Jamaica Producers rose $1 to new record high of $18.
All major market indices rose moderately compared with the sharp increase for the past 7 trading days. The all All Jamaica Composite Index gaining 253.10 points to close at 240,292.56, the JSE Market Index climbed 226.32 points to finish at 219,238.80 and the JSE combined index grew 897.61 points, to close at 233,711.14. The movement of the main market, for the year to date, resulted to gains of 14.3 percent, for the all Jamaica Composite Index.
At the close, 7,100,472 units valued at $124,253,097 changed hands, compared to 10,580,009 units valued at $124,588,506 changing hands on Thursday. Of the stocks traded, the junior market accounted for 1,530,168 units, valued at $11,104,756.
The average trade for the day in the main market ended at 198,939 shares compared to an average of 324,708 units on Thursday. For the month to date, an average of 250,588 shares traded, versus an average of units 302,236 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 4 with lower offers.In market activity, Barita Investments gained 80 cents to close at a 52 weeks’ high of $7.50, with 35,000 units changing hands, Berger Paints lost 13 cents to close at $11.07 with trades of 28,948 shares, Cable and Wireless traded 289,624 units at $1.15, Caribbean Cement declined 49 cents in closing at $33.01 with an exchange of 52,713 shares. Carreras slid 75 cents to $66 with 364,096 units changing hands, 1834 Investments traded 10,000 shares at $1.40, Grace Kennedy advanced 51 cents to $40.50 trading 120,777 units. Jamaica Broilers added 1 cent to close at $15.50 with an exchange of 25,069 shares, Jamaica Producers traded 28,163 units, rising $1 to end at a 52 weeks’ closing high of $18, JMMB Group gained 50 cents to close at a 52 weeks’ high of $17.50 with 41,805 units traded. Kingston Properties exchanged 10,000 shares at $9.50, Kingston Wharves added 1 cent to end at $33 with trades of 28,964 units, Margaritaville Turks, traded 52,250 units, adding 4 cents to close at a 52 weeks’ high of 33 US cents, National Commercial Bank recovered $3.88 to close at $64.90, after swapping 28,057 shares. 138 Student Living closed trading with an exchange of 9,205 units at $4.50, Pan Jamaican gained 95 cents to close at $30 with 95,450 shares traded, Portland JSX advanced 90 cents, closing at $10 after trading 4,800 units,
Pulse Investments gained 78 cents to close at a 52 weeks’ high of $7.10, trading 17,000 units. Radio Jamaica closed at $1.36, gaining 16 cents trading 105,008 shares, Sagicor Group lost 50 cents to close at $32.50 with 32,656 shares changing hands, Sagicor Real Estate fund closed at $10.20 for a loss of 30 cents with trades of 3,002,738 units, Scotia Group ended trading with a loss of $1 to close at $40, having traded 777,834 shares. Scotia Investments lost 50 cents, after trading 12,000 units and closed at $35, Supreme Ventures gained 20 cents with 23,824 shares traded and closed at $5.70, Proven Investments traded 194,000 ordinary shares, adding 3 cents to close at a 52 weeks high of 29 US cents and JMMB Group 7.5% preference share traded 177,438 units at $1.10.
Poor Carib capital market regulation
The glaring case of the abuse of power exercised by the Trinidad Cement board in the handling of the company’s right issue earlier this year, stands out as a clear case for regulatory action to protect investors. In this matter the company failed to properly inform shareholders of a strong improvement in the profit of the a for the first quarter and made it worse with Price Waterhouse Coopers signing a report that gave the impression that there was no profit for the quarter.
In Jamaica, we have a Financial Services Commission (FSC) that is said to be the regulator for the financial entities not regulated by Bank of Jamaica, much is lacking from them, their inaction in matters of critical import makes one wonder what taxpayers money given to them is really being used for?
When it comes to the FSC, one is reminded of a police station located across from a house of crime but does nothing, unless the neighbours complain about it. Here is a case be it small. One of the FSC regulated entities is late with its 2015 results, the company issued a statement to the stock exchange to say they would be late in releasing the audited statements and the audited figures would be released on December 4. They also had the lateness of the audited accounts in 2014, with December 5th being the promised date. Now the public is being told that Barita Investments Limited (BIL) the entity involved has advised that the Audited Financial Statements for the financial year-end 2014/2015 will be submitted to the Jamaica Stock Exchange (JSE)on or before December 29, 2015. That is a major shift in the time frame. No reason was given in the notice on the stock exchange site. The investing public has a right to know the reason for the lateness. The FSC that regulates the market, should be interested in knowing what the reasons are as well, but there is not even a peep out of them?
IC Insider spoke with Mrs Rita Humphries, Chairman of the company on Wednesday December 9, about the issues affecting the release and subsequently, the last posting was made on the JSE website. According to the Chairman, there were issues relating to reconciliation of a few accounts which required adjusting entries to be made. Barita had them reconciled and the auditors needed to go through the information and transactions to satisfy themselves that the end result is correct. Additionally, the auditors advised of none receipt of confirmation from clients some of which had already been sent on to the auditors we are advised. Last year the audit was held up by a difference of opinion between the auditors and the Barita over the issue of fully providing for the value of shares Barita held in Scotia Group on the basis the auditors said was the impairment of the investment. This was after they fully provided for the value of Barita’s investment in National Commercial Bank shares.
All this bring one back to the glaring errors in the audited accounts for Knutsford Express audited accounts for 2014 and 2015 for which there have been no request for revision of the reports, why? Are these regulators really serious in protecting investors? Take the most recent case of tTech. The prospectus for the company’s shares, made no mention of subscribers being asked to pay the JCSD fees. One day before the issue opens, a note is placed on the JSE website that the fee is to be paid by subscribers, even as the prospectus states that investors would not be paying any more than the $2.50, the shares were offered to the general public at. The JSE clearly did not intervene to prevent a chaotic situation from happening with some applicant including the fee and others did not as they were unaware of it. Thankfully, the management and brokers were sensitive to the issue and agreed to refund those who paid.
The FSC and the Stock Exchange police the system when companies are going to the public to raise money, but what happens after, very little? Goodyear was delisted from the JSE, shareholders got two payments form liquidation of the assets but about three years after, no information but there are no regulators dealing with the issue anymore, leaving many small investors to fend for themselves. That is not good enough.