Trading picked up sharply on Tuesday at the close of the Jamaica Stock Exchange US dollar market, with the volume of stocks traded surging 1,022 percent and the value climbing 644 percent more than on Monday and resulting in seven securities trading, down from nine on Monday, with two rising, one declining and four ending unchanged.
The JSE US Denominated Equities Index gained 1.18 points to end at 216.12.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.1. The PE ratio is based on ICInsider.com earnings forecasts for companies with financial years ending, between November this year and August 2023.
A total of, 2,380,018 shares traded for US$85,715 versus 212,103 units at US$11,513 on Monday. Trading averaged 340,00 units at US$12,245, compared to 23,567 shares at US$1,279 on Monday, with month to date average of 161,545 shares at US$5,759 versus 124,804 units at US$4,424 on the previous day. May ended with an average of 47,916 units for US$3,528.
Investor’s Choice bid-offer indicator shows three ended with a bid higher than the last selling prices and none with a lower offer.
At the close, First Rock Capital USD share finished at 7.5 US cents while exchanging 35 shares, Margaritaville ended unchanged at 15 US cents with the swapping of 207 stock units, Proven Investments shed 0.01 cents to end at 26.49 US cents, with 235,369 stocks crossing the market. Sterling Investments remained at 2 US cents trading 29,028 units, Sygnus Credit Investments USD share gained 0.11 of a cent in closing at 11.21 US cents after an exchange of 37,602 units and Transjamaican Highway popped 0.1 of a cent to 1 US cent in exchanging 2,077,677 stock units.
In the preference segment, JMMB Group 5.75% finished at US$2.30 after the trading of 100 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Sharp jump in trading on the JSEUSD market
Gains for TTSE market
The volume of stocks traded surged 684 percent on the Trinidad and Tobago Stock Exchange on Tuesday, with a modest increase in value over trading on Monday, with sharp jump in the number of securities trading.
Some 23 securities traded up from 16 on Monday, with eight rising, seven declining and eight unchanged. The Composite Index popped 9.09 points to 1,423.17, the All T&T Index rallied 8.35 points to 2,079.90 and the Cross-Listed Index climbed 1.38 points to settle at 100.85.
A total of 1,338,190 shares traded for $8,140,410 compared to 170,637 units at $7,974,540 on Monday. An average of 58,182 units traded at $353,931 versus 10,665 shares at $498,409 on Monday, with trading month to date averaging 23,958 units at $256,801 versus 13,601 units at $227,269. The average trade for May amounts to 45,890 units at $370,328.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Agostini’s finished at $47.25 with an exchange of 100 shares, Angostura Holdings remained at $23 and closed with trading of 4,854 units, Calypso Macro Investment Fund advanced 14 cents to close at $19, with 1,074 stocks crossing the market. CinemaOne increased 50 cents in closing at $3.95 after trading 110 stock units, Clico Investment Fund slipped $1 to $28 after 291 stocks crossed the exchange, Endeavour Holdings popped 1 cent to $7.50 trading 830 stock units. First Citizens Group climbed $1.33 to $54.33, with 1,264 units clearing the market, FirstCaribbean International Bank ended at $5.25 in exchanging 6,061 shares, GraceKennedy gained 10 cents to end at $5.90 in an exchange of 1,920 shares. Guardian Holdings dropped 5 cents in closing at $27.25, with 3,382 units crossing the market, JMMB Group shed 2 cents to close at $2.42 while exchanging 5,000 stock units, Massy Holdings fell 1 cent to end at $5.23 after trading 1,259,149 stocks. National Enterprises remained at $3.24 in switching ownership of 301 units, National Flour Mills finished at $1.80 in exchanging 40 stocks, NCB Financial Group rallied 6 cents to $5.66 in trading 3,676 stock units. One Caribbean Media ended unchanged at $4.17, with 5,000 shares changing hands, Point Lisas rose 35 cents to $3.40 with the swapping of 10,000 stock units, and Republic Financial Holdings remained at $141 in trading 343 shares. Scotiabank ended at $78 in switching ownership of 6,040 stocks, Trinidad & Tobago NGL declined 80 cents to close at $20.20 in exchanging 11,048 units, Trinidad Cement increased 28 cents in ending at $3.88 trading eight stocks. Unilever Caribbean shed 10 cents in closing at $19.75 while exchanging 16,959 stock units and West Indian Tobacco declined 10 cents to close at $23.40 after 740 units changed hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big dividend payout by Caribbean Cement
Caribbean Cement Company is set to make a sizable dividend payment in August. The Board of Directors advised that a meeting of the board that was held on May 26, 2022, recommended to present an ordinary resolution to shareholders to declare a final dividend of $1.5032 per share payable on August 15, 2022.
