Bank of Jamaica will announce their latest overnight interbank policy interest rate today. The new rate is expected to increase from 0.50 percent that has been in place since August 2019.
On most occasions, the lowering of the overnight rates was mostly cut by cut 25 basis points, indicating the likely upward moves. In light of the sharp rise in CD rates, the move upward for the rate could push the new rate to one percent, initially, with the moderate movement helped by the appreciation in the value of the Jamaican dollar that is going to results in a sharp drop in inflation if sustained.
In August, the Central Bank announced the decision to consider commencing a tightening of monetary policy at the next meeting of the Bank’s Monetary Policy Committee (the MPC Committee) in September and to immediately implement other measures aimed at moderating inflation expectations, including the containment of Jamaican dollar liquidity expansion.
A precursor to the policy rate increase and further tightening of the financial market, the CDs offered by the BOJ on September 29 resulted in a further rise in CD rates and followed other increases in the month.
On Wednesday, this week, the auction of CDs saw 45 bids amounting to $11.6 billion, chasing $10.5 billion offered by the central bank, resulting in average rates of 2.59 percent, up from 2.15 percent at September 22 auction. The latest rate represents a steep increase since the beginning of August when the rate was at just 0.59 percent.
Since the end of July, the bank has withdrawn $10.5 billion from the system and will hold a total of $45.5 million in CDS.
Back to normal for JSE Main Market
Trading activity on Wednesday could not match the heady trading levels resulting from the dominant trade by Barita Investments on Tuesday. The volume of shares trading on Wednesday dropped 63 percent and the value 96 percent from Tuesday’s levels, helping the Jamaica Stock Exchange Main Market to close higher for a fourth consecutive day.
Fifty two securities traded, up from 49 on Tuesday, with 15 rising, 23 declining and 14 ending unchanged.
The PE Ratio, a measure used in computing appropriate stock values, averages 15.8 based on ICInsider.com forecast of 2021-22 earnings.
The All Jamaican Composite Index popped 3,488.35 points to 452,100.44, the JSE Main Index jumped 2,700.82 points to 410,898.90 and the JSE Financial Index popped 0.89 points to end at 100.72.
A total of 18,954,825 shares traded at $169,922,552 from 50,863,279 units at $4,450,256,298 on Tuesday. Sagicor Select Financial Fund led the market, with 28.3 percent of total volume in exchanging 5.37 million shares followed by Pulse Investments 20.5 percent with 3.89 million units, Transjamaican Highway 14.3 percent with 2.71 million shares, Wigton Windfarm 11.4 percent with 2.17 million units and Sagicor Select Manufacturing & Distribution Fund with 5.6 percent after trading 1.07 million units.
Trading averages 364,516 units at $3,267,741, down from 1,038,026 shares at $90,821,557 on Tuesday and month to date, an average of 334,642 units at $7,489,764, compared to 333,105 units at $7,706,920 on Tuesday. August closed with an average of 480,039 units at $8,561,549.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments spiked $4.99, ending at a record close of $106.99 in exchanging 594,219 stocks, Eppley gained 50 cents to finish at $39.50 with 454 stock units crossing the market, Eppley Caribbean Property Fund rose 96 cents to close at $43.95 in switching ownership of 23,576 units. First Rock Capital gained 60 cents in closing at $12.90 after trading 8,091 shares, Jamaica Broilers shed 99 cents to $32 with the swapping of 15,304 stocks, Jamaica Producers lost 28 cents to end at $22.70 with 1,306 shares crossing the exchange. Jamaica Stock Exchange dipped 29 cents to close at $16.85 in switching ownership of 7,067 stock units, JMMB Group fell 45 cents to $37.70 in an exchange of 216,455 units, Kingston Wharves popped 95 cents to $45 after three stocks cleared the market. 138 Student Living shed 54 cents to $4.51 with the swapping of 897 shares, Palace Amusement dropped $19 in closing at $1,030 after trading 71 units, Proven Investments shed 59 cents ending at $32.16 with 6,024 stock units changing hands. 
Pulse Investments gained 23 cents to close at $4.93 with an exchange of 3,890,553 shares, Sagicor Group advanced $2 to $56 in transferring 152,988 stocks, Scotia Group declined 60 cents to end at $38.40 in switching ownership of 85,570 units. Seprod lost 20 cents to close at $63.10 with 120,483 shares crossing the market, Sygnus Credit Investments shed 35 cents to end at $15.50 after 49,632 stock units cleared the market.
