The Jamaica Stock Exchange all Jamaica Composite Index jumped more than 2,800 points in early trading on Friday to sit less than 800 points from the 210,000 points level while the junior market rose above Thursday’s record close to break the 2,600 mark.
Market activity resulted in 29 securities traded at 10:45 am, compared to 28 on Thursday at 10:45 am. A total of 16 securities advanced and 5 declined, resulting in a volume of 5,851,240 shares changing hands, carrying a value of $22,997,020, compared just 463,915 shares changing hands, carrying a value of $3,009,378 on Thursday. The average number of shares traded, amount to 201,767 units versus 16,568 units on Thursday.
The leading trades include Cable & Wireless has so far traded 4,063,060 units between 70 and 80 cents but last traded at 75 cents. Grace Kennedy 231,964 shares at $41.87, Jamaica Producers 453,416 at $9.20, Supreme Ventures 207,836 units at $5.30, Blue Power traded a 52 weeks’ high of $30 with 10,000 units changing hands, Iron Rock Insurance traded 563,234 units at $4, CAC 2000 gained 60 cents to $5.10 while 77,173 shares were traded following release of the company’s audited accounts showing the cost of the settlement of the lawsuit being in the region of $124 million.
The all Jamaica Composite Index surged 2,831.08 points to a record 209,210.05, the Jamaica Stock Exchange Market Index jumped 2,531.49 points to an all-time high of 191,445.56, the Jamaica Stock Exchange combined index 2,445.50 points to a record high of 204,299.10 and the junior market index rose 9.53 to 2,604.38.
Juniors break 2,600 & majors 209,000 – Friday
Investors push Derrimon stocks up sharply – Friday
The Jamaica Stock Exchange, is seeing sparse trading, ahead of the Christmas holidays Thursday’s well below levels, leading to falls in the market indices in the morning session on Friday.
Investors pushed Derrimon Trading by 80 cents to $4.80 with 87,710 following the company’s report on Thursday that it will be making prepayment for 23,379,208 stock units in Caribbean Flavours. When purchased, Derimon would become the parent company having had just under 50 percent of the shares currently. This would require an offer being made to minority shareholders.
Market activity was moderate, resulting in only 20 securities trading at 10:45 am, compared to 15 on Thursday. A total of 9 securities advanced and 5 declined, resulting in a volume of 272,207 shares changing hands, carrying a value of $4,538,567, compared 904,871 shares changing hands, carrying a value of $7,114,541 on Thursday. The average number of shares traded, amount to 13,610 units versus 60,325 units on Thursday.
The all Jamaica Composite Index slipped 728.63 points to 202,396.49, the Jamaica Stock Exchange Market Index shed 651.53 points to 185,353.01, the Jamaica Stock Exchange combined index lost 556.28 points to be at 197,746.15 and the junior market index rose 4.66 to 2,516.51.
JPS December bill confusion
Customers of the Jamaica Public Service Company should be enjoying a reduction to their bill for December due to over-billing of fuel charge in the month.
The problem is that while the company shows an amount for adjustment, there is no indication that it is being deducted from the charge for the month. There are no explanations sent with the bill to explain the changes, as such no one would be able to determine what had transpired.
One customer bill for November, had a balance due of $880 which was paid ahead of the payment date, but after the last statement. The latest bill does not show the balance shown by the November bill and the payment made to clear it, instead the new bill shows a phantom opening balance of $330.52 which happens to be equal to the amount of the adjustment less an early payment fee.
There is no explanation as to the reason why the correct opening balance has been removed along with the payment and a totally new balance placed on the statement. The latest bill shows in details charges for the current month’s bill that ends at $324.32 but shows after adjustment of $580.52 a balance of the same $324.32.
Unfortunately, the company’s service rep could not explain why the opening balance differed from that shown as the balance due on the prior bill. David Surjue, senior operations supervisor at JPS explained that the original billing for December had the incorrect charge for fuel and the opening balance represents the original billed amount for December which was reversed by the adjustment amount. He could not explain why the correct opening balance and payment were removed.
