4 new highs for Junior market – Tuesday

December 8, 2015 by

Derrimon hits a new high in fairly heavy trading in the stock on Tuesday.

Derrimon hits a new high in fairly heavy trading in the stock on Tuesday.

Activity in the junior market saw the ordinary shares of Derrimon Trading enjoying another day of high volume on Tuesday, with the largest block of shares, accounting for 3,331,784 units valued at $11,661,789. The price gained 2 cents to end at a 52 weeks’ high $3.52.
The traded volume in the stock is down compared to 5,881,908 units, valued at $20,586,056 that changed hands on Monday.
Overall, trading ended with a meagre increase of 0.36 points in the junior market index to 1,623.15 as 15 active securities ended with 9 stocks advancing and 2 declining with 5,858,828 units, valued at $21,128,004 changing hands.
At the close there was 1 security ending with no bid to buy and 8 securities had no stocks being offered for sale. A total of 3 stocks closed with bids higher than the last traded prices and 2 closed with lower offers. Four stocks closed at 52 weeks’ high in the junior market.
In trading, AMG Packaging ended 5 cents lower at $6 with 31,600 shares trading, Caribbean Cream dropped 59 cents while trading 1,024,584 units to end at $3.42, Caribbean Flavours traded 5,599 units at a new 52 weeks’ high of $7.20 by adding 10 cents, Caribbean Producers traded 719,587 units to end at $5.60. Consolidated Bakeries ended with 127,708 shares changing hands to settle at $1.30 for a 7 cents rise, General Accident had 84,168 units trading and closed with a rise of 4 cents at $2, Honey Bun traded at a 52 weeks’ high of $5.85 with 5,348 shares to close with a gain of 4 cents.JM Trde Sht 8-12-15 Knutsford Express ended 60 cents higher, at a 52 weeks’ high of $10.50 with 400 shares changing hands, KLE Group ended with 25,000 units trading with a rise of 2 cents at 75 cents, Lasco Distributors gained 18 cents and closed with 78,051 shares changing hands, at $4.30, Lasco Financial ended at $3, with 345,682 shares changing hands. Lasco Manufacturing added 22 cents and closed at $3.62, with 70,117 shares trading, Medical Disposables price rose 1 cent to close at $3.53 with 8,500 shares trading and Paramount Trading ended with 700 shares changing hands at $8.96.

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It’s now $120.03 Jamaican to US$1

December 4, 2015 by

1000front More funds flowed into the foreign exchange market on Friday but that did prevent the Jamaican dollar from losing value against the US, with the latest selling rate for the US dollar officially crossing the new landmark of $120, for the first time. The local currency made modest gains on the pound but slipped against the Canadian dollar.
The decline in the local currency which started in earnest in the mid to late 1970s and worsened in the 1990s, is coming from 77 US cents for j$1, back in late 1960s and has lost value as governments pursued ruinous economic and social policies, that led to high inflation, high interest rates, a mostly overvalued currency, flight of capital and closure of once viable enterprises. The poor policy decisions also led to a major collapse of the financial sector in the mid to late 1990s that ultimately heaped hundred of billions of dollars of debt on the country.
Funds purchased by dealers exceeded the amounts sold by $6 million. The equivalent of US$38,210,272 was purchased and the equivalent of US$32,468,928 was sold, compared with US$29,610,178 they purchased and US$30,889,097 sold on Thursday.
In US dollar trading , dealers bought US$34,482,286 compared to US$26,774,865 on Thursday.FX trade sum 4-12-15 The buying rate for the US dollar gained 18 cents to $119.50 and US$30,528,147 was sold versus US$29,627,807 on Thursday, the selling rate rose 4 cents to $120.03, The Canadian dollar buying rate fell 4 cents to end at $86.96 with dealers buying C$1,284,103 and selling C$857,019, at an average rate that rose 35 cents to $89.24. The rate for buying the British Pound climbed 98 cents to $177.77 for the purchase of £1,076,624, while £679,010 was sold, with the rate falling 2 cents to $179.32. At the end of trading, it took J$130.21 to purchase the Euro, a big jump of $3.37 from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.54 for a rise of $3.33 from Thursday’s rate. The US dollar equivalent of other currencies traded, amounts to US$439,193 being bought, while US$289,232 was sold.
FX hl 4-12-15Highs & Lows| The highest buying rate for the US dollar on Friday, gained 10 cents to $120.30 while the lowest buying, the highest and the lowest selling rates were unchanged at $98.66, $126.42 and $117 respectively. The highest buying rate for the Canadian dollar dropped $3.20 to end at $89.80, the lowest buying rate climbed 41 cents to $71.38, the highest selling rate fell $1 to $93 and the lowest selling rate remained at $85. The highest buying rate for the British Pound, fell 50 cents to end at $181. The lowest buying rate gained 42 cents to $144.84, while the highest selling rate fell $1.19 to $184.99 and the lowest selling rate rose by 50 cents to $173.50.

