The Jamaica Stock Exchange main market indices were pushed sharply higher on Tuesday, sending the All Jamaica Index surging 5,742.86 points to 397,756.57 and JSE Index jumped 5,232.40 points to close at 362,401.24, thanks partially to jump in the price of NCB Financial.
Market activity closed with 32 active securities in the main and US dollar markets, compared to 30 on Thursday with the prices of 13 stocks rose, 9 declined and 10 remained unchanged.
Main market trading closed with JMMB Group leading with 5,977,409 units, or 49 percent of the day’s volume and NCB Financial with just under 4.29 million units and 35 percent of volume traded.
IC bid-offer Indicator|At the end of trading, the Choice bid-offer indicator reading shows 3 stocks ending with the bid higher than the last selling prices and 7 closing with lower offers.
The market closed with much more trading volume and value than on Monday as 12,215,304 units valued at over $798,389,015 changed hands, compared with 8,566,949 units valued at $433,399,089 being exchanged, on Monday.
Trading resulted in an average of 436,261 units valued at over $28,513,893, in contrast to 295,412 shares valued at $14,944,796 on Monday. The average volume and value for the month to date, amounts to 268,764 valued at $6,039,932, compared to 256,707 valued at $4,301,615. October closed, with an average of 290,851 shares, valued $5,213,901, for each security traded.
In the main market activity, Barita Investments gained 74 cents and closed at $19.75, trading 2,000 shares, Carreras concluded trading of 10,257 units and lost 32 cents at $9.50, Caribbean Cement jumped $7.75 to close at $50 in trading of 7,325 shares, PanJam Investment rose $2.30 in closing at $64, with an exchange of 62,978 stock units, Sagicor Group advanced by $2 to $39 with an exchange of 3,563 shares, Sagicor Real Estate Fund gained 30 cents and settled at $11.75, trading 3,880 shares, Scotia Group gained $2.99 trading 31,977 to close at $55.99, Seprod shed 50 cents to end trading of 156,060 shares at $29.50 and Sterling Investments fell 50 cents and closed at $20, with 3,094 shares.
Trading in the US dollar market amounted to 43,400 units valued at over $18,506 as JMMB Group 6.00% traded 12,100 units losing 1 cent to close at $1.04, Productive Business Solution traded 1,000 shares at 59 US cents, Proven Investments closed the trading of 25,000 shares at 19 U$ cents and Sygnus Credit Investments USD share ended with 5,300 units changing hands and rose 1 cent to 9 US cents..
The JSE USD Equities Index inched 0.02 points down to close at 157.77.
Falling stocks dominate gainers on TTSE -Tuesday
Market activities ended on the Trinidad & Tobago Stock Exchange after 17 securities changed hands, compared to 14 on Monday, 3 advanced, 6 declined and 8 remained unchanged.
The market closed with one stock trading at 52 weeks’ intra-day high, two traded at a 52 weeks’ low but only one closed at the low, as 379,165 units valued at $4,512,298 traded, down from 266,549 units valued at $1,701,603 changing hands on Monday.
The Composite Index declined 0,39 points on Tuesday to 1,240.12. The All T&T Index lost 1.13 points to 1,699.90, while the Cross Listed Index rose 0.05 points to close at 105.03.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading closed with 3 stocks ending with higher bids than the last selling prices and just 1 with a lower offer.
Stocks closing with gains| First Caribbean International Bank concluded trading of 68,190 units and rose 5 cents to end at $8.05, Prestige Holdings added 2 cents and concluded trading of 100 units at $7.33 and Trinidad Cement increased 4 cents and completed trading at $2.74, after exchanging 10,000 shares.
Stocks closing with losses| Angostura Holdings closed with a loss of 5 cents and settled at $15.70, with 700 stock units changing hands, First Citizens shed 10 cents and ended at $32.65, after exchanging 3,503 shares, Guardian Holdings lost 10 cents and concluded trading of 101,145 units, at $18, One Caribbean Media ended trading 99 cents lower at a 52 weeks’ low of $11, after exchanging 1,000 shares, Republic Financial Holdings concluded trading with a loss of 1 cent and completed trading of 271 shares at $107.05 and Trinidad & Tobago NGL traded with a loss of 10 cents and ended at $29.30, after exchanging 24,000 shares.
Stocks trading with no price change| Clico Investments settled at $20, with 4,572 stock units changing hands, Grace Kennedy settled at $2.99, trading 2,500 stock units, JMMB Group completed trading at $1.75, after exchanging 46,000 shares, Massy Holdings completed trading at $46.80, while exchanging 45 shares, National Enterprises settled at $8, with 75,000 stock units changing hands, NCB Financial Group ended at $6.55, in exchanging 10,750 shares, Sagicor Financial settled at $7.25, with 20,902 stock units changing hands but traded at a 52 weeks’ low ahead of the close and Unilever Caribbean settled at $23, with 9,730 stock units trading.
Prices of securities trading for the day are those at which the last trade took place.
