TTSE: Citizens jumps

Tuesday, 15th April 2014 |  The Trinidad market traded with a slight upward bias as there was trading in 17 securities of which 5 advanced 3 declined and 9 traded firm with209,501 stocks trading with a value of $2,914,123.

The Composite Index advanced by 2.10 points to close at 1,164.95, the All T&T Index gained 3.94 points to close at 1,983.48 and the Cross Listed Index put on .03 points to end at 45.43.

Gains | Stocks increasing in price at the close are First Citizens Bank with 21,283 shares traded for $745,097 to close with a gain of 56 cents to end at $35.06. The stock has found support that has attracted buying interest and could be going higher once more. Guardian Holdings closed with a 2 cents gain to end at $13.12 as 2,000 shares traded; National Flour Mills 20,350 with a value of $24,420 to close with a 3 cents gain at $1.20; National Enterprises 400 shares to end at $18.28, up by 3 cents; One Caribbean Media with 912 units at $20.30 for 5 cents gain with another new 52 weeks high.

Declines | Agostini’s lost 5 cents to end at $17.70 with 300 shares; ANSA McAL traded 200 shares and fell a cent to close at $66.49 and Clico Investment Fund closed with 74,928 shares valued at $1,607,206 as the price declined by 5 cents to $21.45.

TTSEApr15Firm Trades | Stocks closing without a change in their prices are Angostura Holdings 2,782 shares at $11; Grace Kennedy with 22,706 shares changing hands for a value of $79,472 to close at $3.50; Jamaica Money Market Brokers 15,165 shares valued at $8,189 to close at 54 cents; Neal & Massy 1,696 to close at $66.35; Praetorian Property Mutual Fund 4,000 units at $3.41; Sagicor Financial Corporation 13,883 shares to closed at $7.05; Scotia Investments 13,512 shares at $1.60; Trinidad Cement 14,788 shares at $2.20 and West Indian Tobacco 596 shares at $118.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.

JSE needs revamping

There are clearly some major weaknesses at the Jamaica Stock Exchange but no one wants to fix it, not its executive management or any of the board of directors.

Those close to the JSE may feel that there are persons with a vendetta for them but nothing could be further than the truth. The problem is that in many cases, situations that make no sense are brought to their attention and no one does anything about it. Take the matter of the daily stock market report. It has been brought to the attention of the JSE that the report is erroneous as it does not summate the volume and value properly. For example, the volume associated with the main market includes the preference shares. However, those shares don’t form a part of the index and therefore should not be reported as such. Also, the market volume does not include Proven Investments shares even as it is reported on the daily report.

The information below is an extract of stock exchange report taken from Tuesday’s trading:

“Market volume amounted to 3,444,116 units valued at over $18,332,628. Jamaica Money Market Brokers Limited 8.75% was the volume leader with 2,827,574 units (51.74%) followed by LIME with 1,850,500 units (33.86%) and Jamaica Broilers Ltd. with 435,184 units (7.96%).”

jse_logo150x150As reported, the volume of Cable & Wireless and JMMB preference shares adds to nearly 4.7 million shares yet the report says 3.4 million traded. What sort of nonsense is this? How can the stock exchange publish such erroneous information and no one does anything about it? In fact, there was trading in 6.27 million shares on Tuesday not 3.44 million.

Then there continues to be the matter of Cable & Wireless Jamaica that did not change its name, but changed its brand name to Lime. The Stock Exchange lists the ordinary shares as Lime and the preference shares as Cable & Wireless. However, there is no limited liability company with the name Lime, so why the JSE continues this practise is beyond good reasoning. Worse yet, is to have one listing as Lime and two as Cable & Wireless in the preference segment gives the wrong impression that these are two separate companies.

The JSE hardly made money in 2014, yet it pushed First Caribbean International Bank off the Exchange. This action happened shortly after the JSE went public at an elevated price, which would suggest that they would want to retain as much income as possible, but no, they delisted the bank, thus cutting its income and depriving some local investors the ready access to trade in those shares locally.

