NCB Financial Group shares following last weeks’ big trade valued at $650 million.
Jamaica’s largest financial institution, advised the Jamaica Stock Exchange that a connected party sold 2,768,165 of the group’s shares and three directors and a senior manager purchased a total of 2,836,672 shares between November 23 and 26. This development is the clearest signs that the immediate future is extremely bright for the group.
The local stock market is showing major shift in sentiment with the news that Scotia Group is selling off of its insurance arm to Sagicor Group. The announcement drove up the prices of Scotia Group, Sagicor Group and Pan Jamaican that traded at a new high on Wednesday. But NCB continued to scale new highs on each day for the week. NCB has little supply coming onto the market as demand continues to climb.
All the above stocks are now the watch list, but investors must keep watch on Barita Investments that has shot up to a record high of $23 with a bid at $24.01. There is some amount of public chatter about the performance of the company that has encouraged more interest in the stock. The company will benefit from several developments in the financial market, including the impact of the change in accounting policy that will result in gains or losses in investments whether realized or not going straight to the profit and loss account. With growth in the stock market Barita should benefit in two ways, increased value of the portfolio, for example, 48 million JSE shares owned increasing around $100 million in the December quarter so far but Barita is said to also own shares in NCB that has risen sharply in price for the quarter. The equity linked unit trust will garner more fee income based purely on the fact that the portfolio would have grown based on gains in stock price. The other financial stock to be watched is Key Insurance that has traded over 21 million shares so far with the stock having a bid of $4 to buy over 911,000 shares. The movement in the Key shares seems like the start of an aggressive stance an investor, watch developments in this one keenly. Seprod also seems poised to rise with early selling from the public offer now appearing to be abating.
Mayberry Jamaican Equities is yet another to watch as the local stock market moves higher over the next several weeks and it could drag it mother company Mayberry Investments with it.
There was another big insider trade, in Many more stocks to watch now
November 29, 2018 by IC Insider.com
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