Jamaica’s sole cement manufacturing company Caribbean Cement, reported a fall in profit from $621 million in the June quarter of 2015 down to only $221 million and for the six months to June $1.05 billion versus $869 million.
Investors seemed to have focused more on the fall in the quarter than on the details of the results and the clear message sent by them. As a result, the stock was sold down to $19.25 from $23 the prior day, with very few buyers at the close, but investors who sold were making a bad decision. This is a classic case of bad news is indeed good news. For one, revenues climbed 9.6 percent in the quarter and 10.3 percent for the half-year but local sales of cement are up a very strong 27 percent. “Despite a reduction in export cement and clinker volumes by 8 percent and 77 percent respectively, total revenue increased by $777 million. This was mainly due to an increase in domestic cement volumes by 27 percent arising from increased projects and strong retail demand. Improvements in operational efficiencies, effective control of fixed costs, lower financing costs and lower energy costs, contributed to the improvement in earnings before interest, tax, depreciation, amortisation, manpower restructuring costs,” the directors’ report to shareholders stated.
Importantly, the cement company took a charge for manpower restructuring, amounting to $421 million, a huge positive development and augurs well for improved profit margin and increased profits going forward. In addition there is a charge for excess inventory amounting to $400 million, this is one off and therefore unlikely to recur. Stripped of these costs, earnings would be up by 63 percent to $1.16 million before tax compared to $708 million in 2015 that includes one off income of $168 million for the quarter and pretax profit of $2.1 billion versus $996 million in 2015.
Not only will the cost for redundancy not recur for the current set of staff being severed, it should results in savings in a year, in the region of the sum expended.
During the twelve months to June, the company repaid Trinidad Cement, its parent, loans and other debt $1.6 billion leaving only $556 million more to be paid. Cash funds were left at $788 million after more than $600 million was added to fixed assets since June 2015. At the pace profits are coming in the accumulated deficit of $4.6 billion will be wiped out in 2017.
IC Insider’s forecast for full years earning form normal operations is $4.75 which excludes the one off cost leaving the stock strongly in the buy column. The stock is listed on the main market of the Jamaica Stock exchange and closed at $22 on Friday.
Carib Cement bad news say buy
14 JSE stocks up 13 down – Friday
The Jamaica Stock Exchange recorded gains at the close on Friday, as winners beat out losers with a total of 36 securities traded, of which 14 stocks gained, 13 declined, including 6 stocks rising and 6 declining from the junior market, as the market continues to consolidate.
The JSE Market Index gained 49.32 points to end at 158,968.72, the all Jamaica Composite Index climbed 55.15 points to close at 176,616.94 and the JSE combined index rose 42.07 points, to end at 169,923.11.
The market closed another day of moderate trading, with 6,169,455 units valued at $88,127,120 changing hands, in all market segments, thanks to a 4.1 million trade in Jamaica Broilers’ stock. The junior market accounted for 856,706 units traded valued at $3,889,382, of all trades.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the 
Investor’s Choice bid-offer indicator reading showed 14 stocks with bids higher than their last selling prices and 1 with a lower offer, an indication that stocks should mostly gain on Friday.
At the end of market activities, Cable & Wireless traded 64,424 shares to close with a loss of 1 cent at $1.14, Caribbean Cement dropped $1 in trading 355,420 shares to close at $22, after trading at $19.25, Carreras exchanged 12,300 shares at $64.50. Trading in 1834 Investments, resulted in 133,100 shares changing hands to close at $1.06. Grace Kennedy closed at $125 after gaining $2, with 20,316 units changing hands. Jamaica Broilers ended with 4,130,205 shares changing hands after trading 5,282,790 units on the previous day, to close with a fall of 23 cents at $14.52, Jamaica Producers traded 68,361 shares with a rise of 10 cents to $8.30, Jamaica Stock Exchange climbed $1 to end at $23 while trading 25,000 shares. JMMB Group traded only 4,700 units to end at $9.82, Kingston Wharves gained 15 cents with 8,764 units changing hands to close at $15.50.
