Stocks to watch 24th June, 2013

Keep an eye on these stocks for movement during the week of 24 to 28 June, 2013.

JSE Junior Market

  • Access Financial
  • AMG Packaging
  • Blue Power
  • Consolidated Bakeries
  • General Accident
  • Lasco Financial
  • Paramount Trading 

JSE Main Market

  • Cargo Handlers
  • Desnoes & Geddes
  • Jamaica Broilers
  • Jamaica MMB
  • Mayberry
  • National Com. Bank
  • Sagicor Life
  • Scotia Group 

TTSE

  • BNSTT
  • Clico Find
  • Grace
  • JMMB
  • Scotia Investments
  • WITCO
  • UNILEVER

JSE speaks of 2012 achievements

Marlene Street Forrest in her overview of the Jamaica Stock Exchange group company’s performance for 2012 and operational plans for 2013 and beyond, stated that although there were economic challenges, the JSE saw an increase in operating income of 93%.

The Company’s operating income moved from $281M in 2011 to $542M in 2012, which contributed to the JSE Group’s net profit increasing from $34M in 2011 to $129M in 2012 an increase of 279% in net profit. Street Forrest told the audience that although most of the Exchange’s revenue came from trading fees she also attributed the increased in profitability to a diversification of the revenue streams for both the company and its subsidiary, which enabled the Exchange to survive in a difficult economic environment.

She indicated that the Exchange achieved a number of other positives during 2012:  Increase in the number of companies on the Junior stock market, sale of member dealer license, progress made towards listing of JSE’s ordinary Shares,  business process improvement, document management and  business continuity plan.

The following goals were set for 2013/2014 period:

  1. Listing of the JSE’s ordinary shares
  2. Concentration of effort at marketing the JSE
  3. Developing markets, new products and services for our customers such as:
      • Trading Government and corporate securities
      • Fixed Income Instruments
      • Depository receipts

At the special board meeting held immediately after the annual general meeting, Messer Donovan Perkins and Allan Lewis were returned as Chairman and Deputy Chairman respectively and Steven Whittingham was elected to the JSE Board subject to the FSC’s approval.

FX: Rates retreat

Friday, 21st June 2013 | Rates fell across the board on Friday in the foreign exchange market as tighter liquidity took hold in the financial system. According to one source, liquidity tightened with the US dollar index bond issued by Bank of Jamaica on the market and the effect was felt in the local currency and the foreign exchange and stock markets as some big investors rearranged some aspects of their portfolio.

The average buying and selling rates for each currency fell except for the buying rate for the pound which increased by 38 cents to reach $154.91. The selling rate for the pound fell $1.27 to close at $156.04. The US dollar slipped marginally on both the buy and sell sides and the Canadian dollar fell 80 cents buying and $1.61 selling closing at an average of $95.60 buying and $97.39 selling.

The highest buying rate fell 5 cents for the US dollar and the lowest selling rate increased $16.35 cents to $98.60, the Canadian dollar dropped across the board 60 cents for the highest buy rate, $2.24 for the lowest buying rate and $2.59 for the highest selling rate to reach $100.50, and $2 for the lowest selling rate hitting $93 at the end of the day.  The Pound lost $1.50 for the lowest selling rate and $4.98 for the highest selling rate and moved down 60 cents for the highest buying rate and $1.78 for the lowest buying rate.

The total amount of currency purchased was US$29.8 million (Thursday was US$25.15 million) and selling US$30.6 million (Thursday accounted for $26.78 million).

FX_TRADE+Currency+Jun21FX_TRADE+HighLow+Jun21

JSE: Heavy trading in Lasco stocks

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Friday, 21st June 2013 | The local market traded 6.185 million shares at a value of $67 million, with the bulk of the trading taking place for the second day running in the junior market as two Lasco companies accounted for nearly $50 million of stocks traded.

Mayberry was again the dominant broker buying virtually all the Lasco Manufacturing traded as they bought 1.3 million units from clients for their own account. They were also the big trader in Lasco Distributors in which they picked up 1.74 million shares for their own account, which they bought from their clients. They were the only trader for General Accident Insurance that traded 759,000 shares.

Advances turn | The advance decline ratio was slightly negative once more with 8 stocks advancing in price versus 9 that declined.

Main Market | Trading in the main market was subdued today as more focus seemed to have been on the junior market stocks. The main indices fell moderately except for the junior market.

Carreras traded 45,840 units and gained 90 cents to close at $57.90, Hardware & Lumber 49 cents to close at $3.86 as just 200 of its shares trading. Grace traded 10,160 shares as the stock closed at $60.25 and was up 20 cents. JMMB lost 50 cents to close at $7.50 as just 94,792 shares traded. Proven Investments traded 526,215 shares at a value of US$58,000.