In the preference segment, Eppley 5% fell $1 to end at a 52 weeks’ low of $19 with an exchange of 399 shares and Eppley 7.50% preference share declined $1.20 in closing at $6.80 with a transfer of 10,800 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Widespread trading of Junior Market stocks
Trading remained buoyant on Wednesday, with all but one stock contributing to a moderate rise in the volume of stocks trading, with a slightly higher value than on Tuesday, resulting in a slight decline in the market index at the close of market activity on Jamaica Stock Exchange Junior Market.
Jamaican Teas traded the most volume on Wednesday.
At the close, 41 securities traded, up from 33 on Tuesday and ended with 20 rising, 16 declining and five closing unchanged. At the close, the Market Index slipped 6.06 points to 3,257.36. The PE Ratio, a measure used in the computation of appropriate stock values, averages 12.2 based on ICInsider.com’s 2021-22 earnings forecast.
Trading ended with 5,853,269 shares changing hands for $21,419,953 versus 5,606,602 units at $20,018,498 on Tuesday. Jamaican Teas led trading with 36.5 percent of total volume trading after 2.14 million shares, followed by Lumber Depot 14.2 percent, with 828,894 units and Future Energy Source 9.5 percent, with 555,590 shares.
Trading averaged 142,763 units at $522,438, down from 169,897 shares at $606,621 on Tuesday and month to date, an average of 201,678 units at $644,075, compared to 205,042 units at $651,021 on Tuesday. August closed with an average of 464,471 units at $1,258,652.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and four with lower offers.
At the close, Access Financial dropped 75 cents to close at $18, after trading 10,319 shares, AMG Packaging gained 19 cents to end at $1.95 in switching ownership of 10,150 stock units, Blue Power lost 35 cents to $3, trading 99,052 units. CAC 2000 dropped 50 cents to end at $8 with an exchange of 200 stocks, Cargo Handlers popped 50 cents in closing at $7 with the swapping of 56,796 stocks, Caribbean Cream advanced 7 cents to $5.99 while exchanging 57,650 stock units. Dolphin Cove fell 29 cents to $9.86 after trading 2,421 shares, Elite Diagnostic popped 25 cents to $3.25, with 416,028 units crossing the market, Fontana climbed 20 cents in closing at $6.50, with 119,211 stock units crossing the exchange. Fosrich rallied 8 cents to end at $8.18 in an exchange of 110,110 units, GWest Corporation shed 5 cents to 90 cents in trading 9,248 shares, Honey Bun dropped 36 cents to close at $8.54 in exchanging 39,989 stocks. Indies Pharma rose 19 cents to end at $3.39 after trading 24,359 stocks, Iron Rock Insurance increased 10 cents to $4.10, after exchanging 1,000 stock units, Jamaican Teas spiked 42 cents to $3.92, with 2,137,175 units clearing the market. Jetcon Corporation rallied 11 cents to $1.16, with 100 shares changing hands, Knutsford Express rose 29 cents to $6.99, with an exchange of 2,865 units, Lasco Distributors rallied 30 cents to $3.90 in switching ownership of 4,988 shares. 
Lasco Manufacturing shed 20 cents to end at $4.50, with 33,084 stock units clearing the market, Mailpac Group fell 10 cents to $3.65 while exchanging 499,531 stocks, Main Event popped 10 cents to $4.30 in trading 32,995 stocks. Medical Disposables declined 15 cents to $4.85 with 208,597 shares changing hands, Paramount Trading fell 15 cents to 95 cents, with 125,100 stock units crossing the market, Stationery and Office Supplies popped 20 cents to $6 after trading 7,000 units and tTech shed 25 cents in closing at $4.10 with the swapping of 1,314 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Barita cornered Main Market trading
Trading picked up steam on Tuesday, with the volume of shares traded soaring 303 percent, with the value surging 2,777 percent higher than on Monday at the close of the Jamaica Stock Exchange Main Market as Barita Investments commandeered trading with 39 million shares valued at $3.985 billion as market activity ended with the market indices enjoying another day of four-digit bounce as rising stocks outnumbered those declining almost two to one.
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The All Jamaican Composite Index advanced 2,669.74 points to settle at 448,612.09, the Main Index rose 2,352.30 points to 408,198.08 and the JSE Financial Index rallied 0.53 points to end at 99.83.
