JSE Q2 profit jumps 41% one to watch

A sharp fall of exchange operations revenues of $92 million for the half year to June saw results for the segment falling $110 million to $41 million but a 41 percent rise in Depository services revenues to $156 million and Trustee Services of 20 percent to $137 million resulted in the segments’ profit rising by 83 percent and 17 percent to $82 million and $75 million respectively.
The improved performance in the newer services of the Jamaica Stock Exchange saw second quarter results increasing over the performance of the first quarter with a rise of 41 percent in profit after tax compared to a decline in the first quarter versus the strong 2016 first quarter. The gains in the June quarter reduced the fall in profits for the by percent to $102 million, compared with the corresponding financial period last year of $158 million. The six months performance resulted in earnings per share of 15 cents, the June quarter returned 6 cents per share.
Total Expenses grew 19 percent over the 2016 quarter to $174 million and 13 percent for the six months to $330 million. Major increases were experienced in professional fees which included cost for defending claims against an employee and advertising and marketing.
“It is expected that for the remaining quarters there will be more companies listing their securities on the exchange and a positive movement in fee income due to the expected increase in trustee Services clientele,” the chairman, Ian McNaughton and Managing Director Marlene Street Forrest stated in a release to shareholders accompanying the financials.
The balance sheet shows assets of $1.24 billion, cash funds of $517 million and stockholder’s equity of $891 million.
IC insider.com is forecasting earnings per share of 35 cents for 2017. The stock last traded on the Market of the Jamaica Stock Exchange at $6.

Massive demand for Express Catering

Gary Peart of Mayberry,King of the the IPO market.

Trading on the Junior Market picked up sharply on Friday as the newly listed Express Catering started trading but hardly contributed to the level of trading with supply being low and demand overwhelming, that would have resulted in the price reaching $3, if the circuit breaker did not prevent it.
By the close there were more than 7.64 million units on the bid for Express Catering, ranging from $2.20 to a high of $3.15, which were all cancelled, in addition, those between $2.01 up to $2. The official position at the close was the highest bid of $2 with interest to buy 1.045 million units, the stock can trade at $2.60 maximum on Monday, which is 30 percent higher than the bid of $2.
Trading was dominated by Caribbean Flavours with 1.4 million units, Jetcon Corporation with over 600,000 shares and Lasco Manufacturing with nearly 2.3 million shares. In the end the, 8,428,003 shares valued at $32,387,101 traded with the new listing accounting for just 100 units at $1.74 to record a gain of 24 cents on the initial public issue price. In contrast, on Thursday, only 565,346 shares valued at $3,255,463 traded. At the close, the market index rose 15.05 points to 2,956.28
At the close 20 securities traded, down from 21 on Thursday with 8 stocks gaining and 1 declining. Trading closed with 4 stocks having a higher bids than the last traded price and 2 closing with lower offers.
The Junior Market ended trading with an average of just 421,400 units for an average value of $1,619,355 compared to 26,921 units for an average value of $155,022 on Thursday. The average volume and value for the month to date amounts to 74,208 units valued at $366,206 compared 51,062 units valued at $282,663 previously. In contrast, June closed with averages of 395,969 units valued at $1,799,200 for each security traded.
At the close of the market, Access Financial Services added 49 cents to close at $46.50 in trading traded 413 units AMG Packaging gained 40 cents to close at $3.50 with 8,000 units changing hands, CAC 2000 rose just 1 cents with 36,639 shares trading to end at $6.71, Cargo Handlers ended trading 1,312 shares to close at $13.75, Caribbean Cream closed trading with 35,000 units at $5, Caribbean Flavours traded 1,400,000 units to end at $12, Caribbean Producers lost 10 cents and closed trading with 15,936 units, at $3.30, Derrimon Trading ended at $8 with 10,404 shares changing hands, Dolphin Cove ended at $17.50 with 1,000 shares changing hands, Eppley jumped $1.15 and closed trading with 3.481 shares at $12.95, General Accident lost 2 cents and closed trading with 9,637 shares to end at $2.70, ISP Finance jumped $3 and closed with 5,858 units changing hands at $14, Jetcon Corporation traded 635,488 shares to end at $4.54, Key Insurance ended at $3.05 with 12,101 shares changing hands, Knutsford Express traded 11,540 shares to end at $14, Lasco Distributors closed 6 cents higher at $6.31 after trading 128,623 units, Lasco Financial ended with 15,048 shares changing hands at $3.55, Lasco Manufacturing gained 20 cents and ended with 2,260,729 shares trading at $4.80, Main Event closed with 11,972 shares trading at $5.60 and strong> Medical Disposables ended at $5.50 with 6,100 units trading, Paramount Trading ended with 1,140 units changing hands at $2.75.

