17 JSE stocks drop on Friday

Scotia Group dropped $1.95& helped to pull the market index down on Friday

Scotia Group dropped $1.95& helped to pull the market index down on Friday

Jamaican stocks suffered reversal from the gains on Thursday to end Friday with much more losses than gains. On Friday with falling prices outnumbered advancing stocks more than 2 to 1 leading to big falls in the market indices.
At the close of trading, the JSE Market Index sank 1,160.22 points to end at 158,673.33. The all Jamaica Composite Index dropped 1297.53 points to close at 176,286.59 and the JSE combined index dived 1,308.51 points, to end at 170,535.50.
The volume of stocks trading dropped sharply on Friday, with 3,924,169 units valued at $39,797,286, compared to the 6,839,351 units valued at just $23,033,975 changing hands on Thursday. Cable & Wireless dominated trading volume on Thursday with 3.9 million units but traded less than 400,000 shares on Friday.
The junior market accounted for 844,487 units valued at $5,439,011 of the total traded on Friday.
ICI JSE sum 9-09-16At the close of the market prices of just 7 securities gained out of a total of 33 that traded, with 17 declining in the overall market, including 5 stocks rising and 4 falling, in the junior market.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 6 with lower offers, suggesting continued fluidity in price movements ahead.
In market activity, Berger Paints traded 27,267 shares to end at $5, investors slashed the price of Cable & Wireless by 20 percent, taking it down by 19 cents with 356,419 shares changing hands, to close at 75 cents, the stock remains weak at the close, with lots of selling and little buying interest. Caribbean Cement traded 25,874 shares to close at $25.50, Carreras traded 1,690 shares and fell 77 cents to close at $65.70, The price of 1834 Investments dropped 15 cents in trading at 518,765 shares to end at $1.10, Grace Kennedy dropped $1.54 and ended at $41.45, with 67,952 shares changing hands. Jamaica Broilers had 126,487 shares changing hands, to end with a loss of 8 cents at $14.52. Jamaica Producers ICI JSE fn qt 9-09-16ended at $8.50 with 229,519 units trading, JMMB Group traded 275,597 units and lost 7 cents to $9.88. Kingston Wharves rose $1.30 in trading 9,998 shares to close at $17.40, Mayberry Investments ended with 509,928 shares trading to close at $3.50, National Commercial Bank had 37,402 units changing hands to close with a loss of $1 at $39, Pan Jamaican Investments fell 30 cents and closed at $24 after trading 2,705 shares. Radio Jamaica fell 8 cents to close at $1.40 after 42,764 shares changed hands, Sagicor Group traded 82,050 shares while easing 9 cents off the old price to close at $22.41, Sagicor Real Estate Fund traded 30,540 shares to close at $10.20, Scotia Group dropped $1.95 to close at $29.05 with 549,708 shares changing hands. Scotia Investments had 13,579 units changing hands at $26, Seprod traded 5,400 units but fell $1 to $19.50, Supreme Ventures had 161,905 units changing hands and rose 1 cent to $4.76 and Proven Investments traded 4,133 units to close at 19.87 US cents.

12 junior stocks rise – Thursday

Caribbean Cream - 1 of 4 stocks trading at a new high on Thursday.

Caribbean Cream – 1 of 4 stocks trading at a new high on Thursday.

