JSE: Friday, 17th May 2013

Markets poised for a big run soon? | Advancing stock far outnumbered declining ones as the Jamaica Stock market continues on a bullish note. Fourteen stocks gained to only 4 that declined. Twenty six stocks traded in all.

The market has crossed over a major resistance level just under 85,000 points. Based on market sentiments currently and the shortage of some stocks, it seems only a matter of time for a major breakaway from the current level to take place. That break out could well be next week.

Caribbean Cream trades 1m shares | Newly listed junior market Caribbean Cream traded more than 1 million shares after the stock started trading. Two blocks of 500,000 units were traded at the IPO price of $1. Later in the morning 7,000 units traded at $1.01 the last traded price for the day. At the close, there were 4 orders to purchase 136,445 at $1 and two orders to sell 2,000 units at $1.15 and one order to sell 150,000 units at $1.25.

jse_logo150x150Elsewhere Consolidated Bakeries traded 1.079 million units as low as 90 cents each and Supreme Ventures traded 3.87 million units between $2.75 and $2.95 each. The stock last traded at $2.95. Scotia Group traded 228,455 units while closing down to $20.20 shedding $1.40 in the process. Dolphin Cove traded 249,200 and closed trading at $8.10 and General accident chipped in with 228,187 units valued at $2 million. The stock gained 1 cent. With the company’s first quarter results showing profit gains of 65 percent, demand has come in for it. Proven Preference shares traded 1.4 million units valued at $7 million as investors seek out higher yielding instruments than regular money market ones.

Blue Power traded at $6.80 up 80 cents, it along with Caribbean Cream, traded at all-time highs today. Grace Kennedy which traded at $60 up $2 and Kingston Wharves traded at $6.65 closed at 52 weeks’ highs. Jamaican Producers traded up $2.20 to close at $18.70 but at the end of trade the stock was offered for sale at $17, only 5,000 units traded. National Commercial Bank gained 49 to close at $18.99 on 8,000 units that traded.

Trading took place with 8.4 million units trading at a value of $30 million.


FX: Friday, 17th May 2013

International FX market | On the foreign exchange market the Japanese yen broke through the 103 barrier this morning as the US dollar was in great demand as economy data out on better than expected. The US dollar rose against all major currencies.



FX: Thursday, 16th May 2013



JSE: Thursday, 16th May 2013

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Bullish signs are present | The Jamaica stock market registered gains in the main market index as First Caribbean International Bank gained $1.50 to close at $103 while trading just 2,537 shares. The All Jamaica Composite index fell, however, in spite of a positive advance decline ratio. Trading in the market was characterised by heavy cross trading carried out primarily by MVL Stockbrokers. The cross trades helped the volume reach 10.7 million units with a value of $93.9 million.

Two stocks reached 52 weeks high in trading while there was demand for stocks with prices above the last selling price that went unfilled at the end of trading. Blue Power reached $6 up 15 cents with a volume of 913,000 units traded by Mayberry which they bought for their own account. At the end of trading, they had a bid for 200,000 at $6. Kingston Properties traded more than 2 million shares and gained 51 cents to close at $4.51, NCB gained 28 cents to close at $18.50 with 215,300 shares trading. Scotia Investments in its up- today-down-tomorrow shed $3 in trading 452,185 shares with most being a cross and closed at $23.50.

At the close, the junior market looked very bullish as there is a general standoff between buyers and sellers with bids and offers being very wide.


TTSE: Thursday, 16th May 2013

TTSE still no aggression | Buyers want stocks to buy in the Trinidad market and some sellers want to sell but there appears to be a standoff with sellers not wanting to part with some of the stocks that are not in great demand at much lower prices that they are offering to sell for. The same seems true for buyers, as there are clearly a shortage of some stocks on the market. The result of this standoff is limited trading and small price changes.

Trading on the main market | 13 securities trading with 5 advancing, none declined and 8 traded firm with a volume of 462,965 shares valued at $10,535,326.98. Conglomerate Ansa Mcal traded 125,000 shares for $8,402,500; Angostura Holdings traded 109,500 shares with a value of $985,479, while First Caribbean International Bank moved 50,000 shares valued at $400,000.

Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 7,447 shares valued at $156,827.


FX: Wednesday, 15th May 2013

Wednesday, 15th May 2013



JSE to redeem preference shares

Friday, 17th May UPDATE | The Jamaica Stock Exchange Limited has advised of its intention to redeem its preference shares which mature on May 31, 2013. Principal and interest payments will be made on May 31, 2013 to shareholders on record as at May 24, 2013. The shares will be suspended on May 24 to facilitate the process of redemption. The total amount of shares involved is 33 million units.

Thursday, 16th May | The Jamaica Stock Exchange (JSE) which is now listed in the preference shares segment of the market, will be offering ordinary shares to the public before the end of May, a reliable source tells IC Insider, subject to an early sign-off of the prospectus by the FSC.

The Stock Exchange has already announced the redemption of the preference shares which under the terms of the shares are redeemable at the end of May and the Board has signed off on the decision to take the ordinary shares to the public. IC Insider gathers that the issue will most likely be in the region of the redemption which will amount to around $66 million. With issue costs of the ordinary shares to be factored in, it could come to market at around $100 million. The prospectus is at an advanced stage and could be signed off by the stock exchange early next week for approval by the FSC. If all goes well, the prospectus could be in the public hands by late next week or the first week in June and the issue should be closed before the end of June. The lead brokers are Stocks & Securities who recently launched the IPO of Caribbean Cream issue.

