Junior market index chopped – Monday

Main Event climbed 48 cents to $4.99.

Volumes on the junior market nearly doubled that of Friday’s, but the market index dropped sharply by 65.43 points to fall below the 3,000 points mark to end at 2,996.11 points.
The Jamaica Stock Exchange corrected the report for Friday that originally showed gains of just 7.21 points, to reflect the correct change of 29.39 points, after this publication reported the error.
Market activity ended in 23 securities trading, up from 19 on Friday as 7 stocks rose and 8 declined. A total of 1,062,024 units valued at $5,541,349 passed through the market, compared to 554,250 units valued at $3,004,928 on Friday.
The junior market ended trading with an average of 46,175 units for an average value of $240,928 traded, compared to 29,171 units for an average value of $158,154 on the previous trading day. The average volume and value for the month to date ended at 148,963 units and $1,463,968.
On the immediate preceding trading day, the average volume and value for the month to date, were 163,591 units and $1,582,454. The average volume and value for February, ended at 223,938 units and $1,379,459.
Trading ended with 5 stocks had bids higher than their last sale prices and 2 ended with lower offers, than the last sale.
At the close of the market on Monday, AMG Packaging closed at $5.40 with 72,300 units changing hands, CAC 2000 lost 20 cents and closed at $7.60 with 23,000 shares trading, Cargo Handlers ended trading with 1,150 shares at $21, Caribbean Flavours lost 31 cents in trading 900 units to end at $14, Caribbean Producers rose 15 cents in trading 5,243 units at $3.95, Consolidated Bakeries ended trading with 105,000 shares changing hands, to close at $3. Derrimon Trading ended at $8.60 with 5,599 shares changing hands, General Accident price declined by 20 cents to close trading with 91,700 shares at $3, Honey Bun gained closed with 105,677 shares changing hands at $6.50, Iron Rock had 14,000 units changing hands to close at $3.30 with a rise of 20 cents, Jamaican Teas rose 15 cents in trading 14,460 shares to close at $8, Jetcon Corporation rose $1 and closed trading with 19,797 shares being exchanged, to end at $12, Key Insurance lost 20 cents to end at $2.80 with 71,750 shares changing hands, Lasco Distributors lost 30 cents and ended with 216,050 units trading at $7, Lasco Financial rose 30 cents with 16,016 shares changing hands, to end at $4, Lasco Manufacturing closed with 227,140 units changing hands at $5, after losing 8 cents, Main Event gained 48 cents and closed at $4.99 with 27,861 shares changing hands, Medical Disposables traded 4,229, shares to close at $6, Paramount Trading had 13,132 shares changing hands, to close with a rise of 10 cents at $3.80, tTech fell 26 cents and ended with 15,000 units changing hands at $6.75. Derrimon Trading preference share ended with 3,970 units changing hands at $2, Eppley 10% preference share closed trading with 150 units at $6 and Eppley 8.25% preference share closed trading with 7,900 units at $6.

$m in dormant accounts for Government

Government of Jamaica could end up getting several million dollars that currently sits in dormant accounts in the country’s banks without any transactions since 2001.
The amounts go from a high of $7 million for a resident of Christiana in Manchester to a low of a few dollars and is followed by an account with $3.26 million, for a resident of Clarendon, two accounts of more than $1 million each are listed and 3 in excess of J$853,000. Also included is an amount of US$27,022 for a resident of Hartford, Connecticut ,USA with the list including amounts of US$15,760, one for US$13317, US$ 11,857 and US$11,497.
The list which includes accounts for Bank of Nova Scotia, Citibank, First Global and Sagicor Bank, comprises around 15,000 accounts and is published in the Saturday Gleaner.
According to the notice, depositors have one year to claim the amounts, failing which they will be forfeited by the state.

