Trading on Monday ended with the market index rising after trading 47 percent more shares but with 78 percent less value than on Friday, at the close of moderate activity on the US dollar market of the Jamaica Stock Exchange.
Trading ended with five securities changing hands, compared to five on Friday with two stocks rising and three declining.
The JSE USD Equity Index gained 1.79 points to end at 211.35. The average PE Ratio ends at 12.9 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 551,129 shares traded for US$11,730 compared to 375,831 units at US$54,256 on Friday. April ended with an average of 80,293 units for US$6,320.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and one with lower offers.
At the close, First Rock Capital lost 0.25 of a cent to end at 8.75 US cents in switching ownership of 1,066 stocks, Margaritaville rose 1 cent to close at 9 US cents, with 1,690 shares crossing the exchange, Proven Investments fell 0.49 of a cent to 25.51 US cents and trading 22,793 stock units and Transjamaican Highway fell 0.01 of a cent to end at 0.9 of a US cent in an exchange of 525,000 stock units.
In the preference segment, JMMB Group 6% climbed 8 cents to close at US$1.10 in switching ownership of 580 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Volume rises value falls on JSE USD market
TTSE starts May with mixed fortunes
Market activity ended on Monday, with the market closing mixed trading 55 percent more shares with a value that was 24 percent less than on Friday, resulting in more falling stocks just edging out those that rose on the Trinidad and Tobago Stock Exchange.
Just 15 securities changing hands compared to 17 on Friday, with three rising, five declining and seven remaining unchanged. The Composite Index fell 0.57 points to 1,331.33, the All T&T Index gained 0.31 points to end at 1,782.06 and the Cross-Listed Index shed 0.21 points to close at 118.98.
At the close, 230,810 shares traded for $2,534,018 compared to 148,870 units at $3,321,551 on Friday.
An average of 15,387 units traded at $168,935 compared to 8,757 at $195,385 on Friday. The average trade for April amounted to 11,472 units at $184,959.
The Investor’s Choice bid-offer indicator shows no stock ended with the bid that is higher than the last selling price and three with lower offers.
At the close, Agostini’s rose 15 cents to $24.40, with 12,100 shares changing hands, Clico Investment Fund closed at $25.15 after exchanging 664 units. First Citizens Bank ended at $46.50 trading 11,476 stock units, FirstCaribbean International Bank settled at $6.50, with 1,000 shares clearing the market. Grace Kennedy dropped 1 cent to close at $4.90 trading 3,000 shares, Guardian Holdings lost 6 cents in closing at $25.55 with the swapping of 3,185 stock units, JMMB Group rose 1 cent to $1.80 after an exchange of 60,658 units. Massy Holdings lost 2 cents to end at $63.97 trading 3,000 stocks, National Flour Mills advanced 5 cents in ending at $2.40 in trading 108,623 stock units, One Caribbean Media remained at $4.50 with the swapping of 1,600 stocks. Republic Financial Holdings fell 46 cents in closing at $132.52, with 4,800 shares crossing the market, Scotiabank ended at $54.65 in switching 1,232 units, Trinidad & Tobago NGL remained at $13.50 trading 9,023 stocks. Unilever Caribbean remained at $16.33 after exchanging 9,100 shares and West Indian Tobacco fell 2 cents to close at $32.96, with 1,349 stocks changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Transjamaican revenues still down
Toll collections fell 13.8 percent in 2020 versus an increase of 1.6 percent in 2019 over 2018 for Transjamaican Highway, resulted in US$45.38 million in tolls collections compared to $53.29 million in 2019.
The company, in its annual report for 2020 in commenting on the decline in traffic on Highway2000, states, the “effects of the health measures implemented are still being felt on our traffic at the start of 2021, traffic being falling 9 percent below for January and February when compared to the same period of 2020, which were not impacted by the pandemic. We are, however, optimistic that greater levels of recovery will be recognized as the traffic at the end of March 2021 was 6.8 percent above that of March 2020, when the pandemic first hit.” While the directors sound optimistic, the March 2021 recovery does not look exciting and would represent a decline of 11.5 percent compared with traffic for 2019 that would make the company worse off than in January and February this year, with the fall of 9 percent versus the first two months of 2020 with increases of 2.1 percent.
