Trading jumps sharply for juniors – Thursday

The two big Lasco companies traded nearly 8.7M shares on the junior market on Thursday.

The two big Lasco companies traded nearly 8.7M shares on the junior market on Thursday.

The junior market rose on Thursday with 18 securities changing hands of which 7 stocks rose while 5 declined. The market index fell 8.73 points to close at 2,208.62, with 10,281,786 units traded, valued at $56,990,702. The highlight of trading is Lasco Manufacturing trading over 4.7 million units, Lasco Distributors with 3.9 million shares and Caribbean Cream trading at a new high of $8.
At the end of trading 4 stocks closed with bids higher than their last selling prices and none ended with a lower offer. The junior market is showing that the lowest prices for stocks being offered, are moving away from the last traded prices for a number of the companies, with a few having no stocks being offered currently.
JM sum 11-8-16 At the close, AMG Packaging traded 1,674 units at $12.50, Blue Power had 2,400 shares changing hands to close at $16.50, Caribbean Cream gained 70 cents with 22,610 shares changing hands, to close at a new all-time high of $8, Caribbean Flavours traded 195,663 units to close with a gain of 70 cents at $7. Caribbean Producers gained 20 cents, in trading 14,000 units at $3.50, Derrimon Trading lost 1 cent in trading 14,000 units, to end at $3.05, Dolphin Cove rose $1.50 and ended at $15.50 with 1,493 shares trading, General Accident Insurance had 69,656 shares changing hands to close 1 cent lower, at $2.09. Iron Rock Insurance had 720 shares changing hands with a gain of 2 cents, to close at $3.30, JM Trdng Sht 11-8-16 Jamaican Teas traded 3,637 units to end at $3.50. Knutsford Express closed with 2,872 units changing hands at $19, Lasco Distributors ended with 3,964,178 shares changing hands at $7, Lasco Financial traded 98,000 units and lost 20 cents to close at $3.25, Lasco Manufacturing closed at $5 with 4,747,095 shares trading, but gained 5 cents. Medical Disposables traded 206,820 shares and fell 5 cents, to close at $3.50, Sweet River ended with 25,000 units changing hands at $3.86, after rising 1 cent, tTech fell 25 cents and ended with 466,472 units changing hands at $4.50, after it traded at $5 earlier in the day. tTech’s board meets today, to consider a dividend payment at the same time, the company released results for the June quarter, after trading, showing a 42 percent growth in revenues for the June quarter compared to 30 percent for the six months, with profit after tax, up to $16 million from $12.4 million for the six months. Derrimon Trading preference share, ended with 445,496 units changing hands, to close at $2.10.

JSE reverses Wednesday’s gains

Scotia Group dropped by $1.88 on Thursday to help pull down the market index close to 2,000 points.

Scotia Group dropped by $1.88 on Thursday to help pull down the market index close to 2,000 points.

