Trading in the foreign exchange market the rate of exchange to buy the US dollar by the public, declining again on Tuesday to $126.54 as dealers sold US$43.27 million of the US dollar, compared to US$41.70 million at an average rate of $126.58 on Monday.
US currency purchases amounted to US$39.31 million on Tuesday, at an average rate of $125.59 compared to Monday, with US$43.65 million at $125.55.
Dealers’ purchased US$54.28 million, versus US$48.63 million on Monday in all currencies in Jamaica’s forex market and sold US$59.20 million compared with US$45.47 million of all currencies sold previously.
At Midday, dealers bought US$12.9 million at J$125.90 and sold US$10.5 million at J$126.62 compared to the purchase of US$9.9 million at J$125.92 and selling of US$4.3 million at J$126.74.
The selling rate for the Canadian dollar climbed to J$99.70 from J$98.88 at the close on Monday. The selling rate for the British Pound slipped to J$167.18 versus J$167.27 on Monday and the euro gained value against the Jamaican dollar, rose to J$149.72 to buy the European common currency, versus J$149.28 previously.
Jamaican$ value improves – Tuesday
Jamaican$ gains value moderately – Monday
Trading in the foreign exchange market returned to normal levels on Monday, compared to Friday with a C$60 million sell off of the Canadian Dollar.
By the close of trading, the rate of exchange to buy the US dollar by the public, fell on Monday to $126.58 as dealers sold US$41.70 million of the US dollar, compared to US$24.76 million at an average rate of $126.64 on Friday.
US currency purchases amounted to US$43.65 million on Monday, at an average rate of $125.55 compared to Friday, with US$28.39 million at $125.38.
Dealers’ purchased US$48.63 million, versus US$38.85 million on Friday in all currencies in Jamaica’s forex market and sold US$45.47 million compared with US$73.49 million of all currencies sold previously.
At Midday, dealers bought US$9.9 million at J$125.92 and sold US$4.3 million at J$126.74 compared to the purchase of US$9.6 million at J$125.96 and selling of US$8.9 million at J$126.78.
The selling rate for the Canadian dollar dipped to J$98.88 from J$99.99 at the close on Friday as the Canadian dollar dominated trading on Friday. The selling rate for the British Pound rose to J$167.27 versus J$166.43 on Friday and the euro gained value against the Jamaican dollar, to J$149.28 to buy the European common currency, versus J$148.11 previously.
Derrimon & Main Event in TOP 10
Main Event moved into the top list of Junior market stocks along with Derrimon Trading, this week, replacing Jamaican Teas and Caribbean Cream that entered the list last week and Pulse Investments and Sagicor Group are in the Main market listing.
Main Event fell back to $5.50 at the end of the past week, from $5.75, the week before, to reenter the list, while Jamaican Teas came in for some buying that lifted the price slightly, to $4.10, to see it leaving. Radio Jamaica is removed from the list as six months’ results suggest that earnings will be hard pressed to exceed the 6 cents reported for the 2017 fiscal year. Also out is Cable & Wireless, with nine months’ results suggesting lower profit than originally projected for the full year to December.
Derrimon Trading reported net profit for this three months to September from core business, jumping 56 percent to $27 million over the $17.5 million reported for the corresponding period in 2016. The consolidated net profit for the nine months was $132 million, up 22 percent over the corresponding period in 2016.
Earnings per share amounted to 48 cents for the nine months and seems on track to end the year at 60 cents.
On Friday Lasco Financial, a former TOP 10 stock, hit a new record high of $6.60 following the reported profit that more than doubled in the September quarter to $100 million and up 63 percent to $167 million for the six months as well as from news of the acquisition of CrediScotia operations.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 9 and a PE at 8.5 for the main market TOP 10. The average PE for the overall main market is 15 and 14 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 35 percent to the average of the market for Junior Market Top stocks and 43 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless that appears scarce under $1, NCB Financial, Berger Paints, JMMB Group, Lasco Financial, Paramount Trading, Derrimon Trading and Stationery and Office.
Big sell off of Canadian dollars – Friday
In trading in the foreign exchange market on Friday the Canadian Dollar was the dominant currency traded with just C$10 million bought but C$60 million sold.
The rate of exchange to buy the US dollar by the public rose on Friday to $126.64 as dealers sold US$24.76 million of the US dollar, compared to US$32.99 million at an average rate of $126.62 on Thursday.
US currency purchases amounted to US$28.39 million on Friday, at an average rate of $125.38 compared to Thursday, with US$32.30 million at $125.76.
Dealers’ purchased US$38.85 million, versus US$47.89 million on Thursday in all currencies in Jamaica’s forex market and sold US$73.49 million compared with US$46.03 million of all currencies sold previously.
For the week the equivalent of US$271 million was bought by dealers and US$281 million sold compared with buying of $257 million the week before and selling of $240 million.
The selling rate for the Canadian dollar rose to J$99.99 from J$99.72 at the close on Thursday as the Canadian dollar dominated trading. The selling rate for the British Pound rose to J$166.43 versus J$165.67 on Thursday and the euro fell in value against the Jamaican dollar, to J$148.11 to buy the European common currency, versus J$148.78 previously.
Jamaican$ gains – Thursday
The rate of exchange to buy the US dollar by the public rose on Thursday to $126.62 as dealers sold US$32.99 million of the US dollar, compared to US$47.67 million at an average rate of $126.74 on Wednesday.
US currency purchases amounted to US$32.30 million on Thursday, at an average rate of $125.76 compared to Wednesday with US$44.36 million at $125.89.
Dealers’ purchased US$47.89 million, versus US$55.58 million on Wednesday in all currencies in Jamaica’s forex market and sold US$46.03 million compared with US$58.02 million of all currencies sold previously.