The Junior market closed on Thursday, with greater volume and more securities trading than it did on Wednesday, the market index jumped 70.92 points, to close at 2,298.85. Trading ended with 1,832,518 units changing hands, 23 percent more than on Wednesday, while the value rose 34 percent from Wednesday, with $6,870,963 changing hands on Thursday.
Trading in the junior market resulted in 12 stocks rising, while 3 declined out of 19 securities that traded. Market activities ended with 5 securities closing with bids higher than their last selling prices and 4 ending with lower offers as the supply of many stocks continue to evaporate thus setting the stage for a big push forward in the prices of many of the junior listings.
At the close, Access Financial gained $1 in trading 1,500 units to end at $18.50, AMG Packaging climbed $2.20 and ended at $16.70, with just 300 units changing hands,ICI Jm sum 8-09-16r Blue Power lost a cent to close with 578 shares changing hands at $20.02, Cargo Handlers traded 1,500 shares to close $4 higher at a new 52 weeks’ high of $86. Caribbean Cream closed with 75,442 shares changing hands with a gain of $1 to a new 52 weeks’ high of $8.50, Caribbean Producers had 22,572 units changing hands, to close with a gain of 28 cents at $3.78, Consolidated Bakeries traded 9,700 shares to close at $2.25. C2W Music traded up by 3 cents to close at 20 cents with 210,000 units changing hands, General Accident traded 104,311 units and gained 22 cents to end at $2.30. Honey Bun traded 4,000 units at $5.50, after slipping 1 cent, Iron Rock Insurance rose 9 cents in trading 5,000 units, to close at $3.28,ICI jm trade 8-09-16 Jamaican Teas fell 23 cents in trading just 1,803 shares to close at $3.40, Jetcon Corporation gained 10 cents to end with 18,991 shares trading and closed at a new all-time high of $3.30. Knutsford Express had 14,300 units changing hands, to end with a rise of 93 cents at a new closing high of $26, Lasco Distributors ended with 495,390 shares changing hands, loss 20 cents to close at $6.70, Lasco Financial had 618 shares changing hands at $3.52, for a rise of 2 cents. Lasco Manufacturing closed at $4.50 with 854,813 shares trading, Paramount Trading jumped $1 in trading 3,000 shares at $14 and tTech traded 8,700 shares at $5.

19 JSE stocks rise on Thursday

Palace closed at a new high of $170 on Thursday.

Palace closed at a new high of $170 on Thursday.

Jamaican stocks had a good in trading on Thursday with rising prices out numbering declining stocks 2 to 1 leading to strong gains in the market indices. The value of stocks trading dropped sharply by the close of the market with 6,839,351 units valued at just $23,033,975, compared to the 5,711,945 units valued at $60,243,332 changing hands on Wednesday.
The junior market accounted for 1,832,518 units valued at $9,192,820 of the total traded on Thursday.
At the close of trading, the JSE Market Index climbed 527.63 points to end at 159,833.55. The all Jamaica Composite Index rose 590.07 points to close at 177,584.12 and the JSE combined index jumped 1,217.16 points, to end at 171,844.01.
ICI JSE sum 8-09-16rAt the close of the market prices of 19 securities gained out of a total of 39 that traded, with 8 declining in the overall market, including 12 stocks rising and 3 falling, in the junior market.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 6 with lower offers, suggesting continued fluidity in price movements ahead.
In market activity, Cable & Wireless dominated trading with 3,903,944 shares changing hands and closed with a loss of 5 cents at 94 cents, Carreras traded 10,987 shares and gained 3 cents to close at $66.47, Grace Kennedy ended at $42.99, with 5,640 shares changing hands. Jamaica Broilers had 4,580 shares changing hands, to end with a gain of 5 cents at $14.60. Jamaica Producers ended at $8.50 with 450 units trading, Jamaica Stock Exchange lost 60 cents with 80,279 units changing hands, to end at $27.40 after trading as high as $28.50. ICI JSE fn qt 8-09-16JMMB Group traded 19,900 units and rose by 5 cents to $9.95. Kingston Wharves dropped $1.45 in trading 5,261 shares to close at $16.10, Mayberry Investments gained 20 cents ended with 3,570 shares trading to close at $3.50, National Commercial Bank had 15,840 units changing hands to close at $40, Palace Amusement traded 500 units and rose $5 to end at a 52 weeks’ high of $170. Pan Jamaican Investments fell 19 cents and closed at $24.30 after trading 2,950 shares, Portland JSX traded 27,200 units at $11, Sagicor Group traded 1,820 shares while rising 30 cents to close at $22.50, Scotia Group gained 50 cents to close at $31 with 22,700 shares changing hands. Supreme Ventures had 879,445 units changing hands and fell 9 cents to $4.75 and Proven Investments traded 20,849 units to close at 19.87 US cents after slipping 0.13 cent.

