Jamaica’s foreign currency market activity returned to normal on Friday with trading at midday showing buying and selling almost even, unlike the previous two days when selling was well below buying. On Friday at midday, dealers purchased US$7.7 million at an average rate of J$125.24 and sold US$6.96 million at an average of J$125.98.
At mid-day on Thursday dealers purchased US$15.39 million at an average rate of J$125.49 while selling US$7.72 million at an average of J$126.05.
On Friday, the rate of exchange to buy the US dollar by the public, declined for the fourth time for the week to $125.98 as dealers sold US$30.35 million in US dollars, compared to US$38.51 million at an average rate of $126.08 on Thursday.
US currency purchases amounted to US$30.77 million on Friday, at an average rate of $124.73, compared to Thursday, with US$32.67 million at $125.
Dealers’ purchased US$34.27 million, versus US$42.48 million on Thursday in all currencies in Jamaica’s Forex market and sold just US$32.6 million compared with US$46.15 million sold, previously.
The selling rate for the Canadian dollar jumped to J$98.60 from J$95.16 at the close on Thursday. The selling rate for the British Pound slipped to J$169.10 versus J$169.72 previously and the euro gained value against the Jamaican dollar, moving to J$150.96 to buy the European common currency, versus prior selling rate of J$148.55.
More gains for Jamaican$
NCB Buying 50.1% of Bermudan bank
NCB Financial Group today announced the acquisition of majority shares in the Clarien Group, a Bermudan based financial group in which Portland Private Equity holds 17.92 percent interest.
Edmund Gibbons Ltd with retain 31.98 percent of the shares. The transaction has received approval from Bank of Jamaica and the Bermuda Monetary Authority provided a no objection letter, the release from NCB states but final approval is subject to the Ministry of Finance. James Gibbons a director of the group expresses the view that the linkage will enable expansion of their offering locally and globally.
In 2016, Portland Private Equity pumped in B$$12.6 million into Clarien to meet capital needs based on tighter regulatory capital requirements as well as a swelling bad debt position amounting to 14 percent of their loan portfolio. The bank is said to have made B$$500,000 profit in 2015.
According The Royal Gazette, Clarien said its loan portfolio had shrunk by $66.8 million in 2015 to $809.7 million by the end of the year. This was attributed to a trend of borrowers paying down mortgage debt.
Clarien has more than eight decades of banking history in Bermuda and is said to be the largest bank in the country.
NCB recently raised US$250 million on the local market for regional expansion, this acquisition seems to be one that was on their radar when the funds were being raised, but based on the amount Portland injected the acquisition by NCB could cost around US$40-50 million, a mere dent in the amount they raised in the summer of 2017, but with earnings of $500,000 in 2015, unless profits picked up considerably since, which seems unlikely with the acquisition by NCB, the amount paid is most likely considerably far less.
For the fiscal year to September NCB made profit of J$19.1 billion or US$146 million up from J$14.45 billion in 2016. Gross revenues for 2017 fiscal year amounted to J$75.7 billion.
Only 1 stock fall on TTSE – Friday
Sagicor is the sole declining stock on the TTSE on Friday.
The Composite Index gained 1.81 points to 1,282.26, the All T&T Index advanced 1.85 points to 1,750.94 and the Cross Listed Index gained 0.24 points to close at 109.67.
Trading ended with 189,047 shares changing hands at a value of $3,309,055 compared to Thursday’s trades of 233,449 valued at $4,648,226.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 6 with lower offers.
Gains| The last traded prices of securities rising are Guardian Holdings with gains of 5 cents, to close at $16.55 with 11,300 shares being exchanged, Massy Holdings added 10 cents to settle at $49 with 26,836 shares valued at $1,314,263 trading and National Enterprises ended at $9.75, rising 5 cents with 1,765 shares.
Losses| The sole security changing hands is Sagicor Financial after losing 8 cents to close at $7.87 trading 22,496 shares.Firm Trades| Stocks with last traded prices remaining unchanged of the close of trading are Ansa McAL with 2,028 shares at $63.03, Clico Investment closed at $21 with 6,400 stock units, First Citizens held firm at $32 with 2,147 units changing hands, Grace Kennedy ended at $3.10 trading 70,435 shares trading, L.J. Williams B closed at 70 cents with 2,000 stock units. NCB Financial Group exchanged 3,585 shares at $6, One Caribbean Media closed at $14 with 7,800 units, Republic Financial Holdings settled at $101.50 with 1,360 shares, Scotiabank remained at $60 with 590 units and Trinidad & Tobago NGL held firm at $25 trading 30,305 stock units valued at $757,631.
