Activity on the Junior Market closed with 7 securities traded and ending with 11,322,313 units changing hands valued at $8,890,752 as Caribbean Cream was the dominant stock trading. Stocks and Securities sold 10,516,480 of the Caribbean Cream’s shares as the selling broker. Barita Investments bought 10 million of the shares at 74 cents, on behalf of client.
The JSE Junior Market Index declined 2.21 points to close at 713.54. No stock gained on Wednesday, while only 1 declined. At the close of the market, there were 2 stocks with bids higher than their last selling prices and 1 with the offer that was lower. The junior market ended with 4 securities closing with no bids to buy and 5 securities that had no stocks being offered for sale.
Stocks trading in the junior market are, Caribbean Producers closing with 97,396 units trading, the price slipped 5 cents to $2.10, Caribbean Cream ending with 10,517,782 units trading to close at 76 cents, General Accident ending with 55,705 shares changing hands to close at $1.70. Lasco Distributors finished with 129,060 shares trading at $1.50, Lasco Financial ended trading with 1,900 units at $1.15, Lasco Manufacturing closed with 500,470 units to close at $1.15 and Medical Disposables finished with 20,000 shares at $1.80.
Barita Faces challenges but..
Barita Investments profit after tax dropped 21 percent to $46 million for the quarter ending December 2014 compared to the similar period in 2013, from total revenues of $345 million and net operating revenues of $177 million. In 2013, the company that is involved in stockbroker and fund management reported net operating profit of $165 million but increase expenses helped to pull down profit for the quarter.
Interest Income contributed $230 million to revenues, 15 percent below the prior year, while related interest expense remained flat at $168 million.
Barita is suffering from a mixture of assets priced for shorter periods than the funds clients’ invest with them. According to Chairman Rita Humphreys, “in an environment where interest rates have decreased, our liability costs have been similarly reduced resulting in our interest expense decreasing to prior year levels. However, with our investment portfolio comprising of approximately fifty percent variable instruments, our interest income has decreased at a faster rate. This has resulted in a significant contraction in our margins resulting in a recorded net interest income of $62 million, approximately 36 percent down from prior year.”
Fees and Commission income rose 65 percent above prior year to $38 million, with improvement coming from the subsidiary Barita Unit Trusts. Additionally, trading gains were 600 percent above prior year at $48 million compared to only $8 million in 2013. Depreciation of the Jamaican resulted in translation gains of $21 million down from $29 million prior year.
“Staff and administrative expenses contributed to a 16 percent increase in operational costs when compared to the same period last year. Staff costs increased by 10 percent which was triggered primarily by additional human resources and remuneration adjustments. Administrative costs were 25 percent higher than last year, with the main contributors being financial support for our charity arm the Barita Education Foundation and client support expenses,” the report to shareholders stated.
Interest rate developments, with Treasury bill rates continuing to fall and the change in the method relating to the repo business could put further pressure on income for a while. At the end of the quarter fair value reserve amounted to $107 million which could be realised in subsequent quarters and thus boost earnings. Falling T-Bill rates should result in gains in longer term Jamaican fixed interest rates securities and pickup in interest now seen in the Jamaica stock exchange is likely to hand Barita increased fee income during the balance of 2014.
More stocks rise than fall on JSE
Tuesday’s activity on the Jamaica Stock Exchange, resulted in the prices of 5 stocks rising and 3 declining as 24 securities changed hands, ending in 1,476,405 units trading, valued at $13,434,336, in all market segments.
Main Market| The JSE Market Index fell 185.93 points to 76,514.50, the JSE All Jamaican Composite index declined 207.87 points to close at 84,265.07 and the JSE combined index declined by 180.94 points to close at 78,453.71.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 12 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Desnoes & Geddes ending with 130,300 shares trading, with a gain of 5 cents to $4.85. Jamaica Broilers closed with 10,368 units changing hands to close 10 cents up to $4.10, Mayberry Investments ending with 8,800 shares with the price gaining 2 cents to $2 and Proven Investments finished with 379,550 shares changing hands to close 0.05 cents to 21 US cents, a new 52 weeks’ high.