Last year the directors stated that “the first two months of 2020 were marked by a 2.1 percent increase in our toll transactions compared to the same period last year. The decrease for March was 19.3 percent, April 2020 saw a more significant decrease of 52 percent when compared with April 2019 due to additional restrictions introduced, such as the lockdown of the parish of St Catherine, which started on April 15. The end of this confinement on May 1 was immediately followed by an increase in traffic on the motorway, as the decline fell to 34.2 percent compared to May 2019.”
“The trend observed for June 2020 is down 17.3 percent when compared to the previous year, confirms a gradual recovery in traffic and is anticipated to continue in the next weeks.”
The decline in traffic in the second quarter of 2020 was 34.5 percent compared to the previous year, the company had reported. For the three months ended March 2020, the Company generated revenues of US$12.9 million, reflecting a mild increase over the US$12.7 million earned for the same period in 2019. What seems clear from the latest report from the company is that revenues should be down in the first quarter in 2021 to around US$11.5 million, but the second quarter should experience a nice bump from a depressed second quarter in 2020 that delivered just US$8.5 million in revenues.
THJ reported a US$1.87 million loss for the year to December 2020, compared to a profit of US$8.3 million helped by a tax credit of US$21.4 million in 2019. The 2020 results saw a US$5 million reduction in operating expenses and a fall of nearly US$16 million in finance cost. Despite the loss, the company still managed to generate a positive cash flow of just over US$11 million for 2020. The results for 2021 should end with a breakeven position of about US$1 million in profit.
The company last traded on the Jamaica Stock Exchange at $1.34 on Friday.
JamTeas gains 111% to top ICTOP10 picks
Six Main Market ICTOP15 stocks raked between 23 and 37 percent year to date and seven of the Junior Market picks produced gains from 22 percent to 111 percent for the first four months of 2021.
The only top performing Main Market stocks for the period not captured by the TOP15 are Ciboney, up a stunning 121 percent at 53 cents, even after the price move up to just over $2 earlier this year, followed by Salada Foods with an incredible rise of 147 percent, Eppley Property Fund with an increase of 46 percent and Proven Investments gaining 28 percent.
The top performing Junior Market stocks to date that were not in the ICTOP15 are Fosrich with a gain of 86 percent, Blue Power 56 percent, Express Catering up 29 percent, Caribbean Flavours at 33 percent and Lasco Manufacturing with a 35 percent increase.
The highlight of the stock market this past week was the 216 percent surge in Carib Cement’s profit, from record revenues that jumped 31 percent for the 2020 first quarter. As expected, the stock jumped to a 52 weeks’ high of $95.50. The company was one of ICTOP 15 listings at the start of the year and is up 40 percent so far and still has much more gains ahead of it. The other notable development is the Main Market recording of gains for 14 days unbroken.
Other stocks in the TOP15 list that have gone on to do well are Carreras up 37 percent, Grace Kennedy with a rise of 35 percent, Jamaica Producers up 33 percent, QWI Investments up 25 and Seprod 23 percent in the Main Market. In the Junior Market, the winners are Caribbean Cream with a gain of 34 percent, Caribbean Producers up 41 percent, Stationery and Office Supplies with a gain of 25 percent. Now out of the top listings are Jamaican Teas with a 111 percent gain for the year to date, Lumber Depot up 88 percent, Lasco Distributors with a rise of 22 percent and MailPac up 25 percent. Future Energy Source that was added to ICTOP 10 earlier this year has a gain of 28 percent, but much more is expected for these stocks in the rest of the year.
There are no changes to companies on the ICTOP10 listings this week. The bullish tone of the Junior Market and the Main Market continues, with more gains expected in the coming week supported by strong technical signals and fundamentals of stocks and the overall market.
Watch these stocks over the next few weeks, Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, PanJam Investment and Sagior Group, MailPac, Access Financial, Lasco Financial, Lasco Distributors, Caribbean Cream, ISP Financial.
The top three stocks in the Junior Market are headed by Elite Diagnostic, followed by Main Event and Medical Disposables, with the potential to gain between 261 to 293 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investment and Jamaica Broilers, with expected gains of 181 to 410 percent.
