The Jamaica Stock Exchange continues to fall following the release of first quarter results and closed trading on Wednesday. The JSE Combined Index dropped 4,941.31 points to 405,097.60, with all three markets closed for the day, with investors continuing to pull in their horns until late June or early July.
In the main market, the All Jamaican Composite Index dipped 5,169.29 points to 449,757.41. The JSE Main Index shed 4,912.09 points to close at 391,568.41, the Junior Market slipped for a fourth day by 38.57 points to 4,336.16 and the JSE USD market index dipped 0.32 points to 222.86.
Investors exchanged 18,816,440 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to $368.34 million and in the JSE USD market, US$15,594.
The market’s PE ratio ended at 25.6 based on 2021-22 earnings and 13.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Decline for JSE markets again
Two JSE markets rise one fall
The Jamaica Stock Exchange three markets enjoyed mixed fortunes at the close of trading on Wednesday, with Main and Junior Markets recording gains, but the JSE USD market slipped modestly. The JSE Combined Index rose 1,616.71 points to close at 415,445.40.
The All Jamaican Composite Index climbed 2,293.01 points to 458,821.97, the JSE Main Index rallied 1,632.06 points to end at 401,425.56, the Junior Market rose 9.99 points to 4,462.21 and the JSE USD market index lost 1.15 points to end at 223.61.
Trading ended with an exchange of 24,826,294 shares in all markets. The value of stocks traded in the Main and Junior Markets totalled $446.3 million and the JSE USD market amounts to US$363,713.
The market’s PE ratio ended at 26.6 based on 2021-22 earnings and 14.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Unemployment at record levels in Jamaica
As Jamaica’s economy continues to recover from the negative effects of Covid-19, with a sharp drop in the number of persons unemployed and the number of persons employed is 16,000 less than the previous highest previous level in January 2020, according to data released by the Statistical Institute of Jamaica (Statin)
“In January 2022, there were 1,257,100 employed persons, an increase of 57,800 or 4.8 percent over January 2021”, Statin reported. But the 2022 numbers lag that of January 2020 with 1,273 million persons employed. With a full labour force of 1.34 million only 83,000 persons were regarded as unemployed as of January, the lowest on record with an unemployment rate of 6.2 percent bettering the previous lowest rate of 7.1 percent in October last year and much better than 8.8 percent for the same quarter of 2021.
While the unemployed numbers have fallen, the number of persons in the workforce declined from 1.373 million in 2020 to 1.34 million in 2022 a drop of 39,000. The job seeking rate declined to just 3.9 percent in the latest survey down from 4.9 percent in January 2020.
The largest increase in employment by occupation group was in ‘Clerks’. There were 120,500 persons employed in the occupation group ‘Clerks’ in January 2022, increased by 22,100 or 22.5 percent compared to January 2021.
Real Estate and Other Business Services had the largest increase by industry group compared to January 2021.
There were 126,600 persons employed in this industry group in January 2022, an increase of 25,200 or 24.9 percent versus the 2021 quarter. The second highest increase was in ‘Accommodation and Food Service Activities’, which employed 13,900 more persons.
The number of persons classified as Outside the Labour Force was 755,600 in January 2022, a decrease of 22,400 or 2.9 percent from 778,000 in January 2021.
Of import, the data would have done at a period when the tourism sector was operating at around 30 percent capacity as well as some other businesses that were yet to recover fully from the decline since 2020, as such the next reading could result in another fall in the unemployment rate and a strong possibility that total employment could get to record levels.
Profit bolts 43% at Lasco Manufacturing
Profit popped 43 percent in the December quarter to $403 million at Lasco Manufacturing, from $281 million in 2020. For the nine months to December, profit climbed 16 percent to $1.19 billion from $1 billion in 2020 resulting in earnings per share of 10 cents for the quarter and 29 cents for the year to date.
Sales revenues rose 16 percent for the quarter, to $2.4 billion from $2.1 billion in 2020 and increased 14 percent for the year to date, to $7 billion from $6.2 billion in 2020.
Profit margin rose in the December quarter to 38 percent from 36 percent in 2020 and slipped from 38 percent in 2020 to 37 percent for current the year to date. The effect, gross profit rose 22 percent in the quarter to $920 million from $754 million and increased 11.7 percent for the year to date, to $2.6 billion from $2.35 billion in 2020.
Administrative and other expenses rose marginally by 4 percent to $327 million in the quarter and slipped 3 percent in the nine months to $950 million from $983 million in 2020. Finance cost declined in the quarter, to $11 million from $15 million in 2020 and from $46 million in 2020 to $40 million for the nine months. Corporate taxes jumped 45 percent to $194 million from $134 million in the 2020 December quarter and by 87 percent to $521 million for the nine months from $279 million.