Jamaica’s NIR jumps by US$250M

US$ bungleJamaica’s Net International Reserves (NIR) benefited from buoyant flows during the summer months to shoot up by US$250 million, taking the net reserves US$2.52 billion at the end of August. The reserves shot up by US$124 million in July and jumped by US$126 million in August, as the banking system raked in much more foreign currency over the two months than they sold.
In spite of the net heavy inflows during the period, the local dollar declined marginally by less than two percent against the critically important US dollar, with the selling rate moving from $125.46 at the end of June to $127.57 at the end of August.
The build-up of the NIR took place over the period when bankers net purchasing of foreign currency amounted to just under US$300 million in July and August.
The reserves at the end of August are above the 2016 peak of US$2.42 billion at the end of March, just before the central bank intervened by selling to the market, pulling the reserves to a low of US$2.265 billion in June.
The build in the NIR places the country’s central bank in a good position to control of the foreign exchange market in the months ahead, before the next period of higher inflows starts in mid-December.

14 JSE’s stocks rise 7 fall – Wednesday

 NCB traded as low as $36.10 on Wednesday but ended back at $40..

NCB traded as low as $36.10 on Wednesday but ended back at $40..

Jamaican stocks again saw more prices rising than falling but the market indices incurred losses nevertheless at the end of trading on Wednesday. Unlike the previous two days with extremely low volumes trading levels climbed sharply by the close of the market with 5,711,945 units valued at $60,243,332, well up from the 2,652,003 units valued at $16,996,985 changing hands on Tuesday’s with, the junior market accounting for 1,483,909 units valued at $6,870,963.
At the close of trading, the JSE Market Index dropped 849.63 points to end at 159,305.92. The all Jamaica Composite Index dived 950.18 points to close at 176,994.05 and the JSE combined index sank 833.28 points, to end at 170,626.85.
At the close of the market prices of 14 securities gained out of a total of 36 that traded, with 7 declining in the overall market, including 7 stocks rising and 4 falling, in the junior market.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, ICI JSE sum 7-09-16rthe Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 6 with lower offers, suggesting continued fluidity in price movements ahead.
In market activity, Berger Paints traded 10,741 shares at $5, Cable & Wireless traded 822,600 shares and closed with a loss of 1 cent at 99 cents, Carreras traded 1,570 shares to close at $66.44. Trading in in shares of 1834 Investments resulted in 197,265 units changing hands to end at $1.25, Grace Kennedy jumped 99 cents to end at $42.99, with 23,328 shares changing hands, Jamaica Broilers had 13,650 shares changing hands, to end with a fall of 5 cents at $14.55. Jamaica Producers ended at $8.50 with 300,150 units trading, Jamaica Stock Exchange gained 18 cents with 160,144 units changing hands, to end at a 52 weeks’ closing high of $28 as investors continue to react positively to the announcement of a likely stock splitJMMB Group traded 1,009,454 units at $9.90.ICI JSE r fn qt 7-09-16 Margaritaville Turks traded 6,540 shares to close at 21 US cents, Mayberry Investments ended with 502,200 shares trading to close at $3.30, National Commercial Bank had 531,488 units changing hands to close at $40, the stock traded as low as $36.10 during the day but with small volumes. Pan Jamaican Investments fell 1 cent and closed at $24.99 after trading 11,495 shares, Sagicor Real Estate Fund traded 35,080 shares to close at $10.20, Scotia Group added 40 cents to close at $30.50 with 7,320 shares changing hands. Scotia Investments had 2,064 units changing hands at $26, Proven Investments traded 389,000 units to close at 19.90 US cents after rising 0.90 cent and JMMB Group 7.50% rose 2 cents in trading 193,871 units at $1.10. [Read more…]

7 junior stocks up 5 down – Tuesday

tTech closed at $5 on Tuesday with the highest volume traded.

tTech closed at $5 on Tuesday with the highest volume traded.