This week’s focus: Fosrich reported a 22 percent rise in revenues to $549 million, up from $449 million in the prior year with gross profit rising 13 percent to $192 million, from $170 million in 2020 with net profit surging 697 percent to $38.4 million, from only $4.8 million in the 2020 first quarter. Earnings per share jumped to 8 cents from one cent in 2020. Administrative expenses fell slightly to $144 million, from $146 million in 2020 and finance cost slipped to $24.8 million compared to $26.2 million in the 2020 quarter.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17; this represents another 31 percent rise in the market that would equate to a rise of 50 percent to March 2022. The Junior Market Top 10 stocks average a mere 5.8 at just 44 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 20 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7 or 46 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 248 percent and 175 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Slippage in USD JSE stocks
Trading in US dollar stocks ended with the market declining after trading 43 percent fewer shares than on Thursday on the Jamaica Stock Exchange, resulting in more stocks falling than rising at the close on Friday.
Five securities changing hands, compared to six on Thursday, with prices of one stock rising, two declining and two ending unchanged.
The JSE USD Equity Index lost 2.21 points to end at 209.56, with a gain of 12.5 percent for the year to date. The average PE Ratio ends at 13.8 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with, 375,831 shares traded for US$54,256, down from 658,389 units at US$27,752 on Thursday.
Trading averaged 75,166 units at US$10,851 versus 109,732 shares at US$4,625 on Thursday. Trading averaged 80,293 units for the month to date at US$6,320 in contrast to 80,524 units at US$6,116 on Thursday. March ended with an average of 68,746 units for US$13,137.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than their last selling prices and two with lower offers.
At the close, First Rock Capital added 1 cent to end at 9 US cents, with 72,250 shares crossing the exchange, Margaritaville dipped 1 cent to a 52 weeks’ low of 8 US cents trading 950 units, Productive Business Solutions closed at US$1.01 in an exchange of 49 shares. Proven Investments declined 0.97 of a cent to end at 26 US cents in exchanging 20,207 units and Sygnus Credit Investments settled at 15 US cents, with 282,375 shares changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
TTSE ends year to date with miniscule gain
Market activity ended on Friday, with the market indices rising after the trading of 64 percent fewer shares than on Thursday, resulting in rising stocks just edging out those declining at the close of the Trinidad and Tobago Stock Exchange, leaving the market to hold on to a modest gain of less than one percent for the first four months of the year.
Trinidad & Tobago Stock Exchange Head Quarters
Trading ended with 17 securities changing hands up from 15 on Thursday, with six stocks rising, five declining and six closing unchanged. The Composite Index rose 2.35 points to 1,331.90, the All T&T Index rose 0.76 points to 1,781.75 and the Cross-Listed Index increased 0.57 points to close at 119.19.
At the close, 148,870 shares traded for $3,321,551 compared to 408,693 units at $3,296,893 on Thursday.
An average of 8,757 units traded at $195,385 compared to 27,246 at $219,793 on Thursday. An average of 1,472 units traded at $184,946 for the month to date versus 11,621 units at $184,376. The average trade for March ended at 12,610 units at $342,338.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than their last selling prices and two with lower offers.
At the close, Agostini’s fell 15 cents to $24.25 in trading 375 shares, Angostura Holdings ended at $15.49 in an exchange of 2,091 stocks, Clico Investment Fund ended at $25.15 after trading 200 units, First Citizens Bank traded 4,562 stock units to close at $46.50. FirstCaribbean International Bank dipped 1 cent to end at a 52 weeks’ low of $6.50, with 1,177 shares changing hands, JMMB Group fell 1 cent to $1.79 in exchanging 6,216 shares, Massy Holdings shed $1.01 to end at $63.99 after trading 350 shares. National Enterprises gained 1 cent to close at $2.81 in switching ownership of 10,000 units, National Flour Mills traded 1,500 shares at $2.35, NCB Financial Group rose 28 cents to $8.50 in exchanging 5,955 stock units. Prestige Holdings dropped 49 cents to close at $7.01 with an exchange of 2,800 units, Republic Financial Holdings rose 72 cents to $132.98 trading 8,690 shares, Scotiabank climbed 15 cents in closing at $54.65 after exchanging 2,942 units. Trinidad & Tobago NGL settled at $13.50 with an exchange of 49,947 shares, Trinidad Cement gained 40 cents in ending at $3.40 while exchanging 19,255 shares, Unilever Caribbean inched 1 cent higher to close at $16.33 while exchanging 12,000 shares and West Indian Tobacco closed at $32.98 after exchanging 20,810 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.