Wednesday, 3rd July 2013 | The junior market hit another all-time high of 815.36, up 3.34 points from yesterday’s all time high of 812.02 with Lasco Financial Services and Lasco Manufacturing posting gains on the day.
The main market, which broke its losing streak yesterday, continued the up-movement as all indices with trades climbed except the US equities. The all Jamaican Index gained 143.73 points to close at 89,037.69, the Jamaica Stock Exchange Market index closed at 87,434.18 up 96.92 on the day on a day when 8 stocks advanced in price and 8 declined.
Trading took place with 2.8 million shares as investors expended only $21.57 million, which is above the levels of Tuesday’s trading. Only one stock, Lasco Manufacturing, closed with the last traded price reaching an all-time record at the close.
Main Market | There is not much interest in this side of the market as investors’ main attraction was the Lasco stocks. As of Friday 5th July, these stocks will trade at lower prices based on the 10 for 1 stock split. Scotia Investments, no doubt based on an arbitrage situation that now exists with the stock selling in Trinidad at $28.60 while trading at $26.25 in Jamaica, was up 15 cents. $1.3 million was swapped for the stock as 49,500 units changed hands. The next highest trade was Kingston Wharves which traded 11,400 units valued at $923,000. Pan Jamaican Investments closed down $1.52 at $51.08 as 2,435 units traded.
Market intelligence | The supply of Cable & Wireless on offer at 15 cents remains at 29.4 million units at the end of trading. The immediate bid is for 2.6 million at 14 cents, next is 1 million at 12 cents, then 9.76 million at 11 cents. RJR still has a bid of $1.23 to buy 4.79 million shares. The supply seems to be drying up with the lowest offer being at $1.89 with only 46,000 units in all on offer. There is potential for price appreciation but RJR’s recent results don’t suggest that earnings can support any major upward price movement. Carreras traded back up to $56 dollars but the bids in the system appear to be weak and offers are greater than bids that are above $53.01. Grace Kennedy’s stock, which picked up in price recently, has 700,000 unit son offer at $61 that has stymied any further upward movement for the time being. Mayberry Investments had just one bid on the stock at $2.60.
Junior market | Six junior market stocks traded, as Lasco Financial at $12.77 down 67 cents with 272,000 shares trading between $12.77 and $13.01. Lasco Manufacturing traded 337,500 shares with the price closing at $16.50 up 50 cents. Lasco Distributors, closed at $16.50 down $1.50, 346,000 units traded between $16.10 and $17. Caribbean Producers closed at $2.03 while trading 868,622 units. Blue Power did not trade and there are offers amounting to 306,000 units at $10.40 to $10.50 at the end of trading, but the bids have backed off with only 50,000 units on bid at around $9.
The junior market golden cross grows stronger. The 50 day and 120 moving averages trend-lines are crossing over the 200 day moving average which is a strong market signal for a major move in the months ahead. It will be interesting to see what effect the Lasco splits will have on values on Friday when all three stocks sell at the lower stock split prices.
IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 5 stocks were higher with 5 stocks having offers lower than their last selling price. The junior market has three of the stocks in each category of higher bids and lower offers.