Big Berger gain lets in Scotia

Scotia enters IC Insider.com’s TOP 10

A big 36 percent jump in the price of Berger Paints kicked it out of the main market TOP listing, allowing Scotia Group into the top list for the very first time. Berger returned to its 52 weeks high of $15 at the end of the week but had 103,511 units on offer at $15 with buying of 1,735 units at $13.01.
The top main market stocks now sell at a 50 percent discount to the average main market stocks and is lower than the discount of stocks in the junior market.
Pulse Investments gained 21 percent during the past week, to end at $8.50 and was the second largest mover in the top listing for main market stocks. Pulse has offers for 118,391 units at $8.50 and buying at $8 for 1,500 shares. Carreras earnings have been up graded with the increase in the price of cigarettes this month, following increased taxes on the product. Interest in the stock is not great currently, with 21,125 on offer at $69.50 and buying of 2,000 shares at $69.20. Radio Jamaica closed the week with 990,792 units on offer at $1.90 and buying for 5,300 units at $1.80. Barita Investments has limited buying interest at the current price with just 447 units on the bid at $6.85 and 171,830 units on the offer at $6.90. With the increased level of construction activity currently taking place in Jamaica and plans for increase construction to meet growing demand for commercial and residential units in the sector, Caribbean Cement’s weak demand continues in the mid-thirty dollar range, with the stock closing with only 2,000 units on the bid to buy at $31.50 while offers are at $32.45 to sell 24,440 units. JMMB Group weakened in the week and now sits at $17.50 but buying is on the weak side, with 5,000 units on the bid at $16.60 and only 378 units offered at $17.50.

Top 10 junior market stocks are trading at a 40 percent discount to the average of the junior market, at the close of the week, this is after Lasco Distributors fell out of the top listing and is replaced
by Lasco Financial Services that suffered a reduction in price during the week to $3.70.
During the past week ISP Finance hit a new high of $12.25 up from $11.75 at the close of the previous week, the stock still sits high on the list at number 3. Access Financial and Jetcon had a bit of price movement during the week, with both closing lower than the week before.
Price movements remained volatile during the past week, as buy and sell orders remained thin for several stocks. With little new news to come until a flood of first quarter results start to flow volatility is likely to continue for a few weeks and this could provide patient investors with some good entry points, if bids and offers are strategically placed. The sharp one week move in Berger signals that supply may not last too long before demand kicks in.

Stocks mostly rise in moderate trading

Trading in the main market of the Jamaica Stock Exchange closed Thursday with 23 securities changing hands and 1 trading in the US dollar market. In the main market, 12 stocks advanced and 7 declined in the main market.
Trading levels in main market ended at 5,370,742 units valued at $94,687,874 compared to 4,735,330 units valued at $232,334,549 at the close on Wednesday. Trading in the US dollar market accounted for 22,600 units valued at US$6,642.
The All Jamaica Composite Index advanced 207.42 points to close at 243,513.01 the JSE Market Index gained 188.98 points to finish at 221,867.93 and the JSE US dollar market index lost 4.47 points to end at 218.16.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 10 stocks with bids higher than their last selling prices and 4 with lower offers.
The main market ended trading with an average of 184,556 units on Thursday, compared to an average of 189,413 units on the previous trading day. The average volume and value for February, ended at 223,938 units and $1,379,459.
In market activity, Berger Paints closed at $13, with gains of 90 cents while trading 90,275 shares, Cable and Wireless closed at $1.30, adding 1 cent with trades of 211,079 units, Caribbean Cement closed 60 cents higher to $31.80 with an exchange of 9,127 units. Carreras dropped 51 cents to close at $69.50 trading 16,967 shares, Grace Kennedy closed $1.90 lower to $41.10 with 9,968 units, Jamaica Broilers gained 50 cents to close at $16, with an exchange of 31,624 shares, Jamaica Producers traded 76,500 shares at $16, Jamaica Stock Exchange closed at $7.96, with 39,382 units changing hands. JMMB Group gained 48 cents, closing at $17.98 with trades of 59,426 units, Kingston Wharves advanced $1 to $31, with 144,600 units changing owners, Mayberry Investments lost 5 cents and closed at $5.20 with an exchange of 1,867 shares, NCB Financial Group slipped $1 to $61, after exchanging 76,297 shares, 1834 Investments gained 10 cents, closing at $1.60 with 500 shares changing hands, Palace Amusement jumped $5 in closing at an all-time high of $200, with just 100 units being exchanged, Pan Jamaican dropped $2.94 to close at $34.06 trading 1,665,400 shares, Portland JSX closed 99 cents higher to $10.99 in exchanging 850 units, Pulse Investments traded 27,271 units at $8.50. Sagicor Group closed at $33.50 with gains of 2 cents trading 298,726 shares, Scotia Group added 10 cents to close at $38.20, with 42,312 units traded, Seprod closed at $39 with trades of 3,160 shares, Supreme Ventures closed 29 cents higher to $6.29, with 1,516,503 shares changing hands. Proven Investments lost 4 US cents to close at 27 US cents trading 22,600 ordinary shares, JMMB Group 7.25% preference share exchanged 1,000 units at $1.50, and JMMB Group 7.5% preference share closed at $1.10 with trades of 1,047,808 units.

