JSE main market falls – Thursday

Scotiabank dropped $4.90 and helped put a sharp dent in the indices on Thursday.

The main market of the Jamaica Stock Exchange indices suffering a big fall at the close on Thursday on limited volume. The All Jamaica Composite Index declined by 3,472.85 points to close at 285,659.32, the JSE Market Index fell 3,164.16 points to 260,267.95 and the JSE US dollar market index was down 0.45 points to 191.30.
Big players in the days loss are Caribbean Cement falling $2.20, Carreras down $1.20, Scotia Group with a fall of $4.90 while a big jump of $3.50 in PanJam Investment and $1 in JMMB Group, helped to alleviate the pain.
At the close of trading, 25 securities changed hands in the main market with 3 trading in the US dollar market, leading to 9 stocks advancing and 10 declining. The main market ended with 3,004,551 units valued at $33,829,615 changing hands compared to 1,826,710 units valued at $21,069,859 at the close on Wednesday. Trading in the US dollar market accounted for 25,780 units valued at US$12,873 bringing the total of all trades to J$35,516,032.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 1 with lower offers.
The main market ended trading with an average of 120,182 units for an average of $1,353,185 for each security traded compared to an average of 91,336 units valued at $1,053,493. The average volume and value for the month to date ended at $311,195 units with an average value of $3,032,711 compared with an average of 324,839 units with an average value of $3,144,679 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.

NCB Capital assesses JSE market

The stock market continued its upward trajectory in 2017. Year to date, market performance has been significantly stronger than 2016 with the Main Market Index returning 32.94 percent as at August 2017 compared to 6.43 percent for the corresponding period last year.
The Combined, returned 31.2 percent, Junior Market 19.48 percent and All Jamaica Composite Index and 33.6 percent, for the calendar year to August 31, 2017 relative to increases of 8.4 percent, 23.78 percent and 6.6 percent, respectively for the 2016 corresponding period.
Improvement in Jamaica’s macroeconomic fundamentals have boosted business confidence and contributed to a positive outlook for corporate earnings. In addition, increased investor confidence and appetite for riskier assets continue to drive market activity despite the run up in prices.
Stock price appreciation was broad-based with the strongest performers being in the main sectors of manufacturing, financial services and conglomerates. In particular, the manufacturing and financial sectors accounted for six of the top ten advancing stocks during the period. Financials continue to churn out positive earnings on the backdrop of significant growth in private sector credit.

NCB Financial Group profit surged in 2017, helping with other financial stocks to push the JSE higher.

The annual growth in private sector credit at end-February 2017 was 30.7 percent, which was stronger than the expansion of 10 percent in February 2016. Financials have been successful in weathering the low interest rate environment as margins have generally remained stable and fee income growth has been robust. Furthermore, low rates have helped to drive loan portfolio growth while fees and commission income have played a major role in income diversification. The manufacturing sector experienced some expansion buoyed by strong local demand for consumer products and growing export markets in the Food and Beverages segment. Additionally, Jamaican dollar appreciation within the earlier part of Q1 supported the performance of firms with a more concentrated focus on domestic operations. Of note inflation has remained subdued which has also assisted in increasing efficiency and improving margins.
While economic growth outturn was flat during the first quarter of the year, macroeconomic conditions remain stable and augers well for business operating environment. Against this background, the market should see improved activity and an uptick in the number of listed firms aided by the reinstatement of the Junior Market incentives in the last quarter of 2016.

The above is an extract  from The NCB Capital Markets’ September 2017 stock market recommendations.

JSE rise on modest trading – Wednesday

Carreras jumped to a record close of $12.

