At the close there was a bid to buy 1,924,850 units at $5.50, with only 122,886 units on offer at $5.60. The closing prices are the clearest message that investors are not impressed with the final offer price of $5.07 by Cemex. The closing price on Friday is still lower than the $5.60 to $6.18, Ernst and Young placed on the stock.
The market traded a mere 7 securities in contrast to 12 on Thursday leading to 5 stocks advancing, 2 holding firm and none declining. There were 182,914 units exchanged at a value of $736,886 compared to 382,443 shares valued at $3,889,464 on Thursday.
Trading ended with all three indices climbing to their highest, since the start of 2017. The Composite Index advanced 2.87 points to 1,219.86 points, the All T&T Index rose 2.40 points to 1,837.94 points and the Cross Listed Index gained 0.45 points to 80.49 points.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 8 stocks with bids higher than last selling prices and 9 with lower offers.
Gains| Clico Investment added 1 cent to close at $22.51 with an exchange of 1,000 shares, JMMB Group closed trading at a 52 weeks’ closing high of $1.10, gaining 4 cents with 50,000 transactions being executed, the closing price equates to J$21 well above the J$15.31 it sold for in Jamaica on Friday. Sagicor Financial advanced 5 cents, closing at a 52 weeks’ closing high of $8.15 with 300 units changing hands, Trinidad & Tobago NGL was up 2 cents to $20.52 with 1,000 shares traded.
Firm Trades| National Flour Mills was unchanged at $2.40 with 40,879 shares changing hands and Scotiabank held firm at $58.75 with 939 units changing ownership.
The inflation rate for 2017 could be even lower than that of 2016, if the historical patterns repeat. The 2106 out turn compares with 3.7 percent recorded for 2015. The rate for December 2016 was 0.3 percent and is just below the average of fiscal year-to-date movement of 3.1 percent to December 2016.
The rate for 2016 would have been even less, had it not been for increased taxes imposed by the government on a series of items in the first half of the year. The added increase from taxes should not recur in 2017 as revenues are running well ahead of target for the 2017 fiscal year and a pickup in growth should see a healthy increase in revenues for the new fiscal year.
In 2016, inflation in Jamaica, benefited from a continuation in tight fiscal policies, pursued by the government, but it would have been negatively affected by slippage in the exchange rate of the Jamaican dollar versus the US dollar. Moderation in energy prices helped as well.
Going forward, the country should continue to benefit from relatively low energy prices a more stable exchange rate of the Jamaican dollar as foreign exchange inflows remain strong.
Data going back to 2002 suggests that the first two months of the year tend to have flat to negative inflation. In 2015 inflation remained below the December 2014 level until April and just inching ahead in May. In 2016 it remained below the December 2015 level until July.
At the close the All Jamaica Composite Index jumped 2,649.71 points to close at 213,639.56 and is just 9 points adrift from the all-time high reached on January 6. The JSE Market Index surged 2,369.31 points to finish at 195,406.33 or 8 points below the high on the 6th of January. Thanks to moderate gains in the junior market, the JSE combined index climbed 2,217.41 points to close at an all-time high of 209,586.63.
The market closed with 40 securities changing hands, 16 stocks gained and 11 declined in the overall market, including 7 stocks rising and 3 falling, in the junior market.
At the close with 24,599,887 units valued at $157,873,358 changed hands, compared to 34,147,320 units valued at just $169,240,005 changing hands on Friday. Of the stocks traded, the junior market accounted for 7,394,074 units, changing hands, valued at $28,781,077.
