Stock split coming for JSE

Jamaica Stock Exchange (JSE) advised after trading closed on Thursday that the Board of Directors will be considering a stock split at a board meeting scheduled to be held on Wednesday, September 21, 2016. With only 140 million shares issued and 90 million being held by brokers members there is a strong possibility for a 5 for 1 stock split to allow for greater liquidity.
JSE reported of profit of $32 million for the June quarter versus $15 million in 2015 and $158 million compared to $102 million for the six months to June 2015. The improvement in net profit flowed from a 52 percent rise in revenues to $188 million for the June 2016 quarter compared with $124 million in 2015 and $525 million for the half year to June for a rise of 37 percent versus $382 million in 2015. Earnings per share for the half year ended at $1.12 versus 73 cents in 2015. The JSE had a big month of trading in August with some special trades that took place thus swelling the volumes and value to $6.6 billion for July to August compared to $6.5 million for the June quarter.
Expenses in the June quarter rose less than the growth in revenues at 40 percent and for the half year by 26 percent. Increase in salaries related cost was the major area of cost increase rising faster than the increased revenues. Salaries and related cost jumped 65 percent in the June quarter compared with a 52 percent gain in revenues for the quarter and 44 percent increase in wages for the half year to June, 7 percentage points higher than revenue growth. Wages accounted for 55 percent of total cost in the quarter and 46 percent for the six months period for all of 2015 the ratio was 43 percent.
Segment results show a sharp jump in both revenues and profit for the Exchange Operations and that of Trustees Services for the half year. Exchange operations revenues grew to $326 million from $233 million in 2015 resulting in pretax profit of $151 million from $84 million in the six months to June 2015 while Trustees Services saw revenues shooting to $114 million from $46 million and with profit of $64 million from $18 million in 2015.
The stock traded on Thursday at $24.10 delivering a huge gain for investors who bought shares in the public offer in June 2013 at $2.85 per share. Some investors have done even better in buying the stock below $2 per share after it was listed.