Moderate inflation for Jamaica

Price increases in Jamaica for February this year was moderately up resulting in inflation over the past year to less than 4 percent. The Consumer Price Index for the month of February 2017 increased by 0.2 percent, following an upward movement of 0.4 percent in the previous month.
Price increases from a year ago is up 3.6 percent and for the fiscal year-to-date, 3.7 percent.
Two divisions mainly contributed to this increase. Prices for the Food and Non-Alcoholic Beverages division rose the most by 0.3 percent and the division of Housing, Water, Electricity, Gas and Other Fuels was up by 0.6 percent. Higher rates for water and sewage and increases in wages for carpenters, masons, painter, plumbers and electricians were the main factors that impacted the movement for the division Housing, Water, Electricity, Gas and Other Fuels. Lower prices for some petroleum products locally resulted in a decline in its index of 0.3 percent in Transportation.
Fall in the price of oil on the world market could impact ongoing inflation if the trend continues but recent tax increases locally with negate some of that.

3 all-time highs for IC TOP 10 stocks

Berger closed at a new all-time high on Friday

The prices of several stocks listed on the Jamaica Stock Exchange underwent some sharp adjustments in the past week, and especially so on Friday, the day after government disclosed revenues measures for the 2018 fiscal year.
Nothing was disclosed to send negative signals to investors, apart from some slight increase in inflation to be caused by increased taxes on a number of items, which could be partially offset by the rise in the tax threshold for individual taxpayers. If any thing the budget sends a strong message that the next twelve months should be highly positive for investments in stocks and real estate with increased fiscal surplus that have to be generated to meet the 7 percent primary surplus, that will have some deflationary impact and lead to lower interest rates near term. While the tax on cigarettes may initially be considered negative for Carreras the increase will allow the company to garner increased revenues to cover the tax and help boost profits.
The TOP 10 junior and main market stocks saw only a few movements in and out during the past week. A number of the stocks in the list hit new highs during the week. The price of ISP Finance hit a new high of $11.50 as some supply came to the market. With limited supply and the potential for strong growth in profits the stock looks like a candidate for as split before too long. Berger Paints and Pulse Investments climbed sharply to new highs, with the former trading as high as $15 during the week but settled back at $14, up from $11.51 at the close of the previous week. Pulse Investments closed the week at $8.55 and could go higher based on the limited supply on offer at $10.
The markets continue to consolidate while awaiting early signals from 2017 first quarter results. With the TOP stocks valued well below the average of the markets’ PE ratio and at a large discount to the valuation based on 2016 earnings, around 20 times, the Top 10 stocks should continue to record gains once the bull market remains intact.
In the junior market, Dolphin Cove and Jetcon Corporation returns to the top list after exiting, at the close of the previous week and with the latter falling sharply in price to close at $11.03. The two replaced Lasco Manufacturing and AMG Packaging, two that entered in the past week. These stocks are still within striking distance for the top tier listing but market activity in the coming week could change all of that.
In the main market of the Jamaica Broilersreported strong gains in its third quarter profits and should encourage investors to bid the stock up, during the week and Berger Paints seems set to move out of the list by the close of the week and Caribbean Cream and Dolphin Cove could move out of the top list during the week.

Blue chip stocks pull market down Friday

Scotia Investments suffered big drop on Friday.

The main market of the Jamaica Stock Exchange closed sharply lower on Friday, the day after the government presented details of the 2017/18 budget. Big decline in the average prices of Scotia Investments, National Commercial Bank, Sagicor Group and Scotia Group inflicted much damage to close out a week of see saw movement for the market.
The All Jamaica Composite Index plummeted 6,139.33 points to close at 248,635.35, the JSE Market Index dropped 5,489.64 points to finish at 226,698.73 while the JSE US dollar market index gained 3.00 points to close at 231.17.
At the close 18 securities changed hands with 1 trading in the US dollar. In the main market, 7 stocks advanced and 5 declined. The US dollar market recorded no price change.
Trading levels in main market ended at 3,117,227 units valued at $95,348,879 compared to 90,132,738 units valued at $1,840,545,568 at the close on Thursday. Trading in the US dollar market accounted for 85,600 units valued at US$26,904, bringing the total traded in both markets to $98,798,014.
The main market ended trading with an average of 173,179 units for an average value of $5,297,160 traded, compared to an average of 3,605,310 units for an average value of $73,621,823 on the previous trading day. The average volume for the month to date ended at 1,103,492 units versus 2,033,805 units on the prior trading day
The average volume and value for February, ended at 223,938 units and $1,379,459.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Barita Investments closed at $7 trading 587 shares, Cable and Wireless lost 10 cents, closing at $1.40 with 204,500 shares traded, Caribbean Cement closed at $36, gaining 50 cents with an exchange of 6,335 shares. Carreras traded at $72, with 37,074 units changing hands, Grace Kennedy closed at $41.67 with trades of 326,371 units, Jamaica Broilers closed at $14.18, losing 82 cents with 10,000 units changing hands, before the company released third quarter results with strong gains in the latest quarter. Jamaica Producers lost 10 cents to close at $17 trading 309,509 shares, Jamaica Stock Exchange traded 278,128 shares at $7.80, JMMB Group closed at $19.95, gaining 95 cents with 49,414 units exchanged after trading as low as $16.29 during the day, National Commercial Bank declined 70 cents to close at $62.30, after swapping 229,081 units, Pulse Investments gained $1.55 to close at a 52 weeks’ high of $8.55 with 5,000 units changing hands, Radio Jamaica closed at $1.80, with a 1 cent gain and 109,729 units traded. Sagicor Group closed at $35, with an exchange of 107,230 shares, Scotia Group gained $1, closing at $40 trading 1,323,228 shares, Scotia Investments closed at $34, losing $5 with trades of 23,555 shares, Seprod closed at $40, with an exchange of 580 shares, Sterling Investments gained 70 cents to close at a 52 weeks’ high of $18.20 with 1,000 units changing hands, Supreme Ventures closed at $6.08, gaining 8 cents trading 95,906 shares and Proven Investments added 2 US cents to close at 32 US cents with trades of 85,600 ordinary shares.