National Commercial Bank ended with 79,038 units changing hands, with the price declining 7 cents to close at $41.95, Pan Jamaica traded 10,320 shares and lost 40 cents at $23.10, Portland JSX traded 16,900 shares to close at $12.90. Radio Jamaica fell 8 cents to close at $1.28 after 88,906 shares changed hands, Sagicor Group ended with 8,750 shares changing hands, but fell 48 cents to $22.52, Scotia Group traded 200,700 shares to end at $31. Scotia Investments climbed 99 cents while it traded just 1,550 shares, to close at $27.49 and Supreme Ventures traded 63,275 shares to end at $4.60.
Buoyant JSE falters – Thursday
Jamaica Broilers traded over 5.2 m shares on Thursday.
The JSE Market Index declined 154.62 points to end at 158,919.40, the all Jamaica Composite Index lost 172.91 points to close at 176,561.79 and the JSE combined index fell 172.10 points, to end at 169,881.04.
The market closed another day of moderate trading, with 7,626,144 units valued at $91,922,881 changing hands, in all market segments, thanks to a 5.2 million trade in Jamaica Broilers stock. The junior market accounted for 1,137,261 units traded valued at $6,066,776, of all trades.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 16 stocks with bids higher than their last selling prices and 1 with a lower offer, an indication that stocks should mostly gain on Friday.
At the end of market activities, Cable & Wireless traded 525,451 shares to close at $1.15, Caribbean Cement gained 80 cents in trading 7,680 shares to close at $23, trading in 1834 Investments, resulted in 67,000 shares changing hands after rising 2 cents to close at $1.06. Grace Kennedy closed at $123.04 with 4,172 units changing hands. Jamaica Broilers ended with 5,282,790 units changing hands to close at $14.75 with a rise of 5 cents, Jamaica Producers traded 6,922 shares with a rise of 20 cents to $8.20, JMMB Group rose 32 cents in trading only 411 units to end at $9.82. Kingston Wharves gained 64 cents with 2,485 units changing hands at $15.35. Margaritaville Turks traded dropped 0.49 US cents with 157,045 shares at 19.01 US cents,
National Commercial Bank ended with 13,428 units changing hands, with the price dropping 48 cents to close at $42.02, Portland JSX traded 10,400 shares to close at $12.90. Pulse Investments ended with 30,000 shares changing hands at $3.30, after gaining 5 cents, Radio Jamaica fell 10 cents to close at $1.36 after 220,988 shares changed hands, Sagicor Group ended with 10,700 shares changing hands, but fell 5 cents to $23, Scotia Group rose 91 cents in trading 31,896 shares to end at $31. Scotia Investments dropped $1.29 while it traded just 100 shares, to close at $26.50 and Supreme Ventures gained 10 cents in trading 109,000 shares to end at $4.60.
Modest gains for JSE majors – Tuesday
The Jamaica Stock Exchange recorded gains at the close on Tuesday, as winners beat out losers with a total of 39 securities traded, of which 15 stocks gained, 11 declined, including 4 stocks rising and 3 declining from the junior market as the market continues in consolidation mode.
The JSE Market Index climbed 266.88 points to end at 159,189.09, the all Jamaica Composite Index gained 298.46 points to close at 176,863.39 and the JSE combined index rose 279.31 points, to end at 169,771.47.
The market closed another day of moderate trading, with 6,645,778 units valued at $107,755,965 changing hands, in all market segments. The junior market accounted for 4,344,805 units traded valued at $20,722,712, of all trades.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 9 stocks with bids higher than their last selling prices and 3 with lower offers.