JSE main indices jump sharply – Friday

NCB Financial Group jumped $2.99 on Friday helping to push indices nearly 2,000 points.

Price movements of Jamaica Stock Exchange main market stocks drove the indices up sharply at the close on Friday, with a slightly negative advance decline ratio. While declining stocks  were greater than advancing ones, big gains of $2.99 in the price of NCB Financial, 4 cents in Cable & Wireless, 50 cents in Jamaica Producers and $2.05 for Pan Jam Investment, helped in pushing the overall market value higher.
A moderate trading ended, with the All Jamaica Composite Index jumped 1,880.59 points to close at 256,031.54, the JSE Market Index climbed 1,713.43 points to 233,273.75 and the JSE US dollar market index inched higher by 0.32 points to close at 188.43.
At the close of trading, 23 securities changed hands in the main market with 2 trading in the US dollar market, leading to 10 stocks advancing and 11 declining. The main market ended with 1,934,322 units valued at $34,659,775 changing hands compared to 1,519,865 units valued at $35,445,679 at the close on Thursday. Trading in the US dollar market accounted for 40,774 units valued at US$15,747 bringing the total of all trades to J$36,681,675.
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 6 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 84,101 units valued at $1,506,947 for each security traded compared to an average of 58,456 units valued at $1,363,295. The average volume and value for the month to date ended at 118,550 units with an average value of $2,611,033 compared with an average of 121,011 units with an average value of $2,689,896 on the previously traded. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints lost $1 and closed at $15, trading 7,279 shares, Cable and Wireless gained 4 cents to close at 94 cents with 370,842 stock units traded, Caribbean Cement closed at $25.75, gaining 75 cents with an exchange of 116,583 shares, Carreras dropped $2.25 to close at $88, with 5,524 units changing hands, Grace Kennedy closed at $41.99, with a loss of 1 cent trading 3,636 shares. Jamaica Broilers closed at $18, gaining 50 cents while exchanging 12,940 shares, Jamaica Producers traded 70,303 shares at $14. Jamaica Stock Exchange closed 49 cents lower to $6, with 412,335 shares traded, JMMB Group exchanged 9,435 shares at $19.20, having gained 20 cents, Kingston Properties closed at $7.15 trading 12,526 units, Kingston Wharves declined $2 to close at $29 exchanging 15,846 units. NCB Financial Group jumped $2.99 to close at $75, after exchanging 45,368 shares, 1834 Investments traded 78,774 shares at $1.35, PanJam Investment closed at $32.50, gaining $2.05 with a turnover of 20,647 shares, Proven Investments added 2 cents to close at $24.67 exchanging 34,000 shares and Pulse Investments closed at $2.49, with gains of 24 cents and 34,600 shares changing owners. Sagicor Group lost 66 cents, with an exchange of 6,200 shares, to close at $31.75, Sagicor Real Estate Fund closed at $11.20, with a loss of 70 cents and 11,000 units being switching. Scotia Group traded $1 lower to $41 with 161,924 shares traded, Seprod lost 20 cents, closing at $29.75 trading 460,673 shares, Supreme Ventures fell 20 cents to $7.50, with an exchange of 24,297 shares. Proven Investments US ordinary shares gained 0.01 US cent to close at 24 US cents trading 34,000 units, Proven 8.25% preference share closed at $4.98, losing 2 cents with 9,700 units traded, Jamaica Money Market Brokers 7.5% preference share gained 5 cents to close at $2.10, with 9,890 units changing hands and JMMB Group US 6% preference share traded 6,774 units at US$1.12.

Falling stocks pull down T&T market

Trading on the Trinidad & Tobago Stock Exchange on Friday resulted in 10 securities changing hands compared to 14 on Thursday with 2 advancing, 5 falling and 3 remaining unchanged as 331,248 shares were exchanged at a value of $3,574,568 compared to Thursday’s trades of 657,514 valued at $3,235,396.
The Composite Index declined 0.51 points to 1,206.93, the All T&T Index fell 0.14 points to 1,789.76 and the Cross Listed Index was down 0.12 point to 83.62.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 7 stocks with bids higher than last selling prices and 3 with lower offers.
Gains| Scotia Investments gained 3 cents to close at $2.10, with 284,235 shares trading at a value of $595,318 and Trinidad & Tobago NGL closed at $21.83, with gains of 2 cents while exchanging 5,517 shares.
Losses| Clico Investment lost 1 cent to close at a 52 weeks’ low of $22.39 trading 2,548 shares, JMMB Group closed at $1.20, losing 4 cents in exchanging 709 shares, Massy Holdings lost 1 cent to close at $49.97 with 7,553 shares changing hands at a value of $377,461. National Flour Mills lost 5 cents in an exchange of 4,150 shares to close at a 52 weeks’ low of $2.15 and West Indian Tobacco closed at a 52 weeks’ low of $125.83 and losing 1 cent with 15,498 shares changing hands, valued at $1,950,113.
Firm Trades| Bourse Brazil Latin Fund remained at $8.08, with 5,000 shares trading, First Citizens traded 6,000 shares at $31.65 and Republic Financial Holdings exchanged 38 shares at $101.90.