In modest trading on the Jamaica Stock Exchange on Wednesday, the prices of 10 stocks rose and 5 fell in the main and US dollar markets, leading to gains in the main market indices, the third consecutive day of increase.
Cigarette distributor, Carreras fresh from a 10 for 1 stock split, traded at a new 52 weeks’ high of $12 at the close while JMMB Group hit an intraday 52 weeks’ high of $23.70 before pulling back to $22 by the close as supply to sell is very limited and should pave the way for upward push in the price in the days or weeks ahead.
At the close of market activity, Berger Paints closed at $11, the last price the stock traded at, after hitting a high of $12.20 and ending with 129,140 shares changing hands. Cable and Wireless gained 5 cents to close at $1.10 with 111,500 units, Carreras closed at a record $12, after gaining 50 cents with 1,134,465 shares, Grace Kennedy advanced $1, settling at $43.01 with 4,332 units. Jamaica Broilers lost 29 cents and closed at $15.75, with 12,130 shares, Jamaica Producers lost 1 cent, closing at $15 in exchanging 18,700 stock units, Jamaica Stock Exchange rose 10 cents to $6.45 with 1,000 units, JMMB Group closed at $22, after gaining $1 and trading 20,959 shares. Kingston Wharves dropped $2.50 to close at $29.50 with 1,000 units having been exchanged, NCB Financial Group traded 99 cents lower to $88.99 with 34,831 shares. PanJam Investment remained at $35.50 with trades of 2,100 units, Pulse Investments closed at $1.42, gaining 2 cents with 183,000 shares, Radio Jamaica with gains of 6 cents, closed at $1.11, in trading 11,000 stock units, Sagicor Group added 2 cents, ending at $34.52 with 8,333 units changing hands, Salada Foods traded 88,783 shares at $8, Scotia Group closed at $51, exchanging 16,194 units, Seprod added $1 to close at $34 with 1,500 shares, Supreme Ventures closed 15 cents lower to $10.85 in exchanging 3,703 units. Productive Business Solution US ordinary shares closed at 65 US cents, trading 540 units, Proven Investments US ordinary shares traded 397 units at 23.99 US cents, JMMB Group 7.5% preference share closed at $1.19, gaining 4 cents with 26,540 stock units and Proven 8.25% cumulative preference share closed at $5.50 with 17,500 units.

Recovery continues on JSE – Wednesday

JMMB Group traded at an intraday 52 weeks’ high of $23.70.

Activity on the Jamaica Stock Exchange was tepid on Wednesday, with only $21 million of trade taking place. At the close of trading, 20 securities changed hands in the main market with 2 trading in the US dollar market.
Trading closed with the prices of 10 stocks advancing and 5 declining in the main and US dollar markets leading to the third consecutive days of increase after the main market plunged sharply on Friday. Carreras fresh from a 10 for 1 stock split, traded at a new 52 weeks’ high of $12 at the close, while JMMB Group hit an intraday 52 weeks’ high of $23.70, before pulling back to $22 by the close, as supply to sell is very limited and should pave the way for an upward push in the price, in the days or weeks ahead.
The All Jamaica Composite Index advanced 510.79 points to close at 289,132.17, to sit just below resistance at 290,000 points. The JSE Market Index gained 465.38 points to 263,432.11 and the JSE US dollar market index closed unchanged at 191.75.
The main market ended with 1,826,710 units valued at $21,069,859 changing hands compared to 5,755,768 units valued at $88,334,159 at the close on Tuesday. Trading in the US dollar market accounted for 937 units valued at US$446 bringing the total of all trades to only J$21,128,316.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading is slightly biased to the upside, suggesting that rising prices should have the upper hand over declining ones on Thursday, with 9 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 91,336 units for an average of $1,053,493 in contrast to 230,231 units for an average of $3,533,366. The average volume and value for the month to date ended at $324,839 units with an average value of $3,144,679 compared with an average of 342,801 units with an average value of $3,294,050 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.

TTSE stocks continue to be weak

Unilever products – Unilever Caribbean tumbled $1.11 to a 52 weeks’ low of $49.39 with 5,070 shares

Reflecting a general weakness in the performance of stocks listed on the Trinidad & Tobago Stock Exchange ,the market closed trading on Wednesday with more securities falling in price than those rising and with three falling to 52 weeks’ lows.
Trading ended with 17 securities changing hands compared to 13 on Tuesday but trading levels fell by more than half with market activity resulted in 142,022 shares traded for $2,320,841 compared to Tuesday’s trades of 367,871 units valued at $5,030,961.
The two major indices recorded declines for a 4 consecutive day as, 5 stocks advanced, 7 declined and 5 were unchanged, based on the last price each security traded for the day. The Composite Index declined 0.85 points to 1,242.56, the All T&T Index dropped 2.46 points to 1,787.85 and the Cross Listed Index added 0.11 points to close at 93.65.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 6 stocks with bids higher than last selling prices and 4 with lower offers.
Gains| The last traded prices of the securities rising and the volume changing hands are Angostura Holdings with gains of 10 cents, closed at $15.25 with 600 units, First Citizens rising 1 cent, to $32.01 with 1,000 units,NCB Financial that traded 4 cents higher to $5.15 with 266 units while Trinidad & Tobago NGL rose 2 cents and closed at $23 with 7,037 shares and Trinidad Cement closed at $4.21, after adding 1 cent with 6,131 shares.
Losses| The last traded prices of securities declining and the volume changing hands are Guardian Holdings that ended with a loss of 50 cents, closing at $15.50 with 2,281 shares, National Enterprises closed at $10.47, losing 1 cent in exchanging 10,000 shares, Republic Financial Holdings ended with a loss of 1 cent at a 52 weeks’ low of $101.90 trading 3,633 shares valued at $370,227. Sagicor Financial declined 19 cents to close at $8 with 61,940 shares valued at $495,610, Scotiabank lost 2 cents, closing at $58 with 34 units, Unilever Caribbean tumbled $1.11 to a 52 weeks’ low of $49.39 with 5,070 shares and West Indian Tobacco closed 46 cents lower to a 52 weeks’ low of $125 with 62 units.
Firm Trades| The last traded prices of securities and the volume traded unchanged at the close of trading are Clico Investment exchanged 4,400 shares at $20.77, Massy Holdings closed at $49 with 10,780 shares valued at $528,220 and National Flour Mills traded 16,460 shares at $2. One Caribbean Media exchanged 11,980 shares at $14.25 nd Point Lisas remained at $4 with 348 units.

