JSE jumps in early trading

June 6, 2014 by

BNS -Consprng

The market traded heavily in Scotia Group shares from the start of trading today as 952,700 was bought up to $22 each at 9.33 AM as Scotia Investments traded all but 81,019 units, the first trade of the day going through at $20. At 9.38 AM, Scotia Investments sold 100,000 units to Mayberry at $21.74 bringing the total traded in Scotia to 1,052,700 shares.

The price gain helped push the JSE All Jamaican Composite Index 2,475.52 points to 79,451.52 while the JSE Index is up 2,213.90 to 72,209.50.

Consolidated Bakeries traded 100,000 units at 86 cents and Berger Paints 3,759 units at $1.0 are the only other stocks to trade so far.

Filed Under: Company News

Operating profits up 81% at JMMB

June 6, 2014 by

JMMB_Building600x250

Jamaica Money Market Brokers (JMMB) had their best year ever in the period leading up to the end of March this year, chalking up at 80.7 percent increase in ongoing earnings. The market is not impressed as the stock has been trading down on both Trinidad and Jamaica stock exchanges recently and after the posting of the results.  With profit after tax coming in at $2.8 billion including a $362 million for gains form the purchase of the shares in its fully owned subsidiary which it acquired fully in 2013, the group earned $1.74 per share for the year, placing the PE at 4 times last year’s earnings and around 2.7 times IC Insider projected 2015 earnings. In 2013 JMMB reported $3.74 billion but that was helped considerably by a $2 billion gain from the acquisition of the shares of Capital and Credit Group, without that gain earnings would be just $1.7 billion in that year.

Financial & Related Services contributed profit before tax of $2.62 billion and Banking & Related Services $443 million, these are up from $1.66 billion and just $33 million respectively reported for 2013.

Revenues grow| In a year when they took over the balance of the shares not previously owned by them in Intercommercial Bank in Trinidad, revenues climbed to $15.75 billion from $12.9 billion in 2013 or a 22 percent increase but staff and administrative cost rose from $4.6 billion to $5.67 billion in 2014 for a 12.3 percent increase, well below the growth in revenues but interest cost climbed only 6 percent.

According to the audited financial statements “In the six month period ended 31 March 2014, Intercommercial Bank contributed revenue of J$794,210,000 and net profit of J$156,445,000 to the Group’s results. If the acquisition had occurred on 1April 2013, management estimates that revenue would have been J$1,436,439,000, and net profit for the year would have been J$106,459,000”.

Assets|Total assets climbed to more than $200 billion for the first time ending at $207 billion versus $167 billion at the end of March 2013. A fair bit of the growth came as a result of the acquisition of the shares in the Trinidad bank which contributed $24 billion but with equity capital of just over $18 billion there is some amount of exposure as leveraging is at a high level with customer deposits at $36 billion and repos payable of $143 billion.

JMMB has operations mainly in Jamaica, Dominican Republic and Trinidad and Tobago. This stock stills carries IC Insider Buy Rating.

Filed Under: Company News, Company Results, General Business News, JSE Main Market, Stock Market

Jamaica’s inflation falls

June 5, 2014 by

bOJ building #4

A fall in the price of electricity lead to a 0.3 percent drop in the inflation rate for April this year, according to data released by the Statistical Institute of Jamaica, on the Consumer Price Index. Statin says “this was the lowest inflation rate recorded since July 2012, when the rate fell by 0.3 percent”.

This decrease was as a result of a decline in electricity rate, represented by a fall of 7.5 percent in the index for the group ‘Electricity, Gas and Other Fuels’ but was moderated by the 4.0 percent increase in the index for the group ‘Water Supply and Miscellaneous Services Related to the Dwelling’ as a result of a the rise in water and sewage rates for the period. The division, ‘Food and Non-Alcoholic Beverages’ recorded an increase of 0.3 percent.

The calendar year-to-date inflation rate for April 2014 was 1.4 percent, the point-to-point 7.6 percent.  The other divisions that recorded increases in the All Jamaica ‘All Divisions’ index were: ‘Alcoholic Beverages and Tobacco’ 0.2 percent, ‘Clothing and Footwear’ 0.1 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance’ 0.3 percent, ‘Health’ 0.5 percent, ‘Transport’ 0.4 percent, ‘Recreation and Culture’ 0.3 percent, ‘Restaurants and Accommodation Services’ 0.4 percent, and ‘Miscellaneous Goods and Services’ 0.2 percent.