At the end of market activities, Cable & Wireless traded 520,233 shares and rose 2 cents to close at $1.17, Caribbean Cement dropped 99 cents in trading 10,000 shares to close at $22.51, trading in 1834 Investments, resulted in 28,500 shares changing hands after easing 11 cents to close at $1.04. Grace Kennedy gained 54 cents to close at $123.04 with 439,645 units changing hands. Jamaica Broilers ended with 15,779 units changing hands to close at $15.50 with a rise of 50 cents, Jamaica Producers traded 13,800 shares with a rise of 40 cents to $8.40, Jamaica Stock Exchange close with just 11,831 shares changing hands at $24, JMMB Group traded 155,705 units to end at $9.50. Kingston Wharves gained 1 cent with 3,705 units changing hands at $14.71. Margaritaville Turks traded dropped 1.51 US cents with 57,080 shares at 19.49 US cents, National Commercial Bank ended with 231,433 units changing hands, with the price rising 50 cents to close at $42, Pan Jamaican Investment Trust traded 8,167 shares to close at $23.50 after gaining 50 cents.
Pulse Investments ended with 7,000 shares changing hands at $2.90, after gaining 35 cents, Sagicor Group ended with 13,200 shares changing hands, but fell 5 cents to $23.10, Sagicor Real Estate Fund traded 108,000 shares to close at $10.10, Scotia Group rose 8 cents in trading 547,645 shares to end at $30.15. Scotia Investments traded 9,336 shares, to close at $27.79, Supreme Ventures fell 10 cents in trading 1,300 shares to end at $4.50, Proven Investments ordinary shares traded 10,067 units at 15 US cents, down from 16.94 US cents, Sterling Investments traded 10,000 at $13 and JMMB Group 7.25% preference share traded 54,916 units at $1.05 by gaining 1 cent.
JSE majors fall again – Monday
The Jamaica Stock Exchange indices declined at the close on Monday, although up to 12:20 Pm the major indices were up but at the close more stocks rose than declined. The JSE Market Index slipped 847.88 points to end at 158,922.21, the all Jamaica Composite Index fell 948.22 points to close at 176,564.93 and the JSE combined index fell 840.82 points, to end at 169,492.16.
The market closed another day of moderate trading, with 4,507,109 units valued at $44,852,228 changing hands, in all market segments. The junior market accounted for 969,188 units traded valued at $4,657,054, of all trades. A total of 34 securities traded, with the prices of 15 stocks rising, 11 declining, including 3 stocks rising and 3 declining from the junior market, as the main market continues to consolidate while waiting for fresh news to move out of the narrow trading range.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the 
Investor’s Choice bid-offer indicator reading showed 9 stocks with bids higher than their last selling prices and 3 with lower offers.
At the end of market activities, Berger Paints fell 5 cents in trading 14,014 shares at $4.45, Cable & Wireless traded 33,428 shares but rose 4 cents to close at $1.15, Caribbean Cement climbed $1 in trading 18,191 shares to close at $23.50, Carreras recovered 50 cents in trading 3,440 shares at $65. Trading in 1834 Investments resulted in 25,054 shares changing hands after rising 15 cents to close at $1.15, Grace Kennedy jumped $2.01 to close at $122.50 with 5,160 units changing hands. Jamaica Broilers ended with 9,018 units changing hands to close at $15, Jamaica Producers traded 3,543 shares but fell 40 cents to $8, Jamaica Stock Exchange jumped $2.65 with just 200 shares changing hands at $24, JMMB Group traded 499,703 units but fell 50 cents to end at $9.50. Kingston Wharves had 9,315 units changing hands at $14.70, having shed $1.29. Margaritaville Turks traded gained 1 US cents with 1,109,980 shares at 21 US cents, Mayberry Investments lost 20 cents in trading 22,900 units at $3.30, National Commercial Bank ended with 7,895 units changing hands but lost 30 cents to close at $41.50, 
Pan Jamaican Investment Trust traded 11,771 shares to close at $23. Portland JSX ended with 6,700 shares changing hands at $12.90, Radio Jamaica traded 16,891 shares to close at $1.46 after losing 9 cents, Sagicor Group ended with 2,000 shares changing hands, but gained 5 cents to $23.15, Sagicor Real Estate Fund traded 18,000 shares and lost 2 cents to close at $10.10. Scotia Investments gained $1.79 trading 1,000 shares, to close at $27.79. Supreme Ventures traded 118,100 shares to end at $4.60, Proven Investments ordinary shares traded 35,650 units at 16.95 US cents, up from 16.94 US cents, Sterling Investments traded 15,224 in the US dollar market at 11 US cents and Jamaica Money Market Brokers 7.5% preference share traded 1,522,620 units at $2.10 by gaining 1 cent.