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JSE jumps sharply on Thursday

December 3, 2015 by

Jamaica Producers closed at a new 52 weeks' high of $32 on Thursday.

Jamaica Producers closed at a new 52 weeks’ high of $32 on Thursday.

The number of securities trading on Thursday increased and remains at elevated levels over 40 as the market closed with 11,309,612 units valued at $179,784,674 changing hands, in all market segments and the market indices jumped sharply by the close. A total of 4 stocks closed at a 52 weeks’ high.
The JSE Market Index climbed 1,796.81 points to 142,047.35, the all Jamaica Composite Index shot up 2,008.04 points to end at 157,702.22 and the JSE combined index jumped 1,764.62 points to end at 148,377.59.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 11 stocks with bids higher than their last selling prices and 2 with lower offers.
In trading, JSE Sum 3-12-15Berger Paints ended with 478,260 units trading at $3.60 after adding 9 cents, Cable and Wireless closed with 760,826 units changing hands at $1.52, Caribbean Cement closed trading at $18.50, with 18,695 shares changing hands. Carreras closed at $56 with 52,742 units trading, Ciboney closed at a 52 weeks’ high of 23 cents after gaining 2 cents with 65,930 shares changing hands, Desnoes & Geddes ended with 14,000 shares trading at $30, Gleaner Company traded at 105,031 shares and but fell 21 cents to $1.70, Jamaica Broilers rose 14 cents in trading 343,265 shares, to close at $8.60, Jamaica Producers climbed $2 to close at 52 weeks’ high of $32 with 5,197 units trading Jamaica Stock Exchange jumped $1.50 in trading 2,000 units to end at a 52 weeks’ high of $15.50, JMMB Group ended trading 737 shares, to close at $10.25. Kingston Wharves traded 8,079 units to end at $11.20, Mayberry ended with 318,784 shares changing hands at $4.70, after rising 41 cents, National Commercial Bank closed with 3,367,608 units changing hands at $37.50 with a loss of $1.50.JSE Fn Qts 3-12-15 Pan Jamaican ended with 42,553 shares and jumped to $5 to a 52 weeks’ high of $95, Pulse Investments had 90,089 units trading at the price rose 32 cents to close at $2.50, Radio Jamaica lost 24 cents in trading 32,794 units at $4.81, Sagicor Group rose $1.20 with 555,102 units to end at $16.70. Scotia Group had 212,574 shares changing hands at $27, Scotia Investments had 57,245 units trading with a gain of 16 cents to end at $28, Seprod lost 1 cent in trading 22,794 units at $18.60. Supreme Ventures closed with 1,192,628 units changing hands at $4.70 with a 1 cent loss, Jamaica Money Market Brokers 8.750% preference share ended trading 348,115 units at $2.65.

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Profit break out for Scotia in 2016?

December 3, 2015 by

Scotia Group Montego Bay.

Scotia Group Montego Bay.

