Trading on Tuesday, with the volume of stocks, traded climbing 83 percent with little change in the value compared to Monday, resulting in more stocks declining than rising at the close of the Jamaica Stock Exchange US dollar market.
A total of nine securities traded against ten on Monday, with two rising, three falling and four ending unchanged.
The JSE US Denominated Equities Index lost 1.31 points to end at 221.93.
The PE Ratio, a measure used in computing appropriate stock values, averages 23.4. The PE ratio uses ICInsider.com earnings forecasts for companies with their financial year end closing to August 2023.
Overall, 697,907 shares traded, for US$14,833 up from 380,821 units at US$14,951 on Monday. Trading averaged 77,545 units at US$1,648, compared to 38,082 shares at US$1,495 on Monday, with a month to date average of 56,450 shares at $2,395 versus 52,998 units at US$2,517 on the previous day. April ended with an average of 95,379 units for US$3,929.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling prices and none with a lower offer.
At the close, First Rock Capital USD share increased 0.81 of a cent to 7.89 US cents after exchanging 49 shares, Margaritaville remained at 15 US cents trading 102 units, Productive Business Solutions finished at US$1.18 in exchanging one stock unit. Proven Investments dropped 0.98 of a cent in closing at 25.02 US cents in switching ownership of 15,111 shares, Sygnus Credit Investments USD share popped 0.34 of one cent to close at 12.94 US cents in exchanging 2,217 stocks, Sygnus Real Estate Finance USD share shed 2.62 cents in closing at 12.07 US cents while trading 10,000 shares and Transjamaican Highway declined 0.01 of a cent in ending at 1 US cent with the swapping of 668,000 units.
In the preference segment, JMMB Group 5.75% ended unchanged at US$2.01, as 45 stock units crossed the exchange and JMMB Group 6% finished at US$1.10 in trading 2,382 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More slippage for JSE USD market
Bounce for Trinidad stocks
Market activity ended on Tuesday, with the volume of stocks traded rising by 168 percent while the value was 137 percent more than Monday’s, at the close of the Trinidad and Tobago Stock Exchange and ended with rising stocks outnumbering those declining.
A total of 19 securities traded up from 13 on Monday, with nine rising, four declining and six remaining unchanged. The Composite Index climbed 5.62 points to 1,427.44, the All T&T Index advanced 7.93 points to end at 2,062.55 and the Cross-Listed Index increased 0.44 points to 104.71.
A total of 1,897,307 shares traded for $12,592,066 compared to 706,824 units at $5,302,591 on Monday. An average of 99,858 units traded at $662,740 versus 54,371 shares at $407,929 on Monday, with trading month to date averaging 43,060 units at $362,388 versus 31,069 units at $298,980. The average trade for April amounts to 43,127 units at $458,871.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Agostini’s fell 26 cents to close at $47.25 with the swapping of 1,125 shares, Angostura Holdings finished at $22.90, trading 2,056 units, Ansa McAl remained at $57.60 after exchanging 20 stock units. Ansa Merchant Bank ended at $45 in trading 526 stocks, Clico Investment Fund traded 101,612 stock units at $29.75, First Citizens Group rallied 20 cents in closing at $52.20, with 21 shares clearing the market. FirstCaribbean International Bank lost 5 cents in ending at a 52 weeks’ low of $5.45 after 2,576 stocks crossed the exchange, GraceKennedy shed 12 cents to $6 in trading 149,500 units, Guardian Holdings remained at $28 after exchanging 70 units. JMMB Group gained 15 cents to close at $2.50 in an exchange of 1,227,985 stock units, Massy Holdings rose 15 cents to close at $5 after 215,572 shares crossed the market, National Flour Mills finished at $1.80 in trading 2,100 stocks. NCB Financial Group advanced 1 cent to $6.06 while exchanging 21,778 stocks, Prestige Holdings dropped 5 cents after ending at $7, with 3,635 units changing hands, Republic Financial Holdings increased 1 cent to end at $140.01, trading 798 shares. Scotiabank popped $3.80 to end at $81, with 14,987 stock units crossing the market, Trinidad & Tobago NGL climbed 14 cents in closing at $20.65 in switching ownership of 106,438 stock units, Unilever Caribbean popped 5 cents to $16.20 after trading 46,158 stocks and West Indian Tobacco rallied 45 cents to $23.95 after 350 units changed hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trinidad stocks slip with one winner
On Monday, market activity ended on the Trinidad and Tobago Stock Exchange, with the volume of stocks traded rising 139 percent more than on Friday after the value surged 88 percent and landed with prices mostly falling than rising, leading to a faltering market at the close.