The Junior market closed on Tuesday, adding to the gains enjoyed on Monday with a jump of 39.80 points in the market index, to close at 2,234.94 as trading in tTech and Jetcon Corporation shares dominated trading volume on a day when C2W Music traded at a new low of 17 cents.
The market closed with 1,397,863 units trading, 13 percent more than on Monday, but the value traded fell 24 percent from Monday, with $6,429,584 changing hands on Tuesday. Trading in the junior market resulted in 7 stocks rising, down from 8 on Monday, while 5 declined up from only 1 on Monday out of 14 securities that traded.
ICI Jm sum 6-09-16Trading ended with 5 securities closing with bids higher than their last selling prices and 3 ending with lower offers.
At the close, AMG Packaging ended at $14.55, with 1,900 units changing hands, Caribbean Cream lost 50 cents to close with 78,131 shares changing hands at $7.50, at the close there was only three offers to sell 16,000 shares between $8 and $9.50. Caribbean Flavours traded 32,000 units to end at $8.50 with a rise of 74 cents, leaving two offers for 24,000 units between $8.50 and $9.59, Caribbean Producers had just 2,165 units changing hands, to close with a gain of 20 cents at $3.20. Consolidated Bakeries traded 16,560 shares and gained 5 cents to close at $2.40, C2W Music traded 20,000 units and was down 3 cents to a new low of 17 cents,ICI jm trade 6-09-16 Honey Bun traded 25,000 units at $5.50 after rising 20 cents, Iron Rock Insurance rose 1 cent, in trading 5,000 units to close at $3.19. Jetcon Corporation ended with 399,800 shares trading with a gain of 30 cents to end at $3.20, at the close there was only one offer to sell at $4.80 but bids are not strong with 152,000 units from $2.80 to $3.01. Knutsford Express closed with 1,007 units changing hands to end at $25, but had only 248 shares on offer at the close at $29.50, Lasco Distributors ended with 11,702 shares changing hands with a loss of 10 cents at $6.60, Lasco Financial ended with 29,623 shares changing hands at $3.25, for a fall of 28 cents. Lasco Manufacturing fell 20 cents and closed at $4.65 with 71,642 shares trading and tTech jumped by 50 cents in trading 703,333 shares at $5. Trading removed almost all of the supply leaving only 26,000 units on offer at the close for the technology stock.

More gains ahead for BUY RATED stocks

Image courtesy of suphakit73/FreeDigitalPhotos.net

Image courtesy of suphakit73/FreeDigitalPhotos.net

The stock markets in the Caribbean have not been on anything close to fire; nevertheless, the prices of some stocks continue to climb. The Jamaican market has not been the only one in which gains were recorded in the summer as there has been some rebound in a number of stock prices on the Trinidad market after declines earlier.
The Jamaican market has seen strong reaction by investors on the announcement of stock splits with the price of each company stock climbing. IC Insider added Seprod to the list while lifting the watch on Sagicor Group, thus restoring a BUY RATED status on it. There are no other changes to the list.
AMG Packaging is IC Insider's top junior market stock for growth in the next 12 months.

AMG Packaging is IC Insider’s top junior market stock for growth in the next 12 months.

In the junior market, Access Financial has advanced 97 percent since 2014. However, IC Insider sees earnings of around $3 per share for the current fiscal year, which should continue to propel the stock upward. Caribbean Cream has gained 597 percent since it was added and with IC Insider forecasting around $1.10 per share earnings for the current fiscal year, the stock could be in the teens by 2017.
Caribbean Flavours price lost flight earlier this year, but with reported audited earnings of $0.82 per share, the price is rebounding. Caribbean Producers suffered from competitive pressures in the Jamaican market and wrote down inventory but should see some reversal of that pressure in the New Year.
However, it does not have a high ranking on the BUY RATED list at this time. Dolphin Cove is up 34 percent since its recent elevation to the BUY RATED list and should trend higher. ISP Finance, a recent addition, gained 140 percent since listing. The company is in the process of raising funds through a bond issue, which will provide funding for an expanded loan portfolio. The stock is very scarce, but 2017 could be a big year for the company and the stock.
Investors are ignoring the robust profit performance of Jetcon Corporation but may regret it as the price is likely to grow strongly. Profits have climbed nearly 100 percent over 2015 to June,
Barita is the top IC Insider's stock for growth over the next 12 months in the main market.

