The Jamaica Stock Exchange is again recording losses in the main market with 
the junior market recording a gain as limited volumes traded in a lackluster early morning session, on Thursday.
After 80 minutes of the market’s opening, only 23 securities traded, accounting for 2,286,712 shares changing hands. A total of 7 stocks declined and 7 rose.
The all Jamaica Composite Index lost 494.55 points to 169,495.34, the JSE Market Index dropped 442.53 points to 152,599.95, the JSE combined index fell 265.47 points to 161,794.08 but the junior market index fell 16.80 points to 1,982.33.
The big movement has been the up and down movement of Caribbean Cement that fell again by $3.45 to $19.55 with 120,000 shares trading Carreras with 397,183 shares at $64.99 and Desnoes and Geddes 43,100 units at $22.80.
Decline continues for JSE – Thursday
JSE pockets $110m from D&G trade
D&G adds $110m to JSE coffers
The JSE had their best year ever, in terms of earnings last year, as they picked up close to $120 million in fees, when Scotiabank switched their direct share ownership from Canada, to a company set up in the Caribbean, to hold all the shares of the Caribbean based entities.
Trading levels increased in each of the last three quarters last year, ending with the December quarter reaching $11.35 billion or 31 percent higher than the levels in the September quarter. For the year to date, regular trading levels are at $2.689 billion, up 79.6 percent from $1.497 billion for the similar period in 2015. The stock exchange has also increased some of its fees to investors and the brokers for 2016. In addition to the increased trading activity, the exchange in August last year started handling repo transactions, which is expected to enhance income for the full 2016 year as opposed to a few months last year.
The JSE stock has been trading in relatively high volumes, around the $20 range and closing on Thursday at $20 with just over 57,000 units.
BUY RATED top Carib markets with 830%
The JSE stock racked up huge gains in 2015
IC BUY RATED stocks were top of the Caribbean markets in Jamaica and Trinidad and Tobago for 2015, with Jamaica Stock Exchange share, chalking up a massive gain of 830 percent since IC Insider elevated it to BUY RATED status.Caribbean Cement followed with gains of 640 percent, Caribbean Cream with 444 percent and Trinidad Cement with a 299 percent increase on the Trinidad market.
While it was easy to make money in Jamaica, with profits rising and interest rates falling, developments in Trinidad went in the opposite direction, with interest rates rising and profits under pressure with the economy ended in recession.
At the beginning of 2015 of the 14 junior market selections, few recorded gains and only Knutsford Express with a 17 percent increase reflecting any meaningful positive movement. Losses were large, with AMG Packaging down 39 percent, Blue Power 31 percent, Caribbean Cream 23 percent, Jamaica Teas 28 percent, Lasco Financial 37 percent and Lasco Manufacturing 32 percent. What a difference a year can make? By the end of 2015, gains were all over the place with the list having 17 companies with two being dropped. There were no losing stocks in the list that had a new addition, tTech which could be listed this week. Honey Bun was added to the listing in November and gained 9 percent since. Eight stocks have more than doubled, four gained 40 percent to 91 percent. Caribbean Cream jumped 292 percent to be the top selection in this market, followed by Lasco Distributors up 274 percent. Blue Power was removed from the list in July with a small gain.
In the JSE main market, at the start of 2015, Hardware and Lumber was the best performing stock with gains of 62 percent followed by Cable & Wireless with 47 percent and Jamaica Broilers had the worst performance with a loss of 24 percent. In all, 7 of the 15 selections were lower than at the time they were BUY RATED.
By year-end, all selections in the JSE main market were up, with Scotia Investments having a mere 15 percent increase, being the poorest performer. This stock is being moved to Market Watch as the 2015 profit performance was far too disappointing to warrant buying now, while Hardware and Lumber remains a hold. The rest, present opportunities for continuing profit making. 
JMMB Group ended with just 28 percent gain, but seems undervalued at the current price. While the list had a few lousy performers, the same can’t be said about a 640 percent gain in Caribbean Cement and 830 percent increase for Jamaica Stock Exchange share. In all, 9 stocks posted gains in excess of 100 percent and 4 below 100 percent but with a 50 percent increase and more.
There were 13 selections in the Trinidad market with Trinidad Cement being the best performer with gains of 150 percent, the next was Point Lisas with 11 percent at the start of 2015. Five stocks suffered losses with the highest being 22 percent and the next 18 percent. For 2015 the price of Trinidad Cement is up 299 percent followed by National Flour with a 59 percent gain.