A total of 13 securities traded down from 17 on Friday, with one stock rising, five declining and seven remaining unchanged and resulted in the Composite Index slipping 2.93 points to 1,421.82. The All T&T Index fell 5.67 points to 2,054.62 and the Cross-Listed Index remained unchanged at 104.27.
A total of 706,824 shares traded for $5,303,083 compared to 295,784 units at $2,828,989 on Friday.
An average of 54,371 units traded at $407,929, up from 17,399 shares at $166,411 on Friday, with trading month to date averaging 31,069 units at $298,980 versus 27,135 units at $280,586. The average trade for April amounts to 43,127 units at $458,871.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Angostura Holdings popped 90 cents to end at $22.90 after trading 7,310 shares, Ansa McAl remained at $57.60 with an exchange of 52 stock units, CinemaOne fell 43 cents to a 52 weeks’ low of $2.46, with 200 units crossing the exchange. First Citizens Group dropped $2.50 in closing at $52 with 2,200 stocks changing hands, GraceKennedy ended at $6.12 in switching ownership of 100 shares, JMMB Group finished at $2.35 in exchanging 10,000 stocks. Massy Holdings lost 14 cents ending at $5 with the swapping of 559,691 units, NCB Financial Group remained at $6.05 in trading 2,000 stock units, Republic Financial Holdings closed at $140 after trading 419 stock units. Scotiabank shed 30 cents to close at $77.20, as 1,351 stocks changed hands, Trinidad & Tobago NGL declined 14 cents in closing at $20.51 after exchanging 1,278 units, Unilever Caribbean finished at $16.15, trading 120,991 shares and West Indian Tobacco ended with an exchange of 1,232 stocks at $23.50.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Results push Junior Market to record 4,613
The release of results for Junior Market companies since Friday’s market close helped to push the Junior Market to a new record of 4,613.27 points after the market opened on Monday, surpassing the record close of 4,537.15 on Friday, with the index crossing over into the 4,600 mark for the first time.
Spur Tree Spices generated revenues of $237 millionin their first quarter to March, an increase of 40.7 percent over the $168 million in 2021, helped by the newly acquired subsidiary, Exotic Products generated revenues of $73 million for the quarter, with only $2.18M is included in the consolidated revenue of $237 million. Profit before tax was $51 million, an improvement of $28.6M or 128 percent above the $22.4 million for the 2021 quarter. Investors traded 9 million shares for $36 million up to $4.30.
Dolphin Cove reported US$2.3 million in revenue in quarter Q1 2022, up from just US$374,000 in 2021, as visitors to the parks bounced sharply in the quarter to reach 58 percent of the attendance in the first quarter of 2019. Profitability was enhanced by the strict management of costs, with the quarter incurring only US$1.5 million of expenses, a decline of almost US$1 million compared to the first quarter of 2019, reflecting permanent efficiencies that were put in place. Net profit amounted to US$795,000, compared to a loss of US$154,000 in 2021. The stock traded up to $23.25 before settling at $22.51 after trading 131,329 shares.
Fontana grew revenues by 24 percent to $1.52 billion, over the $1.22 billion for the 2021 first quarter, with net profits popping by 43.4 percent, to $105 million from $72.9 million in the first quarter last year. Investors traded the stock at $11.18 after an exchange of 158,512 shares.
Fosrich posted blowout results with a 64 percent surge in revenues to $900 million from$549 million in 2021 and profits surging 314 percent to $159 million in the March Quarter from just $38 million in 2021. The investors responded instantly to the news by trading 368,361 shares up to $36.22.
Profit grows 35% at Wisynco
Profit before Taxation for the March quarter at Wisynco Group jumped $283 million from $813 million for a 34.8 percent increase to $1.1 billion, from the comparative year ago quarter and for the nine months to March, pretax profit climbed $1.2 billion for a 46.4 percent increase to $3.9 billion, up from $2.7 billion in the prior year. After provision for taxes on profit, earnings attributable to stockholders rose 24 percent to $831 million from $673 million earned for the preceding year.
The current quarter “includes foreign exchange loss of $35.4 million compared with a $68 million foreign exchange gain for the 2021 quarter,” the directors William and Andrew Mahfood stated in their commentary on the results.
The results equate to earnings per share of 22 cents for the quarter, up from 18 cents in the 2021 quarter and 79 cents, up from 59 cents in 2021 for the nine months. ICInsider.com projects earnings of $1.20 for the year to June or $4.4 billion, with earnings of $1.70 or $6.3 billion in 2023.
