The Jamaica Stock Exchange surged sharply in early trading on Tuesday, with the All Jamaican Composite Index jumping 6,070.62 to an intraday high 356,437.50, after just 17 minutes of trading.
At the same time, the JSE Index jumped 5,531.02 points to a record 324,754.83. Strong gains by Kingston Wharves that traded at $61 up from $53 when it traded previously, NCB Financial that rose by $1 and and Seprod that jumped from $45 to $50 were the main contributors to the gain.
The Junior Market index is showing a huge increase of 557.73 points to 3,797.07 is caused by Blue Power having split into 10 units with the adjusted price being $4.70 but trades were attempted at $47 thus distorting the index. Those trades will be cancelled at the close of the day.
All Jamaica jumps 6,070 points to record 356,437
BOJ pumped US$65M in FX market last week
Bank of Jamaica (BOJ) scheduled B-Fxitt auction last week saw 43 bids seeking to purchase US$39.9 million but only $15 million was on offer, leaving a large amount of unsatisfied demand.
Only 17 bids succeeded in getting a portion of the funds offered for sale, but then not every bid really wanted the funds. The bids left the average rate at $138.19, with $137.90 being the lowest rate that succeeded. The lowest fully successful bid was $137.97 for US$1 million. The lowest bid received was $131.10 to purchase US$1.5 million.
On Friday, BOJ offered US$40 million in what they called a flash intervention tool. On Friday August 31, last year BOJ also had a flash intervention sales that pushed the amount of buying in the foreign exchange market on that day to US$76 million. BOJ sold US$5m on the Wednesday of that week.
The flash intervention this past week, was clearly to satisfy the unmet demand from Wednesday’s auction, 42 bids were presented amounting to US$76.9 million leaving U$26.9 million of unmet demand. The average rate declined to $137.49, with the lowest accepted bid price being $136.65 and the highest being $138.70. The lowest bid that was fully allocated was US$8 million at $137.00. Bids came in as low as $129. The lowest bid that had some success was $136.65, and this compares with $137.90 on Wednesday, suggesting that those bids that did not succeed included a large amount of low bids made to satisfy the requirement that all dealers must put in a bid. On Wednesday, this week
BOJ sold US$65M into the FX market last week.
BOJ will be carrying out their usual auction at which US$15 million will be made available, to be followed by US$10 million each, on September 5 and 12.
On Thursday, dealers bought US$33.9 million at $136.37 and sold US$35.3 at $137.96, up from a rate of $137.48 on Wednesday. On Friday, US$73.2 million was purchased by dealers at $136.75 and they sold US$46.2 million at $137.90. On Monday dealers bought US$45.5 million at $136 and sold US$50.3 million at $137.52, a fall from Friday’s Average rate.
JSE main market slips in moderate trading
Temperature on the Jamaica Stock Exchange was far more subdued in trading on Monday with both volume and value pulling sharply from Friday’s levels and leaving the two major indices down at the close.
Trading activity closed, with the All Jamaican Composite Index declining 704.13 points to 350,366.88 and the JSE Index falling 641.55 points to end at 319,223.81.
Strong gains by Caribbean Cement, JMMB Group, NCB Financial and Seprod overwhelmed declines in Grace Kennedy, Sagicor Real Estate Fund and Supreme Ventures to help propel the Indices to new highs.
Market activities resulted in 25 securities trading including 1 in the US dollar market compared to 31 securities trading on Friday.
At the end of trading, the prices of 9 stocks rose, 12 declined and 4 closed trading unchanged. Stanley Motta closed with 2,211 units changing hands after falling 5 cents to close at an all-time low of $4.95.
Trading in the main market ended with 1,995,601 units valued $33,005,256 versus 3,900,466 units valued $77,632,786 on Friday.
The day’s volume was led by, JMMB Group 7.5% preference share with 456,103 shares accounting for 22.86 percent of the volume traded, followed by Wisynco Group with 349,103 units and 17.5 percent of the day’s volume and Carreras with 248,928 units and 12.5 percent of the main market volume.
Trading resulted in an average of 83,150 units valued at over $1,375,219, in contrast to 139,302 shares valued at $2,772,600 on Friday. For the month to date an average of 224,098 shares valued at an average of $4,076,157 versus 231,683 shares valued at an average of $4,230,129 on Friday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
Stocks with major price changes| Caribbean Cement fell 50 cents and finished at $47 trading 14,929 shares, Grace Kennedy ended trading 193,538 shares at $58.01, after falling 49 cents, 
Jamaica Producers rose 70 cents and finished trading 43,354 units at $18, Mayberry Investments fell 95 cents to settle at $7.05, in exchanging 6,993 shares. NCB Financial Group fell $1 and ended trading 12,713 shares at $109, Sagicor Group gained 40 cents and settled at $38.05, trading 6,713 stock units. Sagicor Real Estate Fund climbed $1 and closed at $12 exchanging 23,171 shares, Salada Foods gained 50 cents and ended trading 19,300 stock units at $18, Scotia Group traded 101,372 units at and closed $52.50, after adding 50 cents and Supreme Ventures lost 50 cents and ended at $15, in the trading of 17,810 shares.