Main market stocks jump – Tuesday
Investors pushed the Jamaica Stock Exchange main market ending sharply higher on Tuesday, and sending the All Jamaica Index surging 5,742.86 points to 397,756.57 and JSE Index jumped 5,232.40 points to close at 362,401.24.
Market activity closed with 28 active securities in the main and US dollar markets, compared to 29 on Monday.
Main market trading closed with JMMB Group leading with 5,977,409 units, to close at $31.75 and NCB Financial with just under 4,29 million units s the price ended at $135.99.
The Junior Market rose in trading on Tuesday with Index to climbing 28.23 points to close at 3,234.31 on a day of moderate trades as 21 securities traded with Lasco Manufacturing trading the most with 296,410 shares changing hands.
Profit jumps 83% for tTech
Profit at junior market listed tTech, rose 83 percent in the September quarter, to $12.2 million from $7 million in 2017 and for the nine months to September, profit climbed 59 percent to $29 million from $18 million in 2017.
Sale revenues grew 25 percent for the quarter, to $70 from $56 million but was up 31 percent for the year to date, to $215 million, from $164 million in 2017. Investment income brought $12 million for the nine months and $7 million for the quarter
The company is overcoming a period when profit retreated from the high level generated when it went public back in 2015, as the build out of staffing ahead of increased business sapped profits. The company seems to believe that the work they have put out to attract customers is now bearing fruit, with more to come going forward.
Profit having risen to peak at $39 million in 2016, on rising sales revenues, in 2017 both revenues and profit declined, with the profit declining below that earned in 2015 as it hit $19 million down sharply from the 2016 out turn.
Gross profit margin in the first 3 quarters of this year, is up just 14 percent to $161 million compared to revenues that grew 31 percent and it rose by 9 percent in the September quarter to $51 million, just a bit below the growth rate in sales.
Other operating expenses increased 52 percent to $20 million for the nine months but grew 29 percent to $7 million in the quarter. Administrative expenses rose 12 percent to $42 million in the quarter and increased just 8 percent in the nine months period, to $125 million.
Earnings per share came out at 12 cents for the quarter and 27 cents for the nine months and should end the fiscal year ending to December, around 40 cents. IC Insider.com is forecasting 80 cents per share for a PE of 8 times 2019 earnings
“We have had a good third quarter and our business development team continues to leverage the momentum by closing opportunities presented to us. we expect continued growth and performance as we provide guidance and support for digital transformation,” the chief Executive Officer, Christopher Reckord stated in his commentary on the third quarter results.
Gross cash flow brought in $25 million but addition to fixed assets and investments resulted in a net buildup of funds for the year to date. At the end of September, shareholders’ equity stood at $207 million with no borrowings to support the operations. Net current assets ended the period at $164 million inclusive of trade and other receivables of $151 million, cash and investment balances of $152 million. In addition, the company has $31 million in non-current investments. Current liabilities stood at just $57 million.
The stock traded at $6.50 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 15 times 2018 earnings. Net asset value per share s $1.95 with the stock selling at 3.3 book value.
MPC Caribbean Clean Energy next IPO
MPC Caribbean Clean Energy ltd is a Caribbean-based investment company set to be the next Initial Public offer in Jamaica and Trinidad simultaneously in early December.
The company is being sponsored by German based MPC Capital that is publicly listed since 2000 with a market capitalization of €158 million.
Trinidad regulators have already signed off on the prospectus while the draft prospectus is now going through the FSC in Jamaica, Martin Vogt, managing director of MPC capital advised IC insider.com.
The company was established in 2017 with the clear vision to invest in renewable energy projects in Jamaica, Trinidad and Tobago and the wider Caribbean region through the MPC Caribbean Clean Energy Fund LLC. The listed company will be just an investing vehicle, with capital raised to be invested through MPC Caribbean Clean Energy Fund LLC, the entity investing directly in the projects.
The company will seek to raise at least US$50 million in the Jamaican and Trinidad markets with the IPO expected to debut around the first week in December. Brokers for the issue are JN Fund Managers.
The Company is registered in Barbados and was established by the clean energy investment specialist MPC Renewable Energies (MPC), a 100% subsidiary of the publicly listed German asset and investment manager MPC Capital, based on its extensive renewable energy experience worldwide and after research and analysis of the Caribbean market.
The initial investment in Jamaica is “Paradise Park”, a 50 MW solar park in Westmoreland with a capital outlay of US$64 million. Once completed by May 2019, the solar park will be the largest photovoltaic power plant in the island. Vogt told IC Insider.com that they have a 20 years power supply contract with JPS. The company also has a 21 MW wind power plant in Costa Rica that has been in operations since 2015 and is profitable. Importantly, the Jamaican operation which is now being built out will have a rated capacity of 50 MWH.
The plan is to raise around US$200 million for investment in the region’s renewables. According Vogt, the Jamaican government is expected to open the market in 2019 for bids for 150 MW renewable supply and the company is planning to bid for another 50 MW to add to the Paradise Park operation. If the bid is successful the expansion will result in some amount of economy of scale in the operation.
The is likely to invest in the Wigton Wind Farm when that company goes public in the first quarter of 2019.