The 2022 quarter’s revenues rose 27.8 percent to $9.7 billion, the highest in the company’s history, above the $7.6 billion achieved in the 2021 third quarter. Revenues for the nine months rose at a much slower pace than the current quarter of 20 percent to $28.4 billion, from $23.6 billion in 2021.
“Revenues were driven by strong demand in all product categories and channels. Usually, our Q1 and Q2 Revenue patterns represent our higher earning quarters, however, this Fiscal Q3 trended higher than Fiscal Q1 and Q2, reflecting the anticipated bouncing back of our economy from the Covid measures being relaxed. Additionally, our increased focus on Exports continued driving growth in the channel and we are embarking on additional strategies to continue this trajectory,“ the Mahfoods stated.
The period was not without its challenges. Cost of sales rose 31 percent in the quarter to $6.6 billion resulting in gross profit rising at a much slower pace of 21.6 percent to $3.1 billion from $2.6 billion in the previous year. “Gross Margin at 32.3 percent was 170 basis points lower than the 34 percent for the corresponding quarter in the prior year due mainly to our LNG plant experiencing disruption in energy supply resulting in the company having to spend an additional $81m to purchase electricity,” the directors reported. They went on to state, “additionally, we had production downtime which led to some higher costs of production as well as increased input costs.”
Selling and Distribution expenses increased 16 percent for the quarter to $1.78 billion from 1.54 billion in 2021 and increased 12.8 percent to $5.2 billion in the nine months from $4.6 billion in 2021. Administrative expenses fell in the latest quarter to $289 million from $339 million in 2021 and slipped slightly to $1.02 billion from $1.03 billion for the nine months. Depreciation fell from $782 million to $718 million for the nine months and taxation jumped 108 percent from $465 million to $957 million and 86 percent from $141 million to $265 million for the quarter.
Gross cash flow brought in $4.3 billion and $3.3 billion after working capital growth and ended at $1.2 billion after investments, addition to fixed assets and paying $1.5 billion in dividends.
But the group remains in robust financial health, with shareholders’ equity of $17 billion and long term borrowings at $1 billion, while short term loans stood at $800 million. Current assets ended at $16 billion, including trade and other receivables of $3.6 billion, and inventories of $3.4 billion, while cash, bank balances, and investments stood at $9.2 billion. Current liabilities ended the period at $5.8 billion and net current assets ended at $10.4 billion.
The stock traded on the Main Market of the Jamaica Stock Exchange at $25 at a PE of just over 20 times earnings and seems to be heading for the mid $30 region over the next twelve months.
RJR back in 3rd spot as Access jumps 22%
There is only one change to ICInsider.com TOP10 listings this week, with Radio Jamaica coming back in the Main Market list at position 3. Following an earnings upgrade for the 2023 fiscal year, it replaces Jamaica Stock Exchange that ICInsider.com projects to have explosive results for the first quarter.
In the wider market, Junior Market stocks keep on piling the pressure on the main market with the former closing the week at a record high, with year to date gains of 32.8 percent and is well on the way to ICInsider.com forecast of 60 percent for the year.
Thanks to a takeover announcement of AS Bryden, a Trinidad based company by Seprod, the Main Market moved higher for the week, with the All Jamaica Index just under 460,000 points, still well below 2020 high.
TOP10, Access Financial shares moved higher this past week as selling seems to have dried up and led the stock to a 22 percent rise during the week, to be the best performing stock in the TOP10. Access Financial has been beaten up for more than two years but is now worth watching. On Friday, well ahead of the close of the market, a buy order for 100,000 Access Financial shares was placed at $25.60, but only18,000 units were filled up to the close. There were no stocks on offer with any sizable quantity close to the bid price just before close, indicating that the price is heading higher.
Elite Diagnostic gained 8 percent to close the week at $3.90, but Caribbean Assurance Brokers that reported a profit for the first quarter versus a loss in 2021, fell by 6 percent and so did General Accident that is said to be having a good 2022, with Trinidad and Barbados expected to deliver positive results versus a loss of around $200 million in 2021. Movement of main market stocks was more subdued than their junior counterpart, with the Jamaica Stock Exchange rising a mere 4 percent and selling at 8 times this year’s earnings, with a blowout first quarter results due shortly. Caribbean Cement, surprisingly, fell 8 percent as buying interest in the stock is low, even as the first quarter results suggest the stock is highly undervalued.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.5, while the Junior Market PE for the TOP10, sits at 6.2 versus the market at 13.8. The Junior Market TOP10 is projected to gain an average of 230 percent to May 2023 and the Main Market 201 percent.
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.