JSE: Carreras at $39, market down 3% in a week

Thursday, 10th October 2013 | Carreras was selling as high as $61 per share in May this year but that was before the smoking ban was announced in June and the company reported a 30 percent drop in revenues and an even bigger fall in profits for the June quarter as the cigarette price hike earlier in the year took its toll on sales.

Those who made the exit move early are now laughing while others who were banking on a special dividend pay-out are possibly ruing the day they decided to stick it out. The stock, that had some increased buying interest after the September AGM, has seen a big fall out as the company reported sales are off 25 percent since the smoking ban, leaving investors to speculate as to exactly what this means for profits in the short and longer term. Today Carreras traded just 7,212 units, fell to $39.01 at the close, down $4.49. A few brave investors placed bids at $40 to purchase 3,600 units, below there are bids for 425,000 units at and above $38.

Today, the market continued its negative run non-stop from last week Thursday as the prices of 12 stocks fell to only 4 recording gains, a slight improvement over the day before when 16 fell and 6 advanced. Jamaica Producers enjoyed a big trade of 14.6 million shares valued at $270 million as the price closed at $18.50 off by just 3 cents and was the major contributor to the amount of funds passing through the market.

The JSE main index closed at 82,934.25, a decline of 728.08, the all Jamaica Index fell to 81,616.21 off by 1,281.05 and the junior market was off by 8.14 to 740.87. The all Jamaica Index has shed 5.2 percent of its value since last week Thursday by falling 4,213 points, the main market index is off by 2,394 points or nearly 3 percent and the junior market 3.8 percent.

There was trading of 19,118,353 shares valued at $315,360,235.

Main market | On a day of falling prices, Grace Kennedy was trading at $57, up 25 cents with 68,994 with a value of $3.9 million, the stock traded in Trinidad at J$64. In an overall negative weakness in the market, many prices retreated including Jamaica Broilers that lost 55 cents while trading 27,030 units to close at $4.00; Jamaica Money Market Brokers saw 46,544 units trading as the price closed firm at $8. The stock is traded in T&T at $9.20 on Thursday. National Commercial Bank traded a mere 2,975 to close at $18.20 down 30 cents; Pan Jamaican Investment traded 500,728 units valued at $24.2 million to close at $50.34, up by $1.34; Sagicor Life traded 54,583 units to close at $8.34 down by 17 cents; Scotia Group traded 254,813 units to close at $20.50, down 50 cents with a value of $5,241,227; Scotia Investments traded just 3,019 units to close at $26.50, up by 32 cents.

Jamaica Money Market Brokers 7.50% preference shares traded 77,814 units firm at $2; Proven Investments 8% preference share traded 1,189,280 units valued at $6,053,435 to close firm at $5.09.

Junior market | The junior market has lost much ground in recent weeks and closed down again as most of the stocks trading fell. Access Financial Services traded 412,874 units to close at $8.28 for a 12 cents fall; Caribbean Producers exchanged 20,000 units to close firm at $2.08; Dolphin Cove traded 17,000 units and dropped 50 cents to close at $7.50; General Accident Insurance which closed at $1.61 lost more ground as $1.51 31,167 units traded to close at $1.51, down by 10 cents; Jamaican Teas exchanged 256,274 units to close at $3.90; Lasco Distributors lost 3 cents with 411,800 units to close at $1.45; Lasco Financial Services had another million shares day in trading of 1,028,280 units versus 1,005,106 on Wednesday units to close unchanged at $1.20 and Lasco Manufacturing traded 59,566 units to close at $1.41, down 9 cents.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed the market in a sideways movement with bids for 6 stocks being higher and 5 stocks with offers lower than their last selling price.