JSE continues to lead the world

Jamaica Stock Exchange (JSE) performance continues to lead the global markets by a big margin according to data tracked by Bloomberg Business.
Last year, the JSE was rated as the best performing market in the world. The main market of the local stock exchange, grew 67.5 percent over the past twelve months the JSE index is up 38 percent for the first seven months of this year. The nearest rival is Argentina Merval TR Index, up 43 percent and 37 percent over the same periods. Brazil Ibovespa Brasil Sao Paulo Stock Exchange Index chips in at 33 percent for the last twelve months and 17 percent for 2019 to date.
The next best performance half a world away from the west, with New Zealand X20 Index coming in with 29 percent for the twelve months period and 25 percent for 2019 to date.
The data shows that the vast majority of markets are having a tough time with many of them suffering declines.

Collapse of the JSE US market

Amazingly, while the JSE main market has been recording several record highs this year and the Junior market is up more than 10 percent for the year, the US dollar market has gone in the opposite direction.
The US dollar based market index is at its lowest level since February 2010 and also at levels not seen since mid-2016, with the index closing at 139.56 on Tuesday this week.
In February 2017, Margaritaville hit a high of 37 US cents and Proven Investments reached a high of 32 US cents, both have been sliding since, and hitting a 52 weeks’ low of 15 cents recently. Interestingly, Proven, the darling of many investors in the past, had very little buying interest in recent times. Margaritaville trades at 15 US cents and have lost 60 percent from the high and Proven has fallen 53 percent. Margaritaville suffered last year from dislocation that two hurricanes had on Turks and Caicos Islands and by extension on its operations while Proven picked up losses from the revaluation of the Jamaican dollar, but should recover from it, for the current year. In addition, the company raised capital by way of a rights issue that has not been put to work to avoid a dilution in returns on investment. With the fall in the price of Proven the stock is now IC Insider.com’ TOP 10 buy listed. At the same time, that the US issue has fallen the Proven Jamaica dollar listing still has a bid for 1,830 units at J$26.50 or almost 20 US cents.
Also dragging down the market is Sterling Investments US dollar listing that have fallen from 12 US cents to 8.55 US cents.
For the fiscal year to March, Proven reported US$5.68 million or 0.94 cents per share for shareholders versus $8.85 million in 2017. $8 million of the 2017 earnings was non-recurring, coming from gain on acquisition of a subsidiary. Importantly, the company suffered from the revaluation of the Jamaican dollar in the last half of the fiscal year, resulting in a loss of $444,000 but resulted in a $3.3 million turn from gains of $2.9 million in 2017. Even without the benefit of foreign exchange gains profit from ongoing operations was up nearly 100 percent from $6.6 million to $12.6 million for the year. The first quarter results that are expected to be released next week should show recovery from the FX losses. “All our segments are doing well and this year should be our best ever” Christopher Williams, President of the Company told IC Insider.com. “We await regulatory approval for the investment brokerage company in the Cayman Island,” Williams stated.
Margaritaville reported a loss of US$88.5 thousand in the February quarter, from revenues of US$1.8 million and US$4.06 million for the nine months period that delivered profit of $147,324 versus $339,122 in 2017.

Bitcoin what is it really?

Cryptocurrencies have spawned many millionaires but most persons don’t know how they work and why the prices keep surging upwards in spectacular fashion.
Bitcoin, the most popular of the cryptocurrencies, gets huge attention globally, as the price has skyrocketed from nothing to the US$20,000 recently. The price pulled back in the last two weeks but still sits at a spectacular $16,700.
The crypto prefix in cryptocurrency comes from cryptography, the practice and study of techniques for secure communication in the presence of third parties. Blockchain is a decentralized ledger in which a continuously growing list of records called blocks are linked, secured, and distributed across networks of computers.
Bitcoin mining is a process where computers are used to verify a block of transactions along the bitcoin blockchain, which are then put through a process that applies a mathematical formula to them. That then turns the block into a random sequence of letters and numbers known as a “hash.” The hash is stored along with the block, at the end of the blockchain, at the point in time it is authenticated.
Participants on the blockchain has access to all records of all transactions, including the most newly made. Anyone can mine blocks (by identifying them by their hash and confirming them) and earn a reward of 25 bitcoins. Bitcoin has no intrinsic value, its utility as a currency is limited to those who choose to use it.
Bitcoins can be traded by signing up to a bitcoin wallet service at exchanges such as, Coinbase, Blockchain.info, and Xapo. Signing up is similar to any other website by entering name and email address and password to get started. After that, it’s time to connect your bank account, debit card, or credit card.

