Juniors 20% down from peak – Friday

Mayberry Investments made $2.3m from Lasco  Trades in 2 days.

Mayberry Investments made $2.3m from Lasco Trades in 2 days.

The junior market has fallen to its lowest point since 2,357.20 points at the close on January 12 this year. To the end of Friday the market lost 19.95 percent as it suffered the third day of losses. The highlight of the day was Lasco Manufacturing that had another high volume traded to close unchanged as Mayberry was involved in a cross for most of the shares that traded buying 8 million units for in house purposes at $3.20.
On Thursday Mayberry sold 7.82 million units of the stock from in house inventory, at $3.50 or better, pocketing a profit of $2.3 million as a result of the two days of trading in the stock.
The slippage in the price of Lasco Manufacturing was the main contributor the fall in the market index over the two days. The market suffered a third day of fall by dropping 24.68 points fall on Wednesday to end at 1,886.97. With only 7 securities trading, none declining and 4 advancing.
The market ended with 8,492,562 units changing hands, valued at $27,397,677 but with the exception trades for the three Lasco companies, volume was extremely low.
The decline in the market seems over with IC bid offer indicator pointing to rising prices ahead on Monday. At the close, 1 security ended with no bid and only 6 securities had no stocks being offered for sale. There were 9 stocks closing with bids that were higher than their last selling prices and 4 ended with lower offers.
In trading, AMG Packaging rose 35 cents with JM sum 11-03-16only 1,500 units changing hands to close at $11.50, Caribbean Cream traded 5,911 as the price rose 83 cents to end at $4.10, Consolidated Bakeries traded just 700 units to end at $1.50, Jamaican Teas gained 50 cents in closing at $7.50 with 5,500 shares changing hands. Lasco Distributors closed with 44,507 units trading to end at $6, Lasco Financial gained 5 cents to end at $3.10 with 161,804 shares changing hands and Lasco Manufacturing ended with 8,272,640 shares changing hands to close at $3.50.

JSE makes further gains on Friday

Scotia Group traded 1,633,165 shares to gain $1.25 on Friday

Scotia Group traded 1,633,165 shares to gain $1.25 on Friday


Jamaican stocks recorded gains for the second consecutive trading session on Friday, but price movements continue to be fluid with 12 securities rising while 11 fell as 36 changed hands, in all market segments.
At the close 1 stock traded at a 52 weeks’ intraday high with 5,162,901 units valued at $126,099,432 changed hands in all markets. The junior market accounted for 900,074 units changing hands, valued at $3,939,648.
The JSE Market Index rose 919.66 points to 155,747.82 the all Jamaica Composite Index gained 1,027.77 points to end at 173,013.27 and the JSE combined index climbed 1,084.68 points to close at 164,777.55.
JSE sum 04-03-16 IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading was 13 stocks with bids higher than their last selling prices and 11 with lower offers.
At the end of the market activities, Caribbean Cement dropped $1.50 to end at $23.50 with 213,601 shares trading, Carreras closed at $65, while trading 6,840 units, Grace Kennedy ended with 165,900 shares trading to close at $83 after declining by 95 cents, the stock traded in Trinidad at the equivalent of $95 on Friday. Jamaica Broilers fell 60 cents after trading 15,761 units to close at $14, Jamaica Stock Exchange traded 37,020 shares to end at $23, JMMB Group had 745,095 units changing hands but lost 24 cents to close at $10.41, Kingston Wharves had 22,126 shares trading with a gain of 8 cents at $11.39.JSE fn Qts 04-03-16 Mayberry Investments traded 1,000 shares to close with a gain of 61 cents at $4.70, National Commercial Bank had 310,354 shares changing hands but the price fell $1 to close at $40, 138 Student Living traded 6,000 shares at $5.80, Pan Jamaican Investments traded 22,256 units at $95. Sagicor Group rose 4 cents with 584,105 shares changing hands at $23.55, Scotia Group had 1,633,165 shares changing hands to close with a gain of $1.25 at $32, Scotia Investments rose $2 with 380,420 units changing hands at $30. Supreme Ventures gained 5 cents and closed at $5.25 with 28,335 units changing hands and Proven Investments ordinary share traded 71,545 units at 21.75 US cents after rising by 0.75 cent.