Trading ended with 49 securities compared to 55 on Monday, with 23 stocks rising, 14 declining and 12 ending unchanged. The PE Ratio, a measure used in computing appropriate stock values, averages 15.8 based on ICInsider.com forecast of 2021-22 earnings.
Trading ended with 50,863,279 shares changing hands for $4,450,256,298 versus 12,618,882 units at $154,663,612 on Monday. Barita Investments led trading with 76.3 percent of total volume after trading 38.8 million shares, NCB Financial followed with 5 percent, trading 2.53 million units, Transjamaican Highway accounting for 4.1 percent with 2.08 million units, Wigton Windfarm 3.9 percent with 1.97 million units and GraceKennedy with 2.1 percent for an exchange of 1.08 million units.
Trading averages 1,038,026 units at $90,821,557, up from 229,434 shares at $2,812,066 on Monday and month to date, an average of 333,105 units at $7,706,920, compared to 297,200 units at $3,473,430 on Monday. August closed with an average of 480,039 units at $8,561,549.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, Barita Investments fell $2 in closing at $102 with an exchange of 38,808,202 shares, Berger Paints lost 35 cents to end at $13.35 in trading 6,933 units, Caribbean Cement spiked $1.99 to $101 after exchanging 8,703 stock units. Caribbean Producers gained 20 cents to close at $4.84 with a transfer of 679,310 shares, Eppley popped 97 cents to $39 in an exchange of 200 units, First Rock Capital shed 75 cents in ending at $12.30 after crossing the market with 7,513 stocks, Guardian Holdings rose $1 to $581 in switching ownership of 869 units, Jamaica Broilers advanced $2.99 to $32.99 in exchanging 20,031 stocks. Jamaica Producers advanced $1.38 to $22.98 in switching ownership of 7,668 stock units, Jamaica Stock Exchange rallied 54 cents to $17.14 in trading 21,974 units, JMMB Group lost 35 cents to end at $38.15 with 109,400 shares crossing the exchange. Kingston Properties popped 50 cents to end at $9 with 63 shares changing hands. Margaritaville gained 88 cents in closing at $15.08 with an exchange of 1,346 units, Mayberry Jamaican Equities declined 50 cents to $8.20 in trading 673,703 stocks, Palace Amusement popped $13.18 to $1049 trading 31 shares. 
PanJam Investment rose 95 cents to close at $63 in clearing the market with 5,204 stock units, Proven Investments lost 25 cents in ending at $32.75, with 2,387 shares changing hands, Sagicor Group rallied 50 cents to end at $54, with 22,229 stock units crossing the market. Salada Foods dropped 22 cents in closing at $6.03 and exchanging 45,550 stocks, Scotia Group climbed 50 cents to $39 while exchanging 33,390 units, Seprod fell 20 cents to $63.30 in exchanging 9,641 shares. Supreme Ventures advanced 22 cents to $17.92, with 16,152 stock units clearing the market and Sygnus Credit Investments popped 25 cents to $15.85 with 21,608 units changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Gains for JSE Main market
Investors flexed their financial muscles on Monday and sent the value of shares trading soaring 63 percent higher than on Friday at the close of the Jamaica Stock Exchange Main Market and sending the market indices higher after rising stocks to just edged out those declining.
The All Jamaican Composite Index rallied 2,398.59 points to settle at 445,942.35, the Main Index rose 1,974.48 points to 405,845.78 and the JSE Financial Index gained 0.47 points to end at 99.30.
Trading ended with 55 securities compared to 52 on Friday, with 23 stocks rising, 22 declining and 10 ending unchanged. The PE Ratio, a measure used in computing appropriate stock values, averages 15.7 based on ICInsider.com forecast of 2021-22 earnings.
Trading pulled out 12,618,882 shares for $154,663,612 versus 11,341,314 units at $94,854,280 on Friday. Transjamaican Highway led trading with 22.4 percent for an exchange of 2.83 million shares followed by Wisynco Group 21.8 percent with 2.76 million units, Wigton Windfarm with 17.7 percent after exchanging 2.24 million units and Pulse Investments 11.3 percent with 1.43 million units changing hands.
