Point-to-point inflation in Jamaica has bent back close to the Bank of Jamaica’s target of 4-6 percent based on the February 2024 data released by the Statistical Institute of Jamaica, with a reading of 6.2 percent following monthly inflation plunging by 0.6 percent for the month and follows a fall of 0.10 percent in January.
The decline was influenced by the decreases in the index for the divisions ‘Food and Non Alcoholic Beverages’ (1.1 percent) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (1.6 percent).
Negative inflation in February
Solid gains for Jamaica’s tourist arrivals
Jamaica continues to see positive development in the country’s economic progress, with the critical tourism sector continuing to record solid growth in stopover arrivals in 2024 and continuing to drive foreign exchange earnings and employment in the sector.
The sector that is the country’s largest foreign exchange earner saw the point of entry on the country’s northern coastal town, Montego Bay enjoying a 7.8 percent increase in passenger traffic passing through the Sangster International Airport to 442,500 compared with 410,700 in February 2023 and is up a solid 8.7 percent to 934,500 from 859,600 passengers for the first two months of the year.
At the same time, Kingston Norman Manley Airport with 112,200 passengers passing through Jamaica’s second largest airport in February 2023, had a 1.5 percent increase in passenger traffic in 2024 to 113,800 and a similar increase in 2024 from 258,200 in 2023 to 262,100.
American Airlines inaugural first to Ocho Rios
Saturday marked another chapter in Jamaica’s tourism history, with American Airlines commencing its inaugural scheduled flight to Boscobel Ian Flemming International Airport, utilising an Embraer 175 aircraft.
The flight was scheduled to take off at twenty minutes after 10 o’clock, this morning but was delayed by 15 minutes due the traffic congestion in Miami but landed at 11.50 am, well ahead of the 12.20 pm scheduled landing time.
The initial plans call for twice a week flights, but with the region being a major resort in Jamaica the time saved by landing at this airport could be very appealing for tourist who would prefer to forgo the trip into Montego Bay with a near two hours drive by road to get to their destination. a flight into Ian Flemming would see less congestion at the airport making easier and faster to be processed.
Jamaica pulled US$3.44B in remittances in 2023
Remittance inflows to Jamaica, ended in 2023 at US$3.37 billion, down two percent compared to total inflows of US$3.44 billion in 2022, and representing the third consecutive year that remittances exceed $3 billion and the fourth since it has come close to $3 billion, in 2020 in hitting a then record high of US$2.9 billion, well above the previous high of US$2.4 billion in 2019.
Remittance inflows for December 2023 declined by 3.6 percent to US$314 million, compared with US$326 million in December 2022. The data was compiled from data released by Bank of Jamaica
Two Lasco companies head to JSE Main Market
Lasco Distributors and Lasco Manufacturing will be graduating to the main market of the Jamaica Stock Exchange, effective Wednesday, March 27, 2024.
The companies state in their report to investors and posted on the Jamaica Stock Exchange stated that the exchange approved to graduate to the Main Market.
The Lasco companies were some of the early listings on the Junior Market in 2010, with a listing on October 12, 2010.
In the first year of listing on the Junior Market, Lasco Manufacturing generated revenues of $2.97 billion and a profit of $401 million after tax and reported for the nine months to December last year, revenues of $9.24 billion and profit of $1.7 billion, with Shareholders’ equity climbing to $12.3 billion from $830 million at the end of March 2011.
Lasco Distributors reported revenues of $6.76 billion and a profit of $306 million after tax for the year to March 2011 and generated revenues of $21.86 billion for the nine months to December last year and profit of $1.2 billion, with Shareholders’ equity climbing to $9.25 billion from $727 million at the end of September 2010.
Jamaica’s visitor arrivals climb
Stopover visitor arrivals into Montego Bay through Sangster International Airport, rose nearly 10 percent in January this year versus last year while activity for the Norman Manley Airport just increased by 1.6 percent over 2023.
According to the data released by the operators of Jamaica’s two main international airports, Grupo Aeroportuario Del Pacifico, the Montego Bay based Sangster International Airport handled 9.6 percent more passengers in January this year than it did in 2023. The number of arriving and departing passengers climbed to 491,000 from 449,000 in January 2023, while the Kingston Norman Manley Airport had 1.6 percent more passengers using the airport in January this year, some 148,300, up from 146,000 in January 2023.
The increase is a positive development for Jamaica which relies heavily on the tourist industry for economic development and foreign exchange.
Profit doubles at the NCB Group
NCB Financial reported profits attributable to the groups’ shareholders of $3 billion, more than twice the $1.4 billion for the 2022 December quarter, with earnings per share of $1.32 versus just 60 cents in 2022. Total comprehensive income ended at $6.2 billion for the latest quarter versus $24 billion in the December 2022 quarter.
