Trading in the Jamaican foreign exchange market rose on Monday over Friday’s levels, resulting in US$57.88 of purchases by dealers of all currencies and outflows of US$34.37 million.
In contrast, purchases by dealers on Friday amounted to the equivalent of US$32.08 million while dealers sold US$33.58 million.
In USA dollar trading, inflows ended at US$50.25 million versus US$28.73 million on Friday with outflows of US$29.08 million compared to US$31.87 million.
At the end of trading, the US dollar was sold at an average rate of J$129.93 from J$130.11 previously while dealers bought the US currency at an average of J$128.88 versus J$128.35 on Friday.
The selling rate for the Canadian dollar climbed to J$107.10 from J$106.95 at the close on Friday while the British Pound was more costly, with J$169.58 buying the British currency versus J$168.87 and the euro, gained value against the Jamaican dollar, with it taking J$159.25 to buy the European common currency, versus J$157.26 previously.
Forex trading climbs on Monday
TOP 10 – main market to shine
Sagiocr Group returns to TOP 10 list
IC Insider.com said last week, the main market sits just below the critical 290,000 point mark and seems headed to break through that level, based on the shortage of supply for Scotia Group shares.
During the past week the All Jamaica Composite Index (AJI) surged to 296,779.53 during trading on Thursday.
The AJI high of the past week is just shy of the 298,000 points the report stated the cut in BOJ’s bench mark rate would translate to. Having broken through the critical 290,000 points resistance level it looks like the main market is free to move to the next resistance level around 370,000 points. 
The junior market on the other hand raced ahead of the main market earlier this year and is struggling currently as a number of the stocks were pushed to values well ahead of the rest of the market and have been undergoing downward adjustment. The other factor is that many investors are not looking ahead as to what earnings could be. The recent trading of Stationery and Office Supplies is a case in point. Demand fell away ahead of the release of half year results, only to climb after the company released strong growth in profit, suggesting it could be just slightly ahead of IC Insider.com’s original forecast of 40 cents per share. This is not the only case of investors currently miss pricing stocks, but time usually takes care of it.
Buying came in for Barita Investments that returned to the top list last week pushing it out of the list once more, as some buying came in for the stock even with increased selling and 
Sagicor Group returned to the listing having been pushed out in the prior week.
The average PE ratio for the Junior Market Top stocks is at 7.3 and the PE for the main market TOP 10, ends the week at 6.9. The average PE for the overall main market trades at 13.2 and 13.2 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 45 percent to the average of the market for Junior Market Top stocks and it remains at 48 percent for the main market.
Forex inflows down in September vs August – Friday
Inflows of finds into the system for the first week of September fell to just US$171 million from US$270 million in the first week of August while outflows stood at US$145 million versus US$213 million for the same period.
Trading in the Jamaican foreign exchange market slowed on Friday, resulting in US$32.08 of purchases by dealers of all currencies and outflows of US$33.58 million.
In contrast, purchases by dealers on Thursday amounted to the equivalent of US$34.55 million while dealers sold US$25.84 million.
In USA dollar trading, inflows ended at US$28.73 million versus US$32.45 million on Thursday with outflows of US$31.87 million compared to US$24.24 million.
At the end of trading, the US dollar was sold at an average rate of J$130.11 from J$129.96 previously while dealers bought the US currency at an average of J$128.35 versus J$128.69 on Thursday.
The selling rate for the Canadian dollar climbed to J$106.95 from J$105.61 at the close on Thursday while the British Pound was less costly, with J$168.87 buying the British currency versus J$169.24 and the euro, lost value against the Jamaican dollar, with it taking J$157.26 to buy the European common currency, versus J$157.79 previously.
Jamaica’s forex trading remains elevated – Wednesday
Trading in the Jamaican foreign exchange market remained elevated on Wednesday, resulted in US$50.57 of purchases by dealers of all currencies and outflows of US$42.83 million.
In contrast, purchases by dealers on Tuesday amounted to the equivalent of US$53.88 million while dealers sold US$42.39 million.
In USA dollar trading, inflows ended at US$40.92 million versus US$46.71 million on Tuesday with outflows of US$34.27 million compared to US$36.62 million.
At the end of trading, the US dollar was sold at an average rate of J$129.91 from J$129.42 previously while dealers bought the US currency at an average of J$128.63 versus J$128.29 on Tuesday.
The selling rate for the Canadian dollar climbed to J$105.61 from J$105.17 at the close on Tuesday while the British Pound was more costly, with J$168.72 buying the British currency versus J$165.79 and the euro, gained in value against the Jamaican dollar, with it taking J$155.69 to buy the European common currency, versus J$155.95 previously.
Scotia jumps to record close of $57.99 – Wednesday
Scotia Group shares jumped sharply to end at a record $57.99 on Wednesday.