The proposed payment represents 29.475 percent of the profit of $5.10 per share for 2021. The proposed record date is August 4, 2022, with an ex-dividend date of August 3rd. The recommendation will be made to shareholders at the Company’s next Annual General Meeting.
The company seems to have breached the JSE rules that require that any meeting to consider the payment of a dividend must be communicated to the JSE at least 7 days ahead of the meeting. So far no such notification was posted on the Stock Exchange website.
The payment if approved would amount to $1.28 billion and would represent the first such payout since 2004 when 7 cents per share was paid amounting to $60 million.
JSE USD market eases back
On Monday, the volume and value of shares traded on the Jamaica Stock Exchange US dollar market declined by 94 percent and 87 percent, respectively, resulting in an even number of stocks rising and falling.
A total of nine securities traded, compared to eight on Friday, with two rising, two declining and five ending unchanged.
The JSE US Denominated Equities Index slipped 0.16 points to end at 214.94.
The PE Ratio, a measure used in computing appropriate stock values, averages 8.9. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending up to August 2023.
A total of 212,103 shares traded for US$11,513 down from 3,358,668 units at US$92,093 on Friday.
Trading averaged 23,567 units at US$1,279, compared to 419,834 shares at US$11,512 on Friday, with a month to date average of 124,804 shares at US$4,424 versus 161,249 units at US$5,556 on the previous day. May ended with an average of 47,916 units for US$3,528.
Investor’s Choice bid-offer indicator shows three ended with bids higher than the last selling prices and none with a lower offer.
At the close, First Rock Capital USD share remained at 7.5 US cents with 15,710 shares crossing the exchange, Margaritaville ended at 15 US cents with the swapping of 33 stocks, Proven Investments ended unchanged at 26.5 US cents after the trading of 9,423 units. Sterling Investments shed 0.14 of a cent to end at 2 US cents in exchanging 606 stock units, Sygnus Credit Investments USD share rose 0.02 of a cent in closing at 11.1 US cents with 42,260 units changing hands, Sygnus Real Estate Finance USD share finished at 12 US cents in an exchange of 1,248 stock units and Transjamaican Highway ended at 0.9 of a US cent in trading 141,092 stocks.
In the preference segment, JMMB Group 5.75% lost 2 cents after ending at US$2.30 in exchanging one share and JMMB Group 6% gained 9 cents in closing at US$1.10 after trading 1,730 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Slippage for Trinidad stocks
Market activity ended on the Trinidad and Tobago Stock Exchange on Monday, with the volume of stocks traded declining 14 percent with 205 percent higher value than on Friday and leading to modest changes in the market indices.
A total of 16 securities traded compared to 18 on Friday, with five stocks rising, two declining and nine remaining unchanged. The Composite Index slipped 0.91 points to 1,414.08, the All T&T Index fell 3.38 points to 2,071.55 and the Cross-Listed Index rallied 0.24 points to settle at 99.47.
Overall, 170,637 shares traded for $7,974,540 compared to 198,937 units at $2,615,349 on Friday. An average of 10,665 units traded at $498,409 compared to 11,052 shares at $145,297 on Friday, with trading month to date averaging 13,601 units at $227,272 versus 14,384 units at $154,969. The average trade for May amounts to 45,890 units at $370,328.
Investor’s Choice bid-offer indicator shows four stocks that ended with bids higher than their last selling prices and two with lower offers.
At the close, Agostini’s gained 5 cents to close at $47.25, trading 100 shares, Angostura Holdings finished at $23 with an exchange of 2,454 stock units, Clico Investment Fund popped 50 cents to $29 in exchanging 35,073 units. First Citizens Group shed $1.98 in closing at $53, with 580 stocks changing hands, FirstCaribbean International Bank ended unchanged at $5.25 in switching ownership of 1,400 stocks, GraceKennedy rallied 10 cents to close at $5.80 after trading 10,478 shares. Guardian Holdings remained at $27.30 after 30 stock units were exchanged, JMMB Group declined 1 cent in ending at $2.44, with 1,919 units clearing the market, Massy Holdings ended at $5.24 after 19,494 stock units changed hands. National Flour Mills remained at $1.80 while exchanging ten units, One Caribbean Media finished at $4.17 in trading 1,000 shares, Republic Financial Holdings climbed 75 cents to $141 with an exchange of 37,574 stocks. Scotiabank increased 1 cent to $78 after exchanging 554 shares, Trinidad & Tobago NGL finished at $21 in an exchange of 4,696 stocks, Unilever Caribbean ended unchanged at $19.85 after the trading of 13,788 stock units and West Indian Tobacco remained at $23.50 with the swapping of 41,487 units.Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Dolla shares could list on Friday
Trading in the shares of Dolla Financial that offered shares to the public in an initial stock offering that closed on the same day it was opened could be listed on Friday on the Junior Market of the Jamaica Stock Exchange, a source informed ICInsider.com.