Looking ahead, the junior stocks should continue to grow, with several of the companies actively expanding resulting in profits climbing at a fast pace. There are a few stocks to be cautious of just now. Lasco Distributors selling at almost 16 times 2016 March earnings. Growth should be strong but unless investors have a long term objective they should be careful buying at current price level, the same applies to Lasco Financial that is selling at 15 times earnings. Dolphin Cove remains a hold at this time.
The Trinidad market needs to be watched at this stage, with the country needing to adjust to the lower price of oil and the recession now being endured.
NCB dominates as market rises again
NCB Financial dropped $8 on Friday.
Tuesday’s activity on the Jamaica Stock Exchange, resulted in the prices of 9 stocks rising 7 declining as 27 securities changed hands, ending in 11,536,610 units trading, valued at $173,915,246, in all market segments.
National Commercial Bank that dominated trading on Monday with 27,173,167 units, was again the lead trade on Tuesday, with 7,970,682 shares valued at $163,393,196. The majority of shares traded was done by way of a cross executed by Sagicor Investments.
Main Market| The JSE Market Index gained 326.79 points to 77,528.25, the JSE All Jamaican Composite index rose 365.36 points to close at a 85,398.48 and the JSE combined index gained 256.46 points to close at 79,427.70.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 8 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Jamaica Money Market Brokers trading 22,500 ordinary shares and put on 23 cents to $7, National Commercial Bank traded 7,970,682 shares to end with an increase of 30 cents to a 52 weeks’ high of $20.50. Sagicor Investments bought and sold 7,927,299 units of the amount traded, in two lots. Sagicor Group traded 14,298 shares while gaining 50 cents to $10.50. The Sagicor Real Estate Fund closed with 20,775 shares changing hands as the price gained 4 cents to $6.74, Scotia Group traded 31,119 units and put on 20 cents to $20.25 and Supreme Ventures put in 94,445 shares to end with an increase of 10 cents to $2.10.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints finishing with 3,039 units changing hands at $1.56, Carreras in trading 98,550 shares closed at $41, Desnoes & Geddes closed with 30,000 shares trading at $4.90. Gleaner had 31,693 units trading at 81 cents, Jamaica Broilers closed with 123,928 units at $4, Jamaica Producers ended with 955 shares changing hands at $17. Proven Investments finished with 9,646 units traded at 21 US cents, Radio Jamaica ended with 4,657 units trading at $1.10 and Seprod finished had 14,348 shares changing hands at $11.90.
Cable & Wireless dropped 20% to 40 cents on Tuesday
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Cable & Wireless ending with 2,013,234 units trading, losing 10 cents to 40 cents as investors reacted negatively to news that the company has to pay Digicel $1.5 billion for interconnection charges. Grace Kennedy had transactions in 9,900 shares to close lower by 10 cents at $61.90, Pan Jamaican Investment closed with 3,816 shares changing hands, 50 cents down at $52 and Scotia Investments in concluding trading in 854 shares lost 4 cents to $22.51.
Preference| Proven Investments 8% preference share closed with 247,500 units trading at $5.
This market is going much higher
Graph showing market breaking resistance at 82,000, yellow line on the way to 91,000 points brown line.
Technically, the market has broken through resistance at 82,000 points on the all Jamaica Index on the November 19, retreated a bit but seems to be moving away from that point now. The next target is 91,000 points, the level reached in December 2012, which could well be reached by year end. The latest break of the 82,000 is the first of three attempts that the market has made to break through the descending trendline going back to late 2011 that has been successful. Supporting the move upwards, is the crossover of the short-term moving average line over the medium term moving average, the shortage of supply of most stocks and the lowering on Treasury bill rates, starting earlier this year and continuing up to the latest auction in November.
In trading on Friday, Grace Kennedy was the leading stock trading on Friday with 2 million units with a value of $120.7 million this was followed by Scotia Group with 258,000 shares valued at $5.2 million and Carreras with 123,000 units with a value of $4.5 million.
Grace off
Gains| The stocks ending with gains on Friday are, Caribbean Cement ending with 1,164 units trading with a gain of 4 cents at $2.44. Carreras completed trading with 123,082 shares, the price rose 1 cent to $37, Desnoes & Geddes saw trading in 29,970 units and put on 9 cents to $4.69, Jamaica Broilers concluded trading with 11,700 shares changing hands with a gain of 5 cents to $4.05. Jamaica Stock Exchange concluded trading with 7,000 units, to close with a gain of 7 cents to $1.57, National Commercial Bank closed with 13,210 units and put on 4 cents to $18.20, Sagicor Group finished with 67,188 shares to end with an increase of 3 cents at $9.93. Sagicor Real Estate Fund ended with 750 shares as the price gained 44 cents to $7.25, a new 52 weeks high, Scotia Group finished trading with 257,719 shares, the price jumped 49 cents to $20.50, Seprod contributed 819 shares as the price climbed 1 cent to $12.01 and Supreme Ventures ended trading with 40,000 shares traded with a gain of 5 cents to $1.95.