Juniors up | Six stocks traded in the junior market as the index put on 18.52 points to close at 788.3 with 4 increasing in price and 2 falling. Lasco Distributors closed up 60 cents at $15.90. Lasco Manufacturing lost 30 cents to close at $15.50.

IC bid-offer Indicator | At the end of trading, the IC bid-offer sentiment indicator shows that bids for 8 stocks were higher, with 4 stocks that had an offer that was lower than their last selling price. Of note is Access Financial, that has not traded for some time, now has a bid of $8.20 with the last selling price of $8.10. Cargo Handlers bid was at $11, the last sale took place at $10.55, Lasco Financial bid is at $10.70 with the last sale taking place at $10.10.

JSEIndicesJun21

CPJ denies major customs breach

Statement released by Caribbean Producers Ltd | It has come to our attention that recent newspaper articles and press reports refer to breaches of the Customs Act by a major importer operating out of Western Jamaica that is listed on the Jamaica Stock Exchange.

While these reports do not name our Company, CARIBBEAN PRODUCERS (JAMAICA) LIMITED as the entity in question, we wish to advise our shareholders and the wider public that we consider such reports to be erroneous.

The Company is a leading food service company and hotel supplier in Jamaica. It sources its products from some 30 countries and imports thousands of unique items in up to 100 containers per month. The Company considers that it has worked closely with the Customs Department and the Ministry of Finance in establishing and growing its business during the course of the last 18 years.

CaribbeanProducers(CPJ)280X150Contrary to the press reports, the Company continues to have the status of ‘AUTHORISED ECONOMIC OPERATOR’ (AEO), which is granted by the Jamaica Customs Department. Changes to the AEO program were introduced by the Customs Department and the Company, along with other AEOs, will need to comply with certain requirements leading to security certification by 31 October 2013.

More recently, one of the suppliers of the Company mislabelled a relatively small number of cases of pork products that the Company inadvertently imported in a large container containing a total of approximately 500 cases of pork bellies. This matter is under discussion with the Customs Department and the relevant supplier has admitted its liability, which arose due to their error, and has offered to pay any fines on behalf of the Company, which the Company believes will not exceed J$1.1M.

Any other information published by the press in relation to the Company’s position as regards the Customs Act, including references to potential fines in the region of J$3 billion, is not correct. The Company is committed to being a good corporate citizen and responsible publicly traded company, operating within the law and with regard to the principles of good governance.

TTSE: Only 5 stocks trade

Friday, 21st June 2013 | On another slow day on the Trinidad Stock exchange, just five stocks traded today with only one stock, Scotia Bank, recording a change in price by falling slightly 28 cents to close at $69.72. The main market saw a volume of 111,693 shares crossing the floor of the exchange valued at $844,178 in addition to 177,545 shares valued at $4,083,535 in the mutual fund market.

The main companies that traded on Friday were Guardian Holdings with a volume of 22,811 shares for $364,976, Sagicor Financial Corporation, 68,016 shares valued at $428,568.59 and Clico Investments with 177,545 shares at a value of $4 million.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 5 stocks were higher with 4 stocks that had offers lower than their last selling price.

TTSEJun21

FX: Markets settles for now

Thursday, 20th June 2013 | The foreign exchange market settled today after a hectic market yesterday when BOJ intervened to sell US dollars to the market. BOJ did not intervene today. The selling rates for each currency fell 2 cents in the case of the US dollar to $1.64 for the pound and 66 cents for the Canadian dollar. Buying rates also fell for the US dollar by 37.5 cents, Canadian by $2.10 and the Pound by $2.54.

The highest buying rate fell 70 cents for the US dollar and the lowest selling rate dropped $16.45 down to $82.25. The only change for Canadian dollar was a drop in the lowest selling rate which shed a $1 down to $95. The Pound lost $1 for the lowest selling rates, climbed $3.53 for the highest sell rate and moved up 40 cents for the highest buying rate. There was no change for the lowest buying rate. The movement in the US dollar against most international currencies would have had an impact on the Canadian dollar and the pound which accounted for the sharper fall in those currencies.

The total amount of currency purchased was US$25.15 million and selling accounted for $26.78 million.

FX_TRADE+Currency+Jun20

FX_TRADE+HighLow+Jun20

JSE: It was Lasco’s day

Thursday, 20th June 2013 | Right on the heels of the Lasco group participating in the Mayberry Investor forum on Wednesday. trading picked up in all three stocks with Mayberry doing the bulk of the trading, many of them crosses. Early in the trading session attempts were made to trade as high as $18  for both Manufacturing and Distributors but were cancelled later as the price exceeded the limitation set by the exchange in a day. So dominant was the Lasco trading that of 132 transactions, the three companies accounted for 48 while JMMB accounted for 17.