GWest IPO is here
The initial Public Offer (IPO) of shares in the Montego Bay based GWest Corporation is now out with 169.7 million shares offered for sale at $2.50 each. The offer opens on December 7 and is scheduled to close on December 21.
With FosRich and Wisynco opening next week as well it could result in record of 4 IPOs being opened within the same week on the Jamaica Stock Exchange. During July, Express Catering opening on July 12, Stationery and Office Supplies that opened on July 19, Proven Investments with a rights issue opened on July 3, Productivity Business Solutions with an ordinary share issue and a preference share issue that opened on July 5.
GWest offer includes 36,000,000 Shares reserved for the lead broker, JMMB Securities or its clients, 64,000,000 Shares reserved for Jamaica Money Market Brokers’ Pension and Client Funds Investment Management Unit. 19,400,000 Shares are for GWest clients and suppliers and 600,000 Shares for independent directors, the Mentor and employees of the Company. This leaves 69.7 million shares for applications by the general public. If any of the Reserved Shares in any category are not subscribed by the persons entitled to them, they will be made available for subscription by the general public.
Dr. Konrad Kirlew, chairman of GWest.
If the Invitation is successful in raising at least J$250,000,000 and the Shares will be admitted to trade on the Junior Market of the JSE.
The primary purpose of the Company is to provide integrated medical health care services and facilities. The Company established 5 medical businesses under the common “GWest Medical” brand. GWest Corporation owns the GWest Centre, a 4-storey multipurpose commercial complex catering primarily to medical professionals and medical services and in which its owned services will be located. The GWest concept is to provide a wide range of complementary international quality best practice medical services in one location,
The Company will be providing the following medical services to complement those offered by owners and lessees in the GWest Centre:
1. General Practitioner and Specialist Suite (operational since June 2017)
2. A 2,200 square feet Urgent Care Centre (operational since November 2017)
3. Medical Laboratory (to be opened by January 2018)
4. A 5,000 square feet 8-Bed Inpatient Unit (to be opened by September 2018)
5. In addition, its 100% subsidiary company GWest Surgery Centre Limited will own and operate an 8,500 square feet Outpatient Surgery Centre (to be opened September 2018), including two modern operating theatres and two procedure rooms.
The Company has approximately 18,111 square feet of space leased to tenants for periods of 3 to 10 years with lease rates denominated in United States currency, ranging from US$20 to US$22 per square feet. The lease payments are subject to annual increases at a rate of up to 0.5% per annum.
GWest complex in Montego Bay,
Directors include Dr. Konrad Kirlew, chairman, Dr. Leyford Doonquah, Dennis Samuels businessman Denise Crichton-Samuels managing director of Cornwall Medical and Dental Supplies, Peter Pearson, former partner PriceWaterhouseCoopers. Elva Williams-Richard, Chartered Accountant, Wayne Gentles, Accountant, and Mark Hart Businessman and Wayne Wray who is the mentor and director.
The shares are really based of forecast which are vastly different than the historical results. For the year to March 2017 profit reported was $181 million but it includes a large gain on revaluation of the unsold property, amounting to $205 million. The profit was mainly based on income of sale of property. A loss of $29 million was made in the six months to September and for the full year to March 2018 a loss of $111 million is projected, swinging sharply to a profit of $166 million in 2019 and $388 million in 2020 as revenues rise from an estimated $158 million in 2018 to $803 million in 2019 to $1.2 billion in 2020.
Net book value is just $287 million, representing 324,848,485 shares, with net book value of just 88 cents per share, the stock is priced at 3 times book value which can be considered high for a company yet to start showing profit from ongoing operations. The stock is also priced at a high PE of nearly 7.5 times projected 2019 earnings which is way above most other stocks in the market, with a renowned operating track record.
Advancing prices crushed by decliners – Thursday
Trading on the Main Market of the Jamaica Stock Exchange ended on Thursday with 25 securities changing hands, 6 advanced, 11 declined and 6 traded firm, with 5,195,513 units valued at $74,800,685 compared to 13,175,593 units valued at $360,574,899 on Wednesday.