Trading averages 229,434 shares at $2,812,066, compared to 218,102 units at $1,824,121 on Friday and month to date, an average of 297,200 units at $3,473,430, compared to 301,309 units at $3,513,535 on Friday. August closed with an average of 480,039 units at $8,561,549.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments advanced $5 to an all-time high of $104 in an exchange of 57,785 shares, Caribbean Cement fell $1.49 to $99.01 with 1,271 stocks crossing the exchange, Eppley Caribbean Property Fund rose $1.99 to $42.99 in transferring 1,750 units. First Rock Capital lost 43 cents to end at $13.05, with 3,835 stock units crossing the market, Guardian Holdings shed $1 to end at $580 in trading 5,485 stocks, Jamaica Broilers rallied $1.55 to $30 with 3,198 units changing hands. Jamaica Producers popped 60 cents to $21.60 in switching ownership of 35,091 shares, Jamaica Stock Exchange shed 95 cents to $16.60 with an exchange of 1,520 stock units, JMMB Group slipped 45 cents to close at $38.50 with the swapping of 207,533 stocks. Kingston Properties fell $1 to $8.50 in switching ownership of 56,464 shares, Kingston Wharves lost 90 cents to close at $44.10 with 6,471 stocks changing hands, Mayberry Investments popped 50 cents to $6 in transferring 106,405 units. Mayberry Jamaican Equities gained 50 cents to $8.70 with the swapping of 650 shares, NCB Financial shed $1.50 to end at $127.50 after clearing the market with 12,877 units, Palace Amusement climbed $135.82 ending at $1,035.82 after exchanging 52 stocks. 
Portland JSX gained 98 cents to finish at $8 with the swapping of 1,000 stock units, Sagicor Real Estate Fund popped 50 cents to close at $8.50 after crossing the market with 233 units, Salada Foods picked up 25 cents to end at $6.25 in switching ownership of 14,969 stocks. Scotia Group lost 50 cents in closing at $38.50 with the swapping of 41,791 shares, Seprod spiked 39 cents to $63.50 with 39,397 stock units crossing the market and Supreme Ventures fell 90 cents to $17.70 in trading 86,640 stocks.
In the preference segment, Eppley 7.75% rallied 30 cents to a 52 weeks’ high of $20.80 in switching ownership of 7,200 stock units and in the corporate bond segment, Colassal 4.25% lost 47 cents in closing at $100.28 trading 50000 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market bounces on Monday
Trading picked up sharply on Monday, with the value of stocks traded surging, rising 262 percent, leading to a 56 percent rise in the volume of stocks traded over Friday and a rise in the Jamaica Stock Exchange Junior Market index.
Like Friday, 33 securities traded and ended, with 12 rising, 15 declining and six closing unchanged. At the close, the Junior Market Index popped 36.70 points to 3,226.53.
The PE Ratio, a measure used in computing appropriate stock values, averages 12.2 based on ICInsider.com’s 2021-22 earnings forecast.
Trading ended with 8,706,882 shares changing hands for $60,709,296 compared to 5,586,599 units at $16,747,890 on Friday. Honey Bun led trading with 69.8 percent of total volume after an exchange of 6.07 million of the company’s shares, followed by Lumber Depot 5.6 percent, with 489,568 units and Future Energy Source with 5.6 percent after trading 489,369 shares.
Trading averaged 263,845 units at $1,839,676 up from 169,291 shares at $507,512 on Friday and month to date, an average of 206,736 units at $653,160, compared to 203,845 units at $593,106 on Friday. August closed with an average of 464,471 units at $1,258,652.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, AMG Packaging shed 6 cents to $1.95 after exchanging 16,904 shares, Blue Power fell 16 cents to $3.19, trading 28,223 stocks, CAC 2000 dropped 60 cents to $8.50 after exchanging 614 units. Cargo Handlers popped 5 cents to close at $7.05, with 200 stock units clearing the market, Caribbean Assurance Brokers gained 9 cents in ending at $1.75 after 750 units passed through the market, Caribbean Cream dipped 10 cents to $6.50 in exchanging 8,984 stocks. Consolidated Bakeries declined 17 cents in closing at $1.70 in switching ownership of 5,000 shares, Elite Diagnostic rose 7 cents to $3.02, with 10,205 stock units crossing the exchange, Express Catering spiked 52 cents to $5.72 while exchanging 710 units. Fontana dropped 25 cents to $6.35 with an exchange of 10,768 stock units, General Accident advanced 15 cents to $5.30 in trading 9,600 stocks, Honey Bun spiked $1.10 to $9 after finishing trading 6,074,541 shares. Jetcon Corporation fell 17 cents to $1.10, with 167,584 stock units changing hands, Knutsford Express lost 35 cents in ending at $6.50 in an exchange of 5,764 stocks, Lasco Distributors declined 10 cents to $3.60 with the swapping of 11,120 units. 