The Jamaica Stock Exchange main market indices dropped sharply on Thursday as the prices of 11 main market stocks feel included a big fall in Scotia Group price and a smaller decline in the price of National Commercial Bank. In the overall market the prices of 19 securities gained out of a total of 46 securities that traded, with 10 declining, including 9 stocks, rising and 5 falling from the junior market.
The gains enjoyed on Wednesday was almost erased as the JSE Market Index dropped 2,117.74 points to end at 160,164.47, the all Jamaica Composite Index sunk 2,368.36 points to close at 177,954.20 and the JSE combined index nosedived 1,837.75 points, to end at 171,104.13.
The market closed with an overall volume of 2,788,209 units valued at $36,729,803 changing hands, in all market segments. The junior market accounted for 910,288 units traded, valued at $3,268,885 of all trades.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 6 stocks with bids higher than their last selling prices and 4 with lower offers.
At the end of market activities, Barita Investments traded 6,000 units and gained 5 cents, to close at $3.05, JSE Sum 4-08-16Berger Paints traded 10,809 shares to end at $4.56 after gaining 1 cent, Cable & Wireless lost 5 cents in trading 126,269 shares to close at $1.20, Caribbean Cement fell 10 cents in trading 23,805 shares to close at $25.50. Carreras declined by 40 cents in exchanging 2,430 shares at $65.50. Trading in 1834 Investments, lost 18 cents with 21,816 shares changing hands to close at $1.21, Grace Kennedy dropped 99 cents to close at $126 with 11,240 shares changing hands. Jamaica Broilers ended with 157,074 shares changing hands to gain 48 cents at $15, Jamaica Producers fell 9 cents in trading 12,400 shares to end at $8.20, Jamaica Stock Exchange had 30,000 shares trading at $22, JMMB Group traded 9,931 units to end at $9.70, after gaining 20 cents. Kingston Wharves gained 47 cents with 11,940 units changing hands and closed at $16, National Commercial Bank traded 211,216 units changing hands, to close with a loss of 73 cents at $42.02, Pan Jamaican traded 5,000 shares and fell 25 cents to end at $25.25. Portland JSX traded 5,145 shares and rose 5 cents to end at $12.55, Radio Jamaica rose 5 cents to close at $1.65 after 1,820 shares changed hands, Sagicor Group lost 65 cents to end with just 5,305 shares changing hands at $21.50, JSE fn qts 4-08-16rSagicor Real Estate Fund traded 12,980 shares to close at $10.22 with a loss of 28 cents. Scotia Group dropped $1.88 while trading 32,450 shares to end at $30.60, Scotia Investments had 3,980 units changing hands at $26.50, Seprod gained 10 cents to close at $17.50 with 4,364 units changing hands, Supreme Ventures rose 1 cent to end at $4.51, with 188,423 units changing hands. Proven Investments traded 421,807 units to close at 19 US cents, JMMB Group 7.5% preference share traded 523,182 shares to close at $1.10 after falling 2 cents and Jamaica Money Market Brokers 7.5% preference share traded 24,715 shares to close at $2.09.

JSE closes sharply higher on Wednesday

Grace Kennedy shares ended at a 52 weeks' closing high on the Jamaica Stock Exchange on Wednesday.

Grace Kennedy shares ended at a 52 weeks’ closing high on the Jamaica Stock Exchange on Wednesday.

Prices surged on the Jamaica Stock Exchange as the prices of 19 securities gained pushing the main market indices up sharply. A total of 40 securities traded, with 19 rising, 10 declining, including an equal number of 5 stocks, rising and falling from the junior market.
The JSE Market Index jumped 2,358.31 points to end at 162,282.21 the all Jamaica Composite Index surged 2,637.40 points to close at 180,322.56 and the JSE combined index climbed 1,894.91 points, to end at 172,941.88.
Supreme Ventures traded 8,126,388 units that help push market volume to 14,235,064 units valued at $406,796,824 changing hands, in all market segments. The junior market accounted for 2,802,872 units traded, valued at $13,180,124 of all trades.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 15 stocks with bids higher than their last selling prices and 2 with lower offers.
JSE Sum 3-08-16At the end of market activities, Barita Investments traded 17,077 units and gained 50 cents, to close at $3, Berger Paints traded 10,892 shares to end at $4.55, Cable & Wireless gained 10 cents in trading 275,234 shares to close at $1.25, Caribbean Cement rose 10 cents in trading 288,375 shares to close at $25.60. Carreras rose 93 cents in exchanging 23,767 shares at $65.90, trading in 1834 Investments, resulted in 306,883 shares changing hands to close at $1.39, Grace Kennedy jumped $1.99 to close at a new high of $126.99 with 93,212 shares changing hands. Jamaica Broilers ended with 6,648 shares changing hands and fell 48 cents to $14.52, Jamaica Producers rose 4 cents in trading 65,292 shares to end at $8.29, Jamaica Stock Exchange had 18,000 shares trading at $22, JMMB Group traded 32,910 units to end at $9.50, after falling 40 cents. Kingston Properties traded 10,483 shares but lost 7 cents to end at $8.93. Kingston Wharves gained 3 cents with 35,725 units changing hands and closed at $15.53, Mayberry Investments gained 23 cents with 10,000 shares trading, to close at $3.30, National Commercial Bank traded 11,505 units changing hands, to close with a gain of 70 cents at $42.50, Pan Jamaican traded 2,618 shares and rose by 49 cents to end at $25.50. Portland JSX traded 16,155 shares and fell 35 cents to end at $12.50, Radio Jamaica rose 20 cents to close at $1.60 after 157,613 shares changed hands, Sagicor Group climbed 75 cents to end with just 700 shares changing hands at $22.15. JSE trades 3-08-16Sagicor Real Estate Fund traded 18,840 shares to close at $10.50, Scotia Group jumped $2.38 while trading 533,602 shares to end at $32.48, Scotia Investments had 8,473 units changing hands at $26.50, for a gain of 40 cents, Supreme Ventures lost 1 cent and ended at $4.50, with 8,126,388 units changing hands. Proven Investments traded 137,500 units to close at 19 US cents for a rise of 1 US cent, JMMB Group 7.5% preference share traded 40,000 shares to close at $1.12 after gaining 2 cents and Jamaica Money Market Brokers 7.5% preference share traded 1,183,000 shares to close at $2.09.