Junior Market drops 2%

Trading ended on the Junior Market of the Jamaica Stock Exchange Wednesday with 19 securities changing hands, resulting in an exchange of 852,002 units valued at $3,622,384 compared to 2,266,563 units valued at $14,319,936 on Tuesday.
The Junior Market Index declined by whopping 61.17 points to close at 3,000.77. At the close of market activities, the prices of 2 advanced, 11 declined and 6 remained with the prices unchanged, all being based on the last prices at which securities were traded.
Trading ended with an average of 44,842 units for an average of $190,652 in contrast to 98,546 units for an average of $622,606 on Tuesday. The average volume and value for the month to date amounts to 144,864 units valued at $646,228 and 152,558 units at an average value of $681,272, previously. In contrast, August closed with average of 234,437 units valued at $1,295,260 for each security traded.
Trading ended with the market sentiments looking negative and having implications for the upcoming trading day’s activity as 2 stocks ended with bids higher than their last selling prices and 5 with lower offers.
At the close of the market the volume of stocks changing hands and their last traded price are: Access Financial concluding dropping $6.50 to $40, with 500 shares, AMG Packaging finishing 15 cents higher at $3.15, with 10,500 units. Cargo Handlers finished with a loss of 10 cents at $11.10, with 8,973 stock units, Caribbean Cream concluded trading with a loss of 40 cents at $5.90, with 3,993 shares changing hands, Caribbean Producers settled with a loss of 10 cents at $3.80, with 91,286 units, Consolidated Bakeries settled at $2.40, with 3,451 shares, Express Catering finished with a loss of 30 cents at $4.20, with 35,132 units, Eppley ended at $12, with 1,000 shares, General Accident closed with a loss of 30 cents at $2.70, with 14,000 units, Honey Bun settled at $4.05, with 2,700 units, Jamaican Teas fell 40 cents to $3.80, with 98,851 stocks trading, Jetcon Corporation concluded trading at $4.50, with 53,199 shares, Lasco Distributors lost 1 cent to close at $6.79, with 22,960 units, Lasco Financial settled with a loss of 4 cents at $3.95, with 302,760 stocks trading, Lasco Manufacturing concluded market activity 5 cents higher at $4.05, with 106,700 shares, Medical Disposables settled with a loss of 20 cents at $4.80, with 33,000 shares, Main Event ended with a loss of 34 cents at $5.28, with 2,348 stock units, Stationery and Office concluded trading at $4.75, with 60,391 shares and tTech settled at $7.55, with just 258 shares.

NCB Capital stock talk

NCB Capital Markets (NCBCM) recommends that investors maintain focus on stocks of companies with diversified revenue streams by operations, geography and currency in its latest recommendations on the Jamaican stock market.
According to the brokerage house, main market companies tend to have more mature operations, stronger fundamentals and are likely to pay more attractive dividends for investors heavily dependent on cash flows. This should form the core of a moderate investor’s equity portfolio. Investors with the appropriate risk appetite should also take a closer look at some Junior Market stocks given that the potential for growth is greater than their main market counterparts. More aggressive investors should also consider taking an active approach to stock market investing by crystalizing gains on stocks that are trading above their fair value estimates, with a view to re-enter at more favourable prices in the near term.