Details of the allocation are expected to be released by the close of the Jamaica Stock Exchange on Monday, the source advised.
Some $10 billion is said to have chased after the 500 million shares at $1 each, as such investors will end up, on average, with approximately 5 percent of the amount applied for.
The issue that was very popular closed at 4.30 on Friday, May 27, having been heavily oversubscribed. The shares are expected to more than double, based on the earnings for the first quarter to March this year, with a profit before tax of $66 million, up from $17 million in 2021.
The company reported an audited profit of $129 million after taxation of $38 million for 2021, from revenues of $379 million and ended with shareholders’ equity of $315 billion.
$250 million of the funds raised in the offer, net of the cost of the IPO, will be used in the business to fund loan growth.
Institutions losing out big time in stocks
The Jamaica Stock Exchange Junior Market is growing at more than twice the pace of the Main Market but institutional investors are missing out on the significant superior performance the newer market is delivering, all because institutional investors have not been reading the Junior Market properly, the end results are, pension funds and other investors who utilize institutions to manage their funds have lost out big time on the returns the newer market has provided.
But a host of newer investors are having a whale of a time making good money in the more investor friendly market. These newer investors are mainly interested in Junior Market stocks, two observers disclosed to ICInsider.com. The burst of new investors were attracted to the market by initial public offers of mainly Junior Market stocks, fed on a dose of wildly successful issues that they made great profits from. They are familiar with the market for new issues as they have done extremely well out of them and plan to do so until the situation changes.
In the summer of 2011, just 1,339 applications pumped in $2.4 billion for Caribbean Producers public share issue. Recent issues have attracted over 5,000 applicants, with Spur Tree pulling in excess of 5,000 investors. In 2018 the Fontana IPO attracted 3,406 applications for a total of 982 shares at $2 each. In 2018, Indies Pharma pulled in 2,800 applicants, covering over $1 billion and Wisynco hauled in 7,382 applications totaling $18.8 billion. These are in contrast to the first Junior Market listing Access Financial which struggled to get acceptance at the IPO stage.
A close look at the markets and individual stocks in recent months tends to confirm this view. It is not very surprising then that the Junior Market that has seen a number of new listings in the past three years has attracted sufficient buying interest to send that market up nearly 30 percent last year and up to 33 percent up to recently in 2022, far surpassing Main Market stocks. That performance is not unique to the past two years as the Junior Market outpaced the Main Market in 7 of the last 12 years and delivered more than twice the gains as the Main Market. The Junior Market gained 984 percent from the end of 2010 up to last week with an increase of 119 percent more than the Main Market’s 449 percent.
One new entry to ICTOP10
Prices of several stocks rebounded this past week as the selloff to fund the Dolla Financial IPO receded, but the changes had little impact on changing stocks in the TOP10, with just one new entrant to the listing.
Following last week’s 330 points fall, the Junior Market index recovered 143 points by the end of the week, while the Main Market All Jamaica Index lost 211 points on top of the 5,954.55 points given up in the previous week.
This week’s market performance resulted in mostly gains for TOP10 stocks. In the Junior Market, Medical Disposables rose 12 percent to $7.85, while Access Financial gained 9 percent to close at $21.80 and Lasco Financial rallied 6 percent to $3.50, following the release of full year results to March, with profit doubling to $306 million for earnings per share of 24 cents. Elite slipped 6 percent in closing at $3.40 and Caribbean Cream fell 5 percent to $4.69.
For the TOP10 Main Market stocks, Productive Business Solutions gained 15 percent to US$1.15, VM Investments rose 13 percent to $5.87, Berger Paints rallied 6 percent to $11.30, followed by QWI Investments up 5 percent to 89 cents. Sygnus Credit Investments declined 5 percent to $14.80 and JMMB Group slipped 4 percent to $44 following the release of full year results.
Jetcon Corporation price dipped to $1.32 and squeezed out General Accident from the Junior Market TOP10.
Medical Disposables reported full year results to March, on Thursday, with profit before tax surging 938 percent to $143 million and profit due to the parent company shareholders before extraordinary gains in 2021 of $62 million, rising to $105 million, from $7.5 million, with revenues up 42 percent over the previous year.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.1, while the Junior Market PE for the Top 10 is six versus the market at 13.4. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
Watch these stocks that are sitting just outside the TOP10, the list includes Key Insurance, followed by Caribbean Producers, Scotia Group and Sagicor Group from the Main Market and in the Junior Market, Dolphin Cove, General Accident and Iron Rock Insurance.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.