Lasco Manufacturing rallied 9 cents to $4.60, with 207,002 shares crossing the market, Limners and Bards shed 19 cents to end at $3.30 after exchanging 407,527 stocks, Mailpac Group increased 15 cents to $3.69 with an exchange of 130,753 units. Main Event gained 37 cents in ending at $4, with 250 shares crossing the exchange, Medical Disposables spiked 53 cents to $4.99 in trading 139,928 stock units, Stationery and Office Supplies climbed 24 cents to $6 in switching ownership of 100 stocks and Tropical Battery fell 7 cents to close at $1.27 trading 54,800 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market drops 3250 points this week
Market activity ended on Friday with the value of stocks climbing 58 percent over Thursday volume, however, the volume of shares trading was a mere 6 percent higher as trading ended for the week on the Jamaica Stock Exchange Main Market, with the All Jamaican Composite Index ending 3,249.75 points lower than at the close of last week.
At the close on Friday, the All Jamaican Composite Index popped 922.91 points to settle at 443,543.76, the Main Index gained 780.78 points to 403,871.30 and the JSE Financial Index popped 0.39 points to end at 98.83.
A total of 52 securities traded, down from 51 on Thursday, with prices of 17 rising, 22 declining and 13 ending unchanged. The PE Ratio, a measure used in computing appropriate stock values, averages 15.5 based on ICInsider.com forecast of 2021-22 earnings.
The market ended with 11,341,314 shares trading for $94,854,280 versus 10,685,503 units at $226,729,653 on Thursday. Sterling Investments led trading with 46 percent of total volume after trading 5.21 million shares, followed by Transjamaican Highway 16.6 percent with 1.88 million units and Wigton Windfarm 7.5 percent with an exchange of 854,516 shares.
Trading averages 218,102 units at $1,824,121, compared to 209,520 shares at $4,445,679 on Thursday and month to date, an average of 301,309 units at $3,513,535, compared to 306,370 units at $3,616,283 on Thursday. 
August closed with an average of 480,039 units at $8,561,549.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Barita Investments advanced $2 to end at 52 weeks’ high of $99 with 25,427 shares clearing the market, Berger Paints shed 99 cents to $13.51 with an exchange of 36,113 stocks, Caribbean Cement lost 40 cents in closing at $100.50 with 15,907 units changing hands. Eppley fell $1.70 to $38 in transferring 100 stock units, Eppley Caribbean Property Fund climbed $3.75 to $41 in switching ownership of 200 units, First Rock Capital rose 89 cents to $13.48 in exchanging 11,708 stocks. GraceKennedy traded 242,724 and fell 19 cents to close at $99.19, Guardian Holdings fell $4 to $581 with a transfer of 2,127 shares, Jamaica Broilers rallied 95 cents in closing at $28.45 after exchanging 12,080 stock units, Jamaica Producers advanced $1 to $21 in trading 129,320 stocks. Jamaica Stock Exchange popped 55 cents to close at $17.55 with 33,349 shares crossing the exchange, but only after trading at an intraday 52 weeks’ low of $15.02. JMMB Group jumped $2.75 to $38.95 with 565,258 units changing hands, Kingston Wharves declined $1 to end at $45 with the swapping of 53,929 stock units, MPC Caribbean Clean Energy declined $5 to $115, with 108 units crossing the market, NCB Financial lost 49 cents to settle at $129 in switching ownership of 23,011 shares, Palace Amusement dropped $10 to $900 in trading 164 stocks. 
PanJam Investment shed $1.77 to close at $62.01 in an exchange of 52,360 stock units, Sagicor Group lost 52 cents to end at $53.50 in trading 60,107 shares, Seprod dipped 39 cents to $63.11 with 11,833 stocks crossing the market and Wisynco Group fell 35 cents to $15.65 in exchanging 93,661 units.
In the preference segment, Eppley 7.50% preference share declined by $4.30, ending at $8 in exchanging 1,233 stock units. In the corporate bond segment Caribbean Producers rose $1 to $101, trading 30,000 units and Colassal 4.25% fell $4.11 in trading 150 million units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior market stocks close week down
The volume and value of stocks trading slipped modestly to close out market activity on Friday, from Thursday’s levels to close out another week with the Junior Market of the Jamaica Stock Exchange falling over 58 points below the previous week’s close.