Scotia Group generated profit of $9.9 billion for the year to October, down from $10.46 billion earned in the similar period in 2014 but saw a jumped in the profit for the quarter to October of $3.9 billion versus $2.76 billion in 2014 period due mainly to a billion dollar jump in insurance income.Total revenues climbed marginally to $42 billion in the year ending October, from $41.9 billion thanks mainly to an increase of $900 million in insurance income over prior year. For this last of 2015, total revenue of $11.5 million was above the amount earned in 2015 of $10.3 billion.
Net interest income after impairment losses for the year was $22.9 billion, marginally above 2014 resulting in a reduction in the impairment losses on loans by $241 million or 15.0 percent, this is “due to enhanced adjudication, monitoring and collection efforts. The Group continues to report strong growth in loan volumes during the year, particularly our Residential Mortgages, Consumer, Small Business and Commercial portfolios; however net interest margins continue to decline due to lower market interest rates and the competitive environment”, Scotia stated in their media release accompanying the financials.
Jackie Sharp - CEO Scotia Group

Jackie Sharp – CEO Scotia Group

“Other revenue for the year amounted to $12.2 billion, an increase of $1.3 billion or 11.9 percent compared to 2014, and $1.29 billion or 49.5 percent above the previous quarter. Net fee and commission income increased by $634 million or 10.8 percent year over year, primarily due to increased transaction volumes across all services, which was more pronounced in our credit card and merchant service business segments. The Group also reported increased insurance revenue of $890 million due to higher actuarial releases, due mainly to the one-time release of accumulated actuarial provisions resulting from the changes to the income tax regime for insurance companies” the report stated. The banking group further stated that “operating expenses for the twelve months ended October amounted to $20.9 billion, an increase of $1.42 billion or 7.29 percent compared to prior year. The increase in operating expenses is due primarily to the increase in the Asset Tax resulting from the adoption of IFRIC 21 Levies, as well as the increase in the rates from 0.14 percent to 0.25 percent for regulated financial institutions, except insurance companies where the increase was from 0.14 percent to 1 percent. This resulted in Asset Tax of $1.29 billion being recorded in the financial results to October 2015, compared to $484 million for October 2014, an increase of $803 million or 166 percent. Excluding the impact of Asset Tax, operating expenses would have increased by $617 million or 3.3 percent, which is consistent with the level of inflation year over year”.
Total assets increased year over year by $25.9 billion or 6.4 percent to $433 billion as at October 2015 due primarily to increases of $8.8 billion or 6 percent in Loans to $154.5 billion, increase in investment and pledged assets and $9.2 billion in other assets
The group reported earnings per share of $3.19 for the year and $1.26 for the last quarter and seems poised to generate earnings around $4 for the 2016 fiscal year.

Filed Under: Buy Rated, Company News, Company Results, Feature Stories Tagged With:

GOJ rakes in taxes hikes capital spend

December 2, 2015 by

MOFstrong>Grants expected by government was off by $3 billion to October this year but a $6.7 billion jump in tax collection more than made up for shortfall and helped deliver a budget beating performance by $3 billion.
The positives on the revenue front helped to create a smaller deficit than planned by $14 million, an improvement of 44 percent.
With the fiscal year unwinding and the revenue gains, plus cost reduction elsewhere, the Government cut the under spending on the capital front from $6.5 billion at the end of September to $3.5 billion at the end of October. Interest savings keeps on climbing and now stands at $4.6 billion up from $3.4 billion at the end of September and could well end up around $10 billion by March next year. Wages that was underspent by $3.9 billion is down to just $1.6 billion below budget.
At the end of October the fiscal was deficit was $18 billion and the primary surplus $53.77 billion versus $44.3 billion planned.

