Bank of Jamaica sold US$40 million via B-FXITT to authorized dealers and Cambios to augment supply in the market on Tuesday.
“The factors behind the recent depreciation in the exchange rate are well known and Bank of Jamaica expects that these impulses will subside and that normalcy will return to the market. There has been an increase in demand for foreign currency due to the regular re-stocking by retailers for the Christmas season. Further, there has been extraordinary demand relating to portfolio transactions,” the central bank stated in a release today.
“Notwithstanding the recent depreciation, inflows into the foreign exchange market remained healthy. For October 2019, average daily inflow from earners was approximately US$31 million, in line with October 2018. However, driven by the factors noted above, demand has outstripped this supply,” the release went on to say.
The local currency moved in recent weeks and traded at $141.96 to one US dollar on average on Monday as dealers bought US$30.7 million at an average rate of $138.89 and sold $31.5 million at J$141.96 each. On Friday, dealers bought US$33 million at an average price of J$139.49 and bought US$30.2 million at J$141.89.
BOJ sells US$40m into forex market
$45 for Barita Investments rights
Barita Investments headquarters
Barita Investments will offer 116,845,955 ordinary shares to its ordinary stockholders by way of a renounceable rights issue of 11 shares for each 100 own as of August 20.
The exercise price will be $45 per share with the last date for renunciation will be September 10. Shareholders will have up to September 15, to accept the amount of their offer but can apply for additional shares from amounts not taken up by allottees, up to September 20.
The current offer is the second rights issue to purchase additional shares in the company, in less than a year. The stock traded on the Jamaica Stock Exchange on Friday to close at $91.50, for a rise of 72 percent for the year to date. but it has gained 862 percent in the last twelve months, not including gains from the issue of rights in March.
August off with record breaking run for JSE
The Junior Market of the Jamaica Stock Exchange is up 52.35 points to cross over the 3,500 points level for the first time in the market’s history.
The move after an hour trading on Friday pushed the Junior Market Index to a record high of 3,514.89 points. The JSE Main Index rose 5,119.76 points to a record of 528,859.86 and the All Jamaican Composite Index added 5,633.92 points to trade at 580,884.11.
The Limners and Bards the (Lab) traded at $3.65 to record a 265 percent gain since the IPO and the listing a week ago. Pulse Investments traded at $3.90 up from $3 at the close on Wednesday. General Accident trades at $4.90, Jamaican Teas rose to a record high of $7 from $5.65 on Wednesday and Caribbean Cream fell to $4.40 on limited volume.
Record high for junior Market
The Junior Market of the Jamaica Stock Exchange has gained 58 points to reach a record high of 3,442.41, after just over two hours of trading and is now above the record closing high reached on September 20, 2018, of 3,436.31.
The Lab traded at $3 to record a 200 percent gain since the IPO and the listing on Friday. There are currently 2.6 million units on the bid at $3 as investors bought 2.4 million so far.
Main Market stocks are also up, with the two main indices of the main market posting strong gains. The JSE Main Index rose 4,010.36 to 515,449.60 and the All Jamaican Composite Index added 4,413.11 points to trade at 566,127.10.
FX losses cut Wigton 2019 profit
Wigton shares are still the most heavily traded on the JSE.
The 2019 results include a net loss of foreign exchange of $177 million. The company retired loans that were denominated in US dollars and swapped them for loans in local currency at interest rates that were higher than the prior loans but removing the risk of exchange rate adjustments.
Costs are relatively stable as well as income. Depreciation accounts for $665 million of the total administrative and operating cost of $1.17 billion. The audited financial statement had finance expenses of $1.05 billion but that figure includes foreign exchange losses of $663 million, partially offset by foreign exchange gains of $486 million.
Taxation charge for the year came out at $173 million. It will be difficult for the company to earn much more for the current fiscal year to March 2019, than the 5 cents per share recorded in 2019.
Wigton ended the year with shareholders’ equity of $2.9 billion, borrowings of $6.3 billion and cash and equivalent of $1.38 billion. Current liabilities were relatively insignificant.
The stock has been trading around 90 cents on the main market of the Jamaica Stock Exchange with a PE ratio of 17 times earnings.
Pretax profit up 18% at the Lab
Limners and Bards (the Lab) reports pretax profit of $72 million half year to April, up 18 percent versus $61 million last year on revenues of $334.5 million compared to $261 million in 2018.
