In moderate trading, the Jamaica Stock Exchange closed down on Monday after the All Jamaica Composite Index hit a new high of 347,919.92 points in early trading.
At the close trading, advancing stocks were the same as stocks, leading to the All Jamaican Composite Index to decline by 880.86 points to 346,120.15 and the JSE Index in shedding 802.56 points to end at a record close of 315,354.54.
Trading in the main market ended with 4,879,200 units valued at over $45,250,338 compared to 11,481,249 units valued $123,719,859 on Friday.
Market activities resulted in 29 securities trading including 2 in the US dollar market compared to 26 securities trading on Friday. At the end of trading, the prices of 9 stocks rose, 9 declined and 11 traded unchanged, including
Caribbean Cement traded at an all-time closing high of $50 with very low volume while the Jamaica Stock Exchange traded at a 52 weeks’ high of $8.50 but pulled back at the close to $8.
The day’s volume was led by, Mayberry Jamaican Equities with 2,626,900 units and 53.84 percent of the main market volume, followed by Jamaica Stock Exchange with 822,926 units and Victoria Mutual Investments with 298,913 units.
Stocks with major price changes| Barita Investments lost 50 cents and ended at $9, trading 7,186 stock units, Caribbean Cement jumped $7.99 to a 52 weeks’ closing high of $50 exchanging a mere 610 shares, but ended with the being offered at $45 Jamaica Broilers traded 27,922 stock units and added $1.90 to end at $24, Mayberry Investments lost 25 cents to end at $8 trading just 18,821 shares, Kingston Wharves lost 75 cents to end at $51.50, after trading 2,500 stock units, NCB Financial Group lost 50 cents and ended trading at $103.50, exchanging 42,838 shares, Scotia Group traded 9,910 units and shed 80 cents to end at $52, Supreme Ventures fell 29 cents in trading 81,921 at $15.51 and Wisynco Group fell 25 cents to close at $9.25 after trading 197,432 shares.
Trading in the US dollar market closed with 35,200 units valued at US$65,830 as JMMB Group 5.75% preference share rose 12 cents and closed at US$2.15 trading 35,200 shares and Margaritaville rose 1 cent in trading 5,000 shares at 18 US cents. The JSE USD Equities Index rose 0.47 points to 159.31.
Trading resulted in an average of 180,711 units valued at over $1,675,938, in contrast to 478,385 shares valued at $5,154,994 on Friday. For the month to date an average of 196,186 shares valued at an average of $4,035,512 versus 198,469 shares valued at an average of $4,438,731 on Monday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 10 stocks ended with bids higher than their last selling prices and 4 closing with lower offers.
All 3 TTSE stock indices rise – Monday
Trading on Trinidad & Tobago Stock Exchange ended on Monday with trading in 14 securities against 15 on Friday, with 3 advancing, 4 declining and 7 remaining unchanged leading gains in all market indices.
Market activity ended with one stock ended at 52 weeks’ closing high as 203,230 shares valued at $1,737,939 changing hands, compared to 366,114 shares valued at $2,694,047, on Friday.
At the close the Composite Index rose 1.09 points to 1,232.01, the All T&T Index added 0.22 points to 1,711.96 and the Cross Listed Index gained 0.27 points to close at 101.10.
IC bid-offer Indicator| At the close of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 3 stocks ending with higher bids than the last selling prices and 2 with lower offers.
Stocks with Gains| Guardian Holdings concluded trading of 10,696 units after rising 5 cents to $16.55, NCB Financial Group added 1 cent and settled at $5.66, after exchanging 5,000 shares and Republic Financial Holdings gained 5 cents and ended trading at a 52 weeks’ high of $103, after exchanging 1,200 shares.
Stocks Losses| Clico Investments traded with a loss of 6 cents and ended at $19.94, with 23,050 stock units changing hands, First Citizens closed with a loss of 1 cent and settled at $35, after exchanging 2,963 shares, National Flour shed 4 cents and completed trading at $1.75, with 5,000 units and Unilever Caribbean lost 10 cents and ended at $26.90, with 50 stock units changing hands.