Filed Under: Breaking News, Economy, Feature Stories, General Business News

GOJ revenues up in April

June 5, 2014 by

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net


 The GOJ enjoyed slightly higher revenues in the first month of the fiscal year with total inflows of $24.7 billion versus $24.4 billion budgeted.
The increase came from non-tax revenues. Expenditure was slightly less than planned and came in at $33.9 billion only $31 million less than budget, resulting in an reduced fiscal deficit than originally projected coming in at $9.16 billion compared to $9.53 billion budgeted.
The government however, borrowed $1.4 billion less that they projected to borrow in the month.

Filed Under: Breaking News, Economy, Feature Stories, General Business News

Imports down to February

June 5, 2014 by

KingstonWharves150x150

Imports are down for the first two months of 2014 and was valued at US$884 million compared to US$1,117.4 million, a decrease of 20.9 per cent or US$233.3 million when compared to the same period in 2013” the Statistical Institute of Jamaica reported recently.

The figures are in line with imports in the first month of the year as imports fell sharply by 20.8 percent or US$115.7 million to US$442 million compared to US$558 million in January last year due mainly to reduced imports of fuel and chemicals but exports for January were also down sharply, declining by 25.3 percent or US$39 million to US$115 million, resulting in shrinking of the trade deficit by US$77 million or 19 percent to US$327.3 million when compared to US$404.2 million in the corresponding 2013 period.

Filed Under: Economy, General Business News

Market gives back gains

June 3, 2014 by

TTSE 3-6-14In today’s trading on the Jamaica Stock Exchange saw the prices of 5 stocks rise and 9 decline as 30 securities traded resulting in 2,017,726 units changing hands valued at $25,146,924 as the main market gave back all of the gains it enjoyed on Monday.

Main Market| 4 companies in the main market advanced and 8 declined as the indices fell with the JSE Market Index slipping 337.72 points to 70,232.74 and the JSE All Jamaican Composite index eased 377.62 points to close at 77,241.17.

Gains| Stocks recording gains at the end of trading in the main market are Hardware & Lumber with 20,000 shares as the price rose 50 cents to close at $10.50, Kingston Wharves 2,000 units with a gain of 16 cents to close at $5.20, Mayberry Investments with 52,000 shares as the price gained 4 cents to close at $1.80 and Scotia Group with 80,402 shares to rise by 13 cents to close at $19.20.

Firm| The stocks in the main market to close without a change in price are Caribbean Cement that traded 1,000 units and closed at $2.70, Ciboney 571,386 units and closed at 10 cents, Cable & Wireless 21,678 units to close at 28 cents, National Commercial Bank 261,698 units to close at $17.50, Scotia Investments 6,439 units as the price closed at $23, Seprod 22,459 shares at $10.50 and Supreme Ventures 5,000 shares at $2.

Declines| The number of stocks that declined in the main market are Carreras with 45,367 shares while losing $1.15 to close at $34.10, Desnoes & Geddes with 7,200 units, losing 5 cents to end at $4.25,

Gleaner 100,100 shares as the price lost 2 cents to close at $1.10, Grace Kennedy 268,646 units with a fall of 50 cents to $53.50, Jamaica Broilers 94,000 shares, the price was down by a cent to close at $4.70, Pan Jamaican Investment 15,385 shares, closing 2 cents lower to end at $48.40, Sagicor Group 24,833 shares as the price dipped 55 cents to close at $8.75 and Sagicor Real Estate Fund 22,591 units while losing 10 cents to end at $6.60.

Preference shares| 5 preference shares traded with prices unchanged at the close of the market with Jamaica Money Market Brokers 7.50% preference share trading 75,000 units to close at $2, followed by Jamaica Money Market Brokers 8.75% preference share with 42,700 units to end at $3.03, Jamaica Public Service 6% preference share with just 500 units at 40 cents, Jamaica Public Service 7% preference share 700 units at 39 cents and Proven Investments 8% preference share with 2,000 units and closed at $5.09.

Junior Market| The JSE Junior Market Index gained 1.15 points to close at 734.46 as only 6 stocks traded with 1 advancing and 1 declining.

Gains| Only one stock recorded gains at the end of trading in the junior market as Consolidated Bakeries with 191,823 units trading gained 10 cents to close at 90 cents

Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before are Access Financial trading 403 units to close at $13.50, Dolphin Cove 3,400 shares to close at $8.50, Jamaican Teas 50,000 units to end at $3.21 and Lasco Manufacturing with 26,016 shares to close at $1.10.

Declines| One stock declined in the junior market at the end of trading as Lasco Distributors traded 3,000 units to close with a loss of 3 cent at $1.32.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 8 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.