Cable Bahamas to trade at $1m each

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Kino Williamson (l), Head of Finance, Cable Bahamas, Scotia Investment CEO, Lissant Mitchell. Also sharing the moment (from left) are Marlene Street Forrest, Managing Director Jamaica Stock Exchange, John Gomez, COO Cable Bahamas and Dylan Coke, of Scotia Investments

The Bahamian based telecommunication group, Cable Bahamas (CBL) listed two preference shares on the Jamaica Stock Exchange (JSE) on Friday. The shares represent capital raised in Jamaica and US dollars in Jamaica by way of private placements. The stock listed on the Jamaican dollar preference section of the local market will trade with a minimum of $1 million each.
A total of J$1.9 billion was raised, comprising two preference shares at 8 percent each, amounting to US$4.9M and J$1.35 billion from a number of institutional investors arranged by Scotia Investments. The funds raised were used to launch its mobile telephony services in the Bahamas.
“Scotia Investments is pleased to have been able to support CBL in listing these bonds on the Stock Market. Being able to do a transaction like this – a preference share, listed on the JSE, for an overseas issuer – is further evidence of the depth and sophistication of Jamaica’s capital markets” said Dylan Coke, Scotia Investments, VP Organization & Capital Markets.
Cable Bahamas is a public company incorporated on September 1994 under the laws of The Bahamas and listed on the Bahamas International Securities Exchange. Subsidiaries provide cable television and related services, national and international data services, internet services, telephony and wireless, web hosting and business continuity services. The subsidiaries of the company include Cable Freeport Ltd., Caribbean Crossings Ltd., Maxil Communications Ltd., Systems Resource Group Ltd., and Be Aliv Ltd.
The group which were already providing landline telephone service, commenced Cellular phone service late in 2016 after receiving a cellular license. According to the Group’s CEO John Gomez we have around 30 percent of the mobile market with an overall market size of BH$300 million.
The company is not considering listing the ordinary shares in Jamaica at this time but are open to considering it at some point in the future, the groups’ Kino Williamson (l), Head of Finance advised IC Insider.com.


Bahamian company to list soon

Cable Bahamas is set to be the next company to list on the Jamaica Stock Exchange. The exchange approved the listing a short time ago. Information available to IC Insider.com is that the list will be on the US dollar exchange and will comprise ordinary and preference shares.
According to the company’s financials there are 43,884,754 ordinary shares and 8 different category of preference shares issued. The net asset value of the ordinary shares are around BH$2 each.
The company has been providing cable TV services in The Bahamas since March 1995 and Internet services since March 2000. On June 30, 1995, the company completed a $30 million public equity issue, resulting in 3,000 Bahamian shareholders holding shares in the company. In its first full year of operations, revenue was $12 million and net income $2.5 million and the year-end subscriber count was 37,400.
By the end of 2000, the share price stood at $8.50 with a cumulative growth of over 750%, total subscribers were 51,609 and net income was $7.3 million. Two significant growth areas for the company are its high-speed Internet services and its wholly owned submarine 600 km fiber-optic cable system, which is operated by its subsidiary, Caribbean Crossings Ltd.
Late 2010, Cable Bahamas purchased System Resource Group (SRG) to enable the company to introduce new services and lower prices to the consumer. This union allows the company to become the Bahamas’ 100 percent Bahamian-owned public converged communications services provider offering voice, broadband data and video products.
With the introduction of REVOICE, a cutting-edge home phone service, Cable Bahamas became a triple-play provider in the Bahamas, offering TV, Internet and phone services at bundled prices.
The network comprises 14 free-to-air broadcast systems on 11 islands, eight stand-alone cable TV systems, and four triple play systems networked by a submarine fibre. Together, this network services 99 per cent of the Bahamian population. The company’s submarine fibre continues into the United States, connecting to a terrestrial fibre in South Florida, creating a terrestrial fibre ring around the state, and providing triple play services to four additional systems. These combined networks make up the complete Cable Bahamas network.
Revenue earned for the 2016 December quarter, was BH$47.887 million compared to BH$41.730 million and for the year to December BH$180.588 versus BH$165.678. The company reported losses of BH$9.2 million in the December quarter inclusive of a fixed asset write off of BH$5.8 million and $7.8 million for the year. Total shareholders’ equity stood at BH$91 million at the end of December 2016 and losses incurred in the March 2017 quarter of BH$7 million pushed shareholders’ equity down to BH$84 million at the end of March this year. Revenues in the March 2017 quarter rose 17 percent to $51 million up from $43.7 million in 2016 but operating cost jumped even faster by 60 percent to $46.6 million from $29 million with depreciation and amortization rising from $9 million to $16.8 million.
The stock last traded in the Bahamas at BH$4.05, with 900 units trading. Selling by investors is at $4.40 and above with buying interest at $4.05 and below.
The shares will only be listed as none will be offered to the public as an Initial Public Offering. Scotia Investments is the sponsoring broker.
Two other listing should be heading to the market within weeks as Stationery and Supplies and the Musson subsidiary Productive Business Solutions with operations in the Caribbean, Central America and the USA come to the market with a US$41 Million offer of ordinary shares.