The rate of return for the company is expected to be north of 9 percent per annum which will make it attractive for investors looking for income but payment of dividend may not be more than once per year initially.
The stock issue is likely to be a relatively high income generator, rather than one for rapid stock price gains. shares will be sold in Jamaica in local dollars but in Trinidad they will be in US dollars.
News reaching IC Insider.com is that Fantana Pharmacy should be heading to the market soon, to raise around $500 million to help fund the new location on Waterloo Road in Kingston. A few others are said to be planned for next year with IC insider.com gathering that at least two are in the manufacturing sector and one in the financial sector.
General Accident nearly doubles profit
Profit at General Accident Insurance rose 88 percent to $144 million, in the nine months September from $77 million in the similar period in 2017 even as profit for the quarter to September 2018 slipped 29 percent from $68 million to $49 million.
Earnings per share amounted to just 5 cents in the September quarter and 14 for the year to September and IC Insider.com estimates 40 cents for the full year and possible 80 cents for 2019. The stock last traded at $4, just less than twice net book value of $2.05. Annualized return on average equity of 9.45 percent up from 5.2 percent in 2017.
Gross premium for the year to September, grew 20 percent to $7.4 billion, while growth for the quarter was up an extremely strong 69 percent to $2.75 billion over the same periods last year. The company that is also looking to branch out to other parts of the region, also earned 51 percent more commission that the year before with nine months’ earnings rising to $495 million and it grew 104 percent for the quarter to $159 million but commissions paid grew 32 percent for the nine months to $212 million and by 44 percent for the quarter to $96 million. Net earned premiums grew 24 percent, for both the nine months to $1.20 billion for year to date and $531 for the quarter. Investment income including of foreign exchange gains is up 158 percent for the quarter to $144 million and 56 percent for the first nine months to $228 million.
Net claims grew by just 10 percent to $866 million for the nine months but jumped 42 percent for the quarter to $353 million. “Administrative expenses increased by 19 percent compared to the same period prior year, due to new hires to drive the strategic plan” management stated. Management expenses rose 35 percent to $554 million in the nine months and by 47 percent for the quarter to $201 million.
“General Accident ended the third quarter with a book value of $2.05 billion and generated annualized return on average equity for shareholders of 9.45 percent. Despite, low interest rates and increased competition in a very challenging operating environment. For the first nine months of the year, we were able to improve on our performance when compared to the similar period for 2017. The board and management team are committed to ensuring that General Accident’s financial performance continues to improve for the remainder of the year,” Paul Scott, Chairman and Sharon Donaldson, Managing Director said in their report to shareholders that accompanied the quarterly results.
The company ended the period with equity capital of $2 billion with $4 billion in insurance reserves. Assets total $6.7 billion and comprise liquid funds of $3 billion with amounts due from re-insurers and co-insurers of $1.5 billion representing a big jump from $875 million in 2017.
TTSE trading mixed on Monday
The Trinidad & Tobago Stock Exchange closed trading mixed on Monday with declining stocks outpacing advancing ones.
Market activities ended with 14 securities trading, the same as on Friday, 1 advanced, 4 declined and 9 remained unchanged. The market closed with one stock ending at 52 weeks’ high as 266,549 units valued at $1,701,603 traded, down from 434,574 units valued at $3,501,297 changing hands on Friday.
is set to make an offer The Composite Index declined 2.79 points on Monday to 1,240.51. The All T&T Index gained 0.22 points to 1,701.03, while the Cross Listed Index shed 0.81 points to close at 104.98.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading closed with 4 stocks ending with higher bids than the last selling prices and just 1 with a lower offer.
Stocks closing with gains| Guardian Holdings rose 10 cents and closed at a 52 weeks’ high of $18.10, with 41,135 units trading, following the announcement of the way being cleared for NCB Financial to make a revised bid to acquire just under 52 percent of the company. Guardian also posted a big jump in profits for the nine months to September this year.
Stocks closing with losses| Grace Kennedy concluded trading with a loss of 1 cent at $2.99, with 1,200 stock units changing hands, JMMB Group traded with a loss of 9 cents at $1.75, after exchanging 131,655 shares, Point Lisas closed with a loss of 1 cent and ended at $3.62, with 100 stock units changing hands and Trinidad & Tobago NGL closed with a loss of 3 cents and settled at $29.40, after exchanging 2,230 shares.
Stocks trading with no price change| Angostura Holdings ended at $15.75, with 1,457 stock units changing hands, Clico Investments closed trading at $20, with 1,708 stock units changing hands, First Caribbean International Bank completed trading of 50,000 units at $8, First Citizens settled at $32.75, after exchanging 1,070 shares, Massy Holdings ended at $46.80, after trading 510 shares, National Flour completed trading 15,300 units at $1.68, NCB Financial Group settled at $6.55, after exchanging 16,000 shares, Sagicor Financial ended at $7.25, with 542 stock units changing hands and Trinidad Cement concluded market activity at $2.70, in exchanging 3,642 shares.
Prices of securities trading for the day are those at which the last trade took place.