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

Add your HTML code here...

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.

FX: Tuesday, 14th May 2013

Tuesday, 14 May 2013



JSE: Tuesday, 14th May 2013

Indices rise but decliners outnumber advancers

In Tuesday’s trading on the Jamaica Stock Exchange 3 stocks advanced and 7 declined. It’s been some time since the advance/decline ratio was negative, nevertheless the main market indices actually registered advances. The level of trading was moderate with just over 2 million units trading for a value of $9.3 million.

At the end of trading there were 8 stocks with bids above the last selling price and only two with offers below the last sale price.


TTSE: Tuesday, 14th May 2013

Moderate Price movements

Trading volume in the main market was 1,231,545 shares valued at $7,881,995.28. Trinidad Cement traded 1,036,555 shares for a value of $984,727, followed by Scotiabank Trinidad & Tobago with a volume of 85,000 shares for $5,894,750. Angostura Holdings accounted for 55,125 shares with a value of $496,136.  14 securities of which 5 advanced, 4 declined and 5 traded firm.

Scotia Investments was the day’s largest gainer, increasing $0.15 to end the day at $1.70. Conversely, Clico Investment Fund suffered the day’s greatest loss, falling $0.05 to close at $21.04 while trading a volume of 66,564 shares valued at $1,400,198.

3 stocks traded at 52 weeks high on Tuesday while there were 5 stocks with bids above last selling price and 5 with offers below the last selling price.


FX: Monday, 13th May 2013

Robust FX trading

USD | The foreign exchange market enjoyed high levels of trade on Monday as the equivalent of US$47.29 million were bought while selling amounted to US$50.44 million. This is in contrast with last week’s Monday’s trade in which US$41.2 million were purchased and US$44.4 million sold.

However, the selling rate for the US dollar slipped from Friday’s close to end at J$99.018 (Friday J$99.058) as US$48.6 were sold and US$44.2 million were bought at J$98.52, slightly lower than Friday’s buying rate of J$98.58.

GBP | Sellers to authorized dealers sold £1.3 million at an average of J$149.30 while dealers sold £1.16 million at an average of J$152.72 compared to Friday, when it was sold at J$153.07.

CAD | CAD$1.63 million were bought at an average of J$95.77, a sharp decline from Friday’s rate of J$97.21 and the amount sold was CAD$897,257 at an average rate of J$97.86, slightly higher than Friday’s trades which took place at J$97.79.

Highs & Lows | The highest selling rate for the US dollar remains over J$104 while the lowest is at $81.16. The Pound was sold at a high of $158.68 and a low of $147.56 and the Canadian at a high of $102.45 and a low of $95.15.




TTSE: Monday, 13th May 2013

Moderate Monday

Trading on the Trinidad & Tobago stock exchange was moderate with a volume of 219,942 shares crossing the floor of the Exchange valued at $2,641,580.

Angostura Holdings was the volume leader with 104,400 shares changing hands for a value of $939,600.00, followed by Point Lisas Industrial Port Development Corporation with 74,000 shares being traded for $266,400. Investors bought 9,174 Republic Bank shares with a value of $1,009,135. National Flour Mills enjoyed the day’s largest gain, increasing $0.05 to end the day at $0.86 as 15 securities traded of which 5 advanced and 10 traded firm. There were no stocks recording price declines. While there are signs of further price gains for some stocks, there are some that indicate they are likely to suffer a price decline as there are sellers who have not been able to find buyers for some time with the price they are offered at either being at the last selling price or below.

Five stocks closed with bids over the last selling price.

Stocks to watch this week | Investors should keep a close eye on the following stocks as they have the potential to record price gains. These are Ansa MaCal, One Caribbean media, Republic Bank, Scotia Bank and West Indian Tobacco.