GOJ revenues grow faster than plan

Minister of Finance Audley Shaw

Minister of Finance Audley Shaw

Government of Jamaica revenues jumped nearly 6 percent over budget for the first two months of the fiscal year to May, and have seen an acceleration to June with a 7.9 percent increase, bringing the surplus to $8.4 billion with total inflows of $115 billion.
Revenues for the first quarter are running 11 percent or $12 billion ahead of the 2015 first quarter revenues. Recurrent spending dropped sharply by 8 percent against budget to hit $122.7 billion from a budget of $133.5 billion. The net result of the increase in revenues and reduced expenditure is a reduction in the fiscal deficit of just $7.5 billion, down by $26.8 billion projected.
Revenue in take for the two period is just over $9.2 billion or 15 percent ahead of the similar period for 2015. The primary surplus that was budgeted at $11 billion is now at $26.8 billion.
Tax revenues jumped 7.8 percent or $7.9 billion over forecast with the excess over budget flowing mainly from the following, corporation tax of $1.66 billion, PAYE $457 million, local GCT $2.4 billion, local stamp duty $680 million, education tax $300 million. GCT on imports accounted for $1.5 billion of the excess inflows while custom duty chipped in with $422 million but travel tax fell by $380 million.
Collector of Taxes office, Constant Spring, Kingston.

Collector of Taxes office, Constant Spring, Kingston.

Interest cost fell by $3.5 billion and normal housekeeping expenses is down by $4.7 billion while the wage bill moved up by $936 million. Capital spending was under by $3.7 billion with only $9.6 billion spent to June.
The increase in revenues is in keeping with a trend seen in the first 9 months of 2015 when revenues were growing well ahead of forecast.
The savings in the cost of debt servicing, plus the increased revenues above budget, translate to $11.8 billion or $47 billion over a full 12 months, should the trend continue, well in excess of the cost of the tax break agreed for personal income tax.

Crude oil falls set for more losses

Fuel prices at the pumps in May 2015.

Fuel prices at the pumps in May 2015.

Jamaica and most of the Caribbean excepting Trinidad and Tobago are benefiting from a soft oil market with prices having fallen from a recent high of US$51.23 per barrel in June.
Excess inventories said to be near the 97-year high reached in April and increased drilling has pushed the price down to US$40 per barrel on Monday. Technical indicators point to a fall to the low, between US$35 to US$30, before too long.
Increased drilling and the rise in supplies will add more downward pressure on prices going forward, it will take a very long time for inventories to normalize. Added to this, is the pressure that investors have placed on prices, as they continue to sell oil short, at an increasing pace.
For every US$1 fall in the price, Jamaica will save approximately US$9 million per year. The fall back of oil prices will result in lower electricity and transportation cost for the majority of the region and boost companies profits.

Loans to surge at Jamaica National

JNB HQJamaica National enjoyed a 10 percent increase in loans at the end of March this year over March 2015 to $66 billion inclusive mortgages that rose from $56 billion to $61 billion. Based on loans approved and not disbursed at the end of March, the loans portfolio seems set to climb at a much faster pace than for 2016 fiscal year.
According to the societies’ financials, loans approved but not yet disbursed jumped by a sharp 168 percent to $7.36 billion or 12 percent of outstanding loans, up from $2.75 billion or 4.9 percent of the loan portfolio at March 2015.
Jamaica National, Jamaica’s largest building society had a mix fortunes in fiscal year 2016 with assets climbing by 8.8 percent to $181 billion. Investment securities made up the bulk of the assets at $94 billion. Equity capital stood at $31.2 billion and savers deposits of $101.4 billion up from$90 billion in 2015.
The society suffered a sharp drop of 44 percent in profits to $1.42 billion from $2.53 billion in 2015. For the year to March 2014, profit jumped to $2.3 billion from only $908 million in the previous year.
Contributing to profit for the year was net interest income growing from $8.5 billion to $8.8 billion, other operating income that fell from $6.2 billion to $5.9 billion and operating expenses climbing from $11.8 billion to $13.3 billion.

