JSE | Highest since February
The stock market reached its highest level since February 11 when measured by the all Jamaica composite index as it crossed over the 82,000 level. In the case of the main market index, Wednesday’s level was the highest since mid-March. But on one of the more lackluster days, there was a mere $9,166,322 expended in trading, as advancing stocks just outnumbered declining ones by 8 to 7.
Stock gaining | Stocks with any noticeable movements were, Berger Paints up 31 cents, to close at $2.26, a day after the company announced that the CEO Warren McDonald would be retiring shortly. Investors snapped up 33,112 of the company’s shares between $1.97 and $2.26. Carreras inched up 83 cents, to close at $55.03 with 17,078 units trading. Lasco Manufacturing climbed 90 cents to $11.05 with a mere 1,700 units trdingand Lasco Financial moved to a new 52 weeks high at $7.60 on moderate volume, Supreme Ventures gained back 10 cents it lost on Tuesday, to close at $2.60 with just 19,000 shares trading. General Accident gained 4 percent to close at $1.70 on the 184,887 shares that traded, between $1.65 and $1.70.
Stocks Losses | Consolidated Bakery, bakers of Purity and Miss Birdie brand of baked products, fell 40 cents to $1.20 with only 300 units sold, as interest in the stock fell away when the company released final year 2102 results that showed a sharp drop in profits, compared with 2011. The company had reported $3.7 million after tax profit compared to $12.8 million in 2011, before gain from disposal of shares. The stock looks set to fall some more unless the first quarter results, which are due in another two weeks, come out early and show positive growth in earnings that could change investor sentiment to the stock.
Stocks in demand | While levels of stocks trading on Wednesday was low, there were 9 companies stocks that had bids higher than their last selling prices, a bullish indicator. These companies include Blue Power, Desnoes & Geddes, Mayberry, Lasco Distributors, Sagicor Investments, Jamaica Producers, Pan Jamaican, Scotia Investments and KLE Group, a company that provides entertainment and restaurants services, that fell to $2.75 at the last traded price, well below the IPO price of $3.70.
TTSE | Witco Jumps to TT$100
West Indian Tobacco Company hit a record TT$100 in today’s trading on the TT Stock Exchange with the largest gain on the market as it increased $2.93 to end the day’s trading. At the end of 2012 the stock traded at $85. Scotia Bank gained 21 cents to land at $69.24 and is up from the December 2012 close of $65.51 while Sagicor Financial gained 14 cents and closed at $7. All three traded below 750 shares each.
A total of 400,834 shares crossed the floor of the Exchange with a value of $3,204,224.37 as 12 securities traded during the day with 6 advancing, 2 declining and 4 trading firm.
Angostura Holdings traded 233,615 shares to be the market leader, the value of the shares traded was $2,128,611.97 but the stock fell 39 cents to close $9.11, this was followed by Trinidad Cement with a volume of 137,331 shares valued $137,331.00. National Enterprises contributed 12,576 shares with a value of $196,185.60, while Republic Bank added 6,144 shares valued at $669,081.60.
Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 45,170 shares valued at $948,930.93 and advanced by $0.01 to end at $21.01. Fortress Caribbean Property Fund which last traded at $5.00 did not trade as did Praetorian Property Mutual Fund that last traded at $3.40. There was no activity in the Second Tier Market.
ForEx | J$ revaluation continues
The rate of exchange between the US and Jamaican dollars continued to inch down, even as the amount of US dollars sold in the system in the last two days exceed the amount purchased by authorized dealers. The average selling rate, fell to J$99.3286 from $99.3481 on Tuesday and $99.36 on Monday. Both the amount of funds purchased US$29.3 million by the dealers and that sold, US$36.6 fell on Wednesday by US$16 million on the buying side and US$18 million on sell side, compared to Tuesday’s trade. The rate of exchange has appreciated from a low of J$99.81 on April 12th.
Interestingly, the currency was sold between $104.27 to a low of $81.49 while the highest price paid for purchase was $99.70. On Tuesday sale took place between $104.27 to a low of $96.4 while the highest price paid for purchase was $99.50 to a low of $81.37.
Too early to say | While the Jamaican dollar has been slowly appreciating since last week, it is too early to say where it will end in the short term. The government announced on Wednesday that the IMF agreement was signed off by the IMF board and will release almost US$200 million for the central bank’s reserves. The amount is not large, but there are more flows that will be coming in during the year that could result in further appreciation of the local currency. Persons who bought FX for investment purposes could well be offloading some into the market if the daily rate shows signs of the currency appreciating for a number of days to come.
Treasury Bills | TBill rates climbed in April
In March, the average yield for the 90 days was 5.82488 percent but bids up to 6.24999% were successful as only $338.7 billion chased after the $400 million on offer. In April, things changed a lot with the average yield climbing nearly 86 basis points to average out at 6.68297 percent. This took place against the background of a 41 percent oversubscription coming against the fall in rates in March when there were less bids for the amount on offer. Allotment was made for successful bids between a low of 5.15 percent and a high of 7.1 percent per annum.
The six issues fared better as average yield climbed a bit moving up to 6.389 percent compared to what the six months bill yielded in March when the yield came out at an average of 6.22345 percent per annum. But while in March the range was 5.50% to 6.65310, only $196 million went after the $400 million on offer, The April auction had 708 million seeking to capture some of the $400 million offer but bidders were successful in garnering between 5.4 percent and 6.65 percent for this instrument. In March, a 30 day treasury bill was oversubscribed by $58 million with yields between 4.5 percent & 6.1 percent.