Firm| The stocks in the main market to close without a change in the last traded prices are, Barita Investments ended with 2,350 units trading at $2.25, Cable & Wireless closed with 36,903 shares trading at 50 cents, Jamaica Money Market Brokers ending with 106,535 ordinary shares changing hands at $6.50. Kingston Wharves finishing with 693 shares changing hands at $6, National Commercial Bank closed with 15,655 units traded at $19. Pan Jamaican Investment finished with 4,493 units at $53, Radio Jamaica ended with 56,739 shares trading at $1.30, Sagicor Group closed with 43,610 units trading at $10.20, Sagicor Real Estate Fund finishing with 20,000 shares changing hands at $6.95 and Scotia Investments traded 1,580 shares changing hands to close at $23.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Berger Paints finished with 2,512 units trading, the price slipped 15 cents to $1.55, Scotia Group ended trading with 11,262 shares changing hands to close lower by 306 cents to $20.20.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 14,000 shares changing hands to close at $3, Jamaica Money Market Brokers 7.50% preference share traded 100,000 units trading at $2 and Proven Investments 8% preference share traded finished with 20,500 units trading at $5.
Year ends with 11 stocks up 7 down
day’s activity on the Jamaica Stock Exchange, resulted in the prices of 11 stocks rising and 7 declining as 30 securities changed hands, ending in 1,626,438 units trading, valued at only $4,460,185, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 18 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. With this being the final trading day for the year, the high levels of higher bids may be due to portfolio managers trying to influence year-end values for their portfolios. The numbers have been rising, with the day before Christmas having a reading of 9 to 4, followed by Monday with 10 to 2 and Tuesday 14 to 2. This is a development worth watching, to see if it carries over with a strong reading into 2015.
Main Market| The JSE Market Index lost 375.48 points to 76,353.39, the JSE All Jamaican Composite index fell 419.80 points to close at 84,084.94 and the JSE combined index gained declined by 322.23 points to close at 78,223.45. The market closed out 2014 with the all Jamaica rising by 2.7 percent for the year, the JSE composite is down 5.3 percent and the junior market 9.2 percent.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Barita Investments concluded trading with 18,000 shares changing hands to close with a gain of 7 cents at $2.25. Berger Paints ended with 16,000 shares trading with a gain of 15 cents to a new 52 weeks’ high of $2, Jamaica Broilers finished with 5,000 shares trading with a gain of 3 cents to $4.04, Jamaica Producers ended with 30,000 shares changing hands to close 25 cents higher at $17.50, Mayberry Investments finished trading with 1,020 shares changing hands to close 2 cents up to $1.52, Proven Investments concluded trading with 35,639 ordinary shares changing hands and increased in price by 0.23 cents to close at 19 US cents, Sagicor Group ended with 41,000 shares with the price rising 25 cents to $10.25 and Supreme Ventures ended trading with 48,400 shares trading with a gain of 10 cents to $2.
Berger closed up 15 cents or 8% to $2, with no stock on offer at the end of trading
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Carreras closed with a loss of 41 cents white trading 10,500 shares to close at $36.40, Desnoes & Geddes ended with 51,900 shares changing hands to close 5 cent down at $4.95, Grace Kennedy closed with 500 units, the price slipped $2 to $61, Pan Jamaican Investment finished with 433 units trading as the price slipped 95 cents $59 and Scotia Group closed the year with 800 shares trading lower by 39 cents to $20.01.
Preference| Jamaica Money Market Brokers 7.50% preference share finished with 428 units trading at $2 and Proven Investments 8% preference share ended with 41,011 shares changing hands to close at $5.10.