Junior’s down | Nine stocks traded in the junior market, with 5 increasing in price and 3 falling. Lasco Manufacturing gained $1.80 to close at $15.80 as 1,891,055 of its shares traded at a value of $29.8 million. Lasco Distributors closed up $2.30 at $15.30 as 905,219 of the company’s shares traded, valued at $13.63 million. Lasco Finance traded as high as $11.25 but closed at $10.10 as 248,561 units traded, valued at $2.65 million. Blue Power moved up $1 to close at $10 as 215,987 of the stock traded, valued at $2.24 million.

Caribbean Producers lost 5 cents while trading 1.077 million units to close at $1.95. The bulk of the buying took place at $1.50 with Mayberry being the main buyer. Some investors are viewing reports in the press that a listed company is faced with import duty violation as being negative for the company and profits, thus the sell-off which started yesterday.

Advances positive | Trading elsewhere was moderate with just a total 5.42 million shares trading at a value of $56.6 million. The advance decline ratio moved back into the positive once more but not as strong as on Wednesday, with 7 stocks advancing in price versus 5 that declined.

The all Jamaica index climbed by 522.95 points (Wednesday 343.29) to close at 90,562.68, the market main index closed at 88,297.86 up 297.05 (Wednesday 194.99) points and the junior market gained 22.95 points in closing at 769.78 driven by the price movement of the Lasco shares.

Main Market | Hardware & Lumber put on 50 cents to close at $4.35 on low volume. Grace traded 8,120 shares as the stock closed at $60.05 and as the stock gained $1.05 today toad to the $1.50 gained on Wednesday. Kingston Wharves gained 25 cents to close at $8 as just 5,500 shares traded.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice market indicator shows that bids for 6 stocks were higher with the junior market accounting for 4, as 3 stocks (two from the junior market) had offers that were lower than their last selling price.

JSEIndicesJun20

TTSE: Not much action as 7 stocks trade

Thursday, 20th June 2013 | Clico Investment Fund enjoyed $0.50 increase to reach a new 52 weeks high at the end of trading at $23. A volume of 351,140 shares valued at $8,076,220 were traded for the fund.

Trading took place in 7 securities of which 2 advanced, none declined and 5 traded firm as the main market saw a volume of 128,971 shares crossing the floor of the exchange valued at $4,121,394 in addition to the mutual fund trading. Guardian Holdings traded 67,490 shares for a value of $1,079,840. Neal & Massy Holdings had a volume of 50,071 shares trading for $2,954,189. Grace Kennedy contributed 6,918 shares with a value of $28,018 and Angostura Holdings  added 2,732 shares valued at $24,588.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice market sentiment indicator shows that bids for 5 stocks were higher and 4 stocks had offers were lower than their last selling price.

TTSEJun20

FX: BOJ intervenes with big trades

Wednesday, 19th June 2013 | Information reaching IC Insider is that Jamaica’s central bank intervened in the foreign exchange market today by selling US dollars to dealers at $101.45 for resale at $101.50. The last time the country’s central bank intervened to sell to the market was back on October 26 of last year at a rate of $90.98.

To access the facilities at BOJ, banks had to inform the central bank as to the names of the end users and the purpose that the funds would be used for. IC Insider gathers that the intervention created instability in the market.

While the central bank was not active before on the selling side they have been very active on the buying side. On May 22, BOJ intervened to buy US dollars at $99.23, they did so as well on the May 20 and 21 at a buying rate of J$99.13. On May 17 the BOJ bought at $99.03, on May 8 it was at $99.0276, and on February 15 they bought at $95.3564.

US$&Coins280x150The dealers bought the equivalent of US$73.93 million but sold US$135.3 million on a day when the rate on the sell side of all three main currencies decreased with the US dollar selling cheaper by 11 cents, the Canadian  20 cents less and the Pound sterling 90 cents less than on Tuesday.

One source pointed out that all their clients who were waiting to get funds were able to do so today. Another source said that the central bank is of the view that dealers have been holding foreign exchange and the BOJ is using the various tools to get banks to reduce their portfolio of foreign currencies.

It appears that BOJ’s decision to intervene may have started the sell off from yesterday and it accelerated today as the mismatch between buying and selling over the last two days suggests that something extra ordinary has been taking place in the market.

The conclusion may well be that non-financial investors may have sold today with the announced intervention by BOJ, hence the large amount bought by authorised dealers.

FX_TRADE+Currency+Jun19

FX_TRADE+HighLow+Jun19