The JSE All Jamaican Composite Index declined by 2,034.00 points to close at 302,050.37 and the JSE Index declined by 1,853.20 points to close at 275,202.05.
In main market activity, 1834 Investments ended with a loss of 9 cents at $1.21, with 10,000 stock units, Barita Investments concluded trading with a loss of 10 cents at $8, with 20,561 units, 
Berger Paints finished at $16.20, with 1,084 shares, Cable & Wireless settled at $0.98, with 669,689 shares, Caribbean Cement ended trading with a loss of 1 cent at $32, with 32,950 stock units. Carreras traded with a loss of 1 cent at $10.99, with 3,008,091 units, Grace Kennedy closed at $43, with 33,063 shares, Jamaica Broilers ended with a loss of 40 cents at $17.50, with 46,915 stock units, Jamaica Producers concluded trading 22 cents higher at $16.22, with 34,050 units. Jamaica Stock Exchange finished with a loss of 20 cents at $6.80, with 51,195 shares, JMMB Group settled with a loss of 50 cents at $27, with 19,455 shares, Kingston Wharves traded at $32.50, with 107,220 units, Mayberry Investments finished trading at $5.01, with 414,751 shares. NCB Financial Group closed 4 cents higher at $90.05, with 258,394 shares, 1834 Investments ended with a loss of 9 cents at $1.21, with 10,000 stock units, PanJam Investment concluded trading 75 cents higher at $41.75, with 12,050 units, Portland JSX finished 5 cents higher at $8.95, with 1,600 shares, Pulse Investments settled 13 cents higher at $1.78, with 10,000 shares. 
Radio Jamaica ended trading 3 cents higher at $1.08, with 45,500 stock units, Sagicor Group traded with a loss of $1 at $36, with 31,555 units, Sagicor Real Estate Fund finished trading at $14.50, with 30,633 shares, Scotia Group ended with a loss of $1.48 at $51.02, with 77,645 stock units. Seprod concluded trading with a loss of 1 cent at $30, with 400 units and Supreme Ventures settled with a loss of 70 cents at $10.30, with 66,712 shares. In the main market preference segment, Jamaica Money Market Brokers 7.50%, traded 125,000 units at $1.90, JMMB Group 7.5% ended trading at $1.10, with 87,000 stock units and Proven Investments traded 46,657 shares at $5.50.
Prices of securities trading for the day are those at which the last trade took place.
For more on main market trading follow Main Market drops again on Thursday
NGL dominates trading on TTSE – Thursday
T&T NGL closed at a record high on TTSE on Thursday.
Trinidad & Tobago NGL dominated trading on the Trinidad & Tobago Stock Exchange on Thursday, with 83 percent of the value of securities changing hands. Market activity resulted in 13 active securities compared to 16 on Wednesday.
At the close, 4 stocks advanced, 2 declined, 7 were unchanged as a just 233,449 shares traded at a value of $4,648,226 compared to Wednesday’s trades of 50,488 units at a value of $553,082.
The Composite Index gained 2.72 points to 1,280.45, the All T&T Index advanced 5.82 points to 1,749.09 and the Cross Listed Index was down 0.06 points to close at 109.43.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 4 with lower offers.
Gains| The last traded prices of the securities changing hands with gains are First Citizens with a rise of 5 cents to close at $32 exchanging 2,430 shares, Massy Holdings trading 90 cents higher to $48.90 with 2,683 shares. Sagicor Financial gained 1 cent and closed at $7.95, with 12,018 shares trading and Trinidad & Tobago NGL climbed to a new 52 weeks’ high of $25, rising 75 cents with trades of 156,668 shares valued at $3,879,032.
Losses| The last traded prices of the securities declining at the close of the market are JMMB Group that dropped 3 cents to $2.06 with 3,500 shares exchanged and National Flour Mills with a loss of 5 cents, closed at $1.85 with 3,400 shares trading.