Venezuelan stocks lead with 95% in 2016

stocksWith just one week from the close of 2016, Venezuela Caracas Stock Exchange leads the world’s stock markets with year to date of 94.94 percent in the market Index, according to data reported on Bloomberg website.
Peru S&P/BVL LIMA 25 Index is next, with year to date return of 81.80 percent, Kazakhstan Stock Exchange Index KASE gained 57.16 percent up to Friday, December 23, while the return for S&P/BVL Peru General Index is up 56.71 percent. Jamaica Stock Exchange JSE index that topped the world in 2015, trails well behind the 2016 leaders with gain of just 20.8 percent year to date.
While the Venezuela stock market may record the highest gains in local currency for 2016, with inflation according to financial news network CNBC expected to hit 700 percent for 2016, the market may well end up being one of the worse performing.

The Ghana Stock Exchange slips

The Ghana Stock Exchange closed marginally lower at the end of the week ending July 18, with the main Ghana Stock Exchange composite closing at 2,332.62, compared with 2,365.72 the week before, the second week of decline.
GSE sum 18-7-14The Ghana Financial sector index closed slightly down, at 2,146.34 from 2,144.52 points close of the week before. For the week, 2.2 million units traded as more stocks declined than rose, with only 5 stocks closing higher and 10 declining. Guinness Ghana <Breweries with a 17 percent decline was the only stock with a major price change. At the close of trading for the week, of the 38 securities listed, there were bids to buy only 17 while there were offers to sell 26 of them.

Ghana Stock market down for week

GhanaCoatofArms150x150Ghana Stock Exchange at the end of the week ending Jul 11, could be regarded as exhibiting mixed personalities, with the indices being down, but at the end of the week a few more stocks were up in price that those that fell.
The overall market took a breather from its recent gains by week end, as the main index having started at the week at 2,392.68 points, ended at 2,365.72 points. The Financial index closed at 2,144.52, down from 2,163.13 at the end of the previous week. For the week, 8 stocks recorded gains versus 7 that declined. A total of 1,314,746 units traded during the week.
Of the 38 listings, 18 had bids and 22 offers, as the market continues to reflect lack of interest in a large portion of the market.
Stocks with the major prices changes during the week are, Benso Oil Palm Plantation up 8 percent, Mega African Capital up 6 percent and Produce Buying Company up 6 percent but Camelot Ghana fell 7 percent followed by Guinness Ghana Breweries down 6 percent and HFC Bank down 6 percent.

Ghana Market returns close to peak

The Ghana stock market closed Friday July 4 just slightly below the peak to February 21, with the GSE Composite Index up 11.54 percent for the year to date and GSE financial stock index gaining 21.08 percent.
GSE sum -4-7-14For year to date for the week ending February 21, the GSE Composite Index was up 12.85 percent and the GSE financial stock index gained 21.36 percent. The market had declined after peaking with the Main index falling back to a 4.59 percent gain and 6.32 percent for the GSE financial stock index after the country’s currency fell sharply versus the US dollar and Treasury bill rates climbed to more than 24 percent.
The main market closed at 2352.45 points on Friday 27 of June, closed up by July 4 at 2,392.68. The GSE financial stock index finished 2,163.13 compared to 2,102.52 on June 27.
8 stocks rose for the week and 4 declined, a big improvement over the previous week, when 9 fell to only 4 hat rose. By the end of the week 13 stocks rose in price for the year to date and 14 fell.
HFC Bank, the subject of an offer by Trinidad’s Republic to acquire the majority ownership, had the greatest gain at 51 percent followed by Ecobank Transnational Incorporation, with 47 percent, Ecobank Ghana 31 percent and Total Petroleum 29 percent. The greatest losers were African Champion Industries down 50 percent, Trust Bank down 31 percent, Pz Cussons Ghana 29 percent and Produce Buying Company down 24 percent.

Ghana stocks up for week

GSE sum 13-6-14strong>Stocks on the Ghana Stock Exchange ended the week higher than at the close of the previous week but the week closed with only 4 stocks rising to 9 declining. 11.4 million shares traded during the week, with Monday enjoying the highest volume with 8.1 million units and Friday with 1.8 million units.
The GSE Composite Index closed the week higher at 2,358.73 compared with 2,362.67, the Ghana Stock exchange financial services index closed at 2,099.80 up from 2,066.58. For the year to date the GSE Composite Index is up 9.94 percent and the GSE financial index 17.5 percent.
Enterprise Group lost 30 percent during the week to close at GH¢1.85, Ghana Oil Company gained 11 percent and HFC Bank 10 percent.