ICInsider.com projection is for earnings of $8.50 per share in 2024.
Net revenues from banking and investment activities rose to $19.5 billion from $18.8 billion in 2022 and insurance activities delivered net revenues of $14.9 billion compared to $9.5 billion in the prior year. Net operating revenues amount to $34.5 billion compared to $26.9 billion in 2022.
Staff costs ticked slightly higher to $13.6 billion from $13.1 billion in the prior year but depreciation charges more than doubled from $1.2 billion in 2022 to $2.4 billion, while other expenses rose from $8.2 billion to $9.6 billion in 2023.
Importantly, credit impairment losses fell from $1.17 billion in 2022 to $ 877 million in the December 2023 quarter.
Loans advanced to customers rose just under 5 percent to $621 billion from $592 billion in the prior year and up 1.3 percent over September at $613 billion, a development that is going to be a drag on earnings in the near term.
The stock climbed to $69.75 in early morning trading on Friday, up from $65.05 at the close on Thursday.
Shareholders’ Equity ended the period at $160 billion up from $133 billion at the end of December 2022. The company’s directors are meeting on February 16 to consider a dividend payment.
Dolla profit slows in final 2023 quarter
Dolla Financial led trading on Tuesday with 7.19 million shares before the release of full year results. The company reported results for the financial year 2023, with a profit Verizon 54 percent to $430 million from $280 million in the previous year but earnings per share dipped to 17 cents from 18 cents in 2022.
Revenues rose 64 percent from $740 million in 2022 to $1.2 billion in 2023.
The company reported profits of $103 million in the December quarter which was flat compared with the previous year after taxation, from revenues that rose 21 percent to $321 million from $265 million in the December quarter of 2022.
Net interest income grew 18 percent to $266 million in the December 2023 quarter from $225 million in the prior year and moved 57 percent from $661 million for the 12 months in 2022 to $1 billion in 2023.
Dolla ended the year with shareholders’ equity of $988 million at the end of the year from $721 million and borrowed $2.25 billion at the end of the year costing it $206 million in interest during the year compared with interest of $79 million on $1.4 billion due lenders at the end of 2022. Loans granted to customers amount to $2.84 billion up 84 percent from $1.73 billion at the end of 2022.
The company is highly leveraged currently and may well have seek additional long term equity to be able to increase borrowing in order to maintain the aggressive growth that it experienced in the past.
The stock closed at a near record of $2.98 in Tuesday’s trading at a historical PE of 17.5 and above the market average of 13.4.
Supply is low for Scotia Group’s stock
The supply of Scotia Group stock is increasingly falling, with only 14 offers for sale of 144,000 shares posted at the close on Friday. The stock price jumped 14 percent this past week to a multi-year high of $46 and is up 20 percent since the start of 2024 and 32.5 percent since the publication of full year results on December 11.
Investors exchanged 135,109 shares on Friday up from 19,113 on Thursday and 80,990 on Wednesday. The number of stocks offered for sale and posted on the JSE site is very low with 144,000 units, supply is likely to increase as trading unfolds during the coming week.
Despite the price move since last year, the stock is attractively priced at a PE of 6 based on this year’s projected earnings of $7.50 and 8.30 based on reported the 2023 earnings of $5.54 per share. The valuation compares with an average of 13.7 for the Main Market based on projected 2023 earnings. At an average market PE, the stock would get to $76 based on earnings for 2023 and more, once investors start pricing in 2024 earnings into the price.
The price broke through the top of a channel, formed in late November. This coming week may determine whether the price will move decidedly higher or stall for a while.
Scotia is not the only stock with shrinking supplies that investors should take note of. Not only is it a bullish signal but it foretells of a sharp rally ahead. Investors should also look at Transjamaican Highway, Stanley Motta, AS Bryden and Seprod.
Fosrich heading back to market
Junior Market listed FosRich is considering another Public Offer of shares to the market, a release from the company to the Jamaica Stock Exchange indicates and if approved would represent the second public offering of shares in less than a year.
The company offered 55,729,647 shares to the public in July 2023 at $2.50 each which was fully taken up.
According to the Stock Exchange release, the directors will meet on February 6 to consider a recommendation to shareholders at an extraordinary meeting, the issue of the additional ordinary shares, at a time to be determined.
The company’s nine-month results, show revenues of $2.86 billion, up 11 percent from $2.58 billion in 2022 resulting in a profit plunging to just $135 million from $388 million in the prior year with earnings per share of 3 cents compared to 8 cents in 2022 in the prior period. The company reported a loss of $27 million in the third quarter compared to a profit of $90 million in the similar 2022 quarter
Fisrich shares traded 3.2 million shares with a gain of 17 cents yesterday to close at $2.47.