Juniors rise – Thursday

Honey Bun closed at a new 52 weeks' high on Thursday

Honey Bun closed at a new 52 weeks’ high on Thursday

The junior market eked out a moderate gain on Thursday with advancing stocks just inching out declining ones by the narrowest of margins. The market rose 16.90 points to end at 1,959.95 with 14 securities trading of which 4 declined and 5 advanced. The market ended with 1,023,326 units changing hands, valued at $4,965,280.
At the close, 1 security ended with no bid and 5 securities had no stocks being offered for sale. There were 8 stocks closing with bids that were higher than their last selling prices and 3 ended with lower offers.
In trading, Access Financial gained 95 cents in trading 13,701 units to close at $16.50, AMG Packaging closed with 33,944 units changing hands at $13, Blue Power ended with 5,315 shares changing hands at $11, CAC 2000 traded with a loss of 1 cent to close at $7.35 with 8,703 units. Caribbean Producers had 3,905 units changing hands to close with a gain of 5 cents at $4.85, Consolidated Bakeries traded 122,015 units to closed JM sum 03-03-16at $1.60, General Accident traded 168,361 units to end at $2.80, Honey Bun gained $2.50 in trading just 2,000 shares to close at a 52 weeks’ high of $16.50. Jamaican Teas lost 50 cents, ending with 23,566 units changing hands at $6.50, Lasco Distributors closed with 489,879 units trading, to end 1 cent higher at $5.51. Lasco Financial fell by 19 cents to end at $3.01 with 30,250 shares changing hands, Lasco Manufacturing ended trading with 96,986 shares to close at $4.10 after rising 10 cents, Medical Disposables traded 100 units and closed at $3.50 and tTech traded 24,601 shares to close with a loss of 10 cents at $4.51.

24 JSE stocks fall 10 rise – Tuesday

Exchange place The Jamaican stocks continued to reflect uncertainty and profit taking on Tuesday, with rising securities numbering only 10 while 24 fell as 40 changed hands in all market segments. At the close 1 stock traded at a 52 weeks’ high.
A total of 4,401,550 units valued at just $44,669,845 changed hands in all markets. The junior market accounted for 534,537 units changing hands, valued at $3,813,759.
The JSE Market Index suffered a fall of 2,264.11 points to 154,435.17 the all Jamaica Composite Index dropped 2,530.27 points to end at 171,546.31 and the JSE combined index dropped 2,134.11 points to close at 163,214.21.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading was 12 stocks with bids higher than their last selling prices and 8 with lower offers.
JSE sum 01-03-16At the end of the market activities, Barita Investments traded 25,000 units and lost 28 cents to close at $3.72, Cable and Wireless fell 5 cents as 67,349 units changed hands to close at $1.45, Carreras closed with a loss of 50 cents at $64.50, while trading 3,290 units. Caribbean Cement shed another $4 on Tuesday on top of a fall of $5.50 on Monday to end at $20.50 with 84,835 shares trading, in continuation of investors reacting negatively to the company reporting lower revenues and profits in the December quarter after taking a hit with redundancy cost. Gleaner Company fell 35 cents to close at $1.95 as 1,010,620 shares changed hands, Grace Kennedy ended with 64,555 shares trading to close at $84 after declining by 50 cents, Jamaica Broilers fell 50 cents after trading 7,984 units to close at $14. Jamaica Producers ended with 6,084 shares changing hands at $30, Jamaica Stock Exchange traded 18,350 shares to end at $21 as the price slipped by $2.50, JSE fn Qts 01-03-16rJMMB Group had 111,852 units changing hands and fell 58 cents to close at $10.42. Kingston Wharves had 2,205 shares trading with a rise of 25 cents at $11.44, Mayberry Investments traded 1,499,312 shares to close with a loss of 29 cents at $4.51, National Commercial Bank had 28,271 shares changing hands but the price fell by 99 cents to close at $40.01. Pulse Investments gained 22 cents while trading 95,000 units at $3.92, Sagicor Group lost 18 cents with 289,270 shares changing hands at $23.02, Scotia Group had 417,956 shares changing hands to close with a loss of $1 at $31, Scotia Investments lost $3.37 with 2,520 units changing hands at $26.63. Supreme Ventures fell by a cent and closed at $5.99 with 6,975 units changing hands and Proven Investments ordinary share traded 13,600 units at 22 US cents.

