Trading in the Jamaican foreign exchange market on Thursday, resulted in inflows of US$44.28 million in contrast to US54.48 million on Wednesday and outflows of US$46.34 million compared to US$40.55 million of all currencies previously.
Approximately, 25 percent of the intakes are surrendered by dictates to Bank of Jamaica and would amount to $11 million and would require the dealers to cover the difference by the middle of the coming week.
In USA dollar trading, inflows ended at US$37.42 million versus US$50.77 million on Wednesday, with outflows of US$40.88 million compared to US$38.99 million.
The value of the Jamaican dollar rose modestly in value against the US dollar, with the selling rate for the US dollar ending at J$128.27 from J$128.29 previously. Dealers bought the US currency at an average of J$127.23, up from J$127.30 on Wednesday.
The selling rate for the Canadian dollar increased to J$102.79 from J$102.19 at the close on Wednesday, while the British Pound was less costly at the close, with J$168.51 buying the British currency versus J$169.15 and the euro, rose in value against the Jamaican dollar, with it taking J$152.05 to buy the European common currency , versus J$151.78 previously.
More forex sold than bought in Jamaica
TTSE falls moderately as 6 stocks dip
Trading on the Trinidad & Tobago Stock Exchange ended on Thursday with 15 securities changing hands compared to 14 on Wednesday while the price of 1 stock advanced, 6 declined and 8 remained unchanged.
The market closed with firm with 776,854 shares traded at a value of $4,314,342 compared to Wednesday’s trades of 302,425 valued at $1,384,509.
The Composite Index declined 0.50 points to 1,210.10, the All T&T Index fell 0.72 points to 1,791.71 and the Cross Listed Index lost 0.04 points to 84.22 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 3 with lower offers.
Gains| Sagicor Financial gained 1 cent to close at $8.01 exchanging 20,364 shares.
Losses| Ansa McAL lost 1 cent to close at $66 trading only 5 units, Guardian Media was down 1 cent to close at a 52 weeks’ low of $18.34 with 500 units changing hands, JMMB Group closed at $1.19, losing 1 cent with 447,060 shares valued at $533,595. National Flour Mills lost 2 cents to close at a 52 weeks’ low of $2.13, with 1,000 shares switching owners, Prestige Holdings closed at a 52 weeks’ low of $10.63, 
with a loss of 1 cent trading 305 units and Trinidad & Tobago NGL traded 20 cents lower to $23.50 in exchanging 124,297 shares valued at $2,922,069.
Firm Trades| Clico Investment traded 5,655 shares at $22.25, First Citizens exchanged 3,272 shares at $31.65, Grace Kennedy closed at $2.85 trading 31,557 shares. Guardian Holdings held firm at $16.30 in exchanging 1,726 shares, Massy Holdings was unchanged at $49, with 30 units trading, National Enterprises traded 159 units at $10.48. Republic Financial Holdings closed at $101.90 trading 200 units and Scotia Investments closed at $2.20, with an exchange of 140,724 shares valued at $309,593.
Jamaican economy throwing up goodies
The Jamaican economy seems to be humming along pretty well, based on a number of critical measures that are available as well a physical evidence seen elsewhere.
There seems to be increased traffic around the corporate area at various times of the day, even when school is closed, thus reducing much of the normal peak hours traffic. Information from the Tourism sector is that visitor arrivals have climbed sharply since the winter months. There is strong evidence of increased construction activities with buildings be constructed across the length and breathe of Kingston and elsewhere in the country for commercial and residential purposes.
An examination of government’s statistical data is confirming some of these developments. Corporate taxes are up 33 percent over 2016 for the first 3 months of the fiscal year, an indication of higher sales and profit being generated. 
Education tax is running 7.7 percent ahead of projections and 13 percent above last year’s intake. Contractors levy is up over 2016 by 27.5 percent ahead of forecast, to reach $391 million and some 33 percent ahead of the intake for 2016 of $293 million, a good indicator of the health of the construction sector.
Traditional Exports are holding their own but with a slight fall in earnings for January to April 2017 of 1.5 per cent or US$3.4 million below the comparable 2016 period to US$216 million, but Non–Traditional Exports in the same period grew 36.2 percent or US$51 million above the US$140.9 million earned in the 2016 to reach US$192 million. Traditional exports should get a boost in the second half of the year with the resumption of alumina production at Alpart. Another critical indicator of increased health of the local economy is the second largest number of persons employed within a one year period of 35,500, for the twelve months to March 2017, only bettered by increased employment of 40,500 more persons between March 2015 and 2016,
The Hampshire Apartments complex being built by Guardian Life.
Of course, business confidence is at record levels, as investors pump more investments into the local stock market, driving it to new record highs on the last day of July, with increases expected in the months ahead.
