TTSE: JMMB moves up

Thursday, 15th August 2013 | Today’s market activity resulted in 12 securities trading as the prices of 4 stocks advanced, 4 declined and 4 traded firm.

Trading activity on the market registered a volume of 1,246,781 shares crossing the floor of the Exchange valued at $3,420,965. Jamaica Money Market Brokers after struggling to maintain its price for weeks came into its own with 834,646 shares trading for a value of $417,273 as the investment house reported strong profits for the first quarter to June. The stock traded up 5 cents to close at 50 cents.

National Flour Mills with a volume of 148,124 traded at a value of $103,687. Trinidad Cement contributed 140,000 shares with a value of $238,000 with the price increasing 19 cents to end the day at $1.70. The stock continues to respond positively to the company’s return to profitability. Sagicor Financial Corporation added 41,091 shares valued at $272,099 as the price fell 28 cents to close at $6.62. ANSA McAL traded 11,834 closing firm at $66.29, National Commercial Bank saw 21,186 units changing hands for $1.17, off a cent at the close. Scotia Investments gained 2 cents to $2.02 at the close while trading 34,000 units. West Indian Tobacco added 9,500 units at $117.05. The stock has been struggling to maintain its recent rapid rise in price since Carreras, a stock trading on the Jamaica stock Market and who imports the bulk of its cigarettes from WITCO, reported a 30 percent drop in sales which coincided with Jamaica’s introduction of a smoking ban in public.

Clico Investment Fund in posting a volume of 21,396 shares valued at $460,014 closed firm at $21.50.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 1 stock was higher than the last selling price while 4 stocks had offers that were lower.


JMMB to raise $750M

Jamaica Money Market Brokers is going to the public to raise $750 million in August by way of two sets of preference shares. The investment banking house lodged a prospectus with the Jamaica Stock Exchange (JSE) today with the offer.

The offer which opens on Wednesday, August 21 is for 313 million 7.5% preference shares maturing in August 30, 2018 at an issue price of $2 and a 7.25% preference share priced at $2.50 for 50 million units. The shares will be listed on the JSE. Dividends will be paid monthly on both issues.

JMMB is a listed company on the JSE as well as on the Trinidad & Tobago Stock Exchange. It currently has two preference shares listed on the JSE.

In it’s latest audited accounts to March this year JMMB reported profits of $3.85 billion after tax. The June first quarter results is slated for release this week.

Related posts | JMMB posts improved profit | JMMB’s rebranding | JMMB to acquire 100% of IBL

JSE: Low trading activity

Wednesday, 14th August 2013 | Activity was very moderate on the local stock market as just $15.7 million of stocks traded, accounting for 4 million units. 8 stocks advanced in price and 6 declined. All the indices fell marginally with the exception of a rise in the US index. The all Jamaica Composite index shed 153.81 closing at 85,746.49, the main Market Index fell by 87.42 to close at 85,565.16 and the Junior Market Index dipped 2.60 to 795.41.

Cable & Wireless accounted for the bulk of the shares traded with 2.5 million units at 19 cents. Jamaica Producers released results for the June quarter and accounted for the bulk of the amount traded of $5.48 million as the stock gained $1.06 to close at $18.25. Other stocks to trade with reasonable volumes or price changes were, Carreras with 37,751 units to close at $50, off 3 cents but the stock traded as low as $49.25. Desnoes & Geddes traded 41,553 units at $4.61, off 9 cents. Grace Kennedy 25,300 units, firm at $57, National Commercial Bank with 29,962, dropping 70 cents to close at $18.50 but traded as high as $19.20. Scotia Bank 89,729 units at $21.07 and Scotia Investments 66,000 units to close at $28 having traded as low as $27.

Junior market | Activity has moderated since the hectic trading before the end of July with the stock split of the Lasco companies. Eight companies traded in this market as Caribbean Cream traded 154,958 units at $1.07, Lasco Distributors put in 350,600 shares at $1.55, gaining 4 cents, Lasco Financial Services had 46,000 units changing hands, with a closing price of $1.45 and Lasco Manufacturing had 63,108 units trading and closed at $1.58.

One stock C2W Music reached $1, a new low since listing. The company reported results today showing continued losses.

There still has been no trading in Eppley shares since listing, the stock now has a bid at $350 for 449 units.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 5 stocks were higher with 1 stock with an offer lower than their last selling price.

After the bell | Pan Jam released lower profits for both the June quarter and year to June. Profit for the June quarter was $486 million attributable to shareholders, compared to $468 million in the 2012 quarter, an increase of 4 percent. For the 6 months ended June this year, profit was $710 million compared to $970 million for 2012, a decrease of 27 percent.

