In Wednesday’s trading on the Jamaica Stock Exchange the prices of 9 stocks rose and 7 declined, the third consecutive day with more stocks rising than falling as 28 securities changed hands, resulting in 3,679,094 shares trading, valued at $40,219,824.
Main Market| The JSE Market Index gained 396.20 points to close at 70,593.18 and the JSE All Jamaican Composite index moved up by 443.48 points to close at 77,644.19.
Gains| Stocks recording gains at the end of trading in the main market are Carreras with 13,570 shares changing hands, with a gain of 20 cents, to close at $35.20, Kingston Wharves 4,000 shares while gaining of 80 cents to close at $6, Mayberry Investments with only 1,020 units and gained 2 cents, to close at $1.50, Sagicor Group 590,364 units with a gain of 19 cents, to close at $9.09, Sagicor Real Estate Fund 4,930 units as the price gained of 5 cents, to close at $6 and Scotia Investments 16,500 shares, gained 80 cents, to close at $21.90.
Firm| The stocks in the main market to close without a change in price are Berger Paints, with 5,025 shares closing at $1.65, Cable & Wireless 19,705 shares, closing at 29 cents, Ciboney with 5,000 shares to close at 8 cents, Grace Kennedy 8,194 shares, closing at $56, Jamaica Broilers with 9,318 shares, to close at $4.57, Jamaica Money Market Brokers 1,009,508 shares closing at $7 and Radio Jamaica with 9,292 units, closing at $1.28
Preference| Access Financial 9% Short Term Note traded 5,000 units at $100 each, Jamaica Money Market Brokers 8.75% preference share 384,621 units, to close at $3.03 and Proven Investments 8% preference share, 100 units to close at $5.07.
Declines| The stocks that declined in the main market are Caribbean Cement with 15,358 units and closed 5 cents down, at $2.20, Desnoes & Geddes with 600 shares closed at $4.40 with a decline of 5 cents, Kingston Properties 10,000 units, closing at $3.85 after shedding 15 cents, National Commercial Bank with 38,330 units and closed at $18, for a 35 cents fall, Pan Jamaican Investment 3,500 shares to close at $48.02 with a decline of 8 cents and Scotia Group with 1,274,586 shares after losing 21 cents to end at $18.40.
Junior Market| The JSE Junior Market Index declined by 4.96 points to close at 711.65 as 6 stocks traded with 3 advancing and 1 declining.
Gains| Stocks recording gains at the end of trading in the junior market are, General Accident with 100,000 units, with a gain of 5 cents, to close at $1.45, Lasco Distributors 55,007 shares, gained 1 cent to close at $1.20 and Lasco Manufacturing had 26,566 shares changing hands with a gain of 8 cents, to close at $1.08.
Firm Trades| Stocks in the junior market that traded and closed at the same price as the previous trading day are, Blue Power with 1,000 shares, in closing at $9.01 and Lasco Financial 60,000 shares to close at $1.
Declines| Only one stocks declined in the junior market at the end of trading with Consolidated Bakeries having 13,000 units changing hands and closed 10 cents lower, at 70 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower.
More stocks up than down for 3rd day
Prices of 9 stocks rose & 4 declined
In Tuesday’s trading on the Jamaica Stock Exchange the prices of 9 stocks rose and 4 declined, 25 securities changed hands resulting in 3,183,862 shares trading, valued at $36,706,402.
Main Market| The JSE Market Index rose by 449.66 points to 70,196.56 and the JSE All Jamaican Composite index moved up by 02.81 points to close at 77200.71.
Gains| Stocks recording gains at the end of trading in the main market are, Desnoes & Geddes with 30,000 units to close 15 cents higher at $4.45 followed by Mayberry Investments with 1,980 units as the price gained 2 cents to end at $1.48, National Commercial Bank 830,055 shares at a 85 cents hike to $18.35, Proven Investments with 10,450 ordinary shares as the price inched up by 0.0001 US cents to 18 US cents, Sagicor Group with 1,148,990 shares gained 10 cents and closed at $8.90, Sagicor Real Estate Fund 84,313 shares with the price rising 10 cents to $5.95, Scotia Group with 250,930 units changing hands, gained 11 cents to close at $18.61 and Seprod with 55,472 shares changing hands and closed 10 cents higher at $10.80.