Filed Under: Economy, Feature Stories Tagged With: , , ,

J$ performed surprisingly well in November

December 1, 2015 by

1000front The Jamaican dollar closed out November almost where it opened against the US dollar, but made modest gains on the Pound and the Canadian dollar. On the last day of October, dealers sold the US dollar for an average of J$119.83 but by the end of the month it was selling for only 10 cents more at J$119.93.
The local currency did even better against the British Pound and the Canadian dollar by gaining $2.43 on the Canadian to end J$88.15 and $2.77 versus the Pound to end at J$179.81. In the foreign exchange market on the first day of December, purchasing by dealers was much less than the funds they sold, with dealers buying nearly US$10 million less than they sold. The equivalent of US$30,303,656 was purchased and the equivalent of US$40,066,275 was sold, compared with US$44,621,458 they purchased and US$41,429,650 sold on Monday.FX trade sum 1-12-15In US dollar trading , dealers bought US$26,764,918 compared to US$40,585,146 on Monday. The buying rate for the US dollar gained 1 cent to $119.26 and US$37,677,186 was sold versus US$39,341,893 on Monday, the selling rate fell 2 cents to $119.91. The Canadian dollar buying rate rose 7 cents to end at $86.88 with dealers buying C$1,576,598 and selling C$829,322, at an average rate that climbed 14 cents to $88.29 The rate for buying the British Pound declined 65 cents to $176.36 for the purchase of £1,502,604, while £1,029,169 was sold, with the rate falling 58 cents to $179.23. At the end of trading, it took J$126.67 to purchase the Euro, a fall of 43 cents from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.05 for a decline of 61 cents from Monday’s rate. The US dollar equivalent of other currencies traded, amounts to US$168,137 being bought, while US$240,286 was sold.
FX hl 1-12-15Highs & Lows| On Tuesday, the highest buying rate for the US dollar fell 15 cents to $120.10 while the lowest buying and the highest Canadian dollar gained $1.23 to end at $90.83, the lowest buying rate remained at $71.38, the highest selling rate inched up 6 cents to $92.08 and the lowest selling rate gained 50 cents to $85. The highest buying rate for the British Pound, increased by $1.02 to end at $181.42. The lowest buying rate held at $144.59, the highest selling rate dipped $1.11 to $186.39 and the lowest selling rate rose 70 cents to $173.70.

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It’s official, NCB to buy into Guardian

November 30, 2015 by

NCB Cont sprng newIt is now official National Commercial Bank (NCB) will be acquiring nearly 30 percent of Guardian Holdings subject to regulatory approvals, making them the largest shareholder in the Trinidad based company that was previously controlled by Jamaica Mutual Life.
The announcement now confirms the ICInsider.com report earlier in the year of NCB’s strong interest in the insurance group of companies. The move is in keeping with IC Insiders’ earlier understanding that both NCB and Proven Investments were targeting approximately 36 percent of Guardian, with the targets being – Tenetic Limited block of 35.84 million which, amounts to 15.46 percent of the company and Arthur Lok Jack’s direct holding of 6.29 percent or 14.59 million units. Arthur Lok Jack’s is listed as having a beneficial interest in Tenetic. Royal Insurance Trinidad holds 22.33 million units or 9.63 percent and RBC Trust T&T controls 4.99 percent or 11.57 million shares. The release from the Guardian shareholders indicates that IFC, who recently bought into Group, is one of the sellers, with no mention of RBC.
The acquisition of Guardian would be a complete reversal, returning the company to its Jamaican roots. Guardian was once majority owned by Jamaica Mutual Life, who sold out their holdings sometime before they ran into problems in Jamaica and folded. The Jamaican entities consider the company to be clean, well run and considerably undervalued. Guardian last traded in Trinidad at TT$13.90.
Guardian HoldingGuardian is primarily a Life Insurance company but also owns a general insurance arm. NCB operates the well known OMNI Life Insurance Company. Part of the likely synergy in future would be a merger of general insurance companies that both entities own, with Omni to be sold to the Life Insurance arm, resulting in economies of scale. The possibility exists that an expanded general Insurance company could be listed on the stock exchanges within the Caribbean, thus spreading the risk associated therewith. Guardian’s profit attributable to equity shareholders for the nine months to September was $235 million, down from $286 million for 2014.
Net Income from Insurance Activities grew by $80 million to $533 million from $453 million in 2014, however. Investment activities generated net income of $527 million as against $629 million in 2014, a result significantly affected by the fair value losses of $66 million (2014 gains $27 million) that were occasioned by extreme market uncertainty during the month of September. IC Insider estimates that NCB could see profits rising around 40 cents per share for the 2016 financial year if the deal is finalized soon and on the assumption that the price is around the last traded price of the stock.

