IronRock Insurance reports vastly improved results for the second quarter and the six months period to June from rising revenues and stable administrative cost.
A loss of $4 million was incurred for the June quarter and $8.6 million for the half year compared to a loss of $19 million and $46 million in June quarter and half year in 2017 respectively.
The vastly improved bottom-line flowed from gross written premium for the half year rising 63 percent to $282 million, from $173 million in 2017 and net earned premium increasing 248 percent to $80 million, up from: $23 million in 2017. For the second quarter premium rose at a slower pace of 14 percent to $127 million and net premium income moved 213 percent from $13 million to $42 million.
Operating expenses rose to $74 million from $65 million in 2017 and moved from $33 million to $36 million in the June quarter. Insurance damages claimed $38 million for the half year, up from $21 million in 2017 and increased claims from $9 million in the June 2017 quarter to $21 million in 2018, leading to reduced underwriting loss of $30 million versus $61 million in the corresponding in 2017. Other income for the period rose to $22 million from $14 million for the 2017 period and for the June quarter, moved from $8 million to $11 million. Shareholders’ equity inched up from $512 million to $514 million helped by unrealised gains of $10 million in the equity portfolio. Total assets stood at $988 million and comprise cash and investments of $602 million, while liabilities include $360 million for claims provision.
The stock last traded at $3.10 and could enjoy some gains going forward as company extend the improvement in both the top and bottom-lines.
Iron Rock improvement continues
JSE in sharp fall on Monday
The main market of the Jamaica Stock Exchange dropped sharply on Monday falling more than 3,350 points, as the market pulled back sharply from the recent record high, but advance decline ratio was even.
Trading in the main market ended with 4,603,500 units valued $97,930,099 compared to 2,441,530 units valued $54,632,965 on Friday.
At the close, the All Jamaican Composite Index dived 3,687.52 points to close at 335,467.60 and the JSE Index declined by 3,359.74 to 305,648.85.
Market activities resulted in 29 securities trading including 1 in the US dollar market compared to 26 securities trading on Friday. At the end of trading, the prices of 12 stocks advanced, 12 declined and 5 closed unchanged and JMMB Group traded at an intraday all-time high of $31 but fell back to $30.02 at the close.
The day’s volume was led by, Carreras for the second in a row with 28.13 percent of trading in an exchange of 1,294,964 shares, followed by Scotia Group with 775,144 shares and 16.84 percent of the day’s volume and Ciboney Group with 707,000 units, accounting for 15.36 percent of the day’s volume.
Stocks with major price changes are, Carreras lost 50 cents to finish at $9, Grace Kennedy dropped 99 cents to $52.01, with 21,707 stock units trading, Kingston Wharves rose 35 cents and ended at $50.35, trading 2,100 shares, NCB Financial jumped $2 to $97 trading 63,512 units. Portland JSX fell $1 to $8, in trading 900 units, Sagicor Real Estate Fund dropped 45 cents and closed at $14.05, exchanging 20,468 shares and Sygnus Credit Investments declined 50 cents to $12.50 trading 153,800 units.
Trading in the US dollar market closed with 45,000 units valued at US$7,426 as Proven Investments was the only stock trading with the price rising 1.04 cents to 16.05 US cents. The JSE USD Equities Index rose 5.86 points up to 146.90.
Trading resulted in an average of 164,411 units valued at an average of $3,497,504 for each security traded. In contrast to 90,427 units for an average of $2,023,443 on Friday. The average volume and value for the month to date amounts 148,084 units valued at $2,927,889 compared to 146,947 units valued at $2,885,584 on Friday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 9 stocks ended with bids higher than their last selling prices and 3 closing with lower offers.
Volume plunged on Junior Market
The Junior Market closed trading on Monday with 24 securities changing hands, resulting in an exchange of just 363,861 shares valued $1,682,885, compared to 780,012 units valued at $3,632,523, from 26 securities changing hands on Friday.