Express Catering trading fiasco

Ian Dear, Managing Director of Express Catering

The Jamaica Stock Exchange indicated that the maximum price Express Catering could trade at on Friday was $1.86 which came about from a 15 percent average, of the price that triggered the circuit breaker which is $1.75 and the IPO price of $1.50.
Had the first trade, taken place at $1.95 it would have shut down trading in the stock for an hour, but that price would have stood, being 30 percent above the IPO price.
Regardless, investors placed a large number of bids to acquire the stock which was heavily oversubscribed, when the shares were issued to the public. The attached picture shows the bids above $2.20 at the close which are expected to be cancelled, with the closing bids limited to $2 which is the indicative starting price on Monday. That price will determine the maximum price the stock can trade at on Monday. Something must be wrong if investors can place orders into the system only to see them manually cancelled by the exchange after trading ends. This development is public relations and bad news for the exchange, but not many persons seem to care.
The circuit breaker rule put in place to try and prevent wild daily movements in a stock prices seems to have out lived its life. It is not working well with new listings as it is preventing orderly trading in most new listings in the early days of trading.

All the above orders amounting millions of shares in Express Catering will be cancelled after trading on Friday

According to an extract sent by the Jamaica Stock Exchange the Circuit Breaker Rule states that “No stock should trade +/-15% from the close price or the effective close price at the opening of the market. The effective close price is determined whenever the closing bid is greater than the close price or whenever the closing ask is less than the close price. Use the closing bid as the effective close price, if the value is greater than the close price or use the closing ask as the effective close price, if the value is less than the close price. However, during the day if the Circuit Breaker is triggered for a security, the trades at prices outside of the original prescribed band for the security will be disallowed for an hour to allow for the release of market news and a cool down period. The price of the trade that triggered the Circuit Breaker should not be +/-15% outside of the original prescribed price band. After the hour has passed the security will be released for trading within a new prescribed price band based on the new reference price, which is a simple average of the trigger price and the close price. The new reference price will be used to determine the trade range for the remainder of the day. The stock will not be allowed to trade +/- 15% of the new reference price.”
If it is were conceded that there is need for a daily price limit, the above rules have been made more complex than needs be the case. There is no logic in limiting one stock to trade at a 30 percent above the last traded price or indicative price and another to be limited to a lesser amount on the same day because an investor buys a stock at 30 percent above the prior days last price another at 15.1 percent above it which limits the trading for the rest of the day to less than 30 percent in the latter case. The new rules that were approved by the stock exchange in 2014 made no reference to a limit to the bid or offer that can be made during the day, exchange personnel have decided amongst themselves to improperly invoke the additional change that limits trading unnecessarily. The stock exchange should make good sense prevail and allow the above rules to be implemented fully as stated without the introduction of rules that the updated regulations do not include and from all indications were not signed off by the stock exchange council, went the change was submitted for approval. If that is done, it would remove the nonsense that now prevails in the Express Catering trading, with a huge line up of bids above $2 that are slated to be cancelled after trading today.

Express Catering up 50c to $2

Express Catering started trading today with 102,100 shares trading at $2 to record a 33.33 percent gain of 50 cents over the initial public issue price of $1.50, if the price is allowed to stand.
The opening price for the stock is $1.75, under the stock exchange rules, the maximum price change increase for the day is limited to 30 percent from the issue price of $1.50 or 45 cents.
On the bid are 2.33 million units ranging in price from $1.50 to $2.15 with only one offer of 26,661 units posted on the stock exchange trading platform at a price of $2.75.
The company’s shareholders sold 327.5 million shares valued at $491,250,000 just over a week ago to the public.
The stock price movement has helped the Junior Market index in adding 21.56 points to trade at 2,962.79 at 11.40am.

12 JSE stocks rise 11 fall on Thursday

Proven Investments traded the most shares on Thursday.