Firm Trades| Calypso Macro Index Fund traded 314 shares at $15.74, Grace Kennedy ended at $2.90, with 66,687 stock units changing hands, Massy Holdings closed at $46.90, after exchanging 281 shares, One Caribbean Media concluded trading of 796 shares at $12.29, Sagicor Financial ended at $7.50, with 65,393 stock units changing hands, Scotiabank completed trading of 900 units at $65.02 and Trinidad Cement ended at $2.90, after exchanging 20,900 shares.
Prices of securities trading for the day are those at which the last trade took place.
JSE PE ratios heading higher
The stock market combined index climbed from 82,934.95 points at the end of 2013 to 324,801.52 on Friday, for increase of 292 percent but the average PE ratio has moved from 7.3 by just under 100 percent to peak at an average of 14.5 times last year December.
During the same period, Treasury bill rates tumbled 75 percent from just over 8 percent to 2 percent or were 300 percent more than they are now. While the fall in interest rate would appear to be close to the rise in the market index, the much slower increase in the PE ratio indicates that the major part of the rise is due to increased profits.
Based on the trends in interest rates and PE ratios, coupled with the serious shortage of supply of several stocks, currently, the PE ratio of the market will rise from the current level of 12.5, first to the high of 14.5 reached at the end of December last year and should move on to around 17 to 18 by the end of the year or early 2019.
A look at the chart, indicates that investors are more cautious in moving stock valuation higher. The PE ratio seems to be moving higher each year since the sharp jump in 2015, suggesting that the increase in PE is not yet over. The other factor is that interest rates have fallen faster in 2018 than for some time, investors seem to need more time to digest the rapid change in rates and determine how long it likely to remain at very low levels.
The big question to come will be, when will interest rates start to reverse? If the PE hits 17 by year end, it would represent an approximate 35 percent increase from current levels. Quite a number of stocks are selling above the average of 12.5 presently. A total of 24 stocks in both markets trade above 12.5 and 7 each in the main market and Junior Market selling above 16 times current year’s earnings.
New closing high for JSE – Friday
The Jamaica Stock Exchange took another sizable jump to end at a record close on Friday as advancing stocks out-numbered declining stocks in continuation of the market’s record bull run.
At the close trading, the All Jamaican Composite Index rose 305.19 points to 347,001.01, the first time it closed above 347,000 points and the JSE Index climbed 278.07 points to end at a record close of 316,157.10. The market has gained 9.6 percent for the year to date, the shortage of stocks and low interest rates suggest that the gain for the rest of the year should exceed that of the first 7 months.
Trading in the main market ended with 11,481,249 units valued $123,719,859 compared to 7,873,698 units valued at $335,479,879 on Thursday.
Market activities resulted in 26 securities trading including 2 in the US dollar market compared to 28 securities trading on Thursday. At the end of trading, the prices of 13 stocks rose, 8 declined and 5 traded unchanged, including Caribbean Cement trading at an intraday high of $50 and Salada Foods trading at an all-time high of $17 before pulling back at the close, to a 52 weeks’ high of $16.50.
The day’s volume was led by, Mayberry Jamaican Equities with 9,408,575 units 81.95 percent of the main market volume, followed by Scotia Group with juts 351,092 units and Jamaica Stock Exchange with 281,270 units.
Stocks with major price changes| Berger Paints rose $1 and ended at $21, trading 9,539 stock units, Caribbean Cement fell $1.49 to $42.01 exchanging 76,432 shares, Jamaica Broilers traded 46,334 stock units and dropped $3.40 to end at $22.10, Jamaica Stock Exchange rose 49 cents to close at $8, with 281,270 shares changing hands, JMMB Group rose 50 cents and ended at $30, trading 27,350 shares. Mayberry Investments lost 75 cents to end at $8.25 trading just 8,335 shares, Kingston Wharves finished at $52.25, after rising 25 cents with 3,842 stock units, NCB Financial Group lost 80 cents and ended trading at $104, exchanging 27,159 shares, PanJam Investment jumped $1 to $52 trading 87,500 stock units. Salada Foods jumped $1.50 and ended trading at 52 weeks’ closing high of $16.50, with 35,500 stock units, Scotia Group traded 351,092 units and gained 80 cents to end at $52.80 and Sygnus Credit Investments fell 49 cents in trading 12,010 at $12.