Barita is the top IC Insider’s stock for growth over the next 12 months in the main market.

nearly matching the full year earnings of 2015. Paramount  Trading will benefit from expansion into the processing of lubricants in Jamaica and from growth in its traditional business, but this stock has been scare and could benefit from a stock split and tTech, which many may consider fully priced, is enjoying strong sales growth that is certain to boost profits in the periods ahead.
In the main Jamaica stock market, Caribbean Cement remains undervalued and is poised for a big price rise as the company increases revenues from a growing economy and reduce cost. Many investors keep focusing only on the reported earnings, but these include one off cost that should be taken out in assessing earnings and value.
Buy Rated upd 9-16 Better yet, come 2017 the one off costs won’t be there, importantly, not only will the cost relating to staff separation not be there but the ongoing cost for staffing will be reduced by amounts that approximate redundancy cost. GraceKennedy is benefiting from an improving economy locally and overseas and should see more gains ahead in profits and the stock price.
IC Insider sees JMMB Group as highly undervalued with decent profit results for the current fiscal year and could surprise to the upside. Barita Investments is having a better 2016 than 2015 and has a big pool of unrealised investment gains on its balance sheet that can be released to profit at any time. The stock seems poised for more growth in the years ahead. Jamaica Stock Exchange’s stock could trend higher with the expectation of a stock split, the price may be getting a bit rich for much short term gains.
IC Insider considers the future to be bright for the stock, as trading activities rise in future years, consequent on growth in the local economy and further declines in interest rates that are bound to drive more money into the market seeking decent return. National Commercial Bank is on target to earn around $6 per share in 2016 while Scotia Group’s results to July showed strong growth in the second quarter over 2015, suggesting that increased profits are once more on the table for this entity. Investors should consider that the year end for these two entities is September and October as such very early in 2017 fresh results will be out before even some of companies with 2016 December year end, release their final numbers for this year. Seprod is engaged in cutting cost in various areas and with growth in the economy, the company is in a good position to do well for investors.
The Trinidad market remains a tough one with the price of oil under pressure. Trinidad Cement seems the only compelling buy, but pressure in the construction sector will be seen as negative for the company. [Read more…]

40,100 Jamaicans found jobs

Staff at Derrimon Trading.

Staff at Derrimon Trading.

Jamaica’s unemployment rate rose in March this year, compared with the similar period in 2015, but 40,100 more Jamaicans found work in the 2016 period than at the similar time last year, data released by the Statistical Institute of Jamaica (STATIN) revealed.
The unemployment rate decreased for men from 10.3 percent to 9.6 percent but women had a big setback with unemployment for them increasing from 16.8 percent to 18.4 percent.
The year over year change resulted in the Employed Labour Force for March 2016 was 1,168,600 up from 1,128,500 reported in March 2015 and left the Unemployment Rate for March 2016 at 13.7 percent an increase of 0.5 percentage points when compared to the March 2015 rate of 13.2 percent.
StatinAccording to Statin, “the industry group “Wholesale and Retail, Repairs of Motor Vehicle and Equipment” provided employment for the majority (253,400) of the employed persons. This industry provided employment for the majority of females (117,100) but the largest number of males (157,100) were employed in the industry group “Agriculture, Hunting, and Forestry & Fishing”.
The number of persons classified as being outside the Labour Force fell by 49,000 (6.3 percent) to 735,400 in the March 2016 survey bringing the number of persons in the Labour Force to 1,353,500, which was 53,100 (4.1 percent) greater than the 1,300,400 recorded in March 2015.