Jamaica Broilers is a recommended buy by NCBCM

Interestingly, there are only three stocks recommended as buys, with six stocks placed on the sell list.
NCBCM recommends investors buy Jamaica Broiler with a forward price of $24, JMMB Group with a forward price of $23.80 and PanJam Investment with a forward price of $43.63.
The brokerage house is recommending selling Caribbean Cement, based on their assessment that the fair value price for the cement producer is $29.92 which is below the current price of $29.99, also on the sell list is Honey Bun, that they are saying that the PE ratio and price to book multiples for Junior Market manufacturing companies were used to derive a fair value estimate of HONBUN with a forward price of $3.70. Jamaica Producers is on the sell list as well with a forward price of $12.99 based on a price to book valuation, Mayberry Investments’ forward price is put at $3.95 and therefore a sell NCBCM says. The fair value of Scotia Group is estimated at $46.48, which is below the current price. The projected dividend yield of 3.5% is not sufficient to offset expected capital loss the NCB Financial brokerage arm says.

Scotiabank is a recommended sell by NCBCM

Stocks that are recommended as holds are Carreras based on the justified P/E and Dividend Discount Model resulted in valuation for Carreras up to $113.91 per share. Kingston Wharves forward price is $29.24, close to existing market price and Sagicor Group with fair value estimate of $34.21.
Ratings Definitions| BUY: The company has sound or improving fundamentals that should allow it to outperform the broader market over the next 12 months. The risk factors to achieving price targets are minimal.
HOLD: We believe the stock is fairly valued at the current price. The company may have issues affecting fundamentals that could take some time to resolve. The risk factors to achieving price targets are moderate. Some volatility is expected.
SELL: The stock is overpriced relative to the soundness of the company’s fundamentals and long-term prospects or the stock is fully priced.

Berger investors rebuffing Ansa offer

Berger Paints traded at a high as $11.55 on Tuesday.

The main market of the Jamaica Stock Exchange closed trading with 25 securities changed hands, with declining stocks just edging out advancing ones, while 3 stocks traded in the US dollar market.
The market closed with 9 stocks advancing and 11 declining based on the price the trade took place.
Some noted trades include Berger Paints that continues to trade above the price on $10.88 offered by Ansa Coatings to acquire the minority holdings. Investors continue to rebuff the offer by buying the stock at the close at $11 with 153,142 shares changing hands, up to $11.55 and a low of $10.85. The stock closed with a bid to buy 103,462 units at $11 and just 2,935 units offered at $11.70 and few shares offered close to this range.
Some other trades of note are Jamaica Producers 4 million unit trade with the price dropping nearly $1 and a $3.75 jump in the price of Seprod.
At the close of market activity, Barita Investments traded at $8.15, having lost 85 cents with 4,900 units, Cable and Wireless lost 3 cents to close at $1.05 with 18,708 shares, Caribbean Cement traded $2 lower to $28 with only 240 units, Carreras closed at record high of $11.50, gaining 25 cents with 223,703 shares trading, Grace Kennedy fell 99 cents and settled at $42.01 with 11,117 shares. Jamaica Broilers closed at $16.04, losing 86 cents with just 200 units, Jamaica Producers dropped 99 cents to $15.01 exchanging 4,075,641 shares, Jamaica Stock Exchange ended with a loss of 65 cents at $6.35 with 5,000 units, JMMB Group closed at $21 trading 14,000 shares. Kingston Properties closed at $7 with 598,296 shares changing hands, Kingston Wharves exchanged 1,500 units at $32, Mayberry Investments gained 20 cents, closing at $4.70 with 11,020 shares, NCB Financial Group traded 98 cents higher to $89.98 with 42,825 shares, 1834 Investments rose 10 cents and closed at $1.40 with 3,480 units. PanJam Investment gained $1.43, closing at $35.50 with 103,000 shares, Pulse Investments closed at $1.40, losing 30 cents with 58,680 shares trading, after the company released audited accounts showing lower profit in 2017 than in 2016, due mainly to the treatment of taxation. Sagicor Group closed with gains of 50 cents at $34.50 trading 8,700 shares, Sagicor Real Estate Fund closed at $11, after gaining 38 cents with 2,747 units, Salada Foods fell 50 cents, trading at $8 with 9,000 shares, Scotia Group closed $1 higher to $51 exchanging 147,026 shares, Seprod advanced $3.75 to $33 with 16,309 shares, Supreme Ventures closed 10 cents lower to $11 exchanging 145,884 shares. Productive Business Solution US ordinary share closed at 65 US cents trading 48,360 units, Proven Investments US ordinary share traded 27,635 units at 24 US cents, JMMB Group US 6% preference share exchanged 8,617 units at US$1.12, Jamaica Money Market Brokers 7.25% preference share closed at $2.50 with 650 units and JMMB Group 7.5% preference share lost 4 cents, closing at $1.15 with 100,000 units.