Barita’s ugly Q4 results
Barita Investments had a decent nine months’ performance to June this year, with profit of $156 million versus $77 million in 2013. Profit had dipped for the June quarter from that of 2013 by just under 50 percent. The net result was earnings per share of 35 cents.
With those results investors would be forgiven if they felt that full year’s earnings would be closer to 50 cents per share than the 16 cents they reported. That company reported a loss in the September quarter of $66 million down from a profit of $24 million in 2013, pulling full year results to $71 million compared to $63 million in 2013.
Major contributors to the final quarter’s loss, are increased taxation of $26 million, with a loss before tax of $40 million. Investment impairment resulted in $42 million hit against profit while securities and foreign exchange trading ended up in losses and dividend income fell by $19 million. Net interest income dropped sharply as well, by 60 percent to $45 million while administrative cost was up 17 percent. Barita also picked up a loss of $10 million from an investment in an animated development company GSW Animated Ltd. Barita’s investment in the company is $28 million, for 11.84 percent interest.
For the full year interest expense rose 21 percent but income fell marginally, while income from fees, commission and securities trading were the only areas to show growth. Cost was kept pretty tight with only a 4 percent rise.
In 2013 Barita took a big hit on its investment portfolio when it swapped Government bonds for lower yielding ones, resulting in a write off of capital gains on their holdings. Interest rates rose between 2013 and mid 2014 resulting in a squeeze on interest margins. Some of the reduction on the interest income side was made for by a switch to foreign exchange holdings to benefit from the devaluation of the local dollar. Revaluation of the Jamaican dollar in the September quarter would have negatively affected return in this area. The local dollar slipped in the December quarter which should benefit them. Economic measures being pursued by the Jamaican government along with the sharp drop in oil prices will lead to greater stability or possible some revaluation of the local dollar in the months ahead. This will likely result in a portfolio shift that will improve net interest income. The local stock market is showing signs of improved interest and if this continues, trading income will improve for 2015 and the large investment impairment hit should not occur. The end result is that the company should enjoy better results in 2015.
Of import is the higher level of profitability, shown in comprehensive income statement, with gains of $242 million excluding revaluation gains on property. The increased comprehensive income resulted in the capital base of the company rising to $1.67 billion from $1.4 billion at the end of the 2013 fiscal year. Total assets being managed is $13.6 billion.
Barita should be seen a good play on the revival of the local stock market which is going to happen at some time in the near future, exactly when is unsure at this time, based on valuation and performance of companies it may not be far off.
The company’s stock is listed on the Jamaica Stock Exchange and last traded at $2.18 with net assets of $3.75 per share. Profit may have slipped in 2014 but that is not an indication of a permanent slippage as such the stock remains BUY RATED based on it low price and the potential for higher earnings ahead.
Scotia Group climbs to $20 pushes indices
After the big trade in Kingston Wharves shares on Wednesday worth over $3 billion, Thursday’s trading seem light in contrast. The main attraction in today’s trading, was the gain in Scotia Group share price, accompanied by more than 1.2 million shares, helping to push the index up, quite sharply. Market activity on the Jamaica Stock Exchange, resulted in the prices of 6 stocks rising and 6 declining as 17 securities changed hands, resulting in 12,983,655 units trading, valued at $63,224,180, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator showed 6 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Main Market| The JSE Market Index jumped 1,007.75 points to 73,071.76 and the JSE All Jamaican Composite index rose 1,126.85 points to close at 80,415.69.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Berger Paints with 3,500 shares trading, rose of a cent to $1.66, Jamaica Money Market Brokers with 10,212 ordinary shares, gained 5 cents to end at $7, Scotia Group rose 99 cents, as 1,230,365 shares changed hands at $20 and Scotia Investments increased 10 cents with 4,825 units to $21.80.
