07, with 100 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.
Fontana corrects & explains Q1 figures
Following IC Insider.com article, pointing to errors in the Fontana prospectus issued to the public on Thursday, December 6, the company subsequently corrected the errors and uploaded the corrected prospectus on the Jamaica Stock Exchange website.
“Please note that Fontana Limited attaches hereto its unaudited financial information for the period ended 30 September 2018. This information is updated from the financial information that is presented in the prospectus of the Company dated Thursday, 6 December 2018. The effect of the update is a revision to the Statement of Cash Flows where the profit before taxation and depreciation charges were inadvertently omitted. The Company also updated a typo to the Share Price of the Company from $2 to $1.88 on page 14 of the prospectus”, the company stated in a release on the JSE website.
The directors and management advised that the pricing error arose from a change in the original planned price of $2 that to $1.88 but the price, the price stated in the body of the document was overlooked. The error in the cash flow arose from the links to the cash flow from the work sheet did not copy over the figures for profit and depreciation when the final document was completed and no one picked up the omission prior to the publication of the error.
The directors at their investors briefing on Monday also addressed the matter of the sharp jump in inventories and the increase in the company’s first quarter profit over the prior year as well as the pace at which they will commence further expansion after the opening of the Waterloo Road branch in 2019. Inventories for the Christmas season were imported earlier than in 2017 the directors stated. Apparently, the movement in the exchange rate of the Jamaica dollar played a role as well as some concerns regarding the pricing of supplies out of China. The financial controller, Judale Smith indicated that the gross profit margins are usually 36 percent but it had fallen in the 2017 first quarter as they had to source some goods at higher prices that affected the margins, as such the 2018 figures better reflect what the out turn should be like.
I Create another IPO coming soon
iCreate, a fairly new company that is involved in the creative industry is at an advanced stage of planning to raise funds publicly by way of an IPO, ahead of a potential listing on the Junior Market of the Jamaica Stock Exchange.
According to the company’s website, they are a Creative Institute, developed with the aim of filling the gap in skills training and development of creatives in Jamaica and the wider Caribbean. As a part of the creative eco-system, students are provided with a wide range of career opportunities in the Creative Economy, while being a key partner of the Advertising Industry, Film Production Companies, Animation and Gaming Companies, and Creative Outsourcing initiatives.
iCreate partners with the University of the Commonwealth Caribbean (UCC) as its Creative Training arm for courses offered in Jamaica and the Caribbean. iCreate is also partnered with the Digital Marketing Institute, to become the only institution in the Caribbean licensed to deliver their Digital Marketing Diploma programme.
The majority shares are currently owned by eMedia Interactive Group with Sagicor Investment said to hold 19 percent of the shares. The total of just over 123.5 million shares issued are issued currently that will go to 196 million if the IPO is fully taken up. The issue should be coming to the market place soon, by the end of the year or early in 2019. Tyrone Wilson is the Managing Director of the Group.
Also expected to list in 2019 are Wigton Wind Farm which will provide an investment more for income than growth. Also exploring listing are a paint company and a manufacturing company from central Jamaica.
One time cost hits Broilers Q2 profit
Jamaica Broilers recorded profits attributable to stockholders of $230 million or 22.42 cents per stock unit for the October 2018 quarter, down sharply by 48 percent from $446 million generated in the same period in 2017.
The major contributor to the decline was as a result of foreign exchange losses of $231 million.
For the half year to October net profit fell moderately to $644 million compared to $658 million for the similar period in 2017. Sales revenue for the quarter amounted to $13.6 billion, an 18 percent increase over the $11.5 billion generated in the corresponding quarter of the previous year and rose 12 percent to $25.7 billion in the six months to October from $23 million in 2017.
Gross profit inched up by just 3 percent for the quarter to $3 billion, compared to $2.96 billion in the previous year and climbed 10 percent from $5.63 billion to $6.22 billion for the six months to October. Gross profit margin collapsed in the quarter to 22.4 percent from 25.7 percent in 2017 while year to date, it came in slightly lower than the 24.5 percent in 2017 at 24.2 percent.
Jamaica Operations reported segment result of $1.35 billion, 28.4 percent above last year’s $1.05 billion. The directors attribute the improvement to increased poultry sales which was up 7 percent to $17.2 billion and enhanced inventory management. Revenue for increased by 24 percent over the prior year to $7.38 billion. “The increase was driven by increased sales of main products – fertile eggs and baby chicks, as well as, feed sales from the acquired feed mill”, Management stated. US Operations reported a segment result of $666 million, down slightly from $674 million for the 2017. The “decrease
was primarily attributable to one-off staff cost elements and acquisition costs related to the recent feed mill purchase; these cost elements are not expected to recur”, the directors stated. Haitian Operations increased market share of table eggs to 34 percent, compared to 31 percent of the market at the end of the second quarter last year. Revenue for the Haitian Operations increased13.4 percent over the prior year but the segment result drifted down moderately to $85 million from $86 million in 2017.
The Other Caribbean Operations reported segment results of $1.23 billion an increase of $1 billion over the corresponding quarter of 2017, mainly due to the net results of the JBGL Stockholders Nominee, driven by the unrealised fair value gains and eliminated on consolidation of the Group.
Distribution costs, increased 16 percent for the quarter to $482 million and 7 percent for the six months to $918 million. Administrative cost grew by just 5 percent in the quarter to $1.94 billion and 13 percent for the half year to $4.2 billion. The results also include the operating expenses of the new hatchery in Pennsylvania and the costs associated with the formation of the Shareholders’ Trust – these costs were not in last year’s comparative results.
IC Insider.com projects earnings is $2.30 for the current fiscal year to April and $3 for 2020.The stock is listed on the Jamaica Stock Exchange and trades at $29.50 for a PE of 15.6 times current year’s estimated earnings, with a premium of 127 percent net book value per share and seems to be fairly valued, currently.
Shareholders’ equity stands at $12.9 billion with borrowed funds at $12.8 billion and cash and investments of $3.9 billion. Current assets total $20.66 billion verusus current liabilities of $14.45 billion.