IC bid-offer Indicator|At the end of trading, as was the case at the close on Thursday signs continue to be good for a continuation of gains when trading resumes, with a very positive Investor’s Choice bid-offer indicator reading of 9 stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close of market activities, the prices of 9 securities advanced, 7 declined and 6 remained unchanged leading the Junior Market Index to decline 4.90 points to 3,045.76.
Trading closed with an average of just 15,161 units for an average of $70,120 in contrast to 30,000 units for an average of $139,712 on Friday. 
The average volume and value for the month to date amounts to 187,823 units valued at $761,076 and previously 200,496 units valued at $811,788. Trading in June, ended with an average of 139,543 units, valued at $671,002 for each security traded.
At the close of trading, AMG Packaging ended at $2 after rising 3 cents with 6,582 stock units changing hands, Blue Power dropped $4.01 to $35.99, in exchanging 2,000 units, Cargo Handlers settled 16 cents higher at $9.65, with 391 shares, Caribbean Flavours traded 5,000 stock units at $11.69, Caribbean Producers finished trading 13 cents higher at $5.40, as 2,124 units changing hands. Consolidated Bakeries closed trading with 20,550 shares and gained 5 cents at $2.05, C2W Music ended with a loss of 20 cents at $1.50, while exchanging 26,000 shares, Elite Diagnostic lost 6 cents to end at $2.90, trading 27,749 units, Express Catering traded with a loss of 4 cents at $7.30, exchanging 5,000 shares. Everything Fresh traded 4,173 shares after gaining 4 cents to close at $2. FosRich Group rose 4 cents to $2.75, trading 100 shares, General Accident closed at $3.05, with 7,454 stock units, 
GWest Corporation ended at $2.41, with 12,076 units, Jamaican Teas ended trading 10,000 stock units at $5.29. Jetcon Corporation traded 5,442 units and lost 5 cents at $4.10, KLE Group gained 5 cents to $2.90, with 10,000 shares, Knutsford Express ended at $12, with 200 shares, Lasco Distributors concluded trading with a loss of 28 cents at $3.92, with 16,098 stock units. Lasco Financial finished trading 39,963 units at $5, Lasco Manufacturing settled at $4, while exchanging 34,250 shares, Medical Disposables traded with a loss of 23 cents at $5.02, with 23,000 shares, Paramount Trading finished trading 10,000 stock units with a rise of 2 cents to end at $3 and Stationery and Office closed 2 cents higher at $7.99, with 58,459 units trading. In the junior market preference segment, Eppley closed at $6, with 17,250 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.
Calypso Fund drops $1.50 on TTSE – Monday
Calypso Macro Index Fund led the market with price changes with a fall of $1.50 in trading 1,600 units to close at $16 on the Trinidad & Tobago Stock Exchange on Monday.
Trading ended with 13 securities changing hands against 17 on Friday, leading to 4 securities rising, 4 declining and 5 remaining unchanged on Monday. Valued changing hands amounted to 81,336 units valued $3,446,849 compared to 75,042 units valued $1,676,375 on Friday.
The Composite Index rose 0.11 points to 1,226.57, the All T&T Index added 0.16 points to 1,719.98 and the Cross Listed Index inched 0.01 points higher close at 98.47.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 2 stocks ending with higher bids than the last selling prices and 4 with lower offers.
Gains| Massy Holdings finished trading with a gain of 5 cents at $47, after exchanging 464 shares, National Flour rose 5 cents and completed trading at $1.80, with 1,012 units changing hands, Republic Financial Holdings added 2 cents and concluded at 52 weeks’ high of $102.81, after exchanging 200 shares and 
Trinidad & Tobago NGL increased 2 cents and settled at $29.58, after exchanging 3,722 shares.
Losses| Clico Investments traded with a loss of 7 cents and ended at $20.36, with 8,450 stock units changing hands, Scotiabank fell by 4 cents and completed trading at $65.01, with 104 units and Unilever Caribbean share fell 1 cent and ended at $29.22, with 310 stock units changing hands.
Firm Trades| Ansa Mcal completed trading at $58, after 50,000 units changed hands, First Citizens settled at $34.92, after exchanging 500 shares, Guardian Holdings completed trading at $16.60, with 7,200 units, Point Lisas ended at $3.70, with 4,534 stock units changing hands and Sagicor Financial ended at $7.80, with an exchange of 3,240 shares.
