Friday, 9th August 2013 | Cable & Wireless was the dominant stock traded on the last day of the holiday-shortened week, when buyers picked up 11.5 million units of the telecom company at 15 cents each for a total sum of $1.73 million thus cutting the supply of the stock at that price, to 12.5 million. The company should be releasing results for the June quarter by next week and this most likely will stimulate interest one way or the other.
The market closed off the week with high volume of 13.2 million shares but only because of Cable & Wireless trades as the total value for trading only amounted to $11.2 million. Stocks of 26 companies traded with 8 stocks advancing and 6 declining.
Main market trades of note | The all Jamaica Index shed 542.03 points to close at 86,348.95 and the JSE market index fell 308.06 to close at 85,906.57.
Caribbean Cement traded 23,956 shares and was up 20 cents to close at $1.59, a 52 weeks high, the bid closed at $1.61 for 258,000 units. Carreras traded 59,363 shares between $51.18 and $50.50, the stock closed off 98 cents at $50.52. Desnoes & Geddes closed 9 cents down at $4.61 as 68,250 units traded. Jamaica Money Market Brokers traded 65,033 units with the last traded price of $8, but was as high as $8.45, the stock lost 20 cents. Pan Jam gained 64 cents to close at $51.75 with only 1,100 units changing hands. Sagicor Investments traded just 13,385 units to close at $16.53 down $1.47 and Seprod traded 100,000 to close firm at $14.75. Jamaica Money Market Brokers 8.5 percent preference shares traded 400 shares at an all-time high of $3.70 up 14 cents on the day.
Junior market | General Accident Insurance traded 42,000 shares firm at $2 but traded as low as $1.85, Lasco Distributors traded 700,232 units to close down 2 cents at $1.46, Lasco Financial traded 136,381 units to close 1 cent higher at $1.52, Lasco Manufacturing closed at $1.56 gaining 4 cents while trading 148,500 units.
Newly listed Eppley have still not traded and has no bids or offers at the close of trading.
Proven Investment Preference shares traded 101,000 units valued at $514,000, at $5.09.
Market intelligence | The pressure eased on Cable & Wireless this week as the amount of stock on offer at 15 cents dropped sharply to 12.47 million after trading 15.8 million shares since Wednesday. The demand for the stock has not changed much. After the offer at 15 cents, the next meaningful level is at 19 cents. The coming week will determine the medium term direction of this stock with results due this coming week.
Demand for Carreras is low with about 120,000 units on the bid. Supply does not appear all that great but could overwhelm demand if sellers want out considering the poor first quarter results that could continue into the second quarter. Caribbean Cement demand has built up significantly while supply has disappeared almost completely helped by the release of quarterly results showing a return to profitability. Desnoes & Geddes is under some selling pressure with 1 million shares on offer at $4.85 and 1 million at $5.18 with a major bid at $4.50 for 1.5 million units. Results for the June quarter which should be up on 2012 is not expected until month end. Gleaner has selling at $1.49 and $1.50 for 13 million units with a bid for 1.15 million at $1.16.
In spite of a 41 percent rise in second quarter profit, Grace Kennedy has not attracted a preponderance of buy orders. Jamaica Money Market Brokers is not in very strong demand ahead of the June results, due in days even as selling seems to be close to $9. Mayberry now has a second bid of 1 million shares at $2 per share after weeks of just one bid in place at $2.60, supply of the stock is low. National Commercial Bank has less than 50,000 units on offer below $23, at $23 is 103,000 units, at $24 is 20,000 units and 43,000 units at $25. Bids around $19 are in excess of all the supply in the market.
Radio Jamaica continues with a large bid or 4.3 million at $1.23, there is virtually no supply at this stage. Sagicor Life has a little more than 200,000 shares on offer between $9.02 and $15, the bids have stayed below $9 but could change soon with the company reporting a strong increase in second quarter results. Scotia Group looks fluid around the $21-23 level and may need the onset of results which are likely to be released by month end to change direction, supply of the stock is not very heavy.
IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer sentiment indicator shows that bids for 6 stocks were higher and offers of 2 were lower that than their last selling price.
After the bell | Sagicor Life posted strongly improved 2nd quarter results up by 39 percent to $1.56 billion versus $1.12 billion in June 2012 for the six months period. Profits, which was hit by the write off of gains in investment when the government debt exchange took place in the first quarter came in at $2.18 billion compared to $2.6 billion in 2012.
Sagicor Investment profits were flat for June quarter at $331 million while year-to-date results was $338 million versus $800 million in 2012.
Big jump in Consolidated Bakeries profit before tax of $14.25 million for the six months to June vs $9 million in 2012 represents a 58 percent increase with $10.6 million in the latest quarter vs the 2012 results being $1.85 million or a 47 percent increase. Revenue for the six month period increased by 30.69 percent and for the quarter by 40.46 percent over the same periods last year.