Gross cash flow brought in $1.4 billion but changes in working capital, loan repayment and the paying of $300 million in dividends, moved the cash position up by $331 million and resulted in cash funds on hand at $2.2 billion.
At the end of December, shareholders’ equity stood at $8.8 billion with long term borrowings at just $8 million and short term loans at $455 million. Current assets ended the period at $6.6 billion including trade and other receivables of $2.5 billion, cash and bank balance $2.56 billion. Current liabilities ended the period at $1.95 billion. Net current assets closed out the year at $4.7 billion.
IC Insider.com forecast is for earnings of 40-45 cents per share for the fiscal year with a PE of 11 times current year’s earnings at the last traded price of $4.60 on the Junior Market of the Jamaica Stock Exchange.
ICInsider.com assigns its coveted ICBUYRATED accolade on this stock.
Gains for JSE USD Market
Trading on Thursday ended with the volume of shares changing hands rising 29 percent more with 58 percent higher value than on Wednesday, at the close of the Jamaica Stock Exchange US dollar market and resulting in the majority of stocks rising.
Trading ended with seven securities changing hands, up from four on Wednesday with prices of five rising and two declining.
The JSE US Denominated Equities Index climbed 6.32 points to 204.80. The PE Ratio, a measure used in computing appropriate stock values, averages 13.8. The PE ratio uses ICInsider.com earnings forecasts for companies with the financial year up to August 2022.
Overall, 643,585 shares traded, for US$54,243 compared to 498,081 units at US$34,261 on Wednesday. Trading averaged 91,941 units at US$7,749, compared to 124,520 shares at US$8,565 on Wednesday and month to date averages 81,988 shares at US$4,261 versus 80,405 units at US$3,706 on the previous day. January ended with an average of 91,572 units for US$7,142.
Investor’s Choice bid-offer indicator shows no stock ended with a bid higher than their last selling prices and one with a lower offer.
At the close, First Rock Capital USD share fell 0.09 of a cent to end at 6.9 US cents, with 16,345 shares clearing the market, Margaritaville popped 2 cents in closing at 24 US cents after switching ownership of one stock unit, Proven Investments advanced 0.02 of a cent in ending at 22.95 US cents exchanging 108,180 stock units. Sterling Investments shed 0.06 of a cent to close at 2.25 US cents with the swapping of 7,824 units, Sygnus Credit Investments USD share gained 0.93 of one cent to 12.93 US cents, with 15,250 units changing hands and Transjamaican Highway rose 0.05 of a cent in closing at 0.85 of one US cent after 485,400 stocks crossed the market.
In the preference segment, JMMB Group 5.75% rallied 7 cents to US$2.09 in exchanging 10,585 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Profit climbs 24% in Q2 at Wisynco
Revenues at Wisynco Group jumped 19 percent for the quarter to December to $9.5 billion above the $8 billion for the similar quarter of the previous year while for the half year revenues were up 17 percent to $18.7 billion from $16 billion in 2020.
“We have seen a continued recovery in our Revenues with all Channels increasing at vibrant levels. Exports as well for the quarter were up 103 percent over the same quarter of the prior year. Our increased efforts and focus have resulted in improved results in this area and we have noticed wider consumer acceptance for our products in these important export markets.” William Mahfood, Chairman and Andrew Mahfood, Chief Executive Officer stated in their joint report to shareholders. “Exports have moved from 3 percent of overall sales to 5 percent,” the chairman informed ICInsider.com.
Gross Profit climbed 24.3 percent for the quarter to $3.3 billion from $2.7 billion in the same quarter of the previous year while it grew 18.6 percent from $5.6 billion to $6.6 billion. Improvement in gross margin from 33.3 percent for the 2020 December quarter to 34.8 percent helped to swell the gross profit and helped to drive net profit for the quarter as well as a smaller rise in margins from 34.6 percent to 35.2 percent contributed to improved numbers for the half year and bodes well for the second half. Selling, Distribution expenses grew at a slower pace than sales revenues at 17.6 percent to $1.74 billion for the quarter and 11.4 percent for the six months to $3.39 billion from $3 billion in 2020. Administrative expenses for the quarter rose by 6 percent to $357 million from $337 million in 2020 and for the year to date, they rose 6.4 percent from $691 million to $735 million in the prior year.
Profit before Taxation surged 84.6 percent for the quarter to $1.5 billion, over the $836 million in the comparative quarter for the prior year and includes an exchange gain of $280 million compared to an exchange loss of $26 million for the 2020 quarter. Profit before taxation for the half year jumped 51.6 percent to $2.8 billion compared to $1.9 billion in the prior year.