JMMB first quarter results to June show a big jump in profits from ongoing operations of J$832 million and earnings per share of J$0.46 for the quarter ending June 2013, compared to $470 million in 2012.

Seprod enjoyed a bump in profit in the June quarter of $312 million versus $161 million in 2012 and year to June $542 million versus $453 million in 2012. Both periods in 2013 were boosted by a $107 million gain from sales of equities.

Monetgo Ice reported improved results for 2013 of $3.5 million versus a loss of $590,000. Gains from foreign exchange earnings that increased by $3.5 million played a big role in the improvement.

Cable & Wireless reported increased loss for the first quarter to June amounting to $826 million compared to $430 million in 2012. The worsening position is due to increased spend in certain areas and reduced revenues offset by some areas of cost savings.

Jamaica Producers reported after tax profit due to the company’s stockholders of $73 million in the June quarter against $46 million in the 2012 period and for the six months $158.5 million versus $112 in 2012.

Dolphin Cove reported profit for the six months to June of $221 million compared to $195 million in 2012 and for the three months to June $103 million versus $84 million.

Proven Investments net profit after tax grew to US$1,033,815 from US$845,876 in 2012 June quarter.

KLE Group is reporting a worsened loss position for both the June quarter and year to date with a loss of $36 million in six months while in the 2012 period the loss was $9 million.

C2W Music reported a loss of US$345,855 for the six months to June 2013. For the similar period in 2012, the loss was US$131,284. There was just US$1,803 income for the period.


FX: Market stable

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Tuesday, 13th August 2013 | The forex market returned to normality with sales and purchasing of foreign currency almost equal but with a slight bias to selling over buying by a million dollars as US$31 million was bought and US$32 sold. The market may well be settling down as can be seen from the fairly stable rates this week and may remain that way for the rest of August. Thereafter it will depend on the central bank and what it plans to do in providing liquidity from September to November, a historic period of less foreign currency inflows.

Just as was the case on Monday, rates for changing the currencies remained fairly settled as 16 cents was added to the buying rate for the US dollar which ended at $101.29 with only a cent increase for the selling rate of $101.87. The Canadian dollar rate dropped by 51 cents on the buy side to end at $96.66 and 56 cents on the selling rate to close at $98.23. It took 42 cents less for dealers to purchase the Pound at $155.03 and 9 cents less when they sold it at an average of $157.88.

Highest lowest | Movements in the highs and lows were mixed and were well contained except for the lowest selling rate for the pound which increased by $2.50 and closed at $152.50. The highest buying rate for the Pound was lower by 35 cents to $157.75 and the highest sell rate fell by 48 cents to reach $164.73. The lowest buy rate slipped by 37 cents to $127.78.

Buying of the US dollar was as much as $102.15, a decrease of 35 cents over the prior rate but the lowest rate paid by them inched up by 8 cents at $83.75. Selling took place as high as $107.32, while they sold the dollar as low as $83.67, the same rates as on Monday.

The Canadian currency fetched as high as $99, just 10 cents lower than on Monday but the lowest rate was $79.76, up just 8 cents. It took 11 cents more when selling at the highest rate of $102.83 and 80 cents less for the lowest sell rate of $95.20.



JSE: 17 stocks advanced to 6 declining

Tuesday, 13th August 2013 | The market turned around today at the close as 17 stocks advanced to 6 declining with all the indices with trades enjoying gains, a respite from two days of healthy declines. Cable & Wireless was the dominant trade in terms of volume as stocks of 27 companies traded 11 million units valued at $39.16 million.

Main market trades of note | The all Jamaica Index gained 529.59 points closing at 85,900.30, the JSE market index gained 300.99 to close at 85,651.58. Investors gobbled up 8.35 million Cable & Wireless shares as the stock price closed 3 cents up at 19 cents. At the end of trading there were just over a 12 million units on offer at 20 cents each while bids are in for 7 million units at 18 cents.  Caribbean Cement Company exchanged 78,372 units at $1.85 as the price gained 19 cents. Demand for Carreras has faded and only 18,000 units traded with price closing at $50 but there is only about 30,000 units on the bid side at the end of trading. Kingston Wharves traded 103,302 units at $7.60 closing up 8 cents. Mayberry Investments traded 183,686 shares at $2.60. National Commercial Bank had a big trade with 1.63 million units between $1920 and $19.52 but the price settled at $19.20 at the end up 65 cents. Sagicor Life traded 56,000 at $8.50.

JSEIndicesAug13Jamaica Money Market lost 65 cents while trading 5,173 units and closed at $7.85, Grace Kennedy gained 50 cents while trading 11,794 units to close at $57.