Recent data in the forex market shows it generating strong net inflows with the local currency enjoying some revaluation after a slight fall earlier in the year.
Volume dips as most Junior stocks trade
Trading in the Junior Market of the Jamaica Stock Exchange closed on Wednesday with 84 percent of the ordinary listings being active and ending with declining stocks dominating rising ones almost 2 to 1 leading to a small fall in the market index.
At the close the volume of stocks and value of stocks traded, fell by a half of Monday levels.
The market ended with 2,266,721 units valued at $11,726,592 changing hands, with the index falling 6.26 points to close at 3,149.20. On Monday, trading closed with 4,581,201 units valued at $21,905,678.
A total of 26 securities traded, versus 22 on Monday, with 8 stocks rising and 13 declining. Trading closed with 4 stocks having bids higher than the last traded prices and 1 closing with a lower offer.
Trading ended trading with an average of 87,182 units for an average value of $451,023 in contrast to 208,236 units for an average value of $995,713 on Friday. In contrast, July closed with averages of 536,395 units valued at $1,905,441 for each security traded.
At the close of the market, stocks trading and their last traded price are Access Financial Services closing with a loss of 50 cents at $46, in trading 1,127 units, AMG Packaging rose 15 cents to close at $3.65 with 125,763 units changing hands, CAC 2000 fell 50 cents with 5,000 shares trading to end at $6.50, Cargo Handlers ended trading with 6,910 shares to close at $13.20. Caribbean Cream ended trading at $6.50 with a 35 cents loss, after trading 26,650 shares, Caribbean Producers added 10 cents to close trading with 141,875 units, at $3.45, Consolidated Bakeries rose 1 cent and ended with 74,146 units changing hands, at $2.63. C2W Music had 70,000 units changing hands, to close at 38 cents, after falling 1 cent, Derrimon Trading declined by 20 cents to end at $7.80 after with 27,119 shares changing hands. Recently listed Express Catering ended at $5 with 292,114 shares changing hands, after the company announced a dividend of 0.917 US cent per share, General Accident closed trading with 2,000 shares at $2.90, Honey Bun fell 6 cents with 208 shares changing hands at $5.50, ISP Finance closed $2 higher with 9,418 units changing hands at $18,
Jamaican Teas rose 2 cents, trading 23,819 shares to close at $4.52, Jetcon Corporation traded 47,084 shares to end at $5.10, after slipping 10 cents, Key Insurance traded 8,535 units to close at $3.05 after losing 80 cents, KLE Group ended at $2 with 6,000 shares changing hands, Knutsford Express lost 5 cents in trading 5,799 shares to end at $14.90, Lasco Distributors closed with a rise of 8 cents at $6.88, after trading 261,741 units, Lasco Financial lost 16 cents and ended with 26,052 shares changing hands at $4.04, Lasco Manufacturing rose 4 cents and ended with 42,634 shares trading at $4.37, Main Event eased 3 cents to close with 10,971 shares trading at $5.47, Medical Disposables dropped 45 cents in closing at $5.50 with 1,023,000 units trading, Paramount Trading ended with 15,500 units changing hands at $2.50, Sweet River rose 2 cents, ending with 7,494 units changing hands at $3.52 and tTech lost 50 cents in trading 5,762 units to close at $8.50.
New record for the JSE on Wednesday
Carreras jumped $17.50 to $110 on Wednesdaay after the company indicated they are considering a stock split.
Trading on the main market of the Jamaica Stock Exchange saw increased number of securities changing hands including 6 preference stocks. The All Jamaica Composite Index surged 1,892.68 points to close at a new record of 268,601.52, the JSE Market Index jumped 1,724.45 points to a 4th consecutive record close, of 244,726.40.
The JSE US dollar market index rose 17.40 points to close at 201.17.
At the close of trading, 32 securities changed hands in the main market with 1 trading in the US dollar market, leading to 10 stocks advancing and 16 falling including 5 that ended at 52 weeks closing highs. At the close 7,902,954 units valued at 80,354,594 changed hands in the main market compared to 24,165,397 units valued at $225,427,641 at the close on Monday. Trading in the US dollar market accounted for 18,500 units valued at US$4,810 bringing the total of all trades to J$80,890,786.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 246,967 units valued at $2,511,081 for each security traded compared to an average of 1,006,892 units valued at $9,392,818. The average volume and value for July ended at 160,668 units with an average value of $2,691,438.