Trading resulted in 26 securities changing hands in the main market and 1 trading in the US dollar market, leading to 12 stocks advancing and 11 declining in both markets, as some amount of negative sentiment still hangs over the market.
The All Jamaica Composite Index declined 75.90 points to close at 254,150.95, the JSE Market Index declined 69.15 points to 231,560.32 and the JSE US dollar market index lost 0.32 points to close at 188.11.
The main market ended with 1,519,865 units valued at $35,445,679 changing hands compared to 1,667,980 units valued at $40,302,237 at the close on Wednesday. Trading in the US dollar market accounted for 930,313 units valued at US$222,773 bringing the total of all trades to J$63,960,659.
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 6 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 58,456 units valued at $1,363,295 for each security traded compared to an average of 69,499 units valued at $1,679,260. The average volume and value for the month to date ended at 121,011 units with an average value of $2,689,896 compared with an average of 125,823 units at an average value of $2,791,942 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints advanced $1.50 to close at $16 trading 600 shares, Cable and Wireless lost 4 cents, closing at 90 cents with 49,774 stock units being swapped, Caribbean Cement closed at $25,after gaining 30 cents with an exchange of 5,582 shares, Carreras traded $1.25 higher to close at $90.25, with 2,228 units changing hands, Grace Kennedy jumped $1 to close at $42, with 240,148 shares trading. Jamaica Broilers closed at $17.50, losing 50 cents in exchanging 229,322 shares, Jamaica Producers dropped 98 cents to $14 with 3,000 shares changing hands. Jamaica Stock Exchange added 39 cents to close at $6.49, trading 96,582 shares, JMMB Group exchanged 76,932 shares at $19, Kingston Properties was down 85 cents to $7.15, trading 1,400 units, Kingston Wharves gained 60 cents to close at $31 while exchanging 1,761 units. NCB Financial Group lost 49 cents to close at $72.01, after exchanging 18,521 shares, PanJam Investment closed at $30.45, after falling $2.75 with 59,375 shares trading, Proven Investments exchanged 300,000 shares at $24.65, Pulse Investments closed at $2.25, gaining 25 cents with 6,500 shares changing owners, Radio Jamaica added 2 cents, to close at $1.40, trading of 117,619 shares, Sagicor Group exchanged 35,756 shares at $32.41, having gained 91 cents, Sagicor Real Estate Fund closed at $11.90, with a loss of 10 cents and 149 units switching owners. Salada Foods traded $1 lower to $9 while exchanging 400 units, Scotia Group gained 50 cents and closed at $42 with trades of 78,658 shares, Scotia Investments lost 40 cents to close at $36 trading 76,543 units, Seprod jumped $3.43 to $29.95 trading 6,350 shares, Supreme Ventures lost 20 cents to $7.70, with 56,978 shares trading. Proven Investments US ordinary shares lost 0.01 US cent to close at 23 US cents in exchanging 930,313 units, Proven Investments 8.25% preference share closed at $5, with 11,640 units traded, Jamaica Money Market Brokers 7.5% preference share was up 5 cents to close at $2.05, with 40,000 units changing hands and JMMB Group 7.5% preference share traded 4,047 units at $1.11.

 

Junior Market falls again on Thursday

Caribbean Cream ended at a 52 weeks’ low of $5.

The Junior Market closed lower on Thursday with the market index slipping 19.82 points to 2,941.23 as 565,346 shares valued at $3,255,463 traded, versus a mere 192,720 units traded valued at $1,219,105 on Wednesday.
At the close 21 securities traded, down from 14 on Wednesday with 4 stocks gaining and 7 declining. Trading closed with 3 stocks having a higher bids than the last traded price and 3 closing with lower offers.
The Junior Market ended trading with an average of just 26,921 units for an average value of $155,022 compared to 13,766 units for an average value of $87,079 on Wednesday. The average volume and value for the month to date amounts to 51,062 units valued at $282,663 compared 52,787 units valued at $291,780 previously. In contrast, June closed with averages of 395,969 units valued at $1,799,200 for each security traded.
At the close of the market, AMG Packaging fell 65 cents to close at $3.10 with 18,689 units changing hands, Blue Power saw just 200 shares trading to end with a loss of $1 at $49, Cargo Handlers ended trading 24,500 shares to close at $13.75, Caribbean Cream closed trading with 8,000 units and fell $1.60 to end at a 52 weeks’ low of $5, Caribbean Flavours traded 2,500 units to end at $12, Caribbean Producers lost 10 cents and closed trading with 15,936 units, at $3.30. Derrimon Trading ended at $8 with 16,000 shares changing hands, Dolphin Cove ended at $17.50 with 1,900 shares changing hands, General Accident gained 2 cents and closed trading with 3,000 shares to end at $2.72, Honey Bun gained 30 cents and closed trading with 19,359 shares at $6, ISP Finance dropped $2 and closed with 31,752 units changing hands at $11, Jamaican Teas lost 20 cents and ended trading 82,972 shares at $4, Jetcon Corporation traded 266,595 shares to end at $4.54, Key Insurance ended at $3.05 with 12,101 shares changing hands, Knutsford Express traded 19,583 shares to end at $14, Lasco Distributors closed 1 cent lower at $6.25 after trading 7,138 units, Lasco Financial ended with 5,301 shares changing hands at $3.55, after rising 15 cents, Main Event rose 10 cents with 13,322 shares trading to end at $5.60, Medical Disposables ended at $5.50 with 6,100 units trading, Paramount Trading ended with 7,785 units changing hands at $2.75 and tTech traded 1,813 units to close at $10.

