Jamaica Stock Exchange’s main market ended July with the 14th record close for the month and the 38th for 2019 and 38 percent gain for the year to date, to remain the world’s top-performing market for the past 12 months.
The market closed July with the JSE All Jamaican Composite Index jumping 7,284.40 points to a record close at 575,250.19 points, the JSE Index climbed 6,619.61 points to close at another high of 523,740.10 and the JSE Financial Index advanced by 1.02 points to close at 139.38.
Market activity, resulted in 40 securities trading in the main and US dollar markets, leading to 21 securities advancing, 11 declining and 8 trading firm, compared to 35 securities trading on Tuesday.
At the close of trading, Barita Investments inched higher to a record close of $95 after it rose to a high of $100, Victoria Mutual Investments ended at a record closing high of $8 and Sygnus Credit Investments closed at 52 weeks’ high of $22. Trading ended with 53,548,880 units valued at $758,601,832, compared to 184,796,002 units valued $1,610,513,368 changing hands on Tuesday.
Wigton Windfarm led trading with 24.8 million units for 46 percent of total volume, JMMB Group 7.5% followed with 10 million shares for 19 percent of the day’s volume and Sagicor Group with 7.9 million shares for 15 percent of total main market volume.
The market closed with average of 1,447,267 units valued at an average of $20,502,752 for each security traded. In contrast to 5,774,875 units for an average of $50,328,543 on Tuesday. The average volume and value for the month to date amounts to 1,297,718 shares valued at $17,985,644 changing hands, compared to 1,290,587 shares valued at $17,854,655 for each security traded. June closed with an average of 1,608,485 units valued at $19,605,318 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ending with bids higher than the last selling price and just 1 with a lower offer.
In the main market activity, Caribbean Cement fell $1.99 trading 161,377 units at $78, Eppley traded 7,553 after losing 50 cents to end at $16.40, Grace Kennedy lost $2 in the trading of 153,600 to close at $70, Jamaica Broilers exchanged 1,135,364 and rose $1.25 to close at $34. Jamaica Producers fell 50 cents trading 9,595 units to close at $28.50, JMMB Group gained $2 trading 107,504 shares to end at $53, Kingston Properties traded 141,647 shares and rose 50 cents to end at $6, Mayberry Investments fell 25 cents to close at $8.75 in trading 92,573 shares. Mayberry Jamaica Equities traded 3,752,372 to gain 50 cents and ended at $12.50, NCB Financial lost $2 exchanging 162,275 units to close $213, Proven Investments lost 70 cents trading 5,326 shares in closing at $35.80, Sagicor Group jumped $5 in trading 7,879,535 shares to close at a record high of $63. Sagicor Real Estate Fund climbed $1.98 to end at $12.99 while trading 102,792 shares, Scotia Group dipped 25 cents to close at $56 trading 109,341 shares, Seprod jumped $5 trading 13,758 units to close at $60. Sygnus Credit Investments jumped $3.50 trading of 109,800 units to end at a record high of $22, Victoria Mutual Investments traded 2,051,094 and gained 68 cents to end at a record high of $8 and Wisynco Group traded 214,850 but fell 49 cents to close at $27.50.
Productive Business Solution 9.5% preference share traded 83,400 units and gained $1.99 to end at $107.99.
Trading in the US securities market resulted in 19,171 units valued US$8,433 changing hands with, JMMB Group 6% preference share settled at $1 with 7,000 stock units trading, Proven Investments closed at 25 US cents with an exchange of 771 shares and Sygnus Credit Investments traded 11,4000 shares at 11 US cents. The JSE USD Equities Index shed 0.16 points to close at 187.25.
Carib Cement 2019 profit mixed
Caribbean Cement revenues climbed 5.6 percent in the June quarter to $4.68 billion and 4 percent year to June, with $9.13 billion booked.
The company reported lower profit the June quarter than in 2018, due mainly to $485 million incurred as foreign currency losses and ended up with profit after tax at $368 million versus $674 million in 2018. Or the half-year profit after tax grew 48.6 percent to $15 billion. The company reported earnings per share of 43 cents versus 79 cents in the similar quarter in 2018 and $1.76 compared to $1.18 in the 2018 six months period.
Expenses excluding depreciation and finance grew 2.7 percent for the quarter to $2.94 billion and fell 21 percent for the half-year to $5.47 billion. The sharp reduction in cost results from the termination of an equipment lease agreement with the parent company and the purchase of those assets. The acquisition of the assets drove depreciation charge for the quarter to $405 million from $340 million in 2018 and $796 million from $467 million for the six months periods. Finance cost including foreign exchange losses rose to $688 million from $412 million for the quarter and $856 million versus $386 million for the half-year.
