Trading in the Jamaican foreign exchange market by dealers on Wednesday resulted in the value of the Jamaican dollar falling modestly in value against the US dollar.
At the close of trading on Wednesday, the selling rate ending at J$128.73 from J$128.54 previously. Dealers bought the US currency at an average of J$127.59, versus J$127.12 on Tuesday. Trading ended with inflows of US$39.57 million compared to US$35.07 million on Tuesday with Bank of Jamaica is entitled to approximately 25 percent of the inflows or around $10 of the intake. Outflows amounted to US$29.29 million compared to US$27.21 million of all currencies previously.
In USA dollar trading, inflows ended at US$36.43 million versus US$31.40 million on Tuesday with outflows of US$26.43 million compared to US$25.35 million.
The selling rate for the Canadian dollar rose to J$102.92 from J$102.23 at the close on Tuesday while the British Pound was less costly, with J$165.58 buying the British currency versus J$165.79 and the euro, increased in value against the Jamaican dollar, with it taking J$153.52 to buy the European common currency, versus J$152.54 previously.
Jamaican$ slips in value – Wednesday
BOJ auction rate climbs to $129.15
Bank of Jamaica (BOJ) offer of US$5 million offer of it foreign exchange auction attracted 33 bids amounting to $15.2 million with rates as high as $129.42. The average of all bids made was $128.94 but the auction cleared at $128.97 with 11 bids accepted, at an average at $129.15.
The out turn in the daily foreign exchange market resulted in the US dollar selling rate ending at J$128.73 from J$128.54 previously. Dealers bought the US currency at an average of J$127.59, versus J$127.12 on Tuesday.
In the previous auction held on August 16, BOJ offer of US$10 million attracted 38 bids amounting to US$28.2 million at an average rate of $128.67. The average rate of 17 accepted bids was $128.74.
At the official start of the auctioning of foreign exchange BOJ announced that it will make US$10 million dollars available to authorized dealers and eligible cambios on Wednesdays up to August 16, totalling US$40 million. It is not clear why BOJ dropped the amount to US$5 million in the latest offer.
Forex inflows drop to US$35M – Tuesday
Trading in the Jamaican foreign exchange market on Tuesday ended with inflows of US$35.07 million compared to US$42.09 million on Monday. Bank of Jamaica is entitled to approximately 25 percent of the inflows or around $8.77 of Tuesday’s intake.
Outflows amounted to US$27.21 million compared to US$30.70 million of all currencies previously.
In USA dollar trading, inflows ended at US$31.40 million versus US$38.96 million on Monday with outflows of US$25.35 million compared to US$27.86 million.
The value of the Jamaican dollar fell modestly in value against the US dollar, with the selling rate ending at J$128.54 from J$128.45 previously. Dealers bought the US currency at an average of J$127.12, versus J$127.18 on Monday.
The selling rate for the Canadian dollar inched to J$102.23 from J$102.12 at the close on Monday while the British Pound was more costly, with J$165.79 buying the British currency versus J$164.90 and the euro, slipped in value against the Jamaican dollar, with it taking J$152.54 to buy the European common currency, versus J$152.95 previously.
Trading levels drop sharply on TTSE
Trading on the Trinidad & Tobago Stock Exchange on Tuesday sank sharply resulting from 9 securities changing hands compared to 13 on Monday with just 38,695 shares traded at a value of $452,716.
Tuesday’s trading contrast with that on Monday’s of 538,622 units valued at $3,830,623. The market closed with 1 stock advancing, 2 declining and 6 holding firm as
The Composite Index declined 0.60 points to 1,228.05, the All T&T Index gained 0.04 points to 1,792.29 and the Cross Listed Index declined 0.17 points to 89.06 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 2 stocks with bids higher than last selling prices and 6 with lower offers.
Gains| Scotiabank is the only security closed trading with the price higher than the previous day with a rise of a mere 1 cent, to close at $58.03 with 932 shares.
Losses| Stocks trading with the last prices falling and volumes changing hands are Clico Investment with a loss of 10 cents, to end at a 52 weeks’ low of $20.90 with 1,671 shares and Sagicor Financial declined 20 cents to $8.30 with 2,040 shares.
Firm Trades| Stocks changing hands with the price of the last trade remaining unchanged are, Bourse Brazil Latin Fund exchanged 5,000 shares at $8.08, First Citizens traded 1,800 shares at $31.67, JMMB Group closed at $1.20 with 22,163 shares. National Enterprises ended at $10.48 with 4,000 shares, Republic Financial Holdings with trades of 1,000 shares, closed at $101.90 and Trinidad & Tobago NGL held firm at $23.45 with 5,089 shares.