Tourism Jamaica’s #1US$ earner

Tourism is Jamaica's largest earner of foreign exchange.

Tourism is Jamaica’s largest earner of foreign exchange.

Tourism is now Jamaica’s largest source of foreign exchange earnings, with US$2.4 billion pulled in 2015. Inflows from the sector is growing at nearly twice the pace of remittance inflows, now Jamaica’s second largest, with inflows of US$2.23 billion in 2015, according to data form Jamaica’s central bank, Bank of Jamaica.
During the period of 2008 to 2015, the three main areas of foreign exchange earnings have switched positions between themselves, but since 2012 tourism has been the number one source of inflows and is widening the gap.
Tourism brought in US$1.98 billion in 2008 and remittances US$2 billion. Remittances grew by 10 percent to US$2.2 billion in 2015 over 2008, while tourism was up 18.8 percent to US$2.4 billion. In 2015 tourism inflows grew by 6.4 percent in contrast to the 3 percent increase in remittances. In 2014 tourism inflows grew by a strong 8.7 percent over 2013.
While remittances and tourism have been growing since 2008, exports of goods have gone in the opposite direction with 2015 exports falling to US$1.27 billion versus US$2.974 billion for 2008 for a decline of 54 percent. If the growth trend in tourism inflows continue at the 2015 pace, the sector will exceed the earnings by exports of goods in 2008 by 2018.

Huge 25% jump in Q3 results for NCB

NCB posted a 16% jump in nine months' profits & declared a dividend of 50 cents.

NCB posted a 16% jump in nine months’ profits & declared a dividend of 50 cents.

Jamaica’s National Commercial Bank (NCB) posted a strong increase in profit after tax, for the June quarter with earnings jumping 25 percent or $789 million over the 2015 June quarter, to $3.9 billion. For the nine months to June, profit is up 16 percent to $9.9 billion compared to $8.6 billion in the 2015 period.
Earnings per share ended at $1.88 for the quarter, up from $1.29 in 2015 and for the period to June $4.31 versus $3.48, with full year earnings are set to exceed $6.
The gains were helped by an 11 percent climb in loans and advances to reach $180 billion and a reduction in a number of areas of cost, including a fall in loan loss provisioning to $157 million in the quarter from $472 million in 2015 and for the nine months from $1.4 billion to $904 million.
Customer deposits increased by 18 percent or $38.9 billion over June 2015 to $256 billion.
Total operating income net of interest cost and fee and commission expenses increased to $12.76 billion from $11.68 billion, for the quarter and to $38.4 billion compared to $35.3 billion for the period to June. Net interest income increasing by 8.8 percent, or $1.7 billion, due to growth in the net loans and investments and a reduction in interest expenses driven by a decline in funding costs.
NCB management stated that for the nine months, net fee and commission income increasing by 10.3 percent, or $743 million, mainly due to credit related fees from growth in the loan portfolio, higher volumes of point of sale transactions and unit trust commissions arising from growth in the portfolios. Premium income grew by $388 million, or 6.8 percent, due to higher levels of life insurance and annuity contracts. Gain on foreign currency and investment activities increasing by 10.8 percent, or $305 million to $3.1 billion.
Overall expenses grew slightly from $7.46 billion to $7.64 billion for the quarter and for the nine months by 3.8 percent from $24.1 billion to $26 billion well below the increase in revenues.
NCB declared an interim dividend of 50 cents per ordinary stock unit payable on August 29, to stockholders on record as at August 15. NCB remains an IC Insider Buy Rated stock. In Trading the stock closed at $42.50 today on the Jamaica Stock Exchange for a PE of 7 and on the Trinidad and Tobago Stock Exchange at TT$2.75 or the equivalent of J$52.