The average trade for the day in the main market ended at 688,233 shares compared to an average of 1,241,085 units traded on Friday. The average for the month to date, is 840,062 versus 991,892 units on the previous trading day, well below the average of 549,379 units, December ended with.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Berger Paints ended trading of 616,346 shares to close at $6, Cable and Wireless ended with 1,036,695 units at $1.15, after gaining 7 cents, Caribbean Cement ended with a fall of $3 while trading 36,007 shares to close at $33, Carreras closed at $66.75 with, 9,147 shares changing hands. Grace Kennedy had 37,432 units trading, with the price falling 35 cents, to close at $40.10, Jamaica Broilers rose by 50 cents and closed at $15.50 with 1,161,456 shares changing hands, Jamaica Producers traded 88,336 shares to end at $9.50, Jamaica Stock Exchange traded 405,100 shares, to end at $5.60, JMMB Group traded 1,148,746 units to end at $15.20. 1 Kingston Wharves gained 44 cents in trading 6,985 units to close at $24.99, National Commercial Bank traded 11,735 shares to close at $52, investors swapped 8,566,723 units of 138 Student Living at $4.50. Pan Jam Investment traded just 950 units with the price jumping $3.40 to end at a 52 weeks’ closing high of $30, Portland JSX traded 2,000 units to end with a gain of 75 cents at $11. Sagicor Group closed with 254,756 shares changing hands with a loss of 83 cents at $28.21, Scotia Group with 35,233 shares changing hands, rose 98 cents to close at $36, Scotia Investments gained $1 with 114,529 units trading, to end at $32.50, Seprod traded 334,564 shares to gain 40 cents in closing at a 52 weeks’ high of $30.40. Supreme Ventures lost 11 cents and traded 3,224,068 units at $5.29, Proven Investments traded 25,000 ordinary shares to close at 21.99 US cents, JMMB US 6% preference share ended at US$1.09, with 36,325 units changing hands and JMMB 7.25% preference share ended at $1.50, with 64,216 units being traded.
At the close of trading on Monday the prices of 7 stocks rose, 3 declined with 15 securities trading, compared to 18 trading on Friday. Volume of stocks traded jumped 293 percent, from Friday’s low level, ending with a volume of just 1,879,103 units, changing hands, valued at $28,781,077, with a jump of 125 percent from $12,784,650 on Friday.
An average of 492,938 units with an average value of $1,918,738 traded, compared to 104,395 units with an average value of $710,258 on the preceding trading day. The average for the month to date is 122,333 units with an average value of $586,914 versus 81,154 units with an average value of $438,934 on Friday. The average for December is 131,147 units, at an average of $672,488.
The market closed with 9 stocks with bids higher than their last sale and 1 with a lower offer, than their last sale.
At the close of trading, Cargo Handlers gained 10 cents to end at $21, after 9,324 shares traded, Caribbean Cream closed trading at $7 with 47,823 units trading after trading earlier at $6.55. Caribbean Producers, traded 510,000 shares and rose 20 cents to $3.80, Caribbean Flavours rose 15 cents with just 100 units being exchanged, to end at $11.95, General Accident Insurance traded 4,423,793 shares and lost 10 cents to end at $2.90. Honey Bun with 6,643 shares changing hands, resulted in a gain of 1 cent to close at $6.20, Jamaican Teas ended with 8,000 shares being exchanged at $5.30. Investors reacted positively to an announcement by Jetcon Corporation of a the board’s planned consideration of a dividend and stock split, as they drove the stock up by a $1 to a new high of $8 in trading, shortly after opened and then up to $9 where trading was frozen for an hour. Trading resumed at 11:38 to close with 298,610 units trading with a gain of $2 at a new closing high of $9. KLE Group ended with a loss of 30 cents as 5,193 units changed hands at $2.20. Lasco Distributors ended with 105,586 units trading, to close 17 cents higher at $7.20, Lasco Financial had 5,672 shares changing hands, to end at $3.70. Lasco Manufacturing ended at $5.15, with 1,732,918 units trading, Medical Disposables closed at $4.50 with 8,000 shares changing hands, Paramount Trading ended with 51,728 shares changing hands at $3.12 with a loss of 43 cents and tTech traded 180,684 shares and rose 10 cents to close at $6.
Iron Rock Insurance entered the junior list as operating results fall behind forecast.