Customers deserve a full written explanation for what has happened and a proper audit trail linking the November bill with that for December.
Jamaica’s 2016 inflation lowest in decades
‘Vegetables and Starchy Foods’ had a strong impact on November price movement.
Price movements as measured by the consumer index amounts to just 1.7 percent compared to the November 2015. Inflation for the fiscal year-to-date registered an increase of 2.8 percent.
The price movement in November this year, is mainly as a result of a 0.5 percent rise in Food and Non Alcoholic Beverages and a 0.7 per cent increase in Housing, Water, Electricity, Gas and Other Fuels’ division. Higher prices for vegetables and starchy foods and a rise in the cost of electricity were items that were most impactful.
Main Event Entertainment set for junior market
It now appears that the junior market is again open for business, well sort of. Attracted by the tax free status, junior listings received, the planned phasing out of the tax free element, resulted in the last listing taking place in March this year, just days before the tax break for new listings was to have ended.
The new government elected in February, promised full restoration of the tax status. The senate recently passed legislation allowing for special tax regime for junior market listed companies to continue, opening up the market place for unleashing a new wave of listings.
Come Friday, Mayberry Investments officially launches their latest IPO with an Investor briefing for Main Event Entertainment Group, a unique company that is in the business of management. The business is that of event management, production, promotions, and digital signage. More specifically they provide event management, production, audio, video, lighting, staging, roofing, power supply, digital signage and management, concept development, creative development, infrastructural build-outs.
The principals include Solomon Sharpe CEO and formerly of Desnoes and Geddes, Richard Bair, Chief Operating Officer, formerly employed at Porter Brothers and Donna Waithe, Director HR and Administration with 23 years of experience in the aviation sector at Air Jamaica. The company was established 2004 and employs between 51 to 200 full time and part time employees.
Jamaica Stock Market jumps again
The Jamaica Stock Exchange All Jamaica Composite index jumped by more than 800 points by 10:45 o’clock to exceed the 201,600 points mark for the third day in a row in a moderate trading session. The junior market recorded good gains as well to be sitting within reach of the record close reached in November.
Cargo Handlers 5,000 at a new all-time high of $15 with a jump of $2, Lasco Manufacturing traded 92,000 at $4.57, Caribbean Cement traded 50,213 units at $36.38, Mayberry Investments climbed by 50 cents to $4.50 with 138,386 shares changing hands.
Market activity resulted in of 23 securities being traded at 10.45 am, compared to 11 on at Thursday at 10 am. AT 10:45 on Friday morning, 13 stocks advanced and 6 fell, resulting in a volume of 567,755 shares changing hands carrying a value of $6,880,192, compared 732,375 shares changing hands carrying a value of $3,927,867, on Thursday. The average number of shares traded, amount to 24,685 units versus mere 66,580 units on Thursday.
The all Jamaica Composite Index jumped 872.28 points to 201,639.22 the Jamaica Stock Exchange Market Index climbed 779.97 points to 184,363.43, the Jamaica Stock Exchange combined index garnered 961.79 points to close at 196,297.86 and the junior market index rose 23.21 points to end at 2,464.88.
JSE AJ index hits 201,000 points
Bulls pushing Jamaica Stock Exchange.
Sagicor Group hit a new high of $27 to help push the main market indices but Caribbean Cement also moved up resulting in the all Jamaica Composite Index jumped 2,178.48 points to 201,206.97 the Jamaica Stock Exchange Market Index climbed 1,947.95 points to 183,976.92, the Jamaica Stock Exchange combined index garnered 1,771.29 points to close at 195,800.77, the junior market index slipped a bit.
At 10 o’clock, the all Jamaica Composite Index moved up further by 2,663.70 points to 201,692.19, for gains of 20.5 percent for 2016 to date.
Police in covert activity on motorists
New leg of Highway 2000
The operations have been successful particularly in Kingston and St. Andrew and St. Catherine, netting traffic tickets for driving offences including improper overtaking, exceeding the speed limit, and sometimes when motorists are stopped there are accompanying charges, such as defective vehicles or failure to wear seat belts. Since the start of the year, a total of 388,811 tickets have been issued on the island’s roads.