Surplus FX jumps to US$94m

US$ 100 Net inflows of foreign exchange traded by authorized dealers, continue to build, with Monday’s net flows ended at the equivalent of US$11 million more foreign currency purchased than sold, bringing the surplus since the end of June to US$94 million. In Monday’s trading, dealers bought US$47,919,715 while they sold US$36,831,264, compared to US$40,933,781 purchased and US$38,774,308 sold on Friday of all currencies, as the value for the Jamaican dollar rose.
In US dollar trading, dealers bought just under US$10 million more in United States currency than they sold. They pulled in US$44,489,970 compared to US$37,244,686 on Friday. The buying rate for the US dollar fell 15 cents to $125.72. A total of US$34,967,119 was sold versus US$35,482,174 on Friday with the selling rate falling 7 cents to end at $126.38.FX trde sum 25-07-16 The Canadian dollar buying rate fell $2.06 to end at $92.97, with dealers buying C$1,878,218 and selling C$989,708, at an average rate that declined 36 cents to $95.59. The average rate for buying the British Pound climbed $1.07 to $162.60 for the purchase of £1,462,800, while only £500,300 was sold, with the rate falling 46 cents to $164.27.
At the end of trading, the selling rate for the Euro, rose 87 cents to close at J$139.68 from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$137.24, for a rise of $2.99. The US dollar equivalent of other currencies traded amounts to US$149,061 being bought, while US$465,263 was sold.
FX HL 25-07-16Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Monday, include, a drop of $1.85 in the highest buying rate of the Canadian Dollar to $95.65, a rise of $1, in the lowest selling rate to $91 while trading in the British Pound resulted in a fall of $1.04 in the lowest buying rate to close at $131.97 and a drop of $1.40 in the highest selling rate to end at $171.72.

Buoyant JSE falters – Thursday

Jamaica Broilers traded over 5.2 m shares on Thursday.

Jamaica Broilers traded over 5.2 m shares on Thursday.

The Jamaica Stock Exchange recorded gains at the close on Thursday, as winners beat out losers with a total of 37 securities traded, of which 14 stocks gained, 14 declined, including 5 stocks rising and 7 declining from the junior market as the market continues in consolidation mode.
The JSE Market Index declined 154.62 points to end at 158,919.40, the all Jamaica Composite Index lost 172.91 points to close at 176,561.79 and the JSE combined index fell 172.10 points, to end at 169,881.04.
ICI JSE sum 21-07-16The market closed another day of moderate trading, with 7,626,144 units valued at $91,922,881 changing hands, in all market segments, thanks to a 5.2 million trade in Jamaica Broilers stock. The junior market accounted for 1,137,261 units traded valued at $6,066,776, of all trades.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 16 stocks with bids higher than their last selling prices and 1 with a lower offer, an indication that stocks should mostly gain on Friday.
At the end of market activities, Cable & Wireless traded 525,451 shares to close at $1.15, Caribbean Cement gained 80 cents in trading 7,680 shares to close at $23, trading in 1834 Investments, resulted in 67,000 shares changing hands after rising 2 cents to close at $1.06. Grace Kennedy closed at $123.04 with 4,172 units changing hands. Jamaica Broilers ended with 5,282,790 units changing hands to close at $14.75 with a rise of 5 cents, Jamaica Producers traded 6,922 shares with a rise of 20 cents to $8.20, JMMB Group rose 32 cents in trading only 411 units to end at $9.82. Kingston Wharves gained 64 cents with 2,485 units changing hands at $15.35. Margaritaville Turks traded dropped 0.49 US cents with 157,045 shares at 19.01 US cents, ICI-JSE fn Qts 21-07-16National Commercial Bank ended with 13,428 units changing hands, with the price dropping 48 cents to close at $42.02, Portland JSX traded 10,400 shares to close at $12.90. Pulse Investments ended with 30,000 shares changing hands at $3.30, after gaining 5 cents, Radio Jamaica fell 10 cents to close at $1.36 after 220,988 shares changed hands, Sagicor Group ended with 10,700 shares changing hands, but fell 5 cents to $23, Scotia Group rose 91 cents in trading 31,896 shares to end at $31. Scotia Investments dropped $1.29 while it traded just 100 shares, to close at $26.50 and Supreme Ventures gained 10 cents in trading 109,000 shares to end at $4.60.