JMMB pretax profit up 16%
JMMB Group posted a 16 percent increase in pretax profit, for the June 2017 quarter over 2016, but increased taxation left shareholders with a much smaller 4 percent increase to $617 million, as taxes climbed from $264 million to $381 million.
Net revenues jumped 19.4 percent to $4.1 billion from $3.44 billion in 2016, operating expenses rose even faster at 20.5 percent to $3.1 billion. Net interest income improved noticeably, moving from $1.55 to $1.9 billion as interest income grew to $1.96 billion, from $3.62 billion and cost fell modestly to $2.04 billion. Gains from securities trading rose to $1.54 billion from $1.1 billion but with revaluation of the Jamaican dollar, the group earned $238 million in the quarter, down from $443 million as the group also benefited from one off gains in 2016.
The Jamaican operations contributed 23 percent to growth in operating revenues, putting it at 75 percent of overall group revenues while Trinidad with its economic challenges, remained flat with just a one percent increase and Dominican Republic generated an increase of 18 percent.
Growth in managing pension funds, unit trust and money market funds, with assets under management moving from $89.5 billion in June 2016 to $114.75 billion helped in moving fee income up from $298 million to $364 million over the same period.
The group gained commercial banking license approval in Jamaica, in the September quarter, started to convert some branches to accommodate the new thrust and were also preparing for the roll out of their pension fund management in the Dominican Republic.
Total assets grew from $252 billion to $268 billion between March this year and June, shareholders’ equity moved from $25.9 billion to $26.8 billion including $2 billion in investment revaluation reserves at June this year, lending was almost static at $48 billion versus $47 at March. Investment in resale agreements stood at $173.8 billion versus March’s $172.5 billion. Customers’ deposits rose to $50.87 billion from $49 billion in March, while securities sold under repurchase agreements stood at $169.5 billion, up from $156.6 billion as of March, representing a fairly significant increase of $14 billion in just one quarter.
On Monday, JMMB Group closed at $21.50 on the Jamaica Stock Exchange and TT$1.20 (J$22.80) in Trinidad on Monday. IC Insider.com projects earnings of $3 for 2017 up from $2.03 as of March this year, putting the PE at 7 times the March 2018 earnings. The stock continues to be IC Insider.com BUY RATED.
Supreme Ventures profit jumps 41%
Investors responded to strong increase in profit for the six months to June, for Supreme Ventures, by pushing the stock to a record high of $9 on Monday.
Profit surged 41 percent, from $649 million to $918 million after tax, with second quarter profit jumping by a lesser 34 percent to $502 million, from $374 million in 2016. The results translate to earnings per share of 35 cents for the half year and 19 cents for the quarter. The numbers suggest full year earnings of 75 cents, with the stock trading on Monday at $9, it now parades a PE of 12, sitting at the middle of main market listings, but just below the market’s average of 13. Cash flow generated from operations, amounted to just over $1.3 billion for the six months from which $607 million in dividend was paid. $356 million was paid for acquisition of fixed assets after the receipt loan funding of $380 million.
The group reported strong increase in revenues, up 27.5 percent to $14 billion for the quarter and 23.5 percent to $27.4 billion for the six months. The 2017 second quarter figures include revenues for Caymanas Park that was acquired earlier in the year.
Direct cost rose 27 percent in the June quarter, to $12.47 billion and 24 percent year to date to $24.63 billion and operating expenses moved up 29.7 percent to $842 million for the quarter as the cost of the horseracing operations impact cost and 7.3 percent to $1.5 billion for the half year.
The new Caymanas Park horseracing operations brought in revenues of $1.76 billion for the six months period and contributed a loss of $105 million. In the first quarter racing brought in revenues of $328 million and a loss of $19 million. Interestingly, the gaming operations that was a big loss maker in past years contributed $15 million in profit, up from $777,000 in 2016 but down from a profit of $21.4 million in the first quarter, while the Sports betting loss was contained to $34 million, down sharply from $115 million in 2016, but much worse than the loss of $9.5 million in quarter one.
The financial position at June saw total assets of $6.5 billion, including cash of $2.27 billion and non- current assets of $3.17 billion. Shareholders’ equity stood $4 billion and interest bearing debt at debt, at just under $500 million.