Fresh from the announcement that Scotia Group is changing their chief executive officer, the stock continued on its merry way and jumped sharply at the start of trading on Wednesday to a new high, before ending trading at another record close.
Scotia ended the day trading 153,874 shares with the price climbing $2.99 to a record close of $57.99.
A the close of trading the All Jamaica Composite Index declined 790.64 points to close at 290,539.74, the JSE Market Index fell 720.36 points to 264,714.57 and the JSE US dollar market index declined 4.57 points to 182.61. At the close of trading, 25 securities changed hands in the main market with 3 trading in the US dollar market, leading to 12 stocks advancing and 5 declining. The main market ended with 3,180,409 units valued at $81,180,237 changing hands compared to 3,062,518 units valued at $54,223,292 at the close on Tuesday. The US dollar market accounted for 1,054,890 units valued at US$243,418 bringing the total of all trades to J$112,337,685.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 4 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 127,216 units valued at $3,247,209 for each security traded compared to an average of 122,501 units valued at $2,168,932. The average volume and value for the month to date ended at $173,624 units with an average value of $3,492,967 compared with an average of 189,094 units with an average value of $3,574,886 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
Profit jumps 146% at SOS in Q2
Stationery & Office Supplies Montego Bay office.
Profit jumped 146 percent at the recent Junior Market listing, Stationery & Office Supplies, to $20.3 million in the June quarter this year, before corporation tax of $8.8 million. For the six months period to June, profit before tax rose 33.4 percent to $50.4 million.
Revenues climbed 23.7 percent in the latest quarter to $212 million and 22 percent to $432 million for the six months. Gross profit climbed 25.5 percent to $99.5 million for the June quarter, flowing from increased gross profit margin while year to date, the increase was lower at 20.5 percent to $208 million. Expenses closed the June quarter at $79.2 million versus $71 million, an increase of 11.6 percent. For the year to date, the increase is a high 17 percent but still lower than the increase in revenues.
The 2017 result to date, is almost equal to the total 2016 results before tax of $53 million. Gross cash flow resulted in cash of $23 million being generated after an increase in working capital $28 million. The company spent $32 million on acquisition of fixed assets which required borrowing $4 and utilizing some cash on hand.
Businesses need adequate capital to grow and when debt reaches a certain level it becomes more challenging to access borrowed funding. Sometimes owners become concerned with increasing debt and this may hold back the performance of the business. Growth in the SOS’ business was putting pressure on cash resources resulting in borrowings rising, with $141 million outstanding at the end of June amounting to 50 percent of the equity. The need to expand to meet an increasing demand for its products would have placed added pressure on the owners to find the funds to finance the expansion.
The capital that came from the Issue of shares to the public will go a far way in improving the company’s finances and allow it to fund expansion, including paying for additional fixed assets which it was committed to at the time of the IPO.
The Stationery and Office Supplies executive body that helped to grow profit in 2017
IC Insider.com’s observations are that listing on the stock exchange brings huge benefits to companies. The constant exposure results in increased business, the capital injection allows for increased focus on inventory selection and choices, all of which feed into increased sales. The increased pace of sales growth in the second quarter may well be connected with the publicity received prior to listing and it would be surprising if the pace of growth does not pick up in the second half of the year and well into 2018.
At a last traded price of $4.20 on the Junior Market of the Jamaica Stock Exchange, the stock remains a buy to benefit from future growth. IC Insider.com projects earnings before tax at 50 cents per share based on the average number of shares issued for the year, up from 40 cents when the shares were offered for sale and $1 for 2018 which is projected to continue to show strong growth in revenues. IC insider.com gathers that sales have picked up strongly after the IPO with many more walk in customers being seen than before. later in 2017, online marketing website and increased sales to the Eastern Caribbean will commence which should add to growth in sales going forward.
The company, under the stock exchange rules need not have put out the six months report, having been listed in August. The release is to be applauded. It is in the investing public’s interest, to have pertinent information on which they can make their investment decisions.
JSE blast away 290,000 to a record 291,330
The All Jamaica index of main market stocks of the Jamaica Stock Exchange blast through the critical resistance level of 290,000 during the morning session on Tuesday and held above it at the close to end at a record close as Scotia Group jumped $3 to a new high.
The All Jamaica Composite Index jumped 3,269.07 points to end at a record close of 291,330.38, the JSE Market Index surged 2,978.49 points to a record close of 265,434.95 and the JSE US dollar market index declined 11.04 points to 187.18.