Another matter that the JSE needs to deal with is the 15 percent rule, which was instituted in the 1990s when it was thought that the rule would prevent wild swings in prices. The rule may be useful when prices are in triple digits, but when a stocks sells for less than $20, it makes little sense. Barbados has a similar rule, but they suspend trading in the stock for 15 minutes to allow information to go out to investors and then re-open trading. The rule that states that a stock cannot move by more than 15 percent in a day is far too restrictive and prevents liquidity in the stock until the price gets equilibrium. Jamaica must move to the more enlightened Barbados regulation in this regard.

Related posts | First Caribbean may be delistedJSE IPO oversubscribed by 41%

JSE: Sharp jump in stocks rising will it last?

Tuesday, 8th April 2014 | In today’s trading on the Jamaica Stock Exchange, the prices of 15 stocks rose and 6 declined as 28 securities traded resulting in 6,273,690 shares trading valued at only $18,352,886. Cable & Wireless with                  1,850,500 shares and Jamaica Money Market Brokers 8.75% preference shares with 2,827,574 units dominated the volume of stocks trading.

Main Market | Nine companies in the main market advanced and so did Proven US denominated ordinary shares and only 3 declined as the indices fell, with the JSE Market Index declining by 105.87 points to 76,289.54 and the JSE All Jamaican Composite index falling by 118.34 points to close at 84,012.93.

Gains | Stocks recording gains at the end of trading are Cable & Wireless with 1,850,500 shares trading with a cent gain to close at 48 cents; Desnoes & Geddes closed at $5 as the price gained 55 cents with only 2,500 units changing hands; Gleaner 16,000 units to end at $1.20 for a 7 cents gain; Jamaica Broilers 435,184 shares to close 3 cents higher at $4.90; National Commercial Bank 45,340 shares in closing at $19.00 as the price put on $1; Pan Jamaican, a mere 158 units as the price ended a cent higher at $49.61; Proven Investments US dollar ordinary, 1,000 units at a new high of 18.5 US cents for a gain of  0.5 US cent; Sagicor Group 31,112 shares to close 10 cents up at $9.90; Sagicor Real Estate Fund 4,295 units as it closed up 5 cents at $6.75 and Scotia Group gained 30 cents to end at $21.50 as 52,480 shares changed hands.

JSEIndicesApr8Firm Trades | The stocks in the main market to close without a price change are Hardware & Lumber with 500 shares closing at $11.80; Jamaica Money Market Brokers that traded 1,000 units and closed at $ 7.20; Jamaica Money Market Brokers 8.75% preference share with 2,827,574 units at $3.03; Jamaica Producers with only 200 units at $18.26; Mayberry Investments 10,720 shares at $1.85; 1,000 units Proven Investments 8% preference shares at $5.09 and Salada Foods with 10,000 shares at $8.

Declines | The stocks that declined at the end of trading are Carreras while losing 50 cents to end at $35.25 with 16,950 shares; Grace Kennedy with 4,500 shares as the price closed at $56.01 for a fall of 79 cents; Radio Jamaica had 4,500 units in closing at $1.28, down by 2 cents and Seprod with 150,000 shares to close at $11.05 after shedding $1.95.

Junior Market | The JSE Junior Market Index advanced by 7.63 points to close at 751.68 with only 7 securities traded.

Gains | Caribbean Flavours traded just 2,221 units to close at $2.80, up 35 cents; Dolphin Cove traded only 804 shares to end at $8.11 for a 1 cent gain; Jamaican Teas 22,060 shares as it closed with 5 cents gain to $3.20; Lasco Distributors 108,959 units in closing at $1.50 for an increase of 10 cents and Lasco Manufacturing which ended trading with 75,000 shares as the price gained 5 cents to end at $1.30.

Firm Trades| There were no junior market stocks trading firm.