Surplus FX flows continue to grow

US$ bungle At the end of Friday’s trading in Jamaica’s foreign exchange market inflows again exceeded outflows with the sale of the United States currency being $7.6 million less than the amount purchased by dealers, leading to a slight revaluation of the local dollar.
On Friday authorized dealers bought another $8.6 million more than they sold, bringing the net inflows since the end of June, to US$280 million.
In Friday’s trading, dealers bought US$42,537,612 and sold US$33,911,288 compared to US$32,204,317 purchased and US$29,187,613 sold on Thursday, of all currencies.
In US dollar trading, dealers bought US$39,102,100 compared to US$29,599,812 on Thursday. The buying rate for the US dollar rose 14 cents to close at $127.03. ICI Fx sum 2-09-16A total of US$31,532,699 was sold versus US$28,195,660 on Thursday, with the selling rate declining 5 cents to end at $127.61. The Canadian dollar buying rate dropped $1.69 to $94.37, with dealers buying C$1,002,532 and selling C$793,772 at an average rate that gained 5 cents to $97.54. The average rate for buying the British Pound rose $1.92 to $166.62 for the purchase of £1,683,642 while £875,310 was sold with the rate that climbing $1.43 to end at $169.13.
At the end of trading, the selling rate for the Euro, dropped $2.35 to close at J$142.16 from Thursday’s rate, according to data from Bank of Jamaica, dealers purchased the European common currency at J$135.99 for a fall of 29 cents from the rate on Thursday. The US dollar equivalent of other currencies traded amounts to US$156,176 being bought, while US$123,678, was sold.
ICI Fx h&l 2-09-16Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Friday, include a drop of $3 in the highest buying rate for the Canadian Dollar to $97.50, a fall in the highest selling rate of $3.18 to $101.52 while the lowest selling rate climbed by $2 to $94. Trading in the British Pound resulted in a rise of $3.25 in the highest buying rate to $173.90, a rise of $1.41 in the lowest buying rate to close of $136.12 and a gain in the lowest selling rate of $2 to $162.50.

GOJ income big outperformer

Audley Shaw at PTLThe Jamaican government has already covered in just four months, all the revenues that will be lost for the fiscal year even before the revenue lost from the higher threshold, starts to impact the fiscal operations from the increase in the threshold for PAYE contributors.
The data suggests that there is no need for there to be an alarm about funding the additional tax relief in 2017 as the performance to date indicates that the added break will be funded from the 2016/17 fiscal performance.
The savings on the interest cost and the added revenue intake, translate to just about $40 billion for a full year, and this on top of the $13 billion in new taxes the government imposed in May, plus the projection of additional taxes, included in the budgeted projections based on normal annual increase.
With the threshold coming into effect in July, the reduction in taxes to be paid won’t show up until August inflows. Data out of the ministry released on Thursday show revenues $11 billion ahead of projections and spending is down by $14 billion. The reduced spend, includes under spending on capital projects, amounting to $5.8 billion and housekeeping expenses of $3.8 billion.

Collector of Taxes office, Constant Spring, Kingston.

Collector of Taxes office, Constant Spring, Kingston.

Importantly, interest cost dropped $2.8 billion. The savings on interest and the increased revenues above budget amounts to just under $13 billion, more than the revenues given up by the increased in the threshold, this year. Taxes already applied to raise funds to cover the lost PAYE revenues will be collected in the remaining 8 months of the fiscal year. In effect the government has covered the revenue losses with the performance to July. Collection to be made for the balance of the fiscal year based on the increased taxes that were applied starting in May but with collection starting in June will be available to fund other fiscal endeavours or used to ensure that the fiscal year will end without a fiscal deficit.
There is one factor to be considered, the original budget was projected a fiscal deficit for the year of $17 billion and the focus could be on ensuring that this is wiped out and there is none in 2017/18. The new IMF agreement could have different terms than the very restrictive ones the country has been undergoing over the past 4 years.