The results boosted shareholders’ equity to $7.9 billion from $6.4 billion at the end of December last year as the company wiped out accumulated losses of $994 million at the end of 2018 leaving a surplus of $493 million. Borrowing amounts to $9.8 billion while cash funds amount to $394 million and net current assets stood at negative $759 million.
The stock trades at $80 on the Jamaica Stock Exchange main market. IC Insider.com projects earnings for the full year to December at $5 per share that would place the PE ratio at 16, just around the markets PE of 17. With the economy doing well and increased construction activities, investors should have their eyes focused on increased future earnings.
Market watch spotlight on Junior Market
The focus this week is the entire Junior Market that remains severely undervalued, notwithstanding that it made up much-lost grounds in the past week. The Lab is the first stock to watch from this sector.
NCB Financial third-quarter results were far from inspiring with operating profit being lower in the quarter than for the prior year’s results, at the close on Friday there was good selling on offer that seems likely to keep a lid on the price for a while. NCB reported Operating profit of $6.46 billion in the June 2019 quarter, down from $8.14 billion in 2018. A $700 million net gain in associated company results eased the difference somewhat.
Barita Investments is back at the record high of $83 it closed at the close on Friday, up from $72 at the end of the previous week. Importantly, supply has mostly dried up except for a block of 1 million units offered by Barita at $98 per share. Shareholders passed the resolution at last week’s extraordinary general meeting for a rights issue that will see 106 million shares or around one for every 15 shares of shares owned offered to shareholders, at an expected price in the $40 region.
Results for Caribbean Cement are out by but reports indicate that the company reported increased sales for the June quarter but lower profit than in 2018, due mainly to $485 million incurred as foreign currency losses. The company reported 43 cents per share versus 79 cents in the similar quarter in 2018. For the half-year, Carib Cement reported earnings of $1,79 compared to $1.18 in 2018. The company looks like earning $5 per share for the full year with increased second-half sales. Do not look for the price of the stock to move up any time soon, with these results
Jamaica Broilers and Jamaica Producers may not break out just now but there is very limited selling and good news could push them higher at any time. Investors who thought that the sky was the limit for Wigton Windfarm may be having second thoughts with the company posting their full-year results, with earnings excluding foreign exchange gains or losses working out at 5 cents per share going forward. The stock seems poised to remain under $1 for a long time. More selling came for Radio Jamaica in the past week but with first-quarter results due mid-August, the stage could be set for a break beyond the $1.40 price level.
Sygnus Credit Investments is coming into its own with a limited supply of the stock for sale, the price closed at a record high at the close of the past week and may and could move higher this week. investors should continue to watch it. Wisynco Group traded close to $30 in the past week pushing the PE up considerably. It could settle just below the $30 range for a while.
The Junior Market finally found its footing in moving solidly higher during the past week to within less than 100 points from the previous record high in 2018. With the entire market severely undervalued, just about all stocks are to be watched. Some are more attractive than others and should enjoy a greater focus.
Blue Power closed on Friday with strong buying interest that suggests higher price ahead arising from a proposed split-up of the company into two separate ones. Caribbean Flavours has a limited supply of stocks for sale and is worth watching. Fontana pulled out of the fall to $7.41, in the previous week as demand pushed the price over $8. The branch in Kingston could influence investors to add the stock to their portfolio. Elite Diagnostic with rising demand and slowing supplies could bounce, having traded at $5. The company’s new Drax Hall branch in St Ann is set to open in August and will add to revenues and profit at a later stage. Elite has more than 387,000 units on offer at $5 and that could constrain upward price movement for some time. Jamaican Teas reported nine months results of 32 cents per share compared with 20 cents last year. Investors reacted positively to the results pushing the stock up to $5, but supply on sale is limited and could encourage more price movement this week. Lasco Financial price bounces around $4.50. The stock is undervalued and should see increased buying interest, with release of June quarter results, due out shortly. In 2018, first-quarter results were released on the 17 of July. Lasco Manufacturing released first-quarter numbers on the 31 of July last year and Lasco Distributors released theirs on the 19. The results could move the price of the stocks higher. Limners and Bards climbed 30 cents to settle at a record high of $1.30 with just 100 shares changing hands on the first day of trading, the stock closed with the bid at $1.65 and looks poised to hit $2, the stock was on offer at $2.95 at the close on Friday. Medical Disposables looks poised to move higher and first-quarter numbers will play an important role in further gains and Stationery and Office Supplies hit a record of $12 during the past week and should move higher with little supply offered for sale.