Firm| The stocks in the main market to close without a change in the last traded prices are, Carreras 13,736 units at $34.65, Jamaica Producers with 1,000,520 shares at $15.20 and Proven Investments with 8,639 shares, closing at 17.99 US cents.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Barita Investments with 6,777 shares, lost 1 cents to end at $2.18, Kingston Wharves traded just 5,000 units at $6.30, with the loss of 20 cents, National Commercial Bank had 17,500 shares changing hands, with a 25 cents cut in price to $17.95, Sagicor Group with 11,325 shares, closed 10 cents less at $9.65 and Sagicor Real Estate Fund had 306,147 units being active, the price fell 2 cents to $6.50.
Preference| Jamaica Money Market Brokers 8.50% preference share traded 87,271 units at $3.45 and Jamaica Money Market Brokers down 7.50% preference share traded 8,660,000 units at $2.
Moderate day but JSE puts in nice gain
In Friday’s trading on the Jamaica Stock Exchange, the prices of 7 stocks rose and 6 declined, as 20 securities changed hands, one stock closed at 52 weeks’ low. A total volume of 3,160,771 shares, valued at $13,089,114 traded.
Main Market| The JSE Market Index gained 922.25 points to 72,825.40 and the JSE All Jamaican Composite index, jumped 1,031.25 points to close at 80,140.22.
Gains| The volume and last traded prices of stocks with gains, at the end of trading in the main market are, Jamaica Money Market Brokers with 55,402 units changing hands, and gained 5 cents to $7, Kingston Wharves put through 40,914 shares at 1 cents more, to $5.01, Sagicor Real Estate Fund with 24,880 units, gained 10 cents to $7.10 and Scotia Group had 12,500 shares trading, to close with a gain of 95 cents at $20.
Firm| The stocks in the main market to close without a change in price, with volume and last traded prices are, Gleaner 1,000 shares, closing at $1.05, National Commercial Bank had 17,049 shares changing hands at $18 and Radio Jamaica with 9,585 shares, closed at $1.04.
Declines| The volume and last traded prices of stocks with losses at the at the end of trading in the main market are, Barita Investments with 43,000 shares, closed at $2.19 with a 1 cent fall, Cable & Wireless had 1,485,092 units changing hands, with 1 cent fall to 28 cents, Carreras put in 4,140 units and closed 5 cents lower at $34.75, Jamaica Broilers 1,000 shares ended with 1 cent decline at $4.52, Jamaica Producers had a sizable trade of 650,000 shares but the price shed 20 cents to $15.40 for a new 52 weeks’ low and Supreme Ventures 11,264 shares cost 1 cent less at $1.80.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 100,000 units at $3 and Proven Investments 8% preference share traded 2,000 units at $5.
Junior Market| The JSE Junior Market Index put on 2.65 points to close at 660.49 as only 4 stocks traded with 3 advancing and none declining.
Gains| Stocks recording gains at the end of trading in the junior market, are AMG Packaging with 17,767 shares to close with a 10 cents gain at $2.50, Lasco Financial 587,650 shares led to a gain of 1 cent to 98 cents and Lasco Manufacturing with 37,576 units, to close 3 cents higher, at $1.04
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before are, Jamaican Teas with 2,952 units a $3.30 and Lasco Distributors with 57,000 shares at $1.12.
Declines| No stock declined in the junior market at the end of trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Market inches up on Friday
In Friday’s trading on the Jamaica Stock Exchange the prices of 8 stocks rose and 5 declined as 20 securities changed hands resulting in 1,746,200 shares trading valued at $24,040,907.
Main Market| The JSE Market Index gained just 56.60 points to 70,096.77 and the JSE All Jamaican Composite moved up a mere 63.30 points to end at 77,089.13.
Gains| Stocks recording gains at the end of trading in the main market are Jamaica Broilers with 1,229 units to close with a gain of 3 cents at $4.60, Pan Jamaican Investment 310,586 shares, gaining 5 cents to close at $48.06, Sagicor Group with 1,000 shares to close of 50 cents higher at $9, Sagicor Real Estate Fund 14,350 shares to close with a gain of 2 cents at $6.10, Scotia Group with 403,811 shares closed 1 cents higher at $19.