Firm Trades| The last traded prices of securities closing unchanged are Clico Investment that exchanged 142 units at $21, Grace Kennedy remaining at $3.10 with trades of 11,422 shares, Guardian Holdings held at $16.50 exchanging 22,164 shares valued at $365,706, while L.J. Williams B share closed at 70 cents with 16,480 shares after trading as high as 75 cents. National Enterprises ended at $9.70 with 145 units, One Caribbean Media closed at $14 trading 2,372 shares and Republic Financial Holdings exchanged just 25 stock units at $101.50.
Just 13 securities trade on Thursday
Securities participating in trading on the Junior Market of the Jamaica Stock Exchange dropped sharply on Thursday with 13 securities changing hands, resulting in an exchange of 1,784,331 units valued at $8,037,129 compared to 933,174 units valued at $3,918,550 on Wednesday from 24 securities.
At the close of market activities, the prices of 2 securities advanced, 6 declined and 5 remained unchanged leading the Junior Market Index to decline by 21.86 points to close at 2,722.75.
Trading ended with an average of 137,256 units for an average of $618,241 in contrast to 38,882 units for an average of $163,273 on Wednesday. The average volume and value for the month to date amounts to 107,477 units valued at $545,989 and 106,544 units valued at $521,691, previously. In contrast, October closed with average of 74,690 units valued at $362,548 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and 8 with lower offers.
At the close of the market, Access Financial closed at $34, with 725 shares trading, Caribbean Cream finished with a loss of 1 cent at $5.49, with 1,536 shares, Caribbean Producers traded at $4.20, with 687,710 units, Express Catering ended with a loss of 10 cents at $4.20, with 223,501 stock units, Honey Bun settled with a loss of 75 cents at $3.50, with 3,000 shares, Jetcon Corporation finished trading with a loss of 25 cents at $4.50, with 50,000 shares. 
Knutsford Express closed with a loss of 18 cents at $13.82, with 6,270 shares, Lasco Distributors settled 10 cents higher at $4.50, with 172,970 shares, Lasco Financial ended trading at $5.05, with 18,978 stock units. Lasco Manufacturing traded 205,296 stock units and gained 40 cents in closing at $3.90, Main Event closed at $6, with 177,822 shares changing hands, Paramount Trading concluded market activity with a loss of 30 cents to end at $3.10, with 2,000 units and Stationery and Office ended trading at $5.05, with 234,523 stock units.
Prices of securities trading for the day are those at which the last trade took place.
Jamaican cashing US$ for Wisynco stock?
At midday on Thursday, foreign currency was pouring into dealers coffers faster than they could dispose of it, with total US$15.39 million purchased by dealers at an average rate of J$125.49, while they could only sell US$7.72 million, at an average of J$126.05.
By the close of trading on Thursday, dealers average rate was down to just $125 to buy the US dollar, a clear indication that they were staving off the selling pressure.
Interestingly, last week, purchases by dealers for the first 4 days for the US dollar, was $145 million and jumped to $161 million to Thursday this week, while the dealers sold just US$167 million in US currency this week, up from $150 from the prior week. The fall in the exchange rate with more selling of US dollars by dealers, suggest that the general public are offloading US dollars into the system. The selloff comes at an interesting time with the very popular Initial Public Offering of shares in Wisynco Group.
Thursdays’ mid-day trading pattern was similar to Wednesday’s with the purchase of US$13.57 million at J$125.72 and selling of US$7.37 million at J$126.16 by mid-day.
On Thursday, the rate of exchange to buy the US dollar by the public, declined for the third time for the week to $126.08, as dealers sold US$38.51 million in US dollars, compared to US$41.03 million at an average rate of $126.20 on Wednesday.
Wata produced by Wisynco
Dealers’ purchased US$42.48 million, versus US$53.74 million on Wednesday in all currencies, in Jamaica’s Forex market and sold US$46.15 million compared with US$44.63 million sold, previously.
The selling rate for the Canadian dollar dropped to J$95.16 from J$98.39 at the close on Wednesday. The selling rate for the British Pound climbed to J$169.72 versus J$169.34 previously and the euro lost value against the Jamaican dollar, recovering to J$148.55 to buy the European common currency, versus prior selling rate of J$146.91.
Main market drops again on Thursday
The JSE All Jamaican Composite Index dropped 2,034.00 points to close at 302,050.37 and the JSE Index dived 1,853.20 points to 275,202.05 at the close on Thursday with 25 securities changing hands, 6 advanced, 11 declined and 6 traded firm on the Main Market of the Jamaica Stock Exchange.