Market activity led to 33 stocks trading own from 36 on Thursday and ended, with 14 rising, 12 declining and seven closing unchanged.
At the close, the Junior Market Index dipped 9.07 points to settle at 3,189.83.
The PE Ratio, a measure used to compute appropriate stock values, averages 12.1 based on ICInsider.com’s earnings forecast for 2021-22.
Trading of 5,586,599 shares resulted in an exchange of $16,747,890 compared to 6,813,063 units at $17,345,293 on Thursday. Lumber Depot led trading with 29.8 percent of total volume after an exchange of 1.67 million shares, followed by Future Energy Source 11.9 percent, with 666,129 units and Caribbean Flavours 9.9 percent, with 554,064 shares.
Trading averaged 169,291 units at $507,512 versus 189,252 shares at $481,814 on Thursday and month to date an average of 203,845 units at $593,106, compared to 205,687 units at $597,669 on Thursday. August closed with an average of 464,471 units at $1,258,652.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial fell 25 cents to $18.75 in exchanging 1,100 shares, AMG Packaging popped 21 cents to $2.01, with 297,747 stock units crossing the market, Caribbean Assurance Brokers dropped 13 cents to $1.66 in an exchange of 21,335 units. Caribbean Cream climbed 30 cents to end at $6.60 with the swapping of 51,785 stocks, Caribbean Flavours rose 6 cents to $1.90, with 554,064 shares clearing the market, Elite Diagnostic shed 7 cents to $2.95, after 28,016 units crossed the market. Everything Fresh rose 11 cents to 97 cents in trading 44,082 stocks, Express Catering rallied 80 cents to $5.20 after exchanging 174,433 stock units, Fontana gained 35 cents to end at $6.60 trading 60,007 stocks. GWest Corporation popped 10 cents to 95 cents while trading 1,200 shares, Honey Bun spiked 29 cents to close at $7.90 with an exchange of 302,351 units, Indies Pharma advanced 19 cents to $3.39 in trading 21,865 stock units. Jamaican Teas lost 18 cents in closing at $3.52, trading 146,265 stock units, Jetcon Corporation spiked 22 cents to $1.27, with 337,712 stocks changing hands, Lasco Financial popped 17 cents to $3.15, in exchanging 20,014 shares. 
Lasco Manufacturing declined 32 cents to $4.51, with 32,907 units crossing the exchange, Lumber Depot climbed 19 cents to close at $2.99, after exchanging 1,666,179 stocks, Mailpac Group dropped 11 cents in closing at $3.54 in an exchange of 284,989 units. Main Event declined 57 cents to $3.63, with 45,098 stock units clearing the market, SSL Venture popped 6 cents to end at 69 cents in switching ownership of 997 shares and Stationery and Office Supplies shed 14 cents to end at $5.76, with 2,582 stock units changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
BOJ paying 4 times July rates
It now costs the Bank of Jamaica nearly four times as much to manage the financial market as it did in July this year. After a long period of easy money, the country’s central bank recently announced that they were about to end the easy money policy in light of increasing inflation.
The most recent offer of CDs on Wednesday, September 22, fetched an average interest rate of 2.15 percent, with the highest rate of a successful bid being 2.99 percent and the lowest 1.75 percent. These rates are up from the previous auction, earlier in the month.
The outstanding number of CDs sits at $44 billion, up from $40 billion at the end of the month and $35 billion at the beginning of August. This week’s issue attracted 43 bids amounting to $14.77 billion for the total of $11.5 billion offer for the 30 days instrument. Only 29 submissions were successful.
On September 1st, an offer of $9 billion attracted 40 bids amounting to $14 billion. Only 18 were successful, resulting in an average rate of $1.51 percent, with the lowest bid coming in at 0.50 percent and the highest at 4.25 percent. The highest successful bid got 2 percent.
At the beginning of August, when the total amount of CDs was $35 billion, BOJ offered just $8 billion into the market and resulted in bids of $20.22 billion and resulted in an average interest rate of 0.59 percent, with the highest successful bid ending with a yield of just 0.62 percent, just higher than the banks overnight rate of 0.50 percent.