Firm| Stocks trading in the main market to close without a change in price are Cable & Wireless with 11,981 shares to close at 29 cents, Caribbean Cement 6,244 shares at $2.25, Carreras 2,192 shares at $35, Grace Kennedy 420 shares and closed at $56, Radio Jamaica with 1,790 shares closing at $1.28.
Preference| in the fixed income market, Eppley 9.5% preference share traded 16,800 units to close at $6.10, Jamaica Money Market Brokers 7.50% preference share, 10,000 units at $2, Jamaica Money Market Brokers 8.75% preference share with 176,600 units at $3.03 and Jamaica Teas debenture dote with 3,000 units to trade at $100 each.
Declines| The number of stocks that declined in the main market are Gleaner with 120,000 shares, to close 8 cents lower at $1.10 and Pan Jamaican Investment with 84,470 shares at 40 cents lower to end at $48.10.
Junior Market| The JSE Junior Market Index declined by 8.11 points to close at 706.69 as 7 stocks traded with 1 advancing and 3 declining.
Gains| The only stock that gained at the end of trading in the junior market is Caribbean Producers with 8,845 shares, to close with a gain of 18 cents at $2.83.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before are, AMG Packaging with 2,500 shares to close at $3.10, Lasco Distributors with 74,000 shares to close at $1.19 and Lasco Financial with 65,500 units to close at $1.
Declines| Stocks declining in the junior market at the end of trading are Honey Bun traded 500 shares but fell 12 cents to $2.90 for a 52 weeks low and Lasco Manufacturing 189,830 shares, as it closed lower by 12 cents at $1.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with higher bids than their last selling prices and 2 stocks with offers that were lower.
Jamaica Broiler paid J$1.18 billion for US operation
Jamaica Broiler paid J$1.18 billion for England Packaging Company Inc, the group’s US acquisition last year and $111 million for the Hamilton Smoke House, a meat processing operation locally.
According to the company’s latest audited accounts, the two new operations contributed revenues of $1.78 billion and profits of $140 million to the group results for 2014. If they were owned from the start of the fiscal year, they would have accounted for revenues of $2.22 billion and profits of $202.6 million.
Segments| Best Dressed Foods contributed sales of $15.47 billion and segment profit of $1.25 billion, for 2014 fiscal year, Hipro-Ace, $8.85 billion in revenues, and segment profit of $798 million. Ethanol made a loss of $66 million from revenues of $578 million, the US operations reported a profit of $333 million from revenues of $4.7 billion and other revenues accounted for $1.25 billion and profit of $453 million.
In the prior year, Best Dressed Foods contributed sales of $13.2 billion and segment profit of $929 million, Hipro-Ace, $8.75 billion in revenues and higher segment profit of $910 million. Ethanol made a profit of $21 million from revenues of $1.73 million, the US operations reported a profit of only $21 million from revenues of $1.7 billion and other revenues contributed $920 million and profit of $335 million. Segment profit is arrived at before group charges and finance cost.
Full year|Jamaica Broiler reported lower profits for the year ended April 2014 from revenues of $30.85 billion, up from $26.5 billion in 2013, for a 16 percent revenue growth. Some of the growth in revenue came from the acquired companies but ethanol robbed the group of a larger revenue increase and better profit.
Gross profit| Gross profit increased from $5.5 billion, to $6.7 billion as gross profit margin climbed from 25.93 percent, to 27.88 percent in 2014. Gross profit grew by 23 percent but administrative cost jumped by nearly a third or $1 billion to negate the improved contribution in gross profit. In the end finance cost rose by $100 million and dragged profit down to $919 million versus $1 billion in 2013, resulting in earnings per share of 79.8 cents. The increase finance cost is due primarily to a shrinkage in cash funds of $1.14 billion and increased borrowings of $757 million.
The stock last traded at $4.57, giving it a PE of 5.7 based on the 2014 results, but IC Insider is forecasting $1.13 per shares earnings for the 2015 fiscal year, which would put the PE at just 4, based on these forecasted earnings.