There seems to be little rationale for Cargo Handlers to be selling at a PE of 35 based on estimated 2017 earnings and worse 51 times 2016 earnings. The stock is selling well in excess of the average market and the next highest valued in the junior market, Honey Bun that is at a PE of 21, based on 2016 earnings but a more moderate 14 times projected 2017 earnings.
It not surprising that Cargo Handlers heads the list of most overvalued stocks on both the main and junior market, followed by Kingston Wharves and 138 Student Living.
Iron Rock projected losses in the prospectus for 2016 of $30 million and a small profit of $3 million which includes foreign exchange gains of $7 million in 2018. Year to date losses to September last year, are running well ahead of the prospectus’ forecast with losses of $38 million with the September quarter’s losses ended at $14 million. More worrying is that projections of gross premium income of $169.36 million in 2016 rising to $414.97 in 2017 are well off what seems to be occurring in 2016 with results for the nine months showing gross premium of just $59 million well below forecast by $110 million. With all of this happening investors pushed the stock up to $4 for a premium above the listed price.
On Friday last, the stock traded 603,857 units between 92 cents and $1.08. The order book for the stock changed markedly, from a bearish posture to a more aggressive one. Unlike the end of January when sell orders dominated buyers, the situation at the close on Friday was reversed, with buyers almost twice the number of sellers. Importantly, Mayberry’s 30 million units sell order at $1.50 for own account, is removed.
The market activity, suggests that something major is in the offing. In 2015, a group of large minority shareholders approached Cable & Wireless PLC to buy their shares. The Liberty Global takeover of the London listed company intervened. Local investors were expecting that the local company’s minority shareholders would have been made an offer for their shares. After not seeing an offer, interest in the stock fell and took the price with it, down to 65 cents. IC Insiders’ source indicates that a potential offer is likely to be in the making.
Cable and Wireless struggled for years as Digicel, its main rival, clobbered it in the Cell phone market, but the company has been making big strides in reversing the trend. In addition C&W that focused attention on data service, is seeing that strategy paying rich dividends. The company reported just a small loss of $200 million in the September quarter and seemed to be on the way to making positive profit for 2017 onwards, with revenues growing 15 percent in the quarter and 13 percent for the six months. On the other hand Digicel is struggling as the market has moved towards data than voice and C&W grabs a larger share of the mobile market locally, leading Digicel to be looking at a sharp cut in staff numbers in the not too distant future.
With revenues likely to continue to grow for a while, around $3 billion per year, C&W seems on target to make huge profits down the road, with the prospects of big gains in the stock price ahead. Not many investors seem to see this picture, instead they focus on the short term developments, raising foolish questions about dividend payments and debt, when the two can’t be avoided. Under the companies Act dividends can’t be paid based on the large accumulated losses that have to be cleared first, while debt has been used to support the operations while it went through restructuring. The company is now cash flow positive and that should lead to debt reduction going forward subject to any large acquisition. Some minority shareholders who sought legal advice indicates that there were transactions that were effected that were not in the interest of the company.
At the close of trading on Friday the prices of 11 stocks rose, 5 declined with 18 securities trading, compared to 16 trading on Thursday. Volume of stocks traded jumped 153 percent, from Thursday’s low level, ending with a volume of just 1,879,103 units, changing hands, valued at $12,784,650, with a jump of 202 percent from $4,230,160 on Thursday.
An average of 104,395 units with an average value of $710,258 traded, compared to 46,481 units with an average value of $264,385 on the preceding trading day. The average for the month to date is 81,154 units with an average value of $438,934 versus 78,249 units with an average value of $405,018 on Thursday. The average for December is 131,147 units, at an average of $672,488.
The market closed with 6 stocks with bids higher than their last sale and 2 with lower offers than their last sale.