Big day for Jamaica Stock Exchange Thursday

70 million units of Sagicor Real Estate Fund traded on Thursday.

Heavy volume of 70 million units of Sagicor Real Estate Fund and 16 million units of National Commercial Bank pushed trading on the main market of the Jamaica Stock Exchange to more than 90 million units valued more than $1.8 billion at the close on Thursday.
In the main market, 25 securities changed hands and 3 in the US dollar market as 8 stocks advanced and 9 declined in the main market. One stock in the US dollar market fell.
The main market ended with 90,132,738 units valued at $1,840,545,568 changing hands, compared to 5,763,845 units valued at $145,264,722 at the close on Wednesday. Trading in the US dollar market accounted for 102,002 units valued at US$55,576.
The main market ended trading with an average of 3,605,310 units for an average value of $73,621,823 traded, compared to an average of 221,686 units at $5,587,104 on the previous trading day. The average volume for the month to date ended at 2,033,805 units versus 462,300 units on the prior trading day
The All Jamaica Composite Index advanced 1,564.45 points to close at 254,774.68 the JSE Market Index gained 1,398.89 points to finish at 232,188.37 and the JSE US dollar market index lost 6.63 points to close at 228.17.
In market activity, Barita Investments closed at $7 trading 1,500 shares, Berger Paints gained $1.40 to close at a 52 weeks’ high of $14 trading 25,712 units, Cable and Wireless closed at $1.50 with gains of 15 cents and 321,552 shares traded, Caribbean Cement closed $2.50 lower at $35.50 with an exchange of 5,300 shares. Carreras lost $2 trading at $72, with 6,682 units changing hands, Grace Kennedy closed at $41.67 with trades of 17,013 units, Jamaica Broilers gained 50 cents to close at $15 with 19,700 units changing hands, Jamaica Producers closed at $17.10 with gains of 10 cents trading 130,718 shares, Jamaica Stock Exchange lost 10 cents to close at $7.80 with an exchange of 277,240 shares. JMMB Group closed at $19 while losing 59 cents with 388,575 units being exchanged, Kingston Properties advanced $1.55 to close at a 52 weeks’ high of $15.55 trading just 2,000 units, Kingston Wharves dropped $3.50 to $30, in an exchange of 34,503 shares, Mayberry Investments closed at $5.30, losing 52 cents with only 3,200 units traded. National Commercial Bank declined $1.50 to $63, after swapping a big block of 16,216,132 units, 138 Student Living closed at $4.50 trading 2,008 units, Pan Jamaican closed at $37 with 173,447 shares changing hands, Radio Jamaica closed at $1.79 with trades of 234,048 units. Sagicor Group closed at $35, with a loss of 60 cents and an exchange of 1,367,358 shares, while Sagicor Real Estate Fund closed at $10.50, with gains of 3 cents and a large volume of 70,119,164 shares changing hands, Scotia Group closed at $39 trading 71,318 shares, Scotia Investments closed at $39 with trades of 10,000 shares, Seprod closed at $40, with an exchange of 202 shares, Supreme Ventures closed at $6, gaining 30 cents with 535,366 shares changing hands. Margaritaville Turks closed at 30 US cents trading 1,666 shares, Proven Investments lost 2 US cents to close at 30 US cents with trades of 70,366 ordinary shares. JMMB 7.5% preference share lost 1 cent to close at $2.15 with 100,000 units changing hands and JMMB Group US 6% preference traded at $1.11 with an exchange of 30,000 units.