GOJ January deficit widens

MOFGovernment revenues fell and expenditure rose in December thus reducing the gains make in these areas, in the first nine months of the fiscal year. The fiscal surplus that was on target with the original plan has been cut by $5.7 billion and is now at $69.45 billion compared with a budgeted amount of $75.16 billion.
The decline in the primary surplus is in keeping with the reduction approved by the international Fund last year. The target was lower from 7.5 per cent of Gross Domestic Product (GDP) to 7.25 per cent for the remainder of the current fiscal year, freeing up approximately $4 billion to be spent and to 7 percent for the 2016/17 fiscal year.
For the period to January, tax revenues were ahead of target by $3.8 billion and is down from $6.6 billion from the end of 2015, interest cost that was down $4.8 billion to December, lost some of the savings, with it being $3.1 billion by January while the wages bill exceeded forecast by $3.7 billion in January having been $2.3 billion ahead of target up to December. Other expenditure that was underspend by $540 million to December is now over by $2.2 billion to January.
The fiscal deficit has climbed by $2.6 billion above forecast to $37.34 billion. Up to December the deficit was ahead of target by $5.8 billion at $25 billion.
Inflows from Bauxite Levy and grants continue to underperform with a shortfall of $5.2 billion to January.

Cement drops $5.50 – Monday

Caribbean Cement dropped $5.50 on Monday.

Caribbean Cement dropped $5.50 on Monday.

The Jamaica market continued to reflect uncertainty on Monday with a prices both rising a falling in a wide number of stocks in the same trading session. At the close 13 securities rose, 9 fell as 38 changed hands in all market segments. Trading resulted in 1 stock trading at a 52 weeks’ intraday high.
A total of 2,354,315 units valued at just $38,848,571 changed hands in all markets. The junior market accounted for 1,010,904 units changing hands, valued at $5,976,571.
Caribbean Cement shed $5.50 to end at $24.50 with 203,998 shares trading, being one of the main stocks to pull down the main market index on Monday with the company reporting lower revenues and profits in the December quarter after taking a hit with redundancy cost. The JSE Market Index suffered a fall of 670.56 points to 156,699.28 the all Jamaica Composite Index dropped 749.39 points to end at 174,076.58 and the JSE combined index dropped 707.90 points to close at 165,348.32.
JSE Sum 29-02-16 IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading was 22 stocks with bids higher than their last selling prices and 6 with lower offers.
At the end of the market activities, Barita Investments traded 71,090 units and closed at $4, Cable and Wireless rose 5 cents as 27,035 units changed hands to close at $1.50, Carreras closed with a gain of 90 cents at $65, while trading 143,005 units. Gleaner Company fell 15 cents to close at $2.30 as 128,047 shares changed hands, Grace Kennedy ended with 44,179 shares trading to close at $84.50 after rising $2.50, Jamaica Broilers traded 65,926 units to close at $14.50. Jamaica Producers ended with 11,943 shares changing hands at $30,JSE fn qts 29-02-16 Jamaica Stock Exchange traded 3,396 shares to end at $23.50, JMMB Group had 8,250 units changing hands and fell 80 cents to close at $11. Kingston Wharves had 3,000 shares trading with a fall of 25 cents at $11.19, National Commercial Bank had 19,822 shares changing hands to close at $41. Margaritaville Turks traded 400,300 shares to close with a loss of 0.5 US cents at 14.50 US cents, Sagicor Group rose 20 cents with 91,075 shares changing hands at $23.20, Sagicor Real Estate Fund with 5,000 shares changing hands at $11.50. Scotia Group had 16,801 shares changing hands, to close with a gain of $1.19 to end at $32, Supreme Ventures closed at $6 with 45,748 units changing hands and Proven Investments ordinary share traded 47,300 units at 22 US cents.