If the higher rates hold well into next year and beyond, there will be winners and losers. Banks with short term interest bearing instruments will enjoy a rise in revenues and on loans. Those with long data instruments will see capital losses unless their investment portfolio is balanced. Savers should see some increase in their interest income while borrowers will face increased interest costs. The move is likely to result in more appreciation of the Jamaican Dollar up to a certain level.
Shocking 4 years of Cargo Handlers errors
The number of shares issued by publicly listed companies is very important information for investors to know, but investors would not think so when examining interim financial statements in Jamaica and Trinidad and Tobago of some of the companies.
There have been so many occasions one has to search high and low to find it if at all it is reported in the interim numbers. This is such a simple matter and the stock exchanges in the region could cure it easily, by making it one of the items that must be included in quarterly reports. It should be included as a part of the statement of movement in Shareholders’ equity.
Take the matter of segment reporting. Some companies report it quarterly and some only annually. Most correctly report the current period and the comparative previous year’s period. Why can’t the JSE insist on some minimum standards for the benefit of investors so they get information consistently? Limners and Bards is the latest company to provide a quarterly report with no segment results yet they report it in the audited report albeit just one year forcing investors to have to go back to the previous year’s report for the comparison. Seems if that is the approach they should just report the current year’s figures and let investors go back to the previous year’s reports for profit and balance sheet information.
Communication with investors is a subjective matter but there are some simple matters that it just takes some thinking or consulting to get right.
The latest shocking reporting is that of Cargo Handlers that shows the number of shares issued as a part of the statement of shareholders’ equity. The oddity is the company reporting only 37.466 million issued shares since 2018 when it increased to more than 374 million units. The Jamaica Stock Exchange website shows them as having 416.25 million shares issued and the audited accounts show that the change took place in 2018 the numbers moving from 37.485 to 374.653 million shares. One wonders why no one discovered this glaring error when the list of top 10 shareholders show four of them having more shares than what they list as issued. The error goes back to 2018 for all of the quarterly reports.
This is such a glaring error and neither the Stock Exchange, the Financial Services Commission the directors of the company or its accounting staff have found out.
Our reporting standards are not up to scratch and some persons in the financial system love to talk about best practices globally.
The vast majority of listed companies report profit results with direct and indirect costs and gross profit. But others do not. The group shockingly includes GraceKennedy, 138 Student Living, Knutsford Express. It is full time that companies lift the standard of reporting so that investors can get pertinent information to use in their investment decision making. In response to a question put to Don Wehby about the bulking of all cost on the profit statement suggest that they are in compliance with accounting standards, but that is such a lame and shocking excuse from a company of such standing in the country. Seprod produces it, Jamaica Broilers does it and several other listed companies so why not Grace. Are grace directors suggesting that their shareholders are lesser persons than those of other companies? The case of 138 Student Living is shocking when one considers that the Chairman, Ian Parsard is also Group Senior Vice President – Finance & Corporate Planning at Jamaica Broilers.
AMG Packaging is in a class by itself when it comes to poor communication. The company has embarked on a major capital project, but the directors appear to be of the view that minority shareholders are best kept in as much darkness as possible about it. The audited accounts for 2020 are silent on any commitment to the project.
The latest quarterly the only capital spend, is shown as work in progress on the balance sheet in the amount of $57 million, with no comments on the progress, the total commitment and when it is expected to be complete and be in use. Worse there are no comments on its use. It is noted that the purpose has moved from a warehouse to a factory between 2018 and now.
In the 2018 annual report, the Chairman stated that “the Company recently took an option to purchase an adjoining property. If the transaction is completed, the additional space will be used to alleviate some of the space constraints in the existing facility, making operations more efficient.”
In the 2019 annual report “The Company completed the acquisition on the property at 12 Retirement Crescent which will allow us to expand our operations and to better serve our customers.” The company also stated that they “obtained funding from Proven Wealth Limited to assist with the development of 12 Retirement Crescent. The KSAC is in the process of reviewing the architectural drawings for 12 Retirement.”
The 2020 annual report states, “the company plans on utilizing the strong cash and cash equivalents position into developing 12 Retirement Crescent. The pandemic had caused the development of 12 Retirement Crescent to delay from 2020 to 2021. A contractor has been chosen and the building of an additional 11,370 square feet is set to begin in February 2021.”
In the results to February this year, the only comment made about the development is “that the new steel frame warehouse purchased from China arrived and construction commenced. The financial statement shows WIP at $49 million, with a zero balance in the November quarter.”