Sagicor Real Estate Fund National Commercial Bank

Juniors fall on Thursday

Main Event hits new high of $5.10.

Juniors market stocks mostly retreated in trading on Thursday as 20 securities changed hands leading to 8 advancing and 9 declining, leading the market index down 23.20 points, to close at 3,086.17.
Trading ended with 1,482,096 units valued at over $12,049,960 passing through the market, compared to 1,492,475 units valued at over $9,844,241 on Thursday. At the close 5 stocks had bids higher than their last sale prices and 2 ended with lower offers, than the last sale.
The junior market ended trading with an average of 74,105 units for an average value of $602,498 traded, compared to 64,890 units for an average value of $428,010 on the previous trading day. The average volume and value for the month to date ended at 109,514 units and $744,840. On the immediate preceding trading day, the average volume and value for the month to date, were 116,596 units with an average value of $773,309. The average volume and value for February, ended at 223,938 units and $1,379,459.
At the close of the market on Friday, AMG Packaging closed at $24 after falling 40 cents with 2,158 units changing hands, on the day before the 5 for 1 stock split is to be effected in trading. Caribbean Cream closed trading with 671,501 units and gained 9 cents to close at $8.09, Caribbean Producers rose 30 cents in trading 6,400 units $4.30, Consolidated Bakeries ended trading with a loss of 15 cents with 300 shares changing hands, to close at $2.50 after trading at $2 during the trading session, as the price adjust to the disappointed 2016 results. C2W Music had 5,000 units changing hands to close with a loss of 2 cents at 33 cents, Derrimon Trading ended at $8 with 31,030 shares changing hands, Dolphin Cove dropped $1.75 and closed trading with 107,000 shares, to end at $16. General Accident closed trading with 9,500 shares at $3.30, Honey Bun gained 70 cents with 16,649 shares changing hands to end at $6.50, ISP Finance had 28,000 units changing hands to close with a loss of 30 cents at $11, Jamaican Teas shed 70 cents and ended trading 35,485 shares to close at $7.30. Jetcon Corporation closed trading with 145,125 shares being exchanged for gain of 50 cents to end at $13, KLE Group added 44 cents and ended trading 886 units, to close at $2.90, Lasco Distributors ended with 6,085 units trading at $6.70, Lasco Financial fell 16 cents with 148,000 shares changing hands, to end at $4.50. Lasco Manufacturing closed with loss of 20 cents as 182,496 units changed hands at $4.70, Main Event had 67,852 shares changing hands, to close with a gain of 10 cents at a 52 weeks’ closing high of $5.10, Medical Disposables rose 14 cents to close at $6.50 with 3,719 shares changing hands. Paramount Trading ended with 14,300 shares changing hands and lost 5 cents to $3.75 and tTech ended with 610 units changing hands as the price rose 40 cents to end at $6.50.

GOJ Treasury bill heading to 4%

Government of Jamaica Treasury bill rates seems headed to 4 percent by early 2018 if current trends on inflation, exchange rate stability and world oil prices hold.
Treasuries hit just over nine percent for the 182 days instrument in 2014. The rates declined thereafter, falling to a low just below six percent in late 2015 and moved sideways to October last year and then rose to six and half percent by December. Rates at the January and February auctions fell.
In contrast to falling rates for the 182 days T-bills, rates on the short-term bills rose at the February auction. The 91 days T-bill closed at 5.92%, up from 5.62% in January while the 30 days ended at 6.08% up from 5.64% in December.
The trend seems clear with inflation falling to 1.7 percent last year and running at 2.6 percent to January compared to same period in 2016 signalling room for much lower rates. The chart of Treasury rate trends, points to a declining trend with the two blue lines indicating the upper and lower band.
During 2016 inflation was negatively affected b a 7 percent decline in the value of the Jamaican dollar against the United States currency, that would have contributed to most of the inflation except the portion relating to increased taxes, imposed last year. Devaluation if any, should be more moderate in 2017, as foreign exchange flows continue to be strong, therefore inflation should moderate with the absence of devaluation of the local dollar.
The trendline suggests rates on T bills falling to 4 percent by late 2017 or early 2018. The chart is also showing that rates could sit at resistance around the 5.7 percent level for awhile but the downward slopping trend lines are pointing to lower rates by the latest August, with softening world oil prices and little or no devaluation of the Jamaican dolllar to spike inflation.