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Juniors make strong recovery on Friday

November 27, 2015 by

Knutsford closed at a new high of $9 on Friday

Knutsford closed at a new high of $9 on Friday

The junior market recovered sharply from losses with 19 active securities out of 27 listings on Friday. Trading ended with 9 stocks advancing and 4 the declined. A total of 4,447,873 units, valued at $17,215,047 changed hands. Trading ended with a 2 percent or 34.09 points rise in the index to 1,626.01. The market ended with 4 new 52 weeks’ closing highs.
Only 2 securities ended with no bids to buy and 7 had no stocks being offered for sale. A total of 4 stocks closed with bids higher than the last traded prices and none closed with lower offers.
In trading, Access Financial Services traded 249 units with the price rising 7 cents to $13.57, AMG Packaging closed at $6 with 1,458 units changing hands, Blue Power rose by 1 cent and closed with 10,265 units trading, C2W Music ended with 61,000 units changing hands at 38 cents. Caribbean Cream had 87,000 units changing hands but lost 10 cents, to end at $4.40, Caribbean Flavours in trading 7,426 units and ended at $6.57, Caribbean Producers gained 35 cents in trading 462,506 units to end at $5.80 for a 52 weeks’ closing high, Consolidated Bakeries fell 10 cents trading 19,736 shares at $1.30. Dolphin Cove ended with 128,900 units changing hands with a $1 gain to $16, General Accident ended with 699,239 shares changing hands and closed at $2 after declining by 19 cents, Honey Bun with 1,000 shares changing hands, closed with a gain of 15 cents at $5.65 for a new 52 weeks’ high. Jamaican Teas gained 5 cents with 3,000 shares trading at a 52 weeks’ closing high of $5, JM - Trade 27-11-15 KLE Group ended with 30,000 units with a loss of 10 cents at 70 cents, Knutsford Express jumped $1 in trading 30,000 units at $9 for a 52 weeks’ high. Lasco Distributors closed with 1,135,443 shares changing hands, to end with a rise of 5 cents at $4.05, Lasco Financial ended at $3, with 1,124,054 shares changing hands. Lasco Manufacturing rose 16 cents to $3.71 with 651,985 shares trading, Sweet River Abattoir traded just 612 units at $3.95 and Derrimon Trading preference share ended with 3,500 trading at $2.20.

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Bulls take charge of JSE on Thursday

November 26, 2015 by

Jamaica Producers closed at a new 52 weeks' high of $31 on Thursday.

Jamaica Producers closed at a new 52 weeks’ high of $31 on Thursday.