The selling rate for the Canadian dollar declined to J$99.72 from J$99.90 at the close on Wednesday. The selling rate for the British Pound fell to J$165.67 versus J$167.18 on Wednesday and the euro surged in value against the Jamaican dollar, to J$148.78 to buy the European common currency, versus J$150.01 previously.
Jamaican$ value slips – Wednesday
The rate of exchange to buy the US dollar by the public rose on Wednesday to $126.74 as dealers sold US$47.67 million of the US dollar, compared to US$48.09 million at an average rate of $126.64 on Tuesday.
US currency purchases amounted to US$44.36 million on Wednesday, at an average rate of $125.89 compared to Tuesday with US$59.23 million at $126.15.
Dealers’ purchases dipped to US$55.58 million, versus US$74.79 million on Wednesday in all currencies in Jamaica’s forex market and sold US$58.02 million compared with US$61.65 million of all currencies sold previously.
The selling rate for the Canadian dollar declined to J$99.90 from J$100.20 at the close on Tuesday. The selling rate for the British Pound jumped to J$167.18 versus J$165.09 on Tuesday and the euro surged in value against the Jamaican dollar, to J$150.01 to buy the European common currency, versus J$147.39 previously.
JSE main market retreats again
Stock prices mostly fell for the second consecutive day in trading on the Main Market of the Jamaica Stock Exchange on Wednesday with 23 securities changing hands, 8 advanced, 10 declined and 3 traded firm
The main market with 8,130,384 units valued at $56,308,791 compared to 17,396,748 units valued at $218,089,928 on Tuesday. The US dollar market traded just 3 securities accounting for 15,319 units valued at just US$14,671 while the market index fell 12.29 points to close at 166.33.
The JSE All Jamaican Composite Index dived by 2,309.99 points to close at 317,033.63 and the JSE Index dropped 2,104.66 points to close at 288,853.50.
Trading ended with an average of 353,495 units for an average of $2,448,208 in contrast to 756,380 units for an average of $9,482,171 on Tuesday. The average volume and value for the month to date amounts to 307,065 units valued at $3,786,627 with an average value of 302,442 units valued at $3,919,890 previously. In contrast, October closed with average of 185,251 units valued at $16,528,582 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and 1 with a lower offer.
At the close of trading, Berger Paints fell $1.25, Grace Kennedy rose $1.50, PanJam Investment fell by $1, Sagicor Group rose $3.40 and Scotia Group rose $1.
Jamaican$ value remains steady – Tuesday
The rate of exchange to buy the US dollar by the public was unchanged on Tuesday at $126.64 as dealers sold US$48.09 million of the US dollar, compared to US$36.75 million at an average rate of $126.64 on Monday.
US currency purchases amounted to US$59.23 million on Tuesday, at an average rate of $126.15 compared to Monday with US$48.04 million at $125.77.
Dealers’ purchases climbed to US$74.79 million, versus US$53.77 million on Tuesday in all currencies in Jamaica’s forex market and sold US$61.65 million compared with US$41.69 million of all currencies sold previously.
The selling rate for the Canadian dollar inched lower to J$100.20 from J$100.21 at the close on Monday. The selling rate for the British Pound fell to J$165.09 versus J$166.02 on Monday and the euro decline in value against the Jamaican dollar, to J$147.39 to buy the European common currency, versus J$147.66 previously.
Jamaican$ value rises – Monday
The rate of exchange to buy the US dollar by the public fell on Monday to $126.64 as dealers sold US$36.75 million of the US dollar, compared to US$38.30 million at an average rate of $126.83 on Friday.
US currency purchases amounted to US$48.04 million on Friday, at an average rate of $125.77 compared to Friday with US$31.29 million at $125.65.
Dealers purchased US$53.77 million, versus US$39.92 million on Monday in all currencies in Jamaica’s forex market and sold US$41.69 million compared with US$45.92 million of all currencies sold previously.
The selling rate for the Canadian dollar inched up to J$100.21 from J$100.20 at the close on Friday. The selling rate for the British Pound slipped to J$166.02 versus J$166.14 on Friday and the euro decline in value against the Jamaican dollar, to J$147.662 to buy the European common currency, versus J$148.62 previously.
Kremi & Jamaican Teas in TOP 10
Main Event rose in price and Medical Disposables (Meds) dropped out of the TOP 10 and were replaced by Caribbean Cream and Jamaican Teas.
Main Event rose from $5.50 to $5.75 on Friday, enough to lift them out of the Top list. Earnings at Meds were lowered with the release of the 6 months results with a 21 percent increased sales, in the September quarter but a reduction in profit margin and net profit.
JMMB Group rose from $29.50 to a record close of $30.50 and is sitting at the lower end of the main market list. Grace Kennedy reported good September quarter results, excluding one off gains while Berger Paints‘ six months results show revenues for the September quarter rising 21 percent and profit is up approximately 70 percent when the cost associated with the offer from Ansa Coatings offer is taken out. Berger traded to close on Friday at $15 and is one to watch in the week.
This coming week should see a raft of company results that could shake up the top 10 in both markets. On Friday Lasco Financial, a former TOP 10 stock, reported profit that more than doubled in September quarter to $100 million and up 63 percent to $167 million for the six months. These results could encouraged increased buying in the stock.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 9.1 and a PE at 7.3 for the main market TOP 10.
The average PE for the overall main market trades at 14 and 13.7 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average of the market for Junior Market Top stocks and 48 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless that is expected to post improved profit in the latest quarter from increasing revenues, NCB Financial, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident that is expected to benefit from a rise in premium rates, Lasco Financial, Paramount Trading and Stationery and Office.