After-tax profit for the six months ends at $57 million, up 9 percent against $53 million in 2018. For the quarter to April revenues brought in $145 million and delivered pretax profit of $30 million against revenues of $136 million and pretax profit of $24.5 million.
The data suggest seasonality in earnings with full-year’s income of $483 million for the year to October last year and profit before tax of $76.5 million. The 2018 half year’s revenues amounted to 54 percent of income. Of significance is a sharp fall in operating expenses from $100 million in the second quarter of 2018 to $88 million in the 2019 period even as revenues rose resulting in gross profit rising from $36 million to $57 million. For the six-month period, gross profit moved from $100 million to $125 million. Partially offsetting the gross profit improvement is a $15 million in the second quarter is a rise in administrative expenses to $26 million in the quarter but was only up by $11 million for the half-year to $51 million.
The stock was listed on the Junior Market of the Jamaica Stock Exchange today at traded a small amount at $1.30 but closed with bids to buy at $1.65.
AJ Index up over 14,000 points
New record high for the JSE main market.
Bulls pushed the Junior Market index up 33.05 points at 10:15 am to reach 3,351.14 points after it went as high as 3,361.08 points after 30 minutes of trading. The index just 86 points adrift from the all-time high of 3,436 points on September 20, last year.
NCB Financial in early market activity traded at $249 but now trades at $225 while the Jamaica Stock Exchange is down to $32.
Shares of Limners and Bards, trading as the Lab, were listed on the Junior market today and has so far traded just 100 shares at $1.30, the maximum it can trade at for the day. The highest bid is now at $2 to buy 49,808 shares and offers are at $3. Investors attempted to trade the Lab at $2, resulting in suspension in trading until just after 12 noon.
Bulls push Junior Market over 3,300
Bulls let out their fury on bears in the Junior Market pushing the market index up 87.62 points at 10:15 am to reach 3,320.05, the highest level since October last year.
Amongst the stocks contributing to the big surge were Blue Power that rose to $11.95, Cargo Handlers $10.95, Elite Diagnostic at a record high of $5.99, Fontana traded as high as $8.99, Jamaican Teas $4.56, with third quarter results, more than tripling that of 2018 to $118 million versus $44 million and General Accident at $4.50.
The JSE All Jamaican Composite Index gained 10.675.81 points to a record of 565,028.91, the JSE Index advanced 9,701.20 points to a record high of 514,451.64 and the JSE Financial Index rose 2.53 points a record of 137.90. Wisynco traded at a new record high of $28, subsequently NCB Financial traded at an all-time high of $229.99.
AJ Index at record 550K – Wednesday
New record high for the JSE main market.
Investors pushed the Jamaica Stock Exchange to a new record on Wednesday, for the main market with NCB Financial trading at a new high of $219.99 having gained $9.99.
The JSE All Jamaican Composite Index jumped 12,035.55 points to a record of 550,672.36, the JSE Index climbed 10,937 points to a new record of 501,405.60 and the Junior market Index rose 24.93 points to 3,101.46 with Fontanahitting a new high of $7 and seeming poised to rise further, with the bid above the last selling price. Proven Investments traded at a new all-time high of $41 on the main market.
Record 521,000 points for All Jamaica
New record high for the JSE main market.
The main market of the Jamaica Stock Exchange hit new record highs in mid-morning trading on Thursday with the JSE All Jamaican Composite Index surpassing the 520,000 mark for the first time.
The JSE All Jamaican Composite Index (AJI) rose 6,011.90 points to a record 521,685.45 and the JSE Index climbed 5,463.24 points to a record 475,064.08 at 10.50 am. The rise to more than 521,000 points on the AJI is a major development. The market has broken through an important resistance level of 520,000 points that has it genesis from as far back as the 2004 and 2005 peak. Continuing rallies above current levels, would confirm a big upside for stocks.
The Junior Market Index climbed 27.55 points to 3,126.49.
In trading, Barita Investments traded 66,243 shares at $45.05, JMMB Group is up to a record $49.95 with 15,329 shares changing hands, NCB Financial traded 106,754 units at $192. In the Junior Market, Fontana hit a new record of $6 trading 54,772 shares, the stock has gone on to trade at $6.50 with more than 164,00 share trading.