The Jamaica Stock Exchange main market suffered another day of reversal in the indices on Thursday, even as more stocks gained than declined. The market closed with a volume of 10,536,571 units valued at $65,677,281 changing hands, in all market segments.
Activity took place in 42 securities, leading to 22 securities rising and 10 declining with 4 stocks ending at 52 weeks’ closing highs and one stock closed at a 52 weeks’ low. The JSE Market Index rose 1,159.84 points to 141,106.63, the all Jamaica Composite Index climbed 1,296.19 points to end at 156,650.91 and the JSE combined index gained 1,523.05 points to end at 147,440.90.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 8 stocks with bids higher than their last selling prices and 7 with lower offers.
In trading, Cable and Wireless closed with 1,296,078 units changing hands at $1.42 and gained of 2 cents, Caribbean Cement climbed $1 to $19 with 250,137 shares changing hands, JSE sum 26-11-15 Carreras fell $3.90 to close at $55.10 with 5,319 units trading, Ciboney did not traded but had a bid to buy 400,000 at 17 cents and just below that are bids to buy 1.9 million units at 16 cents. Desnoes & Geddes ended with 67,000 shares trading at $30, Gleaner traded 105,270 units at $1.94, Jamaica Broilers traded 1,102,100 shares to close at $8.60. Grace kenned traded 70,834 units 40 cents higher at $75.50, Jamaica Producers jumped $2 while trading 8,779 shares to end at $31 for a 52 weeks’ high, The Jamaica Stock Exchange had 43,000 shares changing hands but fell 13 cents, to end at $13.15, JMMB Group rose 5 cents while trading 161,362 shares to close at $10.25. Kingston Wharves ended with 11,638 shares changing hands at $11.47, Mayberry Investments closed with 21,830 units trading with a gain of 50 cents and ended at $4.50, National Commercial Bank closed with a rise of 18 cent as 105,002 shares changed hands to end at $37.19. Pan Jamaican Investments dropped $5 to end at $90 with 6,531 units changing hands. Pulse Investments traded 20,000 shares and ended at $3 after falling 65 cents, Radio Jamaica ended at a 52 weeks’ high of $5.50, after rising 43 cents, with 11,610 units changing hands, Sagicor Group rose 20 cents in trading 239,919 units to end at $16.70. JSE Fn Qts 26-11-15 Scotia Group had 9,055 shares changing hands and closed with a rise of 65 cents at $27, Scotia Investments jumped $5.50 to $33.50 but with only 1,000 units changing hands, Supreme Ventures had 29,320 units changing hands but the price slipped 19 cents to $4.70. Proven Investments ended at 22.9 US cents with 108,528 changing hands, Jamaica Money Market Brokers 8.50% preference share traded 107,067 units with the price jumping $1.01 to end at $4.50 and Jamaica Money Market Brokers 8.75% preference share, traded 89,000 units at $2.65.

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Juniors recover sharply on Thursday

November 26, 2015 by

Jamaican Teas ended at a 52 weeks closing high on Thursday

Jamaican Teas ended at a 52 weeks closing high on Thursday

The junior market recovered sharply from losses with 14 active securities on Thursday, 9 of which advanced and 2 declined as most of the profit taking seems to be coming to an end. A total of 1,964,533 units, valued at $8,232,518 changed hands. Trading ended with a 3 percent or 47.93 points rise in the index to 1,591.92. The market ended with 2 new 52 weeks’ closing highs.
Only 2 securities ended with no bids to buy and 9 had no stocks being offered for sale. A total of 5 stocks closed with bids higher than the last traded prices and 3 closed with lower offers.
In trading, Access Financial Services traded 6,250 units, with the price rising $1 to $13.50, C2W Music ended up with 3,083 units changing hands with a gain of 1 cent to 38 cents, Caribbean Cream had 8,000 units changing hands and recovered 20 cents, to end at $4.50, Caribbean Flavours in trading 5,000 units ended at $6.57. Caribbean Producers gained 45 cents in trading 328,400 units to end at $5.45, Derrimon Trading ended with 25,700 units changing hands with a 5 cents loss to $3.45, General Accident ended with 12,900 shares changing hands and closed at $2.19 after rising 29 cents but was offered at $2 at the close.JM - Trade 26-11-15 Honey Bun with 15,512 shares changing hands, closed with a gain of 50 cents at $5.50 for a new 52 weeks’ high, Jamaican Teas had 10,700 shares trading at a 52 weeks’ closing high of $4.95, after rising by 30 cents, Knutsford Express lost 20 cents in trading 1,900 units at $8. Lasco Distributors closed with 641,324 shares changing hands, to end with a rise of 10 cents at $4, Lasco Financial ended at $3, with 465,338 shares changing hands. Lasco Manufacturing closed with a decline of 16 cents to $3.55 with 255,274 shares trading and Eppley 2019 Preference Share ended with 190,000 units changing hands with a gain of 1 cents to $6.08.

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