In market activity, Barita Investments closed at $6.65 with trades of 1,100 shares, Berger Paints lost 20 cents, closing at $18.50 exchanging 106,569 shares, Cable and Wireless closed at 96 cents, losing 9 cents trading 16,965 shares, Caribbean Cement closed at $30, with a loss of $1.20 exchanging 18,114 shares, Carreras closed at $110, advancing $17.50, with trades of 96,316 shares, Grace Kennedy closed at $40.50, with a loss of $1.25 exchanging 55,923 shares. Jamaica Broilers was down 1 cent to close at $19 trading 652,777 shares, Jamaica Producers traded 92 cents lower to close at $15 with 2,153,273 shares exchanged. Jamaica Stock Exchange closed with gains of 6 cents to $6.45 trading 25,297 shares, JMMB Group closed 70 cents lower to $20.25, with trades of 18,890 shares and Kingston Properties exchanged 400 units at $8. Mayberry Investments gained 1 cent to close at $4.61 trading 5,627 shares, NCB Financial Group added 1 cent to close at $81.01, after exchanging 49,807 shares, 1834 Investments closed at $1.50, with an exchange of 13,795 shares, 138 Student Living lost 1 cent to close at $5, with trades of 46,000 shares, PanJam Investment gained 45 cents, closing at $34.45 trading 100 units, Portland JSX traded 50 cents lower to $9 exchanging 22,000 shares, Pulse Investments lost 51 cents to close at $1.94, with trades of 64,423 shares and Radio Jamaica closed at $1.41 with 31,277 shares exchanged. Sagicor Group fell $3.49 to $30.01 trading 18,656 shares, Sagicor Real Estate fund lost 10 cents, closing at $11.92 trading 28,372 shares, Salada Foods closed at $8.61, with a loss of 72 cents and 60,000 shares changing owners, 
Scotia Group closed at $44.95, losing 3 cents with trades of 87,322 shares, Scotia Investments exchanged 3,000 shares at $35.50, Seprod closed at $30.05, with a gain of 4 cents and 95,000 shares changing hands and Supreme Ventures lost 10 cents to close at $7.70 with 25,235 shares exchanged. Proven Investments US ordinary shares closed at 26 US cents, gaining 0.04 US cents trading 18,500 units.
A large number of preference shares traded with 4 trading at 52 weeks’ highs.JMMB Group 7.50% preference share closed at $1.15, with a loss of 2 cents exchanging 3,950,000 units, JMMB 7.5% preference share closed at $1.90 trading 105,000 units, JPS 7% preference share gained 3 cents to close at a 52 weeks’ high of 48 cents with 41,300 units switching owners, JPS 5% C preference share closed with gains of 2 cents to a 52 weeks’ high of 38 cents trading 1,835 units, JPS 5% D preference share gained 2 cents, closing at a 52 weeks’ high of 38 cents with 71,921 units exchanged, JPS 6% preference share closed at 52 weeks’ high of 44 cents, gaining 3 cents trading 36,660 units.
US$54.5m flowed into Jamaica’s forex market
Trading in the Jamaican foreign exchange market resumed on Wednesday after the holiday on Tuesday and resulted in inflows of US54.48 million in contrast to US$51 million on Monday.
Dealers sold US$40.55 million compared to US$39.7 million of all currencies on Monday. Approximately, 25 percent of the intakes are surrendered by dictates to Bank of Jamaica and would amount to $13.6 million which equates to the difference between the amount bought and sold via the public on Wednesday.
In USA dollar trading, inflows ended at US$50.77 million versus US$45 million on Monday, with outflows of US$38.99 million compared to US$35.7 million.
The value of the Jamaican dollar slipped modestly in value against the US dollar, with the selling rate for the US dollar ending at J$128.29 from J$128.22 previously. Dealers bought the US currency at an average of J$127.30, up from J$126.99 on Monday.
The selling rate for the Canadian dollar declined to J$102.19 from J$103.09 at the close on Monday, while the British Pound was more costly at the close, with J$169.15 buying the British currency versus J$167.54 and the euro, rose in value against the Jamaican dollar, with it taking J$151.78 to buy the European common currency , versus J$151.38 previously.
TTSE fairly stable trading
Guardian Holding one of two stocks rising on Wednesday.
Trading on the Trinidad & Tobago Stock Exchange resumed on Wednesday after closing on Tuesday for a public holiday, resulted in 14 securities changing hands compared to 13 on Monday.
Market activity closed with 2 stocks advancing, 2 declining and 10 remaining unchanged as 302,425 shares traded valued at $1,384,509 compared to Monday’s trades of 439,332 valued at $8,004,289.
The Composite Index gained 0.20 points to 1,210.60, the All T&T Index rose 0.40 points to 1,792.43 and the Cross Listed Index remained at 84.26 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 5 stocks with bids higher than last selling prices and 7 with lower offers.
Gains| Ansa McAL gained 1 cent to close at $66.01, with 115 units traded and Guardian Holdings closed at $16.30, after gaining 9 cents with 5,000 trading shares.