Trading in the US dollar market closed with Proven Investments trading 17,810 shares valued US$3,943 and rose 1 cent to close at 23 US cents. The JSE USD Equities Index gained 3.05 points to close at 169.08.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 7 stocks ended with bids higher than their last selling prices and 2 closing with lower offers.
Big jump for Junior Market index – Monday
The Junior Market, put in a strong showing in Monday’s trading session and closed with the market index jumping 46.92 points to close at 3,239.34, with 24 securities changing hands, down from 26 securities changing hands on Friday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 3 stocks ending with bids higher than their last selling prices, 2 closed with lower offers.
The market closed with the prices of 11 advancing, 6 declining and 7 remaining unchanged and resulting in an exchange of 2,149,308 units valued at $9,485,152, compared to 15,120,642 units valued at $55,182,607 on Friday.
Trading closed with an average of 89,555 units for an average of $395,215 in contrast to 687,302 units for an average of $2,508,300 on Friday. The average volume and value for the month to date amounts to 269,588 units at $1,318,905, compared to 280,667 units at $1,375,747 on the previous trading day. Trading in July, averaged 154,060 units valued at $655,146 for each security traded.
At the close of trading, 
Access Financial closed trading of 19,338 shares at $45, AMG Packaging rose 5 cents to close at $1.95, trading 3,424 stock units, Blue Power concluded trading of 9,672 units at $47, Caribbean Flavours traded 710 stock units at $16, Caribbean Producers finished trading of 60,350 units 11 cents higher to $6.90. Derrimon Trading ended $4 higher at $25, exchanging 18,909 shares, Dolphin Cove concluded trading at $17, with 1,100 shares being exchanged, Elite Diagnostic gained 10 cents to end at $3.10, with 26,004 stock units changing hands, Eppley settled at $10.18, trading 7,800 units. Everything Fresh gained just 1 cent in trading 65,426 shares and ended at $2.21, Express Catering ended trading 22,033 shares and lost 30 cents to end at $8, FosRich Group traded 50,000 shares with a loss of 5 cents at $2.95, General Accident finished trading 185,258 shares and rose 5 cents to $3.85, GWest Corporation closed 10 cents higher at $2.10, in exchanging 30,756 stock units. 
Indies Pharma pulled back 4 cents in trading 539,221 shares to end at $2.50, Jamaican Teas settled with a loss of 30 cents at $3.95, trading 9,000 shares, Jetcon Corporation rose 4 cents to $4.05, in trading 42,069 stock units, KLE Group finished trading of 6,200 shares at $3, Lasco Distributors ended 6 cents higher at $3.91, with 12,000 shares changing hands. Lasco Financial concluded trading of 4,783 stock units and lost 30 cents to end at $5.60, Lasco Manufacturing finished 1 cent higher at $3.86, with 1,013,663 units changing hands, Main Event settled at $7, exchanging 9,692 shares, Stationery and Office finished trading 2,000 stock units and rose 5 cents to $8.65 and tTech ended with a loss of 43 cents at $5.07, with 9,900 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.
1 TTSE stock rise 2 fall -Monday
The Trinidad & Tobago Stock Exchange ended trading on Monday with 9 securities changing hands against 14 on Friday, 1 advanced, 2 declined and 6 remained unchanged.
Market activity resulted a slippage of volume traded to 279,181 shares at a value of $3,306,273, compared to 169,268 shares valued $11,763,279.
At close of the market the, Composite Index the Composite Index lost 0.15 points to end at 1,245.27, the All T&T Index gained 1.71 points to close at 1,714.81, while the Cross Listed Index shed 0.28 points to close at 104.37.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading closed with 3 stocks ending with higher bids than the last selling prices and 3 with lower offers.
Stocks closing with gains| Guardian Holdings gained 40 cents and completed trading of 65,993 shares at $17.
Stocks closing with losses| Grace Kennedy closed with a loss of 10 cents at $2.80, with 150,000 stock units changing 
hands and Trinidad & Tobago NGL shed 1 cent and settled at $30, after exchanging 38,368 shares.
Stocks trading with no price change| Clico Investmentsended market activity at $20, with 5,000 stock units changing hands, First Citizens settled at $34.91, after exchanging 13,062 shares, JMMB Group concluded trading at $1.78, after exchanging 4,125 shares, Point Lisas closed at $3.70, with 107 stock units changing hands, Sagicor Financial traded 2,026 shares and ended at $7.75 and Scotiabank completed trading 500 shares at $65.
Prices of securities trading for the day are those at which the last trade took place.
Just 1 new addition to IC TOP 10
The bullishness continued on Jamaica Stock Exchange, driving the main market to more record highs and hitting more than 352,000 points on Friday, while the Junior Market traded at a 15 months’ high.
Half year earnings season is almost over with only Jamaica Broilers and Scotia Group left to report for the main market. Some results were excellent and most were okay, confirming what was already telegraphed to investors by earlier results. Regardless, with interest rates now under 2 percent for short term government and the central bank’s instruments, the bull market is clearly on. The chronic shortage of many of the stocks continue to put upward pressure on prices and moving the PE ratios higher as well.