JSE fails to build on Thursday’s gains
The Jamaica Stock Exchange indices declined moderately at the close on Friday, down sharply from the big gains on Thursday, as more stocks declined than gained. The JSE Market Index slipped 141.33 points to end at 159,770.09, the all Jamaica Composite Index fell 158.06 points to close at 177,513.15 and the JSE combined index fell 144.38 points, to end at 170,332.98.
The market closed another day of moderate trading, with 2,802,737 units valued at $23,002,742 changing hands, in all market segments. The junior market accounted for 1,509,505 units traded valued at $8,532,147, of all trades. A total of 31 securities traded, with the prices of 9 stocks rising, 15 declining, including 8 stocks rising and 6 declining from the junior market, as the main market continues to consolidate while waiting for fresh and important news to move out of the narrow trading range.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 9 stocks with bids higher than their last selling prices and 3 with lower offers.
At the end of market activities, Berger Paints traded 8,793 shares at $4.50, Cable & Wireless traded 320,300 shares but fell 2 cents to close at $1.11, Caribbean Cement traded 3,140 shares to close at $22.50, Carreras fell 50 cents in trading 2,000 shares at $64.50 at the close. 1834 Investments traded 496,750 shares after falling 14 cents to close at $1, Grace Kennedy dropped $2.01 to close at $120.49 with 16,697 units changing hands. Jamaica Broilers ended with 66,000 units changing hands with a rise of 1 cent to close at $15, JMMB Group traded 8,579 units to end at $10. Mayberry Investments lost 20 cents in trading only 100 units at $3.30, National Commercial Bank ended with 34,174 units changing hands but lost 20 cents to close at $41.80,
Pan Jamaican Investment Trust traded 32,730 shares to close at $23 after falling $2, Portland JSX ended with 15,700 shares changing hands and declined 10 cents to $12.90. Sagicor Group ended with 28,605 shares changing hands, but lost 40 cents to $23.10. Scotia Group lost 73 cents with 177,931 shares trading, to close at $30.07, Scotia Investments traded 12,900 shares to gain $1 and close at $26, Supreme Ventures traded 4,007 shares and gained 30 cents to end at $4.60 and Proven Investments ordinary shares traded 46,550 units at 17 US cents up from 16.95 US cents.
JSE majors surged – Thursday
Grace Kennedy jumped $2.50 to close at $122.50 on Thursday .
The market closed another day of moderate trading, with 5,066,464 units valued at $183,411,832 changing hands, in all market segments. The junior market accounted for 422,443 units traded valued at $1,648,134, of all trades. A total of 39 securities traded, with the prices of 19 stocks rising, 10 declining, including 8 stocks rising and 6 declining from the junior market, as the main market continues to consolidate while waiting for fresh and important news to move out of the narrow trading range.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 9 stocks with bids higher than their last selling prices and 3 with lower offers, suggesting a day of more subdued gainers on Friday versus the numbers on Thursday.