Proven Investments trades 7M shares
Proven Investments was the dominant trade on the Jamaica Stock Exchange in Monday’s trading session. The company had 6,966,866 ordinary shares with a value of US$1,247,669 changing hands, at 1799 US cents each, down a fraction of a cent for the day.
The prices of 8 stocks rose and 5 declined as 22 securities changed hands, resulting in 8,451,027 shares trading, valued at $151,978,606, for the first trading day of the week.
Main Market| Notwithstanding, the slightly positive advance decline ratio, the JSE Market Index declined by 155.43 points to close at 69,746.90 and the JSE All Jamaican Composite index fell by 173.80 points to 76,697.90 points.
Gains| Stocks recording gains at the end of trading in the main market are, Caribbean Cement with 2,000 shares, to close with a gain of 5 cents at $2.25, Carreras with 62,750 shares changing hands, to close 25 cents higher at $35, Grace Kennedy 2,486 units, to close $1.95 higher at $56. Jamaica Money Market Brokers traded just 4,300 units to gain 12 cents to close at $7 and Supreme Ventures with 5,000 units closed 2 cents up, at $1.97.
Firm| The stocks in the main market to close trading without a price change are, Berger Paints with 3,115 shares while closing at $1.65, Jamaica Broilers with 38,252 units, to close at $4.57, Cable & Wireless 79,061 shares to close at 29 cents, Sagicor Group 643,931 shares at $8.80 and Scotia Group with 79,609 units to close at $18.50.
Preference| Jamaica Money Market Brokers 8.75% preference share, traded 28,450 units with a 1 cent gain to $3.03.
Declines| The number of stocks declining in the main market are Desnoes & Geddes with 137,605 shares in losing 20 cents, to end at $4.30, National Commercial Bank 32,472 shares to close down 45 cents, to end at $17.50 and Radio Jamaica with 17,270 shares, closed a cent down at $1.28.
Junior Market| The JSE Junior Market Index rose by 5.45 points to close at 714.80 as 7 securities traded with 2advancing and 1 declining.
Gains| Stocks recording gains at the end of trading in the junior market are, Lasco Distributors with 14,910 units changing hands as the price gained a cent, to close at $1.19 and Lasco Manufacturing with 2,530 shares traded, with the price moving up 5 cents, to $1.12.
Firm Trades| The stocks in the junior market that traded to close at the same price as the day before are, Access Financial Services with 420 units to close at $13.50, Caribbean Cream had just 10,000 shares changing hands at 70 cents, General Accident 150,000 shares to close at $1.40 and Medical Disposables with 70,000 units to end at $2.
Declines| The only stocks declining in the junior market at the end of trading is Caribbean Producers in trading 100,000 shares and lost 34 cents to end at $2.65.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bids higher than the last selling prices and 4 stocks with offers that were lower.
Gleaner & Sagicor inside trades
The latest in inside trades on the Jamaican stock exchange have been released. These traded can be great guides as to the likely fortunes of a company, this is not always the case and investors will need to make their own assessment of each trade or a series of trades together, to determine what may be about to unfold.
In the latest insider trades a Director of the Gleaner Company purchased 384,900 shares on July 4, 2014 the Company advised the stock exchange.
Sagicor Group in which there has been a series of inside trading in the stock advised that a senior manager sold 50,000 shares on June 26, 2014 under the SJ Executive Long Term Incentive Scheme.
Huge 61% JSE fee hike but stocks drop 45%
Investors in public listed companies on the Jamaica Stock Exchange got a huge 25 percent hike in cess they have to pay for trading on the stock exchange effective July 1, 2014. The Jamaican Stock Exchange hiked the fee investors are charged by when trading shares from 0.20 percent on each side of a trade to 0.25 percent. Since 2004 the exchange hiked fees by 61 percent while stock values are down around 45 percent since peaking in 2005.
Worse, stock investors who were getting dividends tax free, saw the re-enactment of two tax increases in the past three years. Stock market investors have gotten hit on all fronts with less income form share ownership over the past several year as they see their investment shrink in most cases. Customers of the exchange without whom the stock exchange cannot be viable, have been buffeted on all sides with no entity looking after their interest.