Filed Under: Company News

Scotia to pay dividend in June

June 3, 2014 by

BNS -ConsprngScotia Group Jamaica will be paying an interim dividend of 40 cents per stock unit and Scotia Investments will make an interim payment of 45 cents per shares to stockholders on record as at the close of business on June 20, 2014 on July 11. The X dividend date is June 18, 2014. The amounts being paid are consistent with payments made over the last twelve months.

Honey Bun will be paying an interim dividend of 5 cents per share on June 26, 2014 to shareholders on record as at June 16, 2014, the X Dividend date is June 12. Honey Bun last paid an interim dividend of nine cents per share on March 27, last year.

Filed Under: Company News, Dividends, General Business News

Proven closes FGFS deal at $2B

June 3, 2014 by

proven_logo150x150Proven paid US$18.6 million or J$2.05 billion for FGFS a note in the company’s latest audited report stated. In April Grace Kennedy stated in a release to the stock exchange that the transaction is valued at $3.05 billion but excludes the seat on the Jamaican Stock exchange which the Grace group will keep.
Grace Kennedy advised the stock exchange of the finalization of divestment of the shares held by subsidiary, First Global Holdings Limited in First Global Financial Services Limited (FGFS) to Proven Investments Limited effective May 30, 2014. Proven has changed of name of the company to PWL Transition Ltd. Proven have also indicated to the public that the name has been changed to and closed the former FGFS offices at Duke Street in Kingston, Ward Street in Mandeville and Bogue in Montego Bay relocating the operations to existing Proven offices in those locations.
Proven made profit of US$3.78 million for the year to March 2014 compared with US$4.2 million in 2013 from lower revenues of US$13.2 versus US$14.4 million.

Filed Under: Breaking News, Company News, JSE Main Market

H&L profit up 310%

May 30, 2014 by

HardwareLumber_Bldg150x150Profit after tax at Hardware & Lumber (H&L) was $40 million for the three months ending March this year, a 310 percent increase over the $10 million for the same period in 2013 resulting in earnings per share of 50 cents, compared to 12 cents for the comparative period in 2013. Return on equity based on the first quarter results is 13.6 percent, based on IC Insider’s projection of $434 million or $5.40 per share for profit after tax for 2014, the return on equity should hit a strong 31 percent.
Revenue| Sales for the 2014 quarter was $1.81 billion, 17 percent more than the $1.55 billion achieved in 2013. According to management in their report to Jamaica Stock Exchange” revenue in the ‘Household, Hardware and Building Products’ segment increased by 16.7 percent while the ‘Agricultural Products and Equipment’ segment recorded growth of 17.7 percent. All of our merchandise categories did well, led by the building supplies division which delivered significant revenue growth, albeit at lower margins. The overall improved performance was realized in both the wholesale and retail divisions of the business through the expansion of product assortment, improvements in availability and by working closer with our customers to better understand and supply their needs”.
Gross profit| H&L achieved $411.5 million in gross profit or a meagre one percent gain over the corresponding period in the prior year. “The average margins declined by 3.6 percent, due primarily to the sales mix and higher product costs. Total operating expenses were $376 million or 4.6 percent lower than the comparative period in the prior year. The company realized savings in pension and other retirement benefits costs from the changes to the benefits programmes implemented at the end of 2013. In addition, several categories of expenses including staff costs, utilities and repairs and maintenance expenses were reduced through ongoing process improvement and cost containment”
“Net current assets increased by 12.4 percent to $1.05 billion, caused mainly by increased inventory and accounts receivable balances. The value of inventory increased to $1,448.4 million, partly due to the higher cost of the United States dollar as well as a desire to maintain adequate inventory levels to ensure consistent product availability for our customers” management indicated.
At the end of March, cash was $313 million representing a decline of $45 million when compared to the balance at March, 2013, equity stood at $1.2 billion.

Filed Under: Company News, JSE Main Market, Stock Market, Stocks to watch

JPS profit climbs

May 30, 2014 by

JPSPower600x250Profit at the Jamaica Public Service Company jumped in the March 2014 quarter even as revenues fell. Profit came out at US$7 million from revenues of US$262.6 million versus only US$877,000 in the 2013 quarter from revenues of US$271.7 million in 2013. Gross profit amounted to US$69.8 million down marginally from US$70.6 million in 2013.
Expenses| Operating expenses fell 8 by percent to reach US$45.7 million and finance cost declined from $17.65 million down to $14.65 million. JPS provided $3.56 million for corporation tax on the profit of $10.7 million.
Shareholders equity stood at US$336 million at the end of March and loans at $366 million.

Filed Under: Company News, Company Results, General Business News, JSE Main Market