Election results validate IC Insider report

JLP leaderIC Insider predicted the election outcome in the last general election in Trinidad and Tobago and this week’s Thursday election in Jamaica. In our posting on February 21, the report stated that an analysis of poll numbers since 2014 and the number of eligible voters suggest that Thursday’s general elections in Jamaica could result in a shocker and a major shift in parliament. For the People National Party to win the 2016 elections will require voter turn out to be more than 50 percent.
Jamaica Labour Party polled 436,459 votes or 50.13 percent of the votes cast and the People’s National Party 432,353 votes or 49.66 percent of the total of 870,663 votes just around 2,000 votes more than in 2011. The JLP polled 31,301 more votes than in 2011 while the PNP lost 31,927. Just under 48 percent of the electorate voted. The voter turnout although lower than in 2011 turnout as a percentage of voters list is consist with the level of the population that voted of 32 percent in both elections and better than the participation rate from 1993 to 2007.
IC Insider stated in the article ahead of the elections that “polls done from late 2014 puts the Labour party support consistently at 25 percent except for the temporary decline shown in the Don Anderson polls in January to 23.2 percent when political activity was low keyed. Based on error factors in past polls, the base for the JLP is around 28 percent which is consistent with polls done in 2015 that would give them 510,835 votes. This would be an increase of 105,677 over the 405,000 votes they received in 2011 and well over the 464,280 the PNP got then”.
“It is more difficult to say what the PNP numbers will work out at in the end but it should be at least close to their numbers for the last election. Added to this it is also difficult to see voter turnout of 53 percent in the 2011 being exceeded by much, if at all, which would put the PNP support at 25 percent of the electorate or a few thousand votes less than in 2011”.
Portia“If the PNP does not increase their support by much, they will be relegated to the back benches of Parliament after Thursday’s polls. As it turned out the PNP based on preliminary results suffered a fall in the number of voters casting the ballot for them while the JLP increased theirs, but both parties failed to motivate persons who said they were going to vote to do so hence a fall in the level of participation”.
The results suggest one important factor and seems to explain why the turn out appear low even as the numbers are slightly higher than the tally for the 2011 elections. The elections seemed to have been focused around a third of the seats, maybe even less, some that were marginal and a few others that there was special interest in. Additionally, the infighting over candidates in some of the PNP’s constituencies may have had an overhang effect, thus negatively affecting its support.

JSE post-election slip – Friday

The JSE retreated on Friday after the general election.

The JSE retreated on Friday after the general election.

With the Jamaica Labour Party winning Thursday’s general election, the Jamaica Stock Exchange main market continued to reflect uncertainty on Friday as 14 securities declined, 15 gained as 33 changed hands in all market segments in a shortened session. Trading resulted in 1 stock trading at 52 weeks’ intraday high.
A total of 9,546,869 units valued at $79,702,541 changed hands in all markets. The junior market accounted for 2,076,968 units changing hands, valued at $12,049,340.
The JSE Market Index suffered a fall of 303.49 points to 157,369.84 the all Jamaica Composite Index dropped 339.16 points to end at 174,825.97 and the JSE combined index dumped 488.18 points to close at 166,056.22.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading was 17 stocks with bids higher than their last selling prices and 3 with lower offers.
JSE Sum 26-02-16At the end of the market activities, Cable and Wireless lost 5 cents as 4,538,475 units changed hands to close at $1.45, Caribbean Cement fell $3 to close at $30 with 22,375 shares changing hands, Carreras closed with a loss of $1.90 at $64.10, while trading 15,400 units. Ciboney rose by 5 cents to end at 19 cents, with 50,000 shares trading, Gleaner Company traded with a gain of 2 cents to close at $2.45 as 200,978 shares changed hands, Grace Kennedy ended with 25,417 shares trading to close at $82 after falling 50 cents, Jamaica Broilers traded 154,686 units to close at $14.50. Jamaica Stock Exchange traded 5,000 shares with a gain of 50 cents to end at $23.50, JMMB Group had 2,655 units changing hands with a rise of $1.39 to close at $11.80.JSE fn qts 26-02-16 Kingston Wharves had 14,225 shares trading with a gain of 5 cents at $11.45, National Commercial Bank had 254,071 shares changing hands with a gain of 60 cents to close at $41. Pulse Investments traded 20,000 shares with a rise of 48 cents to end at $3.70, Sagicor Group fell 50 cents with 515,847 shares changing hands at $23, Sagicor Real Estate Fund fell 45 cents with 49,758 shares changing hands at $11.50, Salada Foods traded 25,826 units at $8.50 after falling 75 cents. Scotia Group had 305,159 shares changing hands, to close with a loss of $1.19 to end at $30.81, Supreme Ventures closed at $6 with 17,200 units changing hands and Proven Investments ordinary share traded 804,200 units at 22 US cents after rising 1 US cent.