“Covert operations target certain areas where indiscipline and bad driving are rampant. We have done a number of operations and you never know where we might be next. Motorists found in breach will be dealt with,” warned Acting SSP Courtney Coubrie, Head of the Police Traffic Division.
The covert operations are done with police officers using unmarked vehicles, with a marked vehicle in close proximity to assist in apprehending offenders where necessary. “We frequent areas where there is a high level of indiscipline and lawlessness. In the past what usually happens is that the marked vehicle is easily seen from a distance as we are normally on long stretches of roads. If the officers tried to respond to those who commit a violation, on seeing the marked vehicles, motorists tend to divert in an attempt to evade the police,” explained DSP Errol Adams, Operations Officer, Police Traffic Division.
Another challenge is that on the highways, once a marked vehicle is in position to do speed checks, if a motorist realizes, there is the usual communication with the flashing of the headlights. However, in a covert operation, because the vehicle is unmarked, the police are able to detect numerous breaches before persons are aware of their presence.
Key Insurance in at top of TOP 5
Key Insurance listing ceremony.
IC Insider’s forecast is for earnings per share of approximately 35 cents for 2016, for Key, suggesting the potential for a big rise in the stock price. It is noted that the only offer for the stock is 34,688 at $3.50 with the highest bid at $2.15 to buy 40,700 shares.
Jetcon Corporation has fallen out of the Top five due to a combination of a rise in Jetcon’s price, following strong third quarter results and the ascension of Key Insurance to the list. Access Financial that has been in the TOP 5 for a long time also reported strong increased profit, with a hike of 95 percent for the September quarter and a 60 percent rise to $353 million for the six months to September.
Barita could be the star performer from the TOP 5 main market stocks as demand has come in for the stock, while supply has declined.
While the investment bank reported 54 cents per share for the full year to September, earnings from ongoing operations is more like 65 cents per share. Most importantly, the information that says the stock is an outstanding buy candidate, is the quality of the final quarter results, with strong growth in fee income and net interest income and less reliance on investment and foreign exchange gains. The final quarter results, suggest earnings should end up around $1.50 in 2017. JMMB Group came in with big increased earnings, one off gains may have played a big role in the big increase but even without that, the stock is undervalued with earnings from ongoing operations in the $2 range.
Mayberry’s latest stock picks
Mayberry Investments released their most recent recommendations for 6 Jamaica Stock Exchange listed stocks that they say are BUYS and their closing prices for 19th November.
The stocks selected are considered undervalued by Mayberry and are shown with earnings and PE ratios and comprise:• JMMB Group: $13.91 per share – P/E ratio 7.31 • Jetcon Corporation: $4.97 per share – P/E ratio 12.18 • Jamaican Teas: $4.10 per share – P/E ratio 10.73 • Sterling Investments: $15.50 per share – P/E ratio 8.34 • General Accident Insurance: $3.06 per share – P/E ratio 6.20 • Pulse Investments: $3.90 per share – P/E ratio 4.21
Mayberry indicates, that recent stock splits provide additional buying opportunities as stocks are more liquid and list the following as the candidates to benefit from stock splits.
Paramount Trading, Jamaica Stock Exchange, Cargo Handlers, EPPLEY Limited that will split the it’s $735 priced stock into 150 units, to take effect from the opening of trading on Thursday, December 1.
The Mayberry report also states that company developments that are positive, include the granting of commercial banking licence for the JMMB Group, Initial Public Offerings (IPO’s) to come within the next 3 months that will provide opportunities for new Investments as well as expansion plans at Honey Buns and National Commercial Bank’s record profits.
JMMB is one of 6 stocks identified by Mayberry as BUYS.
Stock splits, create more liquidity in the stocks of companies that undertake them. Investors in the Jamaican market have driven most of the stocks that have split to full valuation and pushed the vast majority to be amongst the highest valued on the market.