Declines | Caribbean Producers traded 312,000 units to close at $2.75, down 25 cents and Medical Disposables 287,133 units as the price faded by 10 cents to $2.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.

Securities traded up but prices mixed

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There was trading in 16 securities on the Trinidad Stock Exchange on Wednesday, 4 advanced, 3 declined and 9 traded firm, as 157,712 shares traded with a value of $1,646,580.
Market activity lead to two new 52 weeks highs and moderate movements in the indices, with the Composite Index edging up 0.43 points to close at 1,169.87, the All T&T Index gaining 1.73 points, to close at 1,985.33 and the Cross Listed Index declining by 0.12 points to 46.49.
TTSE sum 2-4-14Gains| First Citizens Bank contributed 17,200 shares with a value of $596,996 and gained 70 cents, to close at $34.70, Praetorian Property Fund advanced by a cent to end at $3.41, as it traded 2,000 units, Republic Bank traded a mere 83 units, as the price moved up a cent, to close at $120.17 for a new 52 weeks high and Unilever Caribbean traded just 31 shares to close 2 cents higher at $58.22, a new 52 weeks high.
Firm Trades| Stocks trading with unchanged closing prices, are Angostura Holdings with 16,470 shares valued at $181,170, to close at $11, Flavorite Foods with 33 units at $7, Grace Kennedy with 45,600 shares changing hands for a value of $159,600 and closed at $3.50, National Flour Mills 10,000 shares at $1.26, Neal & Massy 100 shares at $66.31, Prestige Holdings 500 units at $9.35, Scotiabank 138 shares at $71, Trinidad Cement 895 units at $2.06 and West Indian Tobacco 216 units at $118.
Declines| Clico Investment Fund traded 13,277 shares valued at $288,603 as the price declined by 15 cents, to end at $21.70, Jamaica Money Market Brokers traded 6,300 shares to close down 2 cents to 54 cents and Sagicor Financial Corporation with a volume of 44,667 shares traded for $312,669 as the price shed 3 cents, to end at $7.
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 3 stocks with offers that were lower.

Margaritaville IPO oversubscribed

Margaritaville (Turks) Initial Public Offer (IPO) closed on Friday, March 28 after just exceeding the amount offered for sale.

The IPO opened on Monday, March 3, 2014 with an offer of 21,156,555 shares, at US$0.10 per share. The offer closed with a total of 214 applications for 21,178,100 units and the total amount raised was US$2,117,810. The amount fell short of an approximate US3 million the company was hoping to get which would have meant the sale of additional existing shares.

Chorvelle Johnson, President & CEO of PROVEN Wealth, brokers for the issue, stated that “Margaritaville (Turks) Ltd will be the first major listing on the Jamaica Stock Exchange (JSE) this year and will also be the second United States Dollar listing following PROVEN Investments.” However, varies from what was stated in the prospectus that it would be listed on the Main Market of the JSE.

Margaritaville+cargoMargaritaville (Turks) is a part of the Margaritaville Caribbean Group of Companies and a wholly owned subsidiary of Margaritaville Caribbean prior to the Invitation. The Group operates the Margaritaville chain of restaurants in various Caribbean destinations, inclusive of the flagship restaurant launched on the “Hip Strip” in the centre of Montego Bay, Jamaica.

In 2006, the company began operations in Turks and Caicos at the Grand Turk Cruise Centre which is a minutes walk from the cruise ship pier. On the property, there is a mixture of thatched roof restaurants and a swim-up bar that serves Jimmy Buffet Margaritaville’s signature flavours of Margaritas. The Company’s food service operation is complemented by the sale of beverages inclusive of the Margaritaville USA’s proprietary beer, Landshark, and branded apparel, bar ware, and other items. The establishment is well supported and it is expected that the number of visitors will increase from 750,000 recorded for the calendar year 2013 to 1 million persons in calendar year 2014.

Margaritaville (Turks) Ltd is in the process of making an application to be listed on the Jamaica Stock Exchange.