At the close of trading, AMG Packaging jumped $4 to close at a 52 weeks’ high of $35 with 2,779 units changing hands, Blue Power closed with a gain of $1.60 at $36.60 with 7,869 units traded, Cargo Handlers slipped 10 cents to end at $20.90, after 18,653 shares traded. Caribbean Cream lost $1 with 857,959 units being exchanged, to end at $7, in response to results for the company for the November quarter dropping, Caribbean Producers fell 10 cents in trading 7,500 units at $3.60, Derrimon Trading gained 10 cents to end at $5.60 with 25,000 shares changing hands. Dolphin Cove traded 5,556 shares and lost 40 cents to close at $14.50, Honey Bun’s 16,950 shares changing hands, resulted in a gain of 39 cents to close at $6.19, Iron Rock Insurance traded 4,000 units to end at $4. Jamaican Teas gained 45 cents to end at a 52 weeks’ high of $5.30 with 1,500 shares being exchanged, Jetcon Corporation rose 20 cents, to close at $7, with just 2,000 shares being exchanged by investors, Key Insurance traded 34,688 units to close at $3.10 after gaining 10 cents, to end at a 52 weeks’ closing high. KLE Group ended with 800 units changing hands at a 52 weeks high of $2.50. Lasco Distributors ended with 607,149 units trading, to close 3 cents higher at $7.03, Lasco Financial lost 25 cents with 122,767 shares changing hands, to end at $3.70. Lasco Manufacturing ended at $5.15, with 58,461 units trading, Medical Disposables closed with a rise of 5 cents at $4.50 with 16,500 shares changing hands and Paramount Trading ended with 87,972 shares changing hands at $3.55 to gain 15 cents.
Trinidad Cement stock closed at $5.10 on the Trinidad market, with 85,800 units changing hands valued at $436,690. The price shot past the Cemex revised offer price of $5.07 by adding 5 cents in trading on Thursday in closing at a 52 weeks’ high. Importantly the stock has a bid of $5.10 to buy 39,475 shares and closed without an offer being posted a sure sign of higher prices ahead.
Activity climbed sharply from the lows levels experienced for 2017 to date as 15 securities traded, compared to 7 on Wednesday. A total of 6 stocks advanced, 1 fell and 8 remained unchanged as 328,077 units changed hands, valued at $2,705,386 compared to a mere 28,747 shares valued at $573,758 on Wednesday.
The Composite Index gained 0.33 points to 1,215.28 points, the All T & T Index rose 0.15 points to 1,837.11 points. The Cross Listed Index gained 0.07 points to 79.35 points.
IC bid-offer Indicator |The Investor’s Choice bid-offer ended with 5 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| Guardian Holdings advanced 10 cents to $12.90 with an exchange of 35,031 shares valued at $451,900, National Enterprises added 1 cent to close at $10.69 with 2,045 shares changing owners, Sagicor Financial gained 8 cents, closing at a 52 weeks’ high of $8.10 with 3,000 units being traded. Trinidad & Tobago NGL closed at $20.50, up 1 cent with 20,000 shares changing hands valued at $409,878 and West Indian Tobacco, swapped 5,580 units valued at $708,757, closed trading with a rise of 2 cents at $127.02.
Losses| Calypso Macro lost 1 cent to close at a 52 weeks low of $21.88 with 1,000 shares being exchanged.
Firm Trades| Angostura Holdings closed at $14.70, with 12,025 units changing owners, Clico Investments held firm at $22.60 with 581 shares being exchanged, First Citizens closed trading at $34.97 with 55 units changing hands, National Commercial Bank was unchanged at $3.10 with an exchange of 50,000 shares. National Flour closed at $2.40 with only 10 units being traded, Prestige Holdings ended trading at $11 with 164 shares changing hands, Scotia Investments held firm at $2.10 with trades of 112,000 units and Scotiabank closed at $58.75 with 786 shares changing ownership.
At the close of trading on Thursday the prices of 9 stocks rose, 4 declined with 16 securities trading, compared to 15 trading on Wednesday. Volume of stocks traded fell 76 percent, from Wednesday’s low level, ending with a volume of just 743,693 units, changing hands, valued at $4,230,160, down 74 percent from $16,330,699 on Wednesday.