Firm| The stocks in the main market to close without a change in the last traded prices are, Grace Kennedy ended with 2,009,457 shares changing hands to close at $62 and Hardware & Lumber with only 500 shares trading, closed at $6.50.
Declines| Cable & Wireless was the only main market stock to fall with a 1 cents loss to 44 cents with1,363 units.
Preference| Jamaica Money Market Brokers 7.50% preference share traded 4,000 shares trading at $2.
Major management changes at D&G
Desnoes & Geddes Limited (DG) has advised that Jed Dryer, Finance Director, has come to the end of his three year rotation at Red Stripe and will be transitioning to a role in Miami as Finance Director for Projects commencing July 1, 2013. Dryer will remain on the boards of DG and Celebration Brands Limited.
Vernon Douglas, Group Financial Controller at Red Stripe will be Acting Finance Director effective July 1, 2013. As a result of the reorganisation of the operations in D&G, the role of Human Resources Director will no longer exist as of June 30, 2013. Lisa Lewis, Human Resources Director, Red Stripe will therefore no longer be working in this capacity as of June 30, 2013. Lisa will be resigning from the Board of Directors and Board of Trustees for the pension plan as at that date. She will be working as HR Director for Projects, Diageo WestLAC, from July 1, 2013 to September 30, 2013. After September 30, 2013 she will be leaving Diageo to pursue other interests.
Ali McLennan, former Diageo Global Beer, People and Talent Manager, will be Acting Head of HR for the company effective July 1, 2013. Marguerite Cremin Chung, Head of Corporate Relations will be taking the role of Head of Corporate Relations for Central America and the Caribbean effective July 1, 2013. Her replacement will be the subject of a future announcement. Daan De Kroon, Head of Red Stripe International & Licensed Brewing will be taking up the role of Export Director, Ypioca, Brazil. His replacement will be the subject of a future announcement.
Profit | Desnoes & Geddes reported improved results for the nine months to the end of March this year with profits after tax being up 30 percent to $1.050 billion, but in the latest quarter profits was down 18 percent to $243 million after tax. The company took a $152 million charge in the third quarter for making workers redundant, flowing from the decision to transfer the sales and distribution of its products to Celebration Brands, a joint venture company with Pepsi. The company’s management indicates that the amount written off in the quarter is 50 percent of the total separation cost.
Overseas production | The results reflect the decision last year to switch the production and sales of Red Stripe to the USA. Export sales are down as a result, but so is cost relating to exports. Local sales grew to $2.67 billion up from $2.56 billion in 2012 and for exports it was $564 million in the current fiscal year versus $450 million.
D&G will pay 10¢ dividend
Desnoes & Geddes (D&G) will be paying the second interim dividend relating to this fiscal year which ends in June of $0.10 per share payable on June 25, 2013 to shareholders on record as at June 7, 2013. The ex-dividend date is June 5, 2013.
D&G just reported a rise in profits to 37 cents per shares for the 9 months to March after taking a hit for staff separation of $152 million in the March quarter. The proposed payment brings the total dividend for the year to 30 cents. Demand for the shares has increased since the announcement was made of a likely second dividend and the release of the quarterly results. The stocks traded as high as $5 from around $4.15 that it has been trading at for months.
Both Scotia Group and Scotia Investments are expected to announce dividends on the 24th of May. Based on past practices, the former should be paying 40 cents per share and the latter 45 cents per share. The payments will most likely take place at the early part of June.
Dividends to come
The Board of Directors of Desnoes & Geddes (D&G) has advised that they will meet on Thursday, May 16, 2013 to consider the payment of a second interim dividend for the year 2013. On the same date the Board of Directors of Pan-Jamaican Investment Trust will meet to consider the payment of a second interim dividend for the year.
If the dividend is approved, Desnoes & Geddes would be returning to the regular practice of paying two dividends per year, which was suspended when the operations was faced with challenges after the global economic crisis took full effect in Jamaica. The company paid 20 cents per share in December.
Pan Jamaican already made a payment of $1.10 cents in March and if the Board approves, it would be the second of four for the year and likely to be $0.50.
The Board of Directors of Dolphin Cove has declared a dividend of $0.10 per share payable on June 6, 2013 to shareholders on record as at May 20, 2013. The ex-dividend date is May 16, 2013. This payment is likely to be the second of three for the year having paid one in March already.