Prices of securities trading for the day are those at which the last trade took place.
Stocks to Watch this week
The main market pulled back on but blasted to a new intraday high on Friday confirming that the bull run is in its early stages, while the Junior Market continues to bounce around.
The main market has gained nearly 3,600 points for July, thus mirroring the start of the usual summer rally on the Jamaica Stock Exchange.
The main market is being steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below the index and the Junior Market is being steered by an upward rising long term support line and the start of a golden cross.
The market saw many developments that confirm that a bull market is in place with all three initial public offers closing ahead of the scheduled close.
The past week saw a few strong results being posted and more are expected this week that should include NCB Financial and Proven Investments. Barita Investments got the offer to buy 75% of the shares at $9.20 each. IC Insider.com is of the view that the stock is worth much more with good prospects to build on the strong foundation that it has. Jamaican Stock Exchange released strong gains in profit and announced a dividend as well, and could benefit from both, with eyes focused on even greater improvement in 2019. Caribbean Cement stock is another to watch, with the annual general meeting on this week and results for the June quarter due. Margaritaville had a bid of 16.9 cents versus a last sale of 15 cents and is being offered at 18 cents to sell 43,795 units, Proven Investments had a bid of 16 cents 
versus a last sale of 15 cents and is being offered at 18.5 cents to sell 1,050 units.
Medical Disposables came in for strong demand in the past week with the price going as high as $5.50. Trading during the week removed supplies that was overhanging the market leaving little supply at the end of the week and could go higher in the coming week. Caribbean Cream after posting a 59 percent increase in profit for the 2019 first quarter saw no more continuation of the demand that lifted the price into the $6 region but could well make some increased interest this week.
2 new IC TOP 10 listings
This weeks’ review comes against the back drop of the main market hitting a record high on Friday in the morning session and the Junior market continuing to eke out modest gains.
Unlike last week when there are several changes to the TOP stocks, there are only two new additions this week. Victoria Mutual Investments and Jamaican Teas are out of the TOP 10 with Berger Paints that fell in price to $18.76 and Caribbean Cream are back in the TOP 10 lists.
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.
The past week saw a few results being posted and more are expected this week, including NCB Financial and Proven Investments that entered the TOP 10 last week, 
both are expected to report positive gains with NCB continuing from increases seen up to the second quarter and Proven that President, Christopher Williams informed IC Insider.com is performing well in all divisions, see Collapse of the JSE US market.
The PE ratio for Junior Market Top stocks averages 7.4 compared to an average PE for the overall market of 11.8, based on 2018 estimated earnings and the main market PE stands at 7.5 for the top stocks, compared to a market average of 12.5, this is a good indication of the level of undervaluation of these stocks.
IC Insider.com last week stated that there are warning signs of a tsunami that is on the way for the market. During last week one more sign came to the fore with a sharp drop in Treasury bill rates again, this coupled with scarcity of supply for many stocks. Investors seem to be going about their business as if prices will remain around current levels for a prolonged period. 
Late comers to buying stocks who try to join the party will find get stocks but at a much higher prices as the year rolls on and that is confirmed by technical indicators in both the Main and Junior markets.
The TOP 10 stocks now trade at an average discount of 37 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 and main market stocks traded at a discount of 40 percent to the market.
Financiers bullish on Carib tourism
Entities eyeing the Caribbean region and in need of financing should be encouraged by findings by top accounting firm KPMG included in their annual survey on financing for the sector amongst banks and non-banks.
“Confidence levels of banks increased yet again for an amazing ninth year in a row,” the survey stated and went on to indicate that “confidence levels of non-banks also increased.” “Overall non-banks remain more confident than banks registering 7.43 out of 10 in terms of their level of confidence versus 7.11 out of 10 for banks. For both banks and non-banks to exhibit these high levels of confidence would be very positive at any time but for them to do so following what can only be described as a catastrophic 2017 hurricane season for the region, represents very welcome, positive news,” the KPMG report stated.