Firm| The stocks in the main market to close without a change in price are Jamaica Money Market Brokers with 15,900 shares closing at $6.70, Kingston Wharves 20,295 units changing hands to close at $5.02, Proven Investments 3,790 units to close at 18 US cents, Pulse Investments 60,000 units to close at 30 cents.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 35,500 units to close at $3.03 and Proven Investments 8% preference share traded 2,000 units to close at $5.08.
Declines| The number of stocks that declined in the main market are Barita Investments with 15,976 units as the price slipped 13 cents to close at $2.20, Cable & Wireless with 480,786 shares to lose 3 cents in closing at 31 cents, Caribbean Cement 22,040 units as the price lost 20 cents to close at $2.30 and National Commercial Bank ended at $18.01 for a 2 cents fall, as 21,322 units traded.
Junior Market| The JSE Junior Market Index edged up by 11.44 points to close at 720.30 with only 5 securities traded, with 3 advancing and 1 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Caribbean Producers with 1,000 units to close with a 5 cents increase at $2.70, Lasco Distributors with 48,000 units to gain 10 cents to end at $1.30 and Lasco Manufacturing with 276,875 shares as it gained 4 cents to end at $1.10.
Firm Trades| The only stock in the junior market stocks that traded to close at the same price as the previous trading day is Lasco Financial Services with 3,000 units to close at $1.
Declines| Dolphin Cove traded 8,740 units to close at $8.50 while shedding a cent, was the only stock in the junior market to decline.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.
Declines continue to dominate
Trading on the Jamaica Stock Exchange on Monday saw the prices of only 3 stocks rose and 8 declined as 20 securities changing hands resulting in 1,417,573 shares trading valued at $12,223,034 as the market continues to remain soft.
Main Market| The JSE Market Index fell by 310.45 points to 69,430.63 and the JSE All Jamaican Composite index lost 347.13 points to close at 76,344.27.
Gains| Stocks recording gains at the end of trading in the main market are Caribbean Cement with only 747 shares to close with a gain of 50 cents at $2.75, Jamaica Broilers with 100 units gained 13 cents to close at $4.70 and Jamaica Money Market Brokers 4,100 shares to close with a gain of a cent at$6.66.
Firm| The stocks in the main market to close without a change in price are Barita Investments with 1,780 shares closing at $2.34, Carreras with 5,000 units and closed at $33.50, Grace Kennedy with 11,646 units as the price closed at $54, Mayberry Investments 58,414 shares and closed at $1.45, Pan Jamaican Investment with a mere 377 shares at $48.01 and Proven Investments with 73,960 ordinary shares as the price closed at 18 US cents.
Declines| The number of stocks declining in the main market are Jamaica Producers with 15,287 shares as the price dropped $1.40 to end at $15.60, a new 52 weeks low, Kingston Wharves 135,850 shares while losing 10 cents to close at $4.90, a new 52 weeks low, National Commercial Bank only 10,100 units to close with a loss of $1.20 at $17.30, Sagicor Group with 395,701 shares changing hands for a 2 cent decline to $8.88 and Scotia Group with 76,490 shares as the price slipped by 51 cents to close at $18.50.
Preference| Jamaica Money Market Brokers 8.75% preference share traded with 370,000 units changing hands for a 2 cents decline to end at $3.03 and Jamaica Teas debenture note traded 10,000 units at par of $100.
Junior Market| The JSE Junior Market Index declined by 4.81 points to close at 714.54 as only 4 stocks traded with none advancing and 2 declining.
Gains| In a low trading market there were no stock recording gain at the end of trading in the junior market.
Firm Trades| Stocks in the junior market stocks that traded to close at the same price as the day before are Access Financial 107,600 shares to close at $13.50 and Lasco Distributors with 127,598 units and closed at $1.20.