At the end of market activities,
Berger Paints traded 504,496 shares at $4.50, Cable & Wireless traded 46,700 shares to close at $1.13, Caribbean Cement traded 1,000 shares and rose 50 cents to close at $22.50, Carreras fell 50 cents in trading 332,166 shares at $65 at the close. Ciboney traded 43,899 shares after falling 1 cent to close at 20 cents, Grace Kennedy jumped $2.50 to close at $122.50 with 767,291 units changing hands. Jamaica Broilers ended with 284,857 units changing hands with a rise of 15 cents to close at $14.99, Jamaica Producers traded 381,670 units and gained 90 cents to end at $7.50, Jamaica Stock Exchange traded 6,616 shares at $21.35 with a gain of 2 cents, Kingston Wharves traded 8,000 shares and rose by 99 cents to close at $15.99. Mayberry Investments traded 24,478 units at $3.50, 
National Commercial Bank ended with 117,095 units changing hands and rose $1 to $42. Pan Jamaican Investment Trust traded 1,211,217 shares to close at $25 after rising $1.05, Portland JSX ended with 172,701 shares changing hands and gained 25 cent at $13. Sagicor Group ended with 284,121 shares changing hands, to end with a rise of 45 cents at $23.50. Scotia Group climbed 78 cents with 407,100 shares trading, to close at $30.80, Seprod traded 11,330 shares and gained 50 cents to end at $17,Proven Investments ordinary shares traded 4,100 units at 16.95 US cents and Jamaica Money Market 7.5% preference share traded 23,000 units at $2.09.
More declines for JSE majors – Wednesday
Trading in Jamaica Stock Exchange resulted in more decline in the main market indices on Wednesday with the JSE Market Index dropping 771.47 points to end at 157,357.18. The all Jamaica Composite Index dived 862.77 points to close at 174,814.69 and the JSE combined index fell 309.19 points, to end at 167,339.18.
The market closed another day of moderate trading, with just 1,145,903 units valued at $13,391,660 changing hands, in all market segments. The junior market accounted for 209,776 shares trading with a value of $1,025,220, of all trades.
A total of 29 securities traded, with the prices of 8 stocks rising, 11 declining, including 4 stocks rising and 1 declining from the junior market as the main market continues to consolidate while waiting for fresh and 
important news to move out of the narrow trading range it’s been in for a while.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 17 stocks with bids higher than their last selling prices and 3 with lower offers, suggesting a day of increasing stocks over decliners on Thursday.
At the end of market activities, Cable & Wireless rose by 3 cents while trading 212,938 shares to close at $1.13, Caribbean Cement traded 31,891 shares and fell 10 cents to close at $22, Carreras fell 50 cents in trading 1,512 shares at $65.50 at the close. 1834 Investments traded 51,659 shares after falling 5 cents to close at $1.14, Grace Kennedy rose 5 cents to close at $120 with 14,439 units changing hands. Jamaica Broilers ended with 239,781 units changing hands with a rise of 50 cents to close at $15, Jamaica Producers traded 88,340 units and fell $1.10 to end at $7.50, Jamaica Stock Exchange traded 3,000 shares at $21.35 with a gain of 2 cents,
JMMB Group traded 24,479 shares but declined 13 cents to close at $9.72. National Commercial Bank ended with 26,150 units changing hands with the loss of $1 at $41. Pan Jamaican Investment Trust traded 28,025 shares to close at $23.95 after falling 5 cents, Portland JSX ended with 65,502 shares changing hands at a new closing high of $12.75. Radio Jamaica traded at $1.55 after 60,000 shares changed hands, with a loss of 4 cents, Sagicor Group ended with 3,700 shares changing hands, to end at $23.65. Scotia Group fell 4 cents with 51,362 shares trading, to close at $30.02 and Proven Investments ordinary shares traded 30,225 units at 16.95 US cents.
JSE majors suffer big losses – Tuesday
Jamaica Producers traded on Tuesday at new 52 weeks’ high.
The market closed another day of moderate trading, with just 3,350,232 units valued at $30,238,950 changing hands, in all market segments. The junior market accounted for 724,885 shares trading with a value of $2,996,936, of all trades.
A total of 38 securities traded, with the prices of 11 stocks rising, 16 declining, including 6 stocks rising and 6 declining from the junior market as the market continues to consolidate while waiting for fresh and important news to move the market out of the narrow range its been traded.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 14 stocks with bids higher than their last selling prices and 6 with lower offers.
At the end of market activities, Berger Paints traded 107,426 units to close at $4.50, Cable & Wireless lost by 3 cents while trading 751,041 shares to close at $1.10, Caribbean Cement traded 37,682 shares and fell 10 cents to close at $22.10, Carreras dropped 45 cents in trading 5,832 shares to close at $66. Ciboney closed at 21 cents close at 21 cents with 102,534 units, Grace Kennedy gained 45 cents to close at $119.95 with 51,096 units changing hands.