An average of 46,481 units with an average value of $264,385 traded, compared to 209,048 units with an average value of $1,088,713 on the preceding trading day. The average for the month to date is 78,249 units with an average value of $405,018 versus 82,787 units with an average value of $425,109 on Wednesday. The average for December is 131,147 units, at an average of $672,488.
The market closed with 8 stocks with bids higher than their last sale and 2 with lower offers than their last sale.
At the close of trading, Access Financial Services gained 20 cents in trading 4,400 units to end at a record close of $25.20, AMG Packaging jumped $2.50 to close at a 52 weeks’ high of $31 with 3,590 units changing hands, Blue Power closed at $35 with 15,000 units traded, Cargo Handlers hit a new high of $21, after gaining 20 cents with 12,068 shares trading. Caribbean Cream lost 50 cents with 5,000 units being exchanged, to end at $8, Caribbean Flavours while trading 3,700 shares closed at $11.80, Caribbean Producers fell 5 cents in trading 118,000 units at $3.70, Derrimon Trading gained 9 cents to end at $5.50 with 102,997 shares changing hands. General Accident traded 9,000 shares and lost 18 cents to close at $3, Honey Bun had 36,080 shares changing hands, to close at $5.80, after rising 30 cents. Iron Rock Insurance traded 28,053 units and fell by 10 cents to end at $4, Lasco Distributors ended with 37,600 units trading, to close at $7. Lasco Financial rose 28 cents with 47,364 shares changing hands, to end at $3.95, Lasco Manufacturing gained 15 cents to end at $5.15, with 103,347 units trading, Paramount Trading ended with 180,590 shares changing hands at $3.40 to gain 40 cents and tTech ended with 36,904 units changing hands at $5.50 after rising 40 cents.
At the close of trading on Wednesday the prices of 10 stocks rose, 6 declined with 15 securities trading, compared to 20 trading on Tuesday. Volume of stocks traded rose 186 percent, from Tuesday’s low level, ending with a volume of just 3,135,713 units, changing hands, valued at $16,330,699, up by 163 percent from $6,212,985 on Tuesday.
An average of 209,048 units with an average value of $1,088,713 traded, compared to 54,759 units with an average value of $310,649 on the preceding trading day. The average for the month to date is 82,787 units with an average value of $425,109 versus 61,744 units with an average value of $314,508 on Tuesday. The average for December is 131,147 units, at an average of $672,488.
The market closed with 9 stocks with bids higher than their last sale and 1 with a lower offer than their last sales.
At the close of trading, Access Financial Services traded 939 units to close at $25, after trading at an intraday high of $25.30, Cargo Handlers climbed to a new high of $20.80 after gaining 80 cents with 3,882 shares trading, Blue Power rose 50 cents and closed at a 52 weeks’ high of $350 with 12,000 units traded. Caribbean Cream gained 60 cents with 25,000 units being exchanged to end at $8.50, Caribbean Flavours fell 20 cents while trading 4,500 shares to close at $11.80, Caribbean Producers rose 30 cents in trading 60,359 units at $3.75, Derrimon Trading pulled back Tuesdays record close to end with a fall of 89 cents to $5.41 with 307,545 shares changing hands. Dolphin Cove closed at $14.90 with 2,094 shares changing hands, after slipping by 9 cents, General Accident traded 26,150 shares and rose 18 cents to close at a 52 weeks’ high, of $3.18, Honey Bun had 118,520 shares changing hands, to close at $5.50, after losing 45 cents. Jetcon Corporation lost 20 cents, to close at $6.80, with 12,450 shares being exchanged by investors, KLE Group ended with 30,000 units changing hands at $2.20, Lasco Distributors ended with 5,196 units trading, to close at $7. Lasco Manufacturing lost 10 cents to end at $5, with 2,526,478 units trading and Medical Disposables closed unchanged at $4.45 with only 600 shares changing hands.