Declines| Stocks declining in the junior market at the end of trading are Lasco Manufacturing with 10,000 shares changing hands for a 2 cents decline to close at $1.10 and Lasco Financial with 12,823 shares closed 8 cents lower at $1.07
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 9 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
Advancing stocks dominant
In Monday’s trading on the Jamaica Stock Exchange advancing stocks was most dominant as June started with price mostly up with the prices of 14 stocks recording gains and 5 declined as 30 securities traded resulting in 3,459,512 shares trading valued at $16,201,075. There was one new all-time high at the end of trading as Access Financial recorded a $1.50 increase.
Main Market| The price of 10 companies in the main market rose and only 3 declined as the indices moved up with the JSE Market Index rising by 312.54 points to 70,570.46 and the JSE All Jamaican Composite index moved up by 349.47 points to close at 77,618.79.
Gains| Stocks recording gains at the end of trading in the main market are Barita Investments 1,150,000 shares and rose 9 cents to close at $2.34, Carreras with 11,652 units trading closed with a gain of$1.05 at $35.25, Desnoes & Geddes gained 5 cents to close at $4.30 with 11,025 units changing hands, Gleaner with 20,000 shares closed up by 2 cents at $1.12, Jamaica Broilers 69,833 shares an d gained a cent to close at $4.71, Mayberry Investments 1,122 units and gained 6 cents to close at $1.76, National Commercial Bank had 17,894 shares trading up by 5 cents to close at $17.50 after trading as low as $16.55 before the close, Pan Jamaican Investment put in only 507 units to close at $48.42 for a 2 cents rise, Radio Jamaica had 3,500 shares changing hands with a cent gain to close at $1.30 and Sagicor Group traded 851,708 units to close at $9.30, up 35 cents.
Firm| There were only 4 ordinary stocks in the main market to close without a change in price as Berger Paints with 3,592 units and closed at $1.66, Cable & Wireless with 293,293 shares changing hands to close at 28 cents but traded as high as 32 cents during trading. Grace Kennedy traded 2,561 units and closed at $54, Scotia Investments had 700 shares trading and closed at $23 after profits results to April quarter showed a 12 percent increase to $415 million and Seprod with only 124 units and closed at $10.50.
Preference shares| There were a series of preference shares trading on the market with Jamaica Money Market Brokers 7.50% preference share having 50,000 units changing hands and closed at $2, Jamaica Money Market Brokers 8.75% preference share 651,500 units and closed at $3.03, followed by Jamaica Public Service 5% C preference share, 500 units to close at 36 cents and Jamaica Public Service 5% D preference share, 8,945 units to close at 35 cents.
Declines| The number of stocks that declined in the main market are Caribbean Cement with 1,500 to close at $2.70 with a decline of 15 cents, Jamaica Producers traded just 270 shares as the price eased by a cent to close at $18.24 and Scotia Group with 109,330 units to close at $19.07 after shedding 53 cents following the release of six months showing a 16 percent decline in profits to $2.28 billion for the in the April quarter from a one percent fall in revenues and a decline of profit after tax for the six months of $4.7 billion versus $5.3 billion in 2013.
Junior Market| The JSE Junior Market Index gained 11.60 points to close at 733.31 as 8 stocks traded with 4 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Access Financial traded 7,765 shares and gained $1.50 to close at $13.50 for a new all-time high, Caribbean Cream with 100,000 to close a cents higher at 75 cents, Caribbean Flavours put on a cent to close at $2.51 while trading 38,500 units and General Accident Insurance with 10,191 units gained 2 cents to close at $1.52.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before with AMG Packaging having 1,500 units trading to close at $3.30 and Lasco Financial 5,000 shares and closed at $1.15.
Declines| Stocks declining in the junior market at the end of trading are Honey Bun 2,000 units to close with a 3 cents fall to $3.02 and Lasco Manufacturing with 35,000 shares to close at $1.10 down 2 cents after full year results to March this year was down to $584.45 million or 14 cents per share compared with $640 million for 2013.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower
