Trading in the foreign market on Friday resulted in a slight rise in the value of the Jamaican dollar against the US dollar as US$42.5 million of the US dollar was sold by dealers at an average rate of $127.11 to the US dollar.
On Thursday, US$40.1 million was purchased at an average rate of $127.20. US currency purchases amounted to US$44.48 million on Friday, at an average rate of $126.29 compared to Thursday, with US$39.2 million at $126.31.
Dealers purchased US$57.4 million, versus US$46.3 million on Thursday in all currencies in Jamaica’s forex market and sold US$73.4 million compared with US$46.1 million of all currencies sold previously.
At Midday, dealers bought US$14.4 million at J$126.66 and sold US$17.1 million at J$127.12.
The selling rate for the Canadian dollar climbed to J$99.92 from J$98.14 at the close on Thursday. The selling rate for the British Pound dropped to J$165.27 versus J$167.14 on Thursday and the euro lost value against the Jamaican dollar, to J$147 to buy the European common currency, versus J$149.42 previously.
Jamaican$ gained modestly vs US – Friday
Prices mostly slipped on TTSE – Friday
Trading on the Trinidad & Tobago Stock Exchange closed on Friday with 14 securities changing hands compared to 15 on Thursday and ended with 1 advancing, 4 declining and 9 holding firm.
Market activity resulted in 909,312 shares traded at a value of $3,281,614 compared to Thursday’s trades of 329,493 valued at $2,207,158.
The Composite Index was down 0.75 points to 1,283.07, the All T&T Index declined 1.82 points to 1,754.27 and the Cross Listed Index gained 0.05 points to close at 109.42.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stocks with bids higher than last selling prices and 6 with lower offers.
Gains| First Citizens was the sole stock rising and ended with a gain of 10 cents, closing at $31.90 with 1,139 units.
Losses| JMMB Group pulled back from its recent record run to end with a loss of 4 cents, and closed at $2.11 with 592,986 shares valued at $1,270,760 traing. Massy Holdings settled at $49.98, losing 2 cents with 197 units, National Flour Mills closed at a 52 weeks’ low of $1.95, down 3 cents exchanging 26,307 shares and Republic Financial Holdings traded 76 cents lower to a 52 weeks’ low of $101, with a mere 10 units.
Firm Trades| The stocks traded unchanged at the close of trading are Clico Investment that closed at $21 with trades of 18,800 shares valued at $394,801, First Caribbean International Bank exchanged 5,100 shares at $9, Grace Kennedy remained at $2.95 with 194,500 shares valued at $573,775. NCB Financial Group closed at $6.20 trading 35,052 shares, Readymix closed at $11 with 280 units.Sagicor Financial traded 14,776 shares at $7.95, Scotiabank exchanged 2,559 shares at $58.10, Trinidad Cement closed at $4 with 200 units and Trinidad & Tobago NGL ended at $23.50 with17,406 shares valued at $410,465.
Lasco Distributors drop to $7
Lasco Distributors shares dropped to $7 with 257,123 units trading after the courts handed partial judgement in its case for damages against Pfizer resulting from an injunction from selling the drug Salts of Las Amlodipine in 2005.
Lasco’s claimed US$300 million but the court is saying that the amount is too high based on the evidence presented.
In an interview with Lascelles Chin in 2014, he confirmed that the amount was sales estimated to be lost. In such cases the amount to be claimed would be loss of profits. From all indications, the loss is unlikely to be more than 50 percent of this amount. Based on the exchange rate of J$59.06 used to compute the inventory losses from disposal of the drug for Medimpex, the loss is likely to be priced using this rate with interest to be computed at the local interest rates.
Jamaican$ inched higher vs US – Thursday
Trading in the foreign market on Thursday resulted in a slight slippage of the value of the Jamaican dollar against the US dollar as US$40.1 million of the US dollar was sold by dealers at an average rate of $127.20 to the US dollar.
On Wednesday US$42.5 million was sold by dealers at an average rate of $127.18. US currency purchases amounted to US$39.2 million on Thursday, at an average rate of $126.31 compared to Wednesday, with US$41 million at $126.29.
Dealers purchased US$46.3 million, versus US$45.3 million on Wednesday in all currencies in Jamaica’s forex market and sold US$46.1 million compared with US$44.8 million of all currencies sold previously.
The selling rate for the Canadian dollar slipped to J$99.14 from J$98.16 at the close on Wednesday. The selling rate for the British Pound dropped to J$167.53 versus J$168.48 on Wednesday and the euro gained value against the Jamaican dollar, to J$149.42 to buy the European common currency, versus J$148.92 previously.