After provision for taxes, Wisynco recorded net profits attributable to stockholders of $1.2 billion, or 31c per share for the quarter, 74 percent greater than the $688 million earned for the prior year and the six months net profit rose from $1.54 billion to $2.13 billion, with 57 cents in earnings per share.
Cash inflows from operations were $2.9 billion, up from $2.45 billion in 2020.
Shareholders’ Equity stood at $17 billion, with borrowings at $1.9 billion. Current Assets ended the quarter at $16 billion up from $13 billion the previous year and Current Liabilities stood at $5.6 billion compared to $4.6 billion at the end of 2020. Cash funds and short term investments ended the period at $9.6 billion up from $6.9 billion in 2020, Mahfood points to this amount and suggests that it is not contributing much to profits. The conclusion is that the company will be on the watch for viable acquisitions to provide a better rate of return.
The board declared an interim dividend of 20c per share, up from the 10 cents per share interim dividend declared in January 2021. The dividend will be paid on March 1, to shareholders on record on February 15. The stock trades ex-dividend February 14, 2022.
“We started to see a better turnaround in the operations from the middle of last year,” William Mahfood advised ICInsider.com. He felt that improved service to customers and increased attention paid to the cost were contributing factors as well. Mahfood indicated that January was a strong month for the group and hopes that it will carry through for the rest of the quarter. Although only around 10 percent of revenues go directly into the hotel sector, there is evidence of a strong rebound in tourism in the sector that is contributing to the resurgence in sales.
ICInsider.com projection is for earnings of $1.30 for the current year ending in June and $1.75 for the next fiscal year. The stock climbed from $17.75 before the release of the results after the market closed on Thursday to $20 at the close on Friday for a PE ratio of 15 and 11 times next year’s earnings.
Jamaica’s remittances hit US$3.5B in 2021
Total remittance inflows for December last year rose 6.7 percent to US$321.6 million compared to US$301 million generated in 2020 as total inflows for 2021 ended at $3.5 billion an increase of 20.4 percent or $600 million more than the $2.9 billion in 2020 bank of Jamaica report shows.
Total inflows are up by $1.09 billion over the inflows of $2.4 billion in 2020. The growth in the last two years has been the best since going back to 2007. The rate of increase in the last seven months of 2021 grew at an average of 9.5 percent over the same period in 2020 an indication that growth in 2022 is unlikely to be the average of 20.4 percent for 2021 or the 20.8 percent in 2020 over 2019. If the rate falls to say seven percent which is slightly above the increase in last year’s December total inflows would be in the order of $3.75 billion or $250 million more than for 2021.
More declines for Trinidad stocks
Price movements were mostly down at the close of trading on the Trinidad and Tobago Stock Exchange on Thursday as the volume of shares exchanged surged 293 percent valued 38 percent more than on Wednesday.
The number of securities traded remained 16 as was the case on Wednesday, with two rising, six declining and eight remaining unchanged. The Composite Index slipped 1.40 points to 1,515.09, the All T&T Index declined 6.39 points to end at 2,120.41 and the Cross-Listed Index rose 0.55 points to settle at 121.57.
A total of 3,682,320 shares traded for $12,609,856 up from 937,553 units at $9,155,489 on Wednesday. An average of 230,145 units traded at $788,116 compared to 58,597 shares at $572,218 on the previous day, with trading month to date, averaging 105,529 units at $707,865 versus 53,059 units at $674,075. The average trade for January amounts to 39,943 units at $369,498.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Agostini’s lost $1 to end at $45, with100 shares changing hands, Angostura Holdings ended unchanged at $19.99 with the swapping of 64 units, Ansa McAl dropped 25 cents in closing at $58.75 after ownership of 550 stock units was shifted. Clico Investment Fund remained at $29, with 256 stocks crossing the market, First Citizens Group declined $1 to $63 trading 269 units, FirstCaribbean International Bank rose 14 cents to $6.14 after 100 stocks changed hands. GraceKennedy finished at $6.10 with an exchange of 48,271 shares, Guardian Holdings shed 25 cents to close at $29.75 after 7,980 stock units cleared the market, JMMB Group ended at $2.30 after exchanging 3,381,000 units. Massy Holdings remained at $106 while exchanging 18,240 stock units, NCB Financial Group finished at $8 in swapping 186,740 stocks, One Caribbean Media rallied 10 cents to $4.20 after exchanging 20,200 shares. Republic Financial Holdings finished at $143 in an exchange of 2,128 stock units, Scotiabank ended at $72.01 after trading at 475 stocks, Trinidad & Tobago NGL fell 49 cents to $19.50 with an exchange of 300 shares and West Indian Tobacco shed 54 cents to $26.06 in trading 15,647 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.