At the close of trading, 25 securities changed hands in the main market with 2 trading in the US dollar market, leading to 10 stocks advancing and 12 declining. The main market ended with 3,062,518 units valued at $54,223,292 changing hands compared to 9,375,844 units valued at $169,350,761 at the close on Monday. Trading in the US dollar market accounted for 86,450 units valued at US$20,960 bringing the total of all trades to J $56,927,184.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 5 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 122,501 units valued at $2,168,932 for each security traded compared to an average of 309,660 units valued at $7,056,282. The average volume and value for the month to date ended at 189,094 units with an average value of $3,574,886 compared with an average of 222,390 units with an average value of $4,277,863 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
Jamaica’s forex trading jumps – Tuesday
Trading in the Jamaican foreign exchange market jumped sharply on Tuesday, resulted in US$53.88 of purchases by dealers of all currencies and outflows of US$42.39 million.
In contrast, purchases by dealers on Monday amounted to the equivalent of US$21.92 million while dealers sold US$13.99 million.
In USA dollar trading, inflows ended at US$46.71 million versus US$19.05 million on Monday with outflows of US$36.62 million compared to a mere US$12.31 million.
At the end of trading, the US dollar was sold rate of J$129.42 from J$129.32 previously while dealers bought the US currency at an average of J$128.29 versus J$126.73 on Monday.
The selling rate for the Canadian dollar climbed to J$105.17 from J$102.94 at the close on Monday while the British Pound was sold at an average of J$165.79 for the British currency versus J$166.99 previously and the euro, gained in value against the Jamaican dollar, with it taking J$155.95 to buy the European common currency, versus J$154.53 previously.
Jamaica’s forex trading falls sharply – Monday
Trading in the Jamaican foreign exchange market dropped sharply on Monday, resulted in only US$21.92 of purchases by dealers of all currencies and outflows of just US$13.99 million.
In contrast, purchases by dealers on Friday amounted to the equivalent of US$42.05 million while dealers sold US$26.69 million.
At the end of trading, the US dollar was sold rate of J$129.32 from J$129.52 previously while dealers bought the US currency at an average of J$126.73 versus J$128.42 on Friday.
In USA dollar trading, inflows ended at US$19.05 million versus US$38.63 million on Friday with outflows of US$12.31 million compared to US$24.41 million.
The selling rate for the Canadian dollar dropped to J$102.94 from J$104.30 at the close on Friday while the British Pound was also less costly, with J$166.99 buying the British currency versus J$167.22 and the euro, gained in value against the Jamaican dollar, with it taking J$154.53 to buy the European common currency, versus J$153.82 previously.
Minority deserves better
SOS directors released June’s quarterly results even though the JSE rules require the first report to be relased for the September quarter.
The investing public seems not to be treated with the respect it deserves. It appears that many companies thing of investors last, not recognizing that they are shareholders just like the majority owners.
The last persons seen are the first to be remembered and is equivalent to out of sight out of mind. That seems to be the case with shareholders in the Caribbean. Newly listed Stationery & Office Supplies release of the June quarterly report although not required by the Jamaica Stock Exchange is an example of good corporate governance and is to be applauded.
In Trinidad for example, there is little liquidity in that market and the directors refuse to do anything about it. In Jamaica many companies tend to stick with the minimum regulations of the stock exchange, even when the recent examples in Jamaica say how important it is to ensure that there is adequate liquidity in the market.
The current regulation for listings in Jamaica, is for new listed companies to file their first quarterly report in the quarter ending after listing. The rule is inadequate to protect investors. Information is critical for the capital market to function properly, as such investors should not have to wait more than two quarters to get a quarterly report. In 2016, there was the very poor decision by Wentworth Graham the then head of the regulatory arm of the Jamaica Stock Exchange to permit 1834 Investments to wrongly withhold the December quarterly report from the public. This was based on improper interpretation of the rules relating to the release of financial information.
Main Event release their first report in June after their January IPO.
Earlier this year Main Event issued their IPO and included interim results to September 2016, with the year end of October. The IPO was in January but it was not until June that shareholders had information on the out turn of the operations for 2016 as well as for the first quarter this year. As it turned out, profit of $60 million at the 11 month period melted down to $56.5 million for the full year. The audited report was only signed on the June 5, more than 7 months after the year end while the first quarter results were never released but the second quarter to April was released within the deadline of June 15.
The management of Stationery & Office Supplies may have had a lot to shout about with pretax profit jumping 146 percent to $20.3 million for the June quarter this year and hence the release of the results to Jamaica Stock Exchange in less than a month of listing on the Junior Market.
Under the stock exchange rules it need not have put out the six months report having been listed in August. Some persons may see it as self interest in the release, but there is no evidence of that. The release provides the investing public with pertinent information in a timely manner, on which they can make their investment decisions. The hope is that the Jamaica Stock Exchange rules will be strengthened quickly to ensure that pertinent information is release on a timely basis to the public.