Junior market | It was a very light day for trading on the junior market with just 8 companies trading. Access financial lost 31 cents as the stock closed at $8.20 with 87,732 units. Caribbean Producers had 89,564 shares trading to close at $2.04. Lasco Financial Services dropped 6 cents to close at $1.43. Honey Bun traded a small volume but the price slipped back 50 cents to close at $3.50.

There still has been no trading in Eppley shares since listing and the stock has no bids or offers at the close of trading.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 5 stocks were higher with 3 stocks having offers lower than their last selling price.

TTSE: It’s Clico’s day

Tuesday, 13th August 2013 | Clico Investment Fund traded 49,307 shares at $21.51 valued at $1,060,701 to be the dominant trade on the Trinidad & Tobago Stock Exchange today. A mere 136,296 units traded at a value for $2.43 million as only 7 securities traded but no stocks advanced, 2 declined with just a cent off each and 5 traded firm.

The main stocks trading were National Enterprises with 80,389 shares valued $1,286,224, One Caribbean Media with a volume of 1,000 shares for $18,000, Grace Kennedy just 1,000 shares with a value of $3,400, ANSA McAL 500 shares valued at $33,145.

Praetorian Property Mutual Fund remained at $3.41while trading 4,000 units.

There was only 1 stock, Trinidad Cement, with a bid that was higher than the last sale and 1 with an offer less than the last price; sign that the market has cooled off for the time being.


FX: Huge sell day

Monday, 12th August 2013 | Today was characterised by large selling of US dollars by authorised dealers as the equivalent of US$60.6 million was sold against US$45.5 million bought. The rates for changing the currencies remained fairly settled as just 8 cents was shaved off the buying rate for the US dollar with no change for the selling rate. The Canadian dollar increased by 19 cents on the buy side and 13 cents on the selling rate. It took 44 cents more for dealers to purchase the Pound but sales were done at 54 cents less.

Highest lowest | Buying of the US dollar took place as much as $102.50, an increase of 35 cents over the prior rate but the lowest rate paid by them remained unchanged at $83.67. Selling took place as high as $107.32, which is an 11 cents increase while they sold the dollar as low as $83.67, off by $1.98.

The Canadian currency fetched a high of $99.10 when bought by dealers, just 5 cents lower than on Friday but the lowest the dealers bought the Maple leaf currency for was $79.68 up $1 and it took 64 cents more for selling at the highest rate of $102.72 and $1.60 more for the lowest sell rate of $96.

The rates for the Pound were mostly lower except for the highest buying rate, which climbed by 96 cents to $165.21 and the lowest sell rate that fell by $1.95 to reach $150. The highest buy rate slipped by 40 cents and the lowest by 13 cents.



JSE: Cable & Wireless again

Monday, 12th August 2013 | Investors not only snapped up a large portion of Cable & Wireless on Friday but took out the remnants of the stock that was on offer on Friday at 15 cents and drove the price to 16 cents at the end of trading. Investors bought 12,506,365 shares, most of it the moment the market opened, valued at $2 million. Demand that was non-existent from June 26 suddenly came alive last week. From Wednesday to Friday, 15.8 million shares traded with buyers picking up 11.5 million on the last day of the week.

Unlike Friday when there were not a great deal of bids, at the end of trading today there were 5.8 million units on bid at 17 cents while offers were around 19 cents. At the end of trade, there were bids for 23.6 million units at 15-17 cents and 9.4 million shares on offer at 19 cents where some volume can be found.

Look behind C&W | Part of the stimuli for the sudden interest could be tied to the release of information by Cable & Wireless Communications on the 25th of July indicating that whilst it is early days, they have seen a pick-up in customer numbers in Jamaica following the launch of a competitive new price plan. As noted at the release of the full year figures, market conditions in the rest of the Caribbean remain difficult, particularly in the Eastern Caribbean and Barbados. Interestingly, no mention was made of the difficulties in Jamaica. The major cost reduction plan announced at the full year is proceeding as anticipated and they are already seeing the benefits of the restructuring performed last year with operating expenses in the Caribbean down 5 percent against the first quarter in the prior year. Following the outsourcing of certain field force functions in Jamaica, they have seen an improvement in installation and repair times.

Other big trades | The next big trade was National Commercial Bank with 3 million units changing hands valued at $57.5 million as the price closed at $18.55, down 55 cents. Interestingly, NCB Capital Markets sold the bulk of the stocks with several brokers buying. Carreras came in with 240,000 units at a value of $12 million as the stock lost to close at $50.10, down 42 cents.