JLP win pollsters blew it – election 2016

JLP man -2-16The Jamaica Labour Party won the general elections after a number of polls and forecast called it for the governing Peoples National Party. Two groups that the public is not used to for forecasting elections made a fool of themselves, suggesting the PNP would win at least 40 seats.
According to the university forecasters, the PNP chance of winning the election was down from 60 percent to 56 percent, since the refusal of the party to participate in the election debates. The forecast done by Dr Christopher Charles and Gleasha Reid was laughable when viewed against other facts and historical trends. For one, pollsters that have had a fairly good track record were pointing to, at best, a close election victory for the PNP, in what looked like a close race. One pollster out of Trinidad, did get the marginal seats right, when the polls they did showed a strong swing to the JLP.
The results of the 2016 election, is a clear indication that polls reflect the position at the time the poll is taken and does not necessarily forecast future outcome. The poll that the PNP seemed to have used to call the election, did not reflect the real party standing. IC Insider suggested, that past polls have always reflected an incumbency bias, as high as 5 percent, ahead of the actual official election period, this is pretty much what happened as the January polls by Anderson had the PNP at 27.5 percent and the JLP at 23.2 percent. When the JLP’s support is adjusted by the 5 percent, it placed both parties in a dead heat with a slight lead for the JLP. The polls show that both parties lost active support since September last year. The December polls show that the PNP lost 2 percentage points and the JLP a much larger 6.4 percentage points, taking the latter below the core position held from 2014 to June, of 25 percent.
About the January polls, IC Insider said “If the latest poll numbers were to hold come election day, the PNP would end up with about 54 percent to 46 percent for the JLP of the votes, on a head to head race, which would put the PNP slightly ahead of the 2011 election, when they took 53.40 percent of the votes, to the JLP 46.60 percent.
Interestingly, while the Anderson polls were pointing to a big win for the PNP, RJR News carried on their website, a story of a then recent canvass done buy the PNP in which Paul Burke says they are sure to win 32 seats, with 10 of the rest they have in doubt.
“RJR News has obtained a copy of the report which outlines that the Party is sure of winning 32 of the 63 Parliamentary seats. Of the remaining 10 seats from the 42 which were won by the PNP in 2011, two are deemed at risk of being lost and eight have been declared hard to win”. This information does not reflect an outcome as indicated by Anderson polls.
There are a number of lessons from election 2016. Polls by themselves need to be examined against prevailing as well as past developments, to ensure they are in keeping with what the results are indicating. Events may take place that change the direction of the likely outcome, this is what may have happened this time around.
The polls showing the JLP at 25 percent of the electorate seem to suggest a solid base support, that is why IC Insider posted the need for the election turnout to be higher than 50 percent for the PNP to win. IC Insider had pointed out that the pollsters have never gotten the voter turnout right the question this time, with potential votes around 59 percent, it seems that the usual 15-20 percent difference was a bit too high.

PNP needs over 50% turnout to win

PortiaAn analysis of poll numbers since 2014 and the number of eligible voters suggest that Thursday’s general elections in Jamaica could result in a shocker and a major shift in parliament. For the People National Party to win the 2016 elections will require voter turn out to be more than 50 percent.
Polls done from late 2014 puts the Labour Party support consistently at 25 percent except for the temporary decline shown in the Don Anderson polls in January to 23.2 percent when political activity was low keyed. Based on error factors in past polls, the base for the JLP is around 28 percent which is consistent with polls done in 2015 that would give them 510,835 votes. This would be an increase of 105,677 over the 405,000 votes they received in 2011 and well over the 464,280 the PNP got then.
The increase for the Labour Party works out at an average of 1,682 votes per constituency and is likely to create a major change in the seat count. It is more difficult to say what the PNP numbers will work out at in the end but it should be at least close to their numbers for the last election. It is difficult to see voter turnout of 53 percent in the 2011 being exceeded by much if at all, which would put the PNP support at 25 percent of the electorate or a few thousand votes less than in 2011.
If the PNP does not increase their support by much, they will be relegated to the back benches of Parliament after Thursday’s polls.