Losses| Clico Investment closed at a 52 weeks’ low of $22.25, with a loss of 14 cents in exchanging 2,000 shares and West Indian Tobacco lost 1 cent to close at a 52 weeks’ low of $125.50 trading 163 units.
Firm Trades| Angostura Holdings traded 21,000 shares at $15.01 valued at $315,210, First Citizens held firm at $31.65 with an exchange of 3,136 shares, Grace Kennedy closed at $2.85 trading 66,535 shares. JMMB Group exchanged 25,000 shares at $1.20, Massy Holdings was unchanged at $49, with just 150 units traded, One Caribbean Media traded 255 units at $14.95 and Sagicor Financial closed at $8.01 trading 5,596 shares. Scotiabank exchanged 2,225 shares at $58.02, Scotia Investments closed at $2.20, with an exchange of 153,445 shares valued at $337,579 and Trinidad Cement traded 17,805 shares at $4.14.
Bonus on cards for Carreras
Carreras as high as $108 after stock split announcement.
Shareholders in cigarette marketers, Carreras could be enjoying the benefits that could flow from a stock split.
The company today advised that the Board of Directors will meet on August 8, to consider whether to recommend to the Company’s stockholders for consideration at the upcoming General Meeting scheduled for September 6, a split of the Company’s issued shares.
In Wednesday’s trading investors pushed the price to $108 in early trading. In recent weeks the stock has become very scares with low interest rates in the system and high dividend paid by the company.
Others to likely split as liquidity continues to dry up are Palace Amusement, Blue Power, Access Financial and NCB Financial Group that now has little selling of its shares with the price over $80 and 33 percent growth in earnings that should push full year earnings to more than $8 per share. Management of the company at a recent press briefing stated that no consideration has been given for this and suggested that the company won’t benefit from it. That in fact is not a correct statement as both the company and shareholders will benefit if it were to take place.
Express Catering may have topped out
The bids and offers for recently listed Express Catering may have topped out,
based on the quotes this morning.
In early trading on Wednesday, bids amounted to over 1.53 million units up to $4.71 with offers of 1.285 million from $7 down to $4.98. Bids above $4.50 amounts to less than 40,000 units, suggesting that strong buying may have waned. It is early in the day and the feeling out process could be on to entice sellers to drop their offers and vice versa.
A total of 50,668 units traded so far down to $4.71, with a high of $4.98 for the day. Since the stock listed on the Exchange late in July, the price shot up sharply from the initial public price of $1.50 and induced more than 54 percent of the IPO issue to trade.
Record $170M profit for Knutsford
One of Knutsford Express buses.
Profit after tax grew 40 percent at Knutsford Express for the year to May 2017 to $170.3 million but pretax profit was up a lower 28 percent to end at $164.4 million from revenues that rose 28.7 percent to $752.4 million.
Operating and administrative cost was up 29.6 percent to $580.6 million over the year ago period.
During the year, $107.6 million was expended on new fixed assets which pushed depreciation up sharply from $37 million in 2016, to $56 million in 2017. The financial statements reflect $49 million deposited to purchase vehicles, Managing Director, Oliver Townsend confirmed that they are adding “ a couple of buses to expand the fleet, some have already arrived with additional ones to come”.
Big expense items that grew sharply during the year are, Salaries up from $168 million to $194 million up 15.7 percent, toll charges rose from $11.4 million to $29 million, Fuel climbed from $64.7 million to $91 million and would be from a combination of higher prices and more bus trips. Parts cost $43 million fro0m $26 in 2016 while Insurance rose from $18.5 million to $27.2 million. Unfortunately, the company continues to present the financial information without breaking separation direct from indirect cost so that investors can determine more accurately the potential profitability.
Knutsford’s balance sheet presents a picture of strength with current assets of $231 million including cash funds of $156 million, up from $88 million in 2016. Shareholders’ equity stands at $483 million. Liabilities stand at $105 million including deferred tax of $12 million.
We will definitely open the transport centre at the Sangster International Airport later this month Townsend informed IC Insider.com. The centre is expected to capture a bigger slice of passengers disembarking from aircrafts as it become more convenient for them.
Subsequent to the year-end an interim dividend of 6.8 cents per share was declared as the final dividend for the year ended May 2017. The payment will be will be on September 15. The payment amounts to $34 million and is up 41.7 percent over the $24 million paid in 2016. The stock last traded on the Junior Market of the Jamaican Stock Exchange at $14.95. IC Insider.com is forecasting earning per share for 2018 at 53 cents, putting the PE for the stock at rich 30 times earnings, at this level the stock is likely to underperform the Junior Market movement for the next twelve months.