Trading in the US dollar market closed with 174,520 units valued at US$31,642 as Proven Investments fell 1 cent and closed at 19 US cents trading 3,200 shares and Sygnus Credit Investments fell 0.25 cents in trading 12,010 at 0.0975 US cents. The JSE USD Equities Index rose 3.70 and closed at 154.43
Trading resulted in an average of 478,385 units valued at an average of $5,154,994 for each security traded. In contrast to 302,835 units for an average of $12,903,072 on Thursday. For the month to date an average of 198,469 shares valued at an average of $4,438,731 versus 185,362 shares valued at an average of $5,398,127 on Thursday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 6 closing with lower offers.
2 TTSE stocks rise 3 fall – Friday
Trading on Trinidad & Tobago Stock Exchange ended on Friday with 366,114 shares valued at $2,694,047 changing hands, compared to 344,130 shares valued at $3,881,434, on Thursday.
Market activity ended with 15 securities changing hands compared to 12 trading on Friday and the market closed with 2 recording gains, 3 losses and 10 ending with prices unchanged. At the close of trading one stock ended at 52 weeks’ closing high.
At the close the Composite Index lost 0.20 points on Friday to 1,230.92, the All T&T Index declined 0.40 points to 1,711.74 and the Cross Listed Index remained unchanged at 100.83 points.
IC bid-offer Indicator| At the close of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 4 stocks ending with higher bids than the last selling prices and 3 with lower offers.
Stocks with Gains| First Citizens rose 1 cent and ended at $35.01, after exchanging 1,228 shares and Republic Financial Holdings closed with a gain of 3 cents and completed trading at a 52 weeks’ closing high of $102.95, after exchanging 1,845 shares.
Stocks Losses| One Caribbean Media shares fell 7 cents and completed trading at $12.29, after exchanging 20,831 shares, Trinidad & Tobago NGL share fell 1 cent and ended at $30, after exchanging 40,150 shares and Trinidad Cement shed 5 cents and completed trading at $2.90, after exchanging 100 shares.
Firm Trades| Clico Investments settled at $20, with 2,381 stock units changing hands, Grace Kennedy closed at $2.90, trading 253,750 shares, Guardian Holdings concluded trading at $16.50, with 3,000 units, JMMB Group completed trading at $1.75, after exchanging 31,000 shares, Massy Holdings completed trading of 370 shares at $46.90, Point Lisas settled at $3.70, with 223 stock units changing hands, Prestige Holdings concluded trading of 200 units at $10, Sagicor Financial settled at $7.50, with 10,912 stock units changing hands, Scotiabank closed at $65.02, with 15 units and West Indian Tobacco concluded trading at $87.99, with 109 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.
Derrimon buying Woodcats International
Derrimon Trading signed an agreement to buy Woodcats International with the transaction set to close within thirty days.
Woodcats was founded in 1999 by Christopher Collings and reached of $450 million in the 2017 financial year. products include: export pallets, warehouse pallets, wooden crates, sawdust, and landscaping mulch with in heat treatment and pallet repair.
Revenues for the Derrimon Trading first quarter March this year, climbed 27 percent to $1.94 billion above the $1.53 billion reported for the 2017 quarter and led to a big hike in profit.
The company reported a strong 45 percent jump in its first quarter results, from $35 million to $52 million or 21 cents per share to March this year, but profit could have been even higher had they not incurred finance cost which jumped 56 percent to $38 million from $25 million in 2017.
Derrimon stock traded 236,050 as high as $25 on Friday on the Jamaican Stock Exchange but ended at a record close of $24 to be up 243 percent for the year. The company is expected to approve a stock split of 10 to 1 at their upcoming annual general meeting slated for August 22.