JMMB Group heads to new high
JMMB Group closed at a new record high of $2.15 in Thursday’s trading on the Trinidad & Tobago Stock Exchange. Market activity ended with 17 securities changing hands compared to 12 on Wednesday with 2 stocks posting gains, 3 declining and 12 unchanged.
At the close, 328,493 shares traded at a value of $2,207,158 compared to Wednesday’s trades of 382,785 valued at $4,215,303.
The Composite Index dropped 2.51 points to 1,283.82, the All T&T Index declined by 5.64 points to 1,756.09 and the Cross Listed Index advanced 0.09 points to 109.37.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| In trading on Thursday Angostura Holdings ended with a 5 cents gain, to close at $15.05 with 1,350 units and JMMB Group surpassed the previous day’s 52 weeks’ high to close at a new high of $2.15,after rising 5 cents with 67,087 shares trading.
Losses| Securities closing with losses are Clico Investment that traded 46 cents lower to $21 while exchanging 16,680 shares valued at $350,280, Guardian Holdings dropping 50 cents, and closed at $15 with 1,713 units and West Indian Tobacco dropped $2 to end at a 52 weeks’ low of $121, trading only 8 units.
Firm Trades| At the close of trading First Citizens closed at $31.80 with 1,061 units, Grace Kennedy held firm at $2.95 with 2,200 shares changing hands, Massy Holdings exchanged 3,331 shares at $50, National Flour Millsclosed at $1.98 with 2,500 shares. NCB Financial Group remained at $6.20 trading 125,205 shares valued at $776,301, One Caribbean Media closed at $14 with 195 units, Republic Financial Holdings settled at $101.76 with 1,873 shares trading. Sagicor Financial closed at $7.95 with trades of 4,290 shares, Trinidad Cement exchanged 100,000 shares at $4 valued at $400,000 and Bourse Brazil Latin Fund US Dollar shares closed at $8.08 with 1,000 units changing hands.
Wisynco Group IPO is imminent
Wisynco Group today announced its intention to offer shares in the company by way of an initial public offering (IPO), confirming IC Insider.com report yesterday.
Information gleaned is that the draft prospectus is being vetted by the Jamaica Stock Exchange, the Financial Securities Commission and the Company Office of Jamaica with the IPO expected to come to market before the end of this year and could happen in November.
Founded in 1965 by the Mahfood family, West Indies Synthetic Company (WISYNCO) began manufacturing ‘Iron Man’ water boots from a 6,000 square foot factory in Twickenham Park, St. Catherine. The company now ”owns and manufactures a portfolio of category-leading beverage brands such as WATA and its extension of cranberry flavoured-WATA, BOOM Energy Drink and BIGGA Soft Drink. In addition to its owned brands, Wisynco is the exclusive local bottler for the Coca-Cola Company, as well as third-party beverage brands such as SqueezZ and Hawaiian Punch also distributing for global giants such as Red Bull, Tru Juice, Freshhh, Kellogg’s, General Mills, Nestlé and others.
A rapidly-growing company, Wisynco has increased sales significantly in recent years moving from JMD 12.6 billion in 2013 to $21.2 billion in 2017. Over the last five years the company’s year-to-year sales growth has ranged between 9 – 21% with a compound annual growth Rate (CAGR) of 11.06% over the same period. The business has a strong gross profit margins, averaging approximately 36% since 2012.
Wisynco’s revenues are just under the $22.8 billion generated by Lasco Manufacturing and Distributor combined. With the above profit margin, gross profit would be $7.5 billion. The two Lasco companies have administrative, selling and distribution cost of $4 billion to March this year. IC Insider.com puts the cost for Wisynco at $4.5 billion per annum which would result in a pretax profit in the order of $3 million and after tax around $2.5 billion. If the company came to market around the mid-range of PE of 12, this would value it at $30 billion. An issue of 20 percent in the IPO, would target inflows be around $6 billion, but IC Insider.com gathers that a vastly smaller sum is being targeted to be raised by the company but some existing shareholders may seek to divest some of their shares.
According to William Mahfood, Chairman of the Wisynco Group, “the IPO will allow us to share the growth and
success of our business with a wide cross section of our customers and employees, especially following on the outpouring of wishes and support after the fire last year”
With over 350,000 square feet of warehouse, 110,000 square feet of factory space the company has over 700 sales-related full time employees.
We are a proud Jamaican company with a deeply rooted commitment to the country’s development.” Mahfood said. “Our stated mission is to improve the lives of our people which extends to all stakeholders –team members, customers, partners and now with the planned IPO to fellow Jamaicans alike,” Mahfood said.
NCB Capital Markets has been engaged as arranger and broker for the transaction with PricewaterhouseCoopers acting as financial advisors to the company.