How does the JSE stack up?

jse_logo150x150Revenues  | For the quarter ended March, the JSE’s income rose 8% to reach $69.5m compared to $64.4m in 2012. Other Operating Income increased by $5.5m or 32% over the same period, primarily due to an increase of $5.3 million in revenue from the JSE regional conference. Investment income of $22 million jumped $14 million over 2012 due largely to the gains on US dollar investments as a result of devaluation of the Jamaican dollar.

Profit after tax amounted to $5.8 million compared to a loss of $6.1 million in 2012. For the twelve months to December last year profit of $93 million was reported but that figure included the revenue from the sale of a board seat to Proven Wealth Management as well large fee income that flowed form the purchase of Lascelles’ shares that were acquired by Campari last year.

Total assets at March this year is $720 million and equity capital of $505 million. There are currently, 28 million ordinary shares in issue. With an equity base of $505 million these shares would have a book value of $18 per share. It is quite likely that the number of shares now issued could be increased to existing shareholders thus allowing for a smaller sum per share for the IPO.

Based on earnings to date, it is and the current number of shares outstanding could be priced around $10 each which is much lower than the net asset value. The prospectus will disclose the full extent of the pricing and then investors can get a clear picture of its worth as an IPO.

IPO outlook | Of course the stock exchange has no direct competition, nevertheless it has to compete with other forms of investments both local and overseas, that are available to investors. It also noted that the JSE has not been customer friendly with the investing public and there are other signs of management weaknesses that could prevent an investment in the stock to optimize investors’ returns. It is the view of IC Insider that the stock market should pick up over the next several years as interest rates remain low making stock market investing more attractive than in the past few years. If so, then the JSE will benefit from increasing fees and possibility more listings.

JSE: Wednesday, 15th May 2013

Bullish, will it last? | Corporates are coming to the market (meaning companies are buying) says our source when asked what was happening and why the significant move today. They want all the top company shares that everyone else wants.  He indicated that other brokers are doing the same thing but the supply is not coming out to meet demand at these prices. These sentiments were confirmed by another source. Whatever the true situation, what is known is that the advance/decline ratio has been strongly positive from at last week which is a bullish indicator.

Trading today on the Jamaican Stock Exchange was at its most bullish for the entire year with the All Jamaican Composite advanced by 1,132.95 points (1.35%) to close at 85,058.31. The JSE Market Index advanced by 643.54 points (0.76%) to close at 85,273.15 and the JSE Junior Market Index leaped by 34.36 points (5.47%) to close at 662.80, this as 15 advancing stocks overshadowed the 3 falling.

Bull150X150Market volume amounted to 2,350,794 units valued at over $16,641,657. Caribbean Producers traded 1,178,552 units with Jamaica Money Market Brokers with 333,000 units (31.28%) and Scotia Group Jamaica with 224,446 units (21.08%).

Big movers for the day are Access Financial Services up $1 to an all-time high of $8 while trading 17,861 shares, Desnoes & Geddes put on 50 cents to close at $5 but the stock closed with an offer of $4.85 with a small volume being offered for sale. The company traded 163,074 units between $4.60 and $5. Dolphin Cove traded to close at $8.40, up 48 cents on the day, Jamaica Producers fresh from reporting improved first quarter results, gained 41 to close at $16.50 as the stock saw trading taking place in 10,000 units. Lasco Manufacturing gained 30 cents to close at $11.30 off 101,178 units trading, Scotia Investments is up all of $3.40 for a $26.50 close as the stock traded 7,000 units. The losing stocks shed 49 cents in the case of Carreras as it traded 9.821 units, NCB lost 57 cents in closing at $18.22 while trading 26,685 units.

Technically the market is approaching its first resistance which is around 86,000-87,000 points. A break sharply over this level will expose the market to a potential big rally taking it to the 100,000 points level.


TTSE: Wednesday, 15th May, 2013

Slow day in T&T

Stocks were not actively traded today on the Trinidad & Tobago Stock Exchange. Only 13 securities traded with 1 advancing and 1 declining. The number of securities that traded speaks to the sluggishness of trading. The main market registered a volume of 551,546 shares valued at $6,304,909 while two mutual fund traded with 147,371 shares changing hands valued at $2,959,830.19.

Trinidad Cement traded 376,710 shares valued at $359,696, Guardian Media traded 116,100 shares for $2,292,969.00, ANSA Mcal saw 37,000 shares trading with a value of $2,487,140, while Republic Bank added 8,952 shares valued at $984,720.

Price changes were moderate resulting in virtual no movement in the indices.


Caribbean Cream trading on Friday

Caribbean Cream will commence trading of Friday under the ticker symbol Kremi. This confirms IC Insider report last week that the listing was set for this week. The company is the latest to be listed on the Jamaica Stock Exchange.

Stock outlook | The company which went to the market in April to raise $75.7 million was just oversubscribed on May 1, well ahead of the closing date of May 10. Not much is expected in terms of price movements when trading starts since there was not the usual demand and heavy subscription for the shares as has been the norm for majority of the junior listing stocks.