Falling stock prices dominate TTSE

Trading on the Trinidad & Tobago Stock Exchange on Thursday resulted in 14 securities changing hands compared to 8 on Wednesday and closed with 1 stock advancing, 5 declining and 8 remaining unchanged.
The market closed with 657,514 shares traded at a value of $3,235,396 compared to 178,897 valued at $3,598,053 on Wednesday.
The Composite Index declined 0.43 points to 1,207.44, the All T&T Index dropped 0.14 points to 1,789.90 and the Cross Listed Index was down 0.10 point to 83.74.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 5 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| Trinidad & Tobago NGL closed at $21.81, with a 1 cent gain in exchanging 11,721 shares.
Losses| JMMB Group traded at $1.24, losing 1 cent exchanging 510,115 shares valued at $629,145, Massy Holdings was down 2 cents to $49.98 with 500 units changing hands, Prestige Holdings closed 6 cents lower to a 52 weeks’ low of $10.64 trading 4,000 shares. Sagicor Financial lost 2 cents in an exchange of 4,056 shares to close at $8 and Unilever Caribbean closed at a 52 weeks’ low of $51.15, losing 10 cents with trades of 26,115 shares valued at $1,335,559.
Firm Trades| Angostura Holdings exchanged 935 units at $15.01, Ansa McAL remained at $66 trading 3,000 shares, Clico Investment closed at $22.40, with trades of 2,194 shares, First Caribbean International held firm at $7.62 exchanging 5,400 shares. First Citizens traded 10,766 shares at $31.65 valued at $340,744, Grace Kennedy closed at $2.76, with an exchange of 60,000 shares, National Enterprises closed at $10.49 trading 4,698 shares and NCB Financial Group exchanged 14,014 shares at $4.07.

Junior Market trading nosedives – Wednesday

Trading continued on a down ward path each day of the week and hit rock bottom on Wednesday as a mere 192,720 units traded on the Junior Market on Tuesday down from 401,316 units on Tuesday. Traded value declined to $1,219,105 from $2,286,974.
At the close 14 securities traded, down from 16 on Tuesday with the market index posting a loss of 9.36 points to end at 2,961.05 with no stock gaining and 6 declining.
Trading closed with 6 stocks having a higher bids than the last traded price and 5 closing with lower offers.
The Junior Market ended trading with an average of just 13,766 units for an average value of $87,079 compared to 25,082 units for an average value of $142,936 on Tuesday. The average volume and value for the month to date amounts to 52,787 units valued at $291,780 compared 55,788 units valued at $307,527 previously. In contrast, June closed with averages of 395,969 units valued at $1,799,200 for each security traded.
At the close of the market, CAC 2000 lost 3 cent to end at $6.70 with 20,000 shares trading, Consolidated Bakeries ended with 6,300 units changing hands, to close at $2.62. Derrimon Trading ended at $8 with 2,909 shares changing hands, Dolphin Cove ended at $17.50 with 2,805 shares changing hands, General Accident closed trading with 2,960 shares to end at $2.70, Honey Bun closed trading with 8,000 shares at $5.70, Jamaican Teas ended trading 28,604 shares at $4.20, Jetcon Corporation traded 13,500 shares to end at $4.54, Knutsford Express traded 23,400 shares to end at $14, after falling 50 cents, Lasco Distributors closed 11 cents lower at $6.26 after trading 598 units, Lasco Financial ended with 1,500 shares changing hands to end at $3.40, Lasco Manufacturing fell 17 cents and ended with 37526 shares trading at $4.60, Main Event ended with 46,415 shares trading to end at $5.50, Sweet River fell 1 cent and ended with 863 units changing hands at $3.50 and strong> tTech traded 300 units to close at $10.