The fee levied on transactions across the floor of the Exchange will be increased by 0.10 percentage points or 0.05 percentage points on each side of a transaction.
The cess charge will be reflected on brokers, Contract Notes for each transaction will be 0.25 percentage points on each side of a transaction effective July 1, 2014 a release from the Jamaican Stock Exchange stated. The recent increase the second such increase from 2012 and the third since 2004.
In 2012 shareholders of public listed Companies on the Jamaica Stock Exchange started paying additional charges effective March 1, 2012 when the cess levied on transactions across the floor of the Exchange was increased by 0.0075 percentage points, or 0.00375 percentage points on each side of a transaction. The cess charge will be 0.2 percentage point on each side of a transaction. On October 1, 2004 the JSE increased its cess from 0.15625 percent to 0.19625 percent.
Only 13 securities trade on the JSE
Only 3 stocks rose in Friday’s trading on the Jamaica Stock Exchange and 6 declined as a mere 13 securities changed hands resulting in 2,903,200 shares trading valued at $40,743,114.
Main Market| The JSE Market Index dropped by 589.94 points to 69,902.33 and the JSE All Jamaican Composite index moved down 659.67 points to close at 76,871.70
Gains| Stocks recording gains at the end of trading in the main market are Carreras with 107,250 shares as the price gained 25 to $34.75 and Gleaner 384,900 units with an 8 cents rise to $1.18.
Firm| The stocks in the main market to close without a change in price are Jamaica Broilers with 3,728 units to close at $4.57 and Proven Investments ordinary share traded 20,000 units at 18 US cents.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 811,504 units at $3.02 and Jamaican Teas debenture note saw 19,000 units trading at $100 each.
Declines| Stocks that declined in the main market are National Commercial Bank with 149,678 units, closing 5 cents lower at $17.95, Pan Jamaican Investment with 200,375 shares, the price slipped 50 cents to $48.50, Sagicor Group with 237,115 shares, the price declined by 10 cents to end at $8.80, Sagicor Real Estate Fund traded 23,000 shares to lose 15 cents to end at $5.85 and Scotia Group with 927,200 shares lost 50 cents to close at $18.50.
Junior Market| The JSE Junior Market Index edged up by 1.08 points to close at 709.35 as only 2 stocks traded with 1 advancing and 1 declining.
Gains| Lasco Manufacturing with 37,450 shares was the only stock that gained at the end of trading in the junior market, with the price inching up a cent, to close at $1.07.
Declines| Cargo Handlers lost a cent in trading 1,000 shares, to close at $14 and was the only stock in the junior market that traded to close at a lower price at the end of the trading day.
Firm Trades| No stock declined in the junior market at the end of trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower.
Scotia Group dominates with $83M on JSE
In Thursday’s trading on the Jamaica Stock Exchange the prices of 3 stocks rose and 8 declined as 27 securities changed hands resulting in 8,283,873 shares trading valued at $115,640,825.
Main Market| The JSE Market Index inched up by 10.40 points to 70,492.27 and the JSE All Jamaican Composite index moved up 11.64 points to close at 77,531.37, after being up by 1,658 points to 79,177.73 at 10.12 AM, in early trading, with Scotia Group traded as high as $21.70.
Gains| Only one stock gained at the end of trading, in the main market with National Commercial Bank trading 61,078 units to close with an increase of 40 cents at $18.
Firm| Stocks in the main market to close without a change in price are Berger Paints with 5,000 units to close at $1.65, Cable & Wireless 16,000 units to close at 29 cents, Caribbean Cement 6,820 shares to close at $2.20, Gleaner 163,282 units to close at$1.10, Jamaica Broilers with 23,170 shares in closing at $4.57, Kingston Wharves 650 units to close at $5.20, Pan Jamaican Investment 100,000 shares to close at $49, Proven Investments 280 units to close at 18 US cents, Radio Jamaica 2,814 units to close at $1.29 and Scotia Group with 4,310,653 units valued at $82,811,277 to close at $19. The bulk of the trades were conducted by stockbroker, Scotia Investments.