“Canadian headquartered banks have for many years been the primary financiers of developments in the region’s tourism industry. However, it is now firmly established that the landscape has changed, although the Canadian banks remain very much part of that new landscape. The consensus view appears to be that they are “back in the market but more selective than before”. Other “players” are predominantly local banks who are increasingly participating in syndicated deals, U.S. funds, pension funds and insurance companies and development banks who are also active in the marketplace,” the survey finding went ion to say.
JSE retreats from Friday’s record high
The main market of the Jamaica Stock Exchange surged to new record high during trading in the morning sessions hitting a high of 340, 893.72 points on the all Jamaica Index while the JSE index rose to a record high of 310,624.04 but the market pulled back to close just below the record closing high reached on Thursday last week.
Trading in the main market ended with 2,441,530 units valued $54,632,965 compared to 2,808,119 units valued $38,691,449 on Thursday.
At the close, the All Jamaican Composite Index advanced by 878.93 points to 339,155.12, sitting just 692.75 points below the record close on last week Thursday and the JSE Index climbed 800.80 points to 309,008.59, just 631.20 points away from the record close reached last week.
Market activities resulted in 27 securities trading in the main market, compared to 26 securities trading on Thursday in the main and US dollar markets. At the end of trading, the prices of 7 stocks advanced, 10 declined and 10 closed unchanged.
The day’s volume was led by, Carreras with 25.27 percent of trading in an exchange of 616,888 shares, followed by Ciboney Group with 548,381 units, accounting for 22.46 percent of the day’s volume and NCB Financial Group with 276,402 shares and 11.32 percent of the day’s volume.
Stocks with major price changes are, Berger Paints fell 74 cents to $18.76 with 16,154 trading, Caribbean Cement gained $2 to finish at $42, exchanging 5,050 shares, Jamaica Broilers dropped $1.08 to $25.42, with 65,410 stock units trading, Kingston Wharves fell 85 cents and ended at $50, trading 14,127 shares, NCB Financial dropped $2.99 to $95 trading 276,402 units. Pulse Investments fell 40 cents and settled at $3, in trading 29,611 units,
Sagicor Real Estate Fund rose 40 cents and closed at $14.50, exchanging 5,200 shares and Scotia Group declined 90 cents to $50.10, with 248,215 units.
Trading resulted in an average of 90,427 units valued at an average of $2,023,443 for each security traded. In contrast to 122,092 units for an average of $1,682,237 on Thursday. The average volume and value for the month to date amounts 146,947 units valued at $2,885,584 compared to 151,016 units valued at $2,952,092 on Thursday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 3 closing with lower offers.
Junior Market pregnant for bull run
Bulls are prowling around Jamaican stocks.
The Junior Market Index rose for the second day by adding 10.31 points to close at 3,050.66 on Friday, as advancing stocks beat out declining ones.
IC bid-offer Indicator|At the end of trading, as was the case at the close on Thursday signs continue to be good for a continuation of gains when trading resumes on Monday with a very positive Investor’s Choice bid-offer indicator reading of 9 stocks ending with bids higher than their last selling prices and none with a lower offer.
Trading resulted in an exchange of 780,012 units valued at $3,632,523 compared to 2,301,169 units valued at $10,750,562 on Thursday from 26 securities changing hands, compared to 22 on Thursday. At the close of the market. the prices of 13 securities advanced, 11 declined and 2 traded unchanged.
Trading closed with an average of 30,000 units for an average of $139,712 in contrast to 104,599 units for an average of $488,662 on Thursday. 
The average volume and value for the month to date amounts to 200,496 units valued at $811,788 and previously 232,964 units valued at $869,841. June closed with an average of 139,543 units, valued at $671,002 for each security traded.