A total of 21.29 million units traded in the market at a value of $106.3 million as the price of 9 stocks advanced and 13 declined.

Main market trades of note  | The all Jamaica Index shed 978.24 points (Friday 542.03) to close at 85,370.71 and the JSE market index fell 555.98 (Friday 308.06) to close at 85,906.57.

Caribbean Cement traded 65,500 shares and gained 15 cents to close at $1.66, a 52 weeks high. The bid closed at $1.66 for 17,000 units after trading as high as $1.85 and had an offer of 500 shares at $2.12, but there is virtually no supply in the market close to the offer price and only a few close to $3. Gleaner Company traded 1,853,251 units at $1.19, an increase of 3 cents for a value of $2.2 million. Jamaica Money Market Brokers traded 423,340 units valued at $3.6 million, the last traded price was $8.50, a gain of 50 cents. Pan Jam lost 63 cents to close at $51.12 with only 801 units changing hands. Sagicor Life traded 70,333 units to close at $8.40 down 30 cents and Scotia Group traded 51,680 to close at $21.06, off by 2 cents. Seprod fell $1.75 to $13 with only 1,100 shares trading.

Junior market | Stocks of 9 junior market companies traded as 2 advanced and 3 declined. Access Financial Services traded 67,570 units at $8.51 but traded as high as $9. Caribbean Creams traded 34,000 at $1.05 at the close but had a bid of $1.07 for 200,000 units at the end of trading. Caribbean Producers produced a volume of 154,958 units and closed trading at $2.03. Jamaican Teas traded 175,538 units at $4.35, slipping 5 cents on the day. Lasco Financial traded 114,784 shares firm at $1.49, down 3 cents. Lasco Manufacturing closed at $1.53, down 3 cents while trading 331,850 units.

Eppley shares that were listed on July 29, have still not traded and have no bids or offers at the close of trading.

Proven Investment ordinary shares traded 2,007,350 units valued at US$233,882, at 12 cents each.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer sentiment indicator shows that bids for 6 stocks were higher and offers of 2 were lower than their last selling price.

After the bell | Proven Investments posted net profit after tax of US$1,033,815 for the June quarter versus US$845,876 in 2012. Earnings per share was 0.35 US cents.

Guardian Holdings reported TT$36.571 million compared to TT$98.7 million and for the six months TTS$106.4 million down from $195.6 million in 2012.


TTSE: Not much trading

Monday, 12th August 2013 | Trading on the Trinidad & Tobago Stock Exchange was low on the first trading day after Friday’s public holiday. Only 5 securities traded 3 declined, 2 traded firm and there were no stocks that advanced in price.

Trading accounted for 70,176 shares valued at $934,423. Our source in Trinidad suggest that the low volume in today’s trading may be due to Friday’s holiday as well as funds going into the Citizens Bank IPO with brokerage staff being tied up dealing with applications for the IPO.

National Enterprises had 30,363 shares changing hands for a value of $485,808, followed by Sagicor Financial Corporation with 28,763 shares traded for $198,465 and shedding 9 cents to close at $6.90. Scotiabank Trinidad & Tobago had a mere 200 shares trading valued at $14,000, while Republic Bank exchanged just 30 shares valued at $3,300.

Clico Investment Fund in posting a volume of 10,820 shares valued at $232,850 lost a cent to at $21.52.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows no stocks with bids that were higher and 1 stock with an offer lower than the last selling price.


T&T Citizens Bank IPO oversubscribed

Word out of the Twin Island state of Trinidad & Tobago indicates that the Citizens Bank of Trinidad IPO, which went on sale July 15th and should have closed on Friday, August 9, is to be closed today. The new closing date is due to Friday being a public holiday in Trinidad.

The stock, which was priced at $22 per share for the IPO, is said by our sources to heavily oversubscribed from last week. The oversubscription is in line with comments heard by IC Insider out of Trinidad prior to the opening of the public offer suggesting that the shares will be avidly taken up. The stock, which has a PE of 11 times earnings at the IPO price, is expected to jump in price when listed later this month.

The government of Trinidad & Tobago is expected to benefit from the proceeds of $1.1 billion from the issue.

The take up of the issue is welcomed news for the Trinidad & Tobago stock exchange. Not only will the number of companies be increased but the new issue will generate additional revenue from annual listing fees as well as fees when the shares are traded.

The exchange is set to collect an annual listing fee of TT$130,000 plus TT$25,000 for the trading symbol and a fee for each trade amounting 0.30 percent of the consideration. The Central Depository will also garner fees for each trade as well.

Related Posts | First Citizens’ $1B IPO opens today