Jamaica Broilers ended with 218,848 units changing hands with a loss of 40 cents to close at $14.50, Jamaica Producers closed at a 52 weeks’ high $8.60 with a rise of 65 cents with 19,348 shares traded. Jamaica Stock Exchange traded 10,000 shares at $21.35, JMMB Group traded 20,333 units and gained 13 cents to end at $9.85, with Kingston Wharves trading 39,567 units at $15 with a fall of $1.35, after trading as high as $16.30, National Commercial Bank ended with 142,306 units changing hands at $42. Pan Jamaican Investment Trust traded 7,695 shares to close at $24 after falling 30 cents, Portland JSX fell 74 cents and ended with 108,852 shares changing hands at a new closing high of $12.75. Pulse Investments traded 30,000 shares with a rise of 5 cents to end at $2.55, Sagicor Group ended with 47,036 shares changing hands, the price dropped 60 cents to end at $23.05. Scotia Group lost 15 cents with 43,100 shares trading, to close at $30.06, Scotia Investments climbed $1.80 and ended with 94,054 shares trading, to close at $27.80, Proven Investments accounted for 43,335 units to end at 17 US cents and JMMB 7.50% preference share accounted for 732,325 at $1.05.
JSE majors rise on modest volume – Monday
Kingston Wharves traded at a new high of $16.50 on Monday.
The market closed another day of moderate trading, with just 7,251,095 units valued at $26,482,201 changing hands, in all market segments. The junior market accounted for 2,230,238 valued at $6,146,551, of all trades while Jamaica Money Market Brokers 7.50% preference share accounted for 2,887,125 at $2.10.
A total of 49 securities traded, 12 more than on Friday, with the prices of 21 stocks rising, 17 declining, including 8 stocks rising and 6 declining from the junior market as the market continues to consolidate while waiting for fresh and important news to move the market out of the narrow range its been traded.
The JSE Market Index climbed 275.55 points to end at 159,372.46. The all Jamaica Composite Index rose 308.17 points to close at 177,068.47 and the JSE combined index rose 533.38 points, to end at 168,685.93.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 8 stocks with bids higher than their last selling prices and 7 with lower offers.At the end of market activities, Barita Investments traded 201,710 units but lost 1 cents to close at $2.99, Cable & Wireless rose by 3 cents while trading 1,161,868 shares to close at $1.13, Caribbean Cement traded 5,912 shares and fell 80 cents to close at $22.20, Carreras gained 45 cents in trading 3,575 shares to close at $66.45. 1834 Investments traded 6,564 shares after rising 5 cents to close at $1.19, Grace Kennedy fell 50 cents to close at $119.50 with 8,396 units changing hands. Jamaica Broilers ended with 444,855 units changing hands with a loss of 10 cents to close at $14.90, Jamaica Stock Exchange traded 28,748 shares at $21.35 with a gain of 2 cents, JMMB Group traded 31,000 units but lost 28 cents to end at $9.72, National Commercial Bank ended with 10,166 units changing hands at $42. Pan Jamaican Investment Trust traded 4,365 shares to close at $24.30 after gaining 30 cents,
Portland JSX fell 51 cents and ended with 70,533 shares changing hands at a new closing high of $13.49. Pulse Investments traded 30,877 shares with a loss of 4 cents at $2.50, Radio Jamaica traded at $1.59 after 26,338 shares changed hands, with a 1 cent loss, Sagicor Group ended with 32,339 shares changing hands, the price jumped 60 cents to end at $23.65. Sagicor Real Estate Fund traded 17,845 shares to close at $10.12, Scotia Group gained 19 cents with 624 shares trading, to close at $30.21, Scotia Investments climbed $1 and ended with 5.700 shares trading, to close at $26, while Supreme Ventures accounted for only 2,600 units but lost 20 cents to end at $4.30.