Related post | Margaritaville, down the road with risk

Mixed TTSE market action

NatMarket activity was mixed in trading on the Trinidad Stock Exchange on Tuesday with 11 securities changing hands, of which 3 advanced, 3 declined and 5 traded firm. The Composite Index declined by 1.84 points, to close at 1,169.44, the All T&T Index eased down by 3.60 points, to 1,983.60 and the Cross Listed Index inched down by 0.01 points to 46.61. A volume of 336,239 shares changed hands with a value of $2,294,276.
TTSE sum 1-4-14 Gains| Prestige Holdings had 158,395 shares changing hands, for a value of $1,480,422 as the price gained 6 cents to end at $9.35, Republic Bank traded a mere 83 units as the price moved up 5 cents, to close at $120.16, for a new 52 weeks high and Scotia Investments closed with 14,984 shares for a 1 cent gain at $1.60.
Firm Trades| Agostini’s had 20 units changing hands, to close at $17.75, Flavorite Foods 25 units at $7, Guardian Holdings contributed 45,884 shares with a value of $619,434, to close at $13.50, National Enterprises had 1,000 units trading at the close, at $18.25 and National Flour Mills added 15,000 shares valued at $18,900 as it closed at $1.26.
Declines| First Citizens Bank fell 99 cents to close at $34, Jamaica Money Market Brokers with 95,653 shares being traded for $53,566, closed down 3 cents to 56 cents, and Sagicor Financial traded 4,000 units to close at $7.03 as it lost 2 cents.
At the end of trading the Investor’s Choice bid-offer indicator had 4

Rising inflation & interest rates affect stocks

Rising interest rates in Ghana is affecting demand for stocks in this West African Country. The country is seeing high levels of inflation with the latest data showing the monthly change rate for February at 1.1 percent, against the 3.9 percent recorded in January 2014 and fiscal deficit that is running around 10 percent of GDP and devaluation of the country’s currency which are influencing investors to demand more interest on savings.
GSE 28-3-14
Interest rates which were in the order of 18.5 percent at the end of December last year is now at 23.69 percent for the 91 Days Treasury Bills and is up strongly from end of February at 21.21 percent. The exchange rate has slipped by 18 percent against the United States dollar since the start of the year which has effectively wiped out the gains of 11.24 percent in the main index and 17.14 percent in the financial index for the year to date, in real terms.
In the past week, the Ghana Stock market declined and has been doing so from the week starting February 24 and seems poised to decline some more as buying interest recedes with only 14 bids in the market at the close on Friday March 28 and is down from 19 bids on Wednesday and compared to 23 offers on Friday. For the week only 4 stocks enjoyed price gains and 11 declined compared to 8 rising the week before to 6 that declined.
The Ghana Stock Exchange Composite Index closed the week at 2,386.39 points and was down from 2,388.74 at the end of the previous week and the Ghana Stock Exchange Financial index ended at 2,092.75 points compared to 2,110.94 at the end of the prior week.