Preference| Jamaica Money Market Brokers 7.50% preference share traded 1,297 units to close at $2, and the Jamaica Money Market Brokers 8.75% preference share, 431,000 units to close at $3.02.
Declines| The stocks that declined in the main market are Carreras with 200,000 units while losing 75 cents to end at $34.50, Grace Kennedy with 100 shares, declined by $3.75 to $54.05, Jamaica Money Market Brokers 1,002,596 ordinary shares traded but the price declined 12 cents to $6.88, Jamaica Producers had 13,114 shares changing hands, the price declined by a cent to $18.24, Sagicor Group had 1,030,623 units changing hands to close 10 cents lower at $8.90, Scotia Investments with 7,800 units close 40 cents down to a new 52 weeks low of $21.10.
Junior Market| The JSE Junior Market Index declined by 8.32 points to close at 708.27 points as 8 stocks traded with 2 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are General Accident Insurance with 147,000 units, closing with a gain of 3 cents at $1.40 and Lasco Manufacturing with 14,500 shares to close a cent higher at $1.06.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before are Access Financial Services with 1,925 units to close at $13.50, Blue Power with 100,000 shares to close at $9.01, Consolidated Bakeries with 458,761 units to end at 80 cents and Lasco Financial 10,000 shares to close at $1.
Declines| Stocks declining in the junior market at the end of trading are Lasco Distributors 169,410 shares, declined by 12 cents to $1.18 and Medical Disposables with 6,000 shares changing hands declined by 5 cents $2.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bids higher than the last selling prices and 4 stocks with offers that were lower.
Scotia Group trades at $21.70
Scotia Group traded as high as $21.70 in early trading this morning as more than 1 million shares traded. Stockbroker, Scotia Investment bought the bulk of the amount that traded at $21.70 some of which were crosses. The price drifted down to $19.80 with 2,500 units, there was 100,000 units on offer at $19.80. The opened trading at $19.43. The trades helped push the all Jamaican index up by 1,658 points to 79,177.73 at 10.12am.
other noticeable trades were 500,000 Sagicor Group shares at $8.80 and Pan Jam 100,000 units, at $49.
Lasco Distributors prevails against Pfizer
Lasco Distributors has prevails against Pfizer in a law suit that Pfizer brought against Lasco. The local company had won the case in the local courts but Pfizer appealed the judgement to the Privy Council in 2012.
Lasco Distributors has now advised, that the Privy Council has dismissed the Appeal by Pfizer Limited and has affirmed the decision of the Court of Appeal.
“Lasco Distributors Limited’s (LDL) objection to grant Pfizer Limited a stay of the judgment of the Court was accepted by the Court of Appeal. This means that LDL is permitted to continue to trade in the product Las Amlodipine which it had been barred from distributing and to proceed to have the Supreme Court assess the damages caused by the issue of the injunction and to tax the cost payable by Pfizer,” the company reported in 2012.
Lasco ceased selling Las Amlodipine by an injunction granted in March, 2005, however, Lasco contended that under the provisions of the Patent Act of Jamaica, the Jamaican Patent was not in force when the Company started to market its own product, Las Amlodipine since an earlier patent No. 18266 granted to Pfizer in Egypt had expired in March 1997.
The matter was heard in the courts which found that the case for Pfizer for an infringement of Jamaican Patent No. 3247 failed. The court gave judgment for the Company with costs to be agreed or taxed and directed that there should be an enquiry as to damages suffered by the Company as a result of the interlocutory injunction granted to Pfizer under their undertaking in damages.
It is the expectation of the Company, based on legal advice it has received, that its lost sales of the product to date (estimated to be $400 million) are likely to be recovered in the event that it succeeds in this matter but it is difficult to quantify the amount of damages that could potentially be awarded to the Company as they will continue to accrue until the matter is decided. With the passage of time, the cost of money in Jamaica since 2005, lost sales from 2005 until they were permitted to start selling in 2012 and legal cost involved in the case Lasco distributors should end up with well over $1 billion from the case.