Trading ended with 5,195,513 units valued at $74,800,685 compared to 13,175,593 units valued at $360,574,899 on Wednesday from 22 securities changing hands.
Trading ended with an average of 207,821 units for an average of $2,992,027 in contrast to 598,891 units for an average of $16,389,768 on Wednesday. The average volume and value for the month to date amounts to 349,084 units valued at $5,801,440 and previously 356,262 units valued at $5,944,195. In contrast, October closed with average of 1,185,251 units valued at $16,528,582 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and the US dollar markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks ended with bids higher than their last selling prices and 2 with lower offers.
Trading in the US dollar market saw just one security changing hands with the market index remaining unchanged at 179.28 from 150 units valued at just US$36. Proven Investments US ordinary share traded only 150 units in closing at 23.98.
The major movers at the close are Sagicor Group that fell $1 and Scotia Group losing $1.48, volume wise Carreras traded 3,008,091 units.
For detailed information on trading in the main market see Advancing prices crushed by decliners – Thursday
FosRich could surprise
FosRich initial public offer of shares opens next week Monday but is getting mixed views in the financial market, partly with similar type reception Access Financial got when it went public in 2010. Access confounded the skeptics and went on to be one of the best performers on the market.
While one does not expect FosRich to perform close to what Access did overtime, it could nevertheless surprise many on the upside in 2018, with not many shares being sold to the general public.
Some seasoned investors are letting this one pass them by. Questions are being asked about an array of issues reflected in the financials.
Why are inventories so high? growth in revenues is inconsistent with a drop in sales on the cards for 2017 and questions about the true quality of receivables. The company made a $20 million provision for doubtful receivables in 2014 of which $10 million was recovered in 2015. For some, the inventories of $580 million at September is the most concerning, with the view that there could be another big a write off as occurred in 2014 when provision was made for $109 million. There is a question as to the rationale for three outlets outside Kingston with two in Montego Bay.
Management seems fully conversant with the issues that need addressing and from all indications are at work to deal with them.
Apart from the raising of long term equity capital by way of the public share issue, that will provide badly needed working capital management is to roll out of the industrial products line later in 2017 and the directors anticipate a profitable end to the fiscal year, unlike the loss in the final quarter of 2016.
FosRich increased gross profit margin for the year to date to 45.2% from 42% in 2016, the Directors are hopeful of maintaining or increasing that level towards the end of the current year, 2017. According to Cecil Foster, Managing director, they are aiming for 50 percent with a focus on the 150 fastest moving items. Their partnership with Phillips, Siemens for electrical equipment and parts and Nexans Brasil for distribution of cables will allow them to source products directly from factories rather than through middlemen.
Addressing the issue of excess inventories, Foster stated that they are aware of the issue but admitted that software issues resulted in an increase beyond the norm. Cash flow issues has forced management to take step to reduce the amounts tied up in stock. At September this year the amount in inventories of $580 million is down from $625 million in 2016. According to Foster within 8-9 months it should be in the rage of 6 months of cost of sales, if achieved it would release more than $200 million in cash. Different strategies are being employed to push sales of the slower moving items and include special deals at reduced prices, targeting large projects and possibly longer credit terms. According to Foster, this area is one for attention a regular at their monthly board meeting.
Debt financing has been high with Interest cost at $47 million in 2016 on loans of $335 million. Rates on leases were at 13.5-15 percent. After the issue closes Stocks and Securities will be going to market to raise $200-300 million in bonds to retire the bank debt and fund expansion. Хотите провести приятно время? Заходите https://escorteurogirls.com по ссылке
Foster confirms Mathew Williams of SSL comments “that the target is to double sales within two years” and indicated that the target for 2018 is 30 percent. Cost should be under control in 2018 as the company focuses on this area as well.
There are some observations that investors ought to note. A number of companies enjoyed big sales bounced shortly after listing as name and product recognition increases. Example of these are Jetcon Corporation, Stationery and Office Supplies, the rigor that monthly board meetings will provide additional governance rigor to get more out of the existing operation. Peter Knibbs the director of Finance formerly of the Pan Jam Investment group, with years of financial experience has been playing a major role in getting the company to focus on some critical areas in order to right a drifting ship.