Junior Market trading rise index down

Trading on the Junior Market of the Jamaica Stock Exchange ended on Tuesday with 23 securities changing hands, resulting in an exchange of 2,266,563 units valued at $14,319,936 compared to only 807,449 units valued at $4,046,825 on Monday.
At the close, the Junior Market Index declined by 7.96 points to close at 3,061.94 even as the prices of 9 advanced, 7 declined and 6 remained unchanged at the last prices all stocks were traded.
Trading ended with an average of 98,546 units for an average of $622,606 in contrast to 50,466 units for an average of $252,927 on Monday. The average volume and value for the month to date amounts to 152,558 units, valued at $681,272 and 157,059 units valued at an average of $686,161, previously. In contrast, August closed with average of 234,437 units valued at $1,295,260 for each security traded.
Trading ended with the market sentiments looking mixed for tomorrow’s trading activity as 4 stocks ended with bids higher than their last selling prices and 3 with lower offers.
At the close of the market the volume of stocks changing hands and their last traded price are: Blue Power traded at $45, with 3,000 stocks changing hands, CAC 2000 ended with a loss of 5 cents at $7.35, with 100 units, Caribbean Cream finished with a loss of 20 cents at $6.30, with 1,400 shares, Cargo Handlers closed 20 cents higher at $11.20, with 3,042 units, Caribbean Producers rose 10 cents to $3.90, with 2,000 stock units. Consolidated Bakeries concluded trading 10 cents higher to $2.40, with 12,549 units, Derrimon Trading closed at $8.90, with 5,000 stocks trading, Express Catering concluded trading 40 cents higher at $4.50, with 48,077 units, General Accident settled at $3, with 13,955 units, Honey Bun closed 15 cents higher at $4.05, with 3,005 stocks, Iron Rock traded at $2.80, with 5,019 units. Jamaican Teas finished at $4.20, with 13,087 units, Jetcon Corporation traded 22 cents higher at $4.50, with 110,977 shares, Knutsford Express ended with a loss of 40 cents at $14.50, with 19,271 stocks, Key Insurance finished 25 cents higher at $4, with 10,000 shares. KLE Group rose 2 cents to $2.96, with 70,600 units, Lasco Distributors concluded trading with a rise of 20 cents to $6.80, with 1,700,000 shares, Lasco Financial settled at $3.99, with 7,803 units, Lasco Manufacturing traded with a loss of 20 cents at $4, while trading 59,908 shares. Main Event closed with a loss of 13 cents at $5.62, with 9,404 units, Paramount Trading fell 20 cents to $2.70, with 10,850 stock units, Stationery and Office settled with a loss of 10 cents at $4.75, with 156,871 units and Eppley 9.5 percent preference share settled at $7.25, with 645 stock units.

More recovery for JSE – Tuesday

Seprod shares jumped $3.75 on Tuesday.

Trading picked up on the main market stocks of the Jamaica Stock Exchange on Tuesday over Monday’s low level and the market indices made strong gains, continuing the recovery from last week’s steep fall and adding to Monday’s gains.
At the close the All Jamaica Composite Index advanced 4,308.59 points to close at 288,621.38, the JSE Market Index gained 3,925.61 points to 262,966.73 while the JSE US dollar market index inched higher by just 0.47 points to 191.75.
At the close of trading, 25 securities changed hands in the main market with 3 trading in the US dollar market, leading to 9 stocks advancing and 11 declining. The main market ended with 5,755,768 units valued at $88,334,159 changing hands compared to 4,567,079 units valued at $32,966,262 at the close on Monday. Trading in the US dollar market accounted for 84,612 units valued at US$47,715 bringing the total of all trades to J$94,584,782.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows a fairly strong at 8 stocks with bids higher than their last selling prices and none with a lower offer.
The main market ended trading with an average of 230,231 units for an average of $3,533,366 for each security traded compared to an average of 182,683 units valued at $1,318,651. The average volume and value for the month to date ended at $340,965 units with an average value of $3,892,714 compared with an average of 352,182 units with an average value of $3,275,641 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
At the close Carreras rose to a new 52 weeks’ high of $11.50 after the 10 to 1 stock took effect on the market on Monday and Seprod jumped $3.75 to $33 while Scotia Group closed at $51.