4 stocks at new highs on TTSE

Four stocks closed at new 52 weeks high, on the Trinidad Stock Exchange, on the final trading day of the week, as 5 stocks advanced and 2 declined.
Market activity resulted in the trading in 15 securities with 170,619 shares changing hands valued at $2,121,879. The Composite Index was down by 0.49 points to 1,171.28 while the All T&T Index fell by 0.98 points to close at 1,987.20 and the Cross Listed Index remained at 46.62.
Gains| Stocks advancing are Ansa Merchant Bank that contributed 1,280 shares at $38.49 by gaining 11 cents, One Caribbean Media 200 shares at $20 while gaining 25 cents to record a new 52 weeks high at the close, Republic Bank 6,854 shares at a new 52 weeks high of $120.11, with a gain of a cent, Unilever Caribbean 332 units to close at $58.20 for a 13 cents gain and LJ Williams B shares 11,650 units to close at 90 cents up 11 cents, both at new 52 weeks highs.
TTSE 28-3-14Firm Trades| Stocks trading unchanged are Clico Investment Fund 3,763 shares to end at $21.85, First Caribbean International Bank contributed 21,520 shares with a value of $123,740 and closed at $5.75, Grace Kennedy 20,000 units at $3.50, Jamaica Money Market Brokers saw 21,000 shares changing hands valued at $11,790 as the price closed at 59 cents. National Commercial Bank had 26,435 shares changing hands for a value of $30,665 as it closed $1.16, National Flour Mills traded 22,175 shares for $27,941 to close at $1.26, Neal & Massy traded 3,494 shares to close at $66.31 and Sagicor Financial Corporation 4,100 units to close at $7.05,
Declines| Stocks declining are First Citizens Bank traded 8,500 shares valued at $197,169 as the price slipped by a cent to end at $34.99, and Guardian Holdings 11,765 shares at 25 cents lower at $13.50.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bids that were higher than their last selling prices and only 1 stock with the offer that is lower.

More insider sales than buys

Recently, there was low-volume insider selling of stocks of 3 companies with one buying, which does not suggest much about the companies’ fortunes changing significantly.

The largest is Jamaica Money Market Brokers. However, the company’s stock has been rising in Trinidad following a briefing by the company where the management told investors that they were bullish on JMMB’s future including news about acquiring a bank in the Dominican Republic.

JMMB advised that a related party sold 270,007 of its shares on March 25.

Blue Power Group advised that a senior manager sold 20,000 shares of the company on March 18.

Mayberry Investments advised that a director sold 13,650 of its shares during the period March 20 – 21.

The Gleaner Company advised that a Director purchased 30,000 of its shares on March 20.

Related posts | JMMB Insiders sell big | JMMB in expansion mode | NCB insider buys, JMMB sells

Hibernating stocks awaken on TTSE

A number of stocks that have either not traded in months or seldom traded from as far back 2013 surfaced from their slumber in Thursday’s trading on the Trinidad Stock Exchange. Included in the list, are Ansa Merchant Bank, Berger Paints, Flavorite Foods and Prestige Holdings. The change flushed out some stocks that were showing signs that they would fall when they next traded as offer prices were lower than their last selling price for some time.
Market activity resulted in the trading in 13 securities of which 5 advanced, 4 declined and 4 traded firm resulting in 106,402 shares changing hands, valued at $2,855,845 and moving the Composite Index down by 1.31 points to 1,171.77 while the All T&T Index fell by 2.61 points to close at 1,988.18 and the Cross Listed Index remained at 46.62.
TTSE 27-3-14Gains| Stocks recording gains in the market are Ansa Merchant Bank contributing 9,411 shares with a value of $361,226 as the price moved up 10 cents to end at $38.40, Clico Investment Fund with 24,180 shares valued at $528,333, the price advanced by 9 cents to end at $21.85. One Caribbean Media with 200 shares at $19.75 while gaining 5 cents to record a new 52 weeks high at the close and Republic Bank while trading 2,953 shares at a new 52 weeks high of $120.10 with a gain of 2 cents and Scotiabank with an increase of 90 cents to end the day at $71.00 while trading 205 shares.
Firm Trades| Angostura Holdings traded 602 shares at $11, Berger Paints 100 units at $3.60, Jamaica Money Market Brokers saw 39,340 shares changing hands for a value of $22,030 as the price closed at 56 cents and Neal & Massy traded 20,038 shares for $1,328,720 to close at $66.31.
Declines| First Citizens Bank traded 5,608 shares valued at $197,169 as the price slipped by 25 cents to end at $35, Flavorite Foods fell $1.21 to close at $7, a new 52 weeks low, Guardian Holdings 1,755 shares at 25 cents lower at $13.75, Prestige Holdings traded only 10 shares to close at $9.29 for a 1 cent decline.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bids higher than their last selling prices and only 1 stock with the offer that is lower.