At the close of trading, AMG Packaging ended with a loss of 3 cents at $1.97, trading 3,318 stock units, Cargo Handlers fell 16 cents to end at a 52 weeks’ low of $9.49, in an exchange of 17,500 shares, Caribbean Cream ended trading 25 cents higher at $6, with 10,700 shares trading, Caribbean Producers fell 9 cents to $5.27, exchanging 80,000 units, C2W Music ended 18 cents higher at a 52 weeks’ high of $1.70, trading 18,500 shares. Derrimon Trading concluded trading with a loss of $2.40 at $20.50, after exchanging in 5,000 shares, Dolphin Cove finished 10 cents higher at $15.90, with 500 stock units changing hands, Elite Diagnostic settled 1 cent higher at $2.96, with 117,229 units switching owners, Eppley ended trading with a loss of 2 cents at $9.98, while exchanging 9,616 shares. Everything Fresh traded 103,042 shares at $1.96, Express Catering closed 4 cents higher at $7.34, with 98,894 shares traded, 
FosRich Group finished trading with 49,576 shares at a loss of 24 cents to $2.71, General Accident closed 2 cents higher at $3.05, after 3,835 stock units crossed the exchange platform, GWest Corporation ended 1 cent higher at $2.41, with 20,000 units. Honey Bun concluded trading with 39,515 shares and rose 1 cent to $4.52, Jamaican Teas ended trading with a loss of 1 cent at $5.29, with 1,790 stock units, Jetcon Corporation traded 12,747 units with a loss of 13 cents at $4.15, Knutsford Express ended 49 cents higher at $12, trading 2,685 shares. Lasco Distributors rose 20 cents to $4.20, with 37,200 stock units trading, Lasco Financial finished at $5, with 38,577 units, Lasco Manufacturing settled 15 cents higher at $4, in exchanging 4,068 shares, Main Event ended trading 1,240 shares, gaining 55 cents to $7.65, Medical Disposables traded 5 cents higher at $5.25, with 20,000 shares, Paramount Trading closed at $2.98, with 12,235 stock units, Stationery and Office closed with a loss of 10 cents at $7.97, as 35,280 units changed ownership and tTech concluded trading with a loss of 18 cents at $5.32, after 36,965 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.
TTSE volume traded down value up – Friday
Trading on the Trinidad & Tobago Stock Exchange on Friday ended with 17 securities changing hands against 12 on Thursday, leading to 75,042 units valued $1,676,375 being exchanged compared to 151,203 units valued just $700,274 on Thursday.
Trading closed with 5 securities rising, 5 declining and 7 remaining unchanged. The Composite Index rose 0.15 points to 1,226.46, the All T&T Index lost 0.51 points to 1,719.82 and the Cross Listed Index rose 0.11 points to close at 98.46.
IC bid-offer Indicator| At the end 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 3 with lower offers.
Gains| First Caribbean International Bank rose 9 cents and ended at $8.10, with 434 units changing hands, First Citizens added 1 cent and completed trading at $34.9
2, after exchanging 4,573 shares, Guardian Holdings gained 9 cents and ended at $16.60, with 18,191 units, One Caribbean Media rose 10 cents and settled at $12.10, after exchanging 2,372 shares and Republic Financial Holdings closed with a gain of 2 cents at 52 weeks’ high of $102.79, after exchanging 6,441 shares.
Losses| Grace Kennedy lost 10 cents and concluded trading at a 52 weeks’ low of $2.80, with 15,119 stock units changing hands, Point Lisas ended trading 10 cents lower at a 52 weeks’ low of $3.70, with 466 stock units changing hands, Scotiabank concluded trading with a loss of 5 cents at $65.05, with 1,000 units, Trinidad & Tobago NGL declined 10 cents and ended at $29.56, after exchanging 2,370 shares and Trinidad Cement fell 5 cents and closed at $2.90, after 6,300 shares traded.
Firm Trades| Ansa McAl ended at $58, in exchanging 413 units, Clico Investments concluded market activity at $20.43, with 11,406 stock units changing hands, Massy Holdings settled at $46.95, after exchanging 311 shares, National Enterprises closed at $9.55, with 2,000 stock units changing hands, National Flour traded 1,844 units at $1.75, Sagicor Financial concluded trading at $7.80, with 1,602 stock units changing hands and West Indian Tobacco ended at $87 trading 200 units.
Prices of securities trading for the day are those at which the last trade took place.