Medical Disposables is the only new addition this week, to the TOP 10 coming at the expenses of FosRich Group as the price of the former, dropped to $5.10 from $6.40 at the end of the past week. 
General Accident has been at the top of the Junior Market list for a long time, enjoyed a bounce in the price to $3.80 by the end of the week, helped by half year results that showed profit rising from $8 million in 2017 to $95 million in the half year, with the quarter up from a loss of $9 million to a profit of $66 after tax. IC Insider.com also down graded earnings for the full year to 45 cents per share and the stock now sits at 6th spot in the list. The PE is just 8.4 and will go higher.
The PE ratio for Junior Market Top stocks averages 8.4 up from 7.9 last week, as the market continues to revalue the multiple higher. The latest valuation compares to an average PE for the overall market of 13, based on 2018 estimated earnings.The main market PE is now 8 for the top stocks, compared to a market average of 13.5, a good indicator of the level of undervaluation of these stocks.
Work done by IC Insider.com suggests that the PE ratio is likely to end 2018 around 16 or 17 times earnings, as investors continue to gradually upgrade the multiple they are prepared to pay for stocks, which would lift prices sharply over the next several months from current levels. In addition, the latest Treasury bill offer saw rates dropping to 1.7 percent on the 91 days instrument and 1.88 percent on the 182 days instrument. These rates suggest more funds will be going into stocks as liquidity remains high.
The TOP 10 stocks now trade at an average discount of 35 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 40 percent to the market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. 
Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
Grace performance slips in Q2
Grace Kennedy HQ
Grace Kennedy reported revenues of $48.4 billion, an increase of 4.3 percent or $2 billion over the corresponding period of 2017 for the half year to June, “driven largely by growth in its Food Trading and Insurance segments.” Don Wehby stated in a release following the release of the interim results.
Net profit for the period was $2.5 billion, an increase of $266 million or 12.2 percent compared with 2017. After minority interest net profit rose by 14 percent to $2.15 billion but by just 9 percent in the second quarter to $959 million from $881 million in 2017.
Second quarter sales revenue grew just 3.85 percent to $22.44 billion, a slower pace than the first quarter’s 6 percent. Other income rose a strong 60 percent to $718 million in the quarter over the prior year, and 61 percent for the half year, to $1.45 billion. Interest income was slightly down to $1.13 billion and $2.25 billion in the quarter and half year period respectively, over the similar periods in 2017.
Total comprehensive income a better measure of managements stewardship, more than doubled in the second quarter to $1.338 billion from $625 million in 2017 but slipped slightly to $2.39 billion for the half year.
The Group reported that its Food Trading segment experienced growth in revenue and pre-tax profits over the corresponding period of 2017. This was due to improved performance in the domestic foods business as the local economy picks up and now showing stronger growth. While showing an increase in revenue over prior year, the Company’s international foods business experienced a decline in pre-tax profits compared to the corresponding period of 2017, primarily due to the performance of Grace Foods UK.
Grace Kennedy products
Financial Group experienced mixed fortunes during the period, as the Money Services and Banking and Investments segments both experienced decline in revenue and pre-tax profits, while the Insurance segment grew revenue and pre-tax profits over the corresponding period of 2017. The performance of the Money Services segment was due to a reduction in transaction volumes in the remittance business in Jamaica stemming from the implementation of enhanced compliance measures.
Grace’s financial position remains strong with Shareholders equities of $46.35 billion and the company’s stock traded at $58.50 on Friday with a PE of 11 based on IC Insider.com’s earnings estimate for 2018 of $5.40. The PE is lower than the market’s average of 13.5 and with IC Insider.com forecasting average PE to reach 17 by late this year or early next year, the stock has room for growth.
Grace approved the payment of an interim dividend of 45 cents per stock unit, payable on September 26, an increase of 18 percent from the 38 cents per stock unit paid to stockholders in September last year. Group CFO Frank James said, “This brings the dividends declared to date to approximately $844 million, an increase of 25 percent or $169 million over the corresponding period in 2017.”
All Jamaica’s record close of 351,071 – Friday
The records kept on Jamaica Stock Exchange just kept on being broken on Friday as the All Jamaican Composite Index climbed to intraday high 352,806.34 as the market chalked no less than 9 record highs during trading.
At the close, the All Jamaican Composite Index climbed 2,162.81 points to end above the 350,000 market for the first time and finally finished at a record close of 351,071.01 and the JSE Index rose 1,948.70 points to end at record close of 319,865.36. Strong gains by Caribbean Cement, JMMB Group, NCB Financial and Seprod overwhelmed declines in Grace Kennedy, Sagicor Real Estate Fund and Supreme Ventures to help propel the Indices to new highs.
Market activities resulted in 31 securities trading including 3 in the US dollar market compared to 30 securities trading on Thursday.
At the end of trading, the prices of 12 stocks rose, 13 declined and 6 traded unchanged. Trading in the main market ended with 3,900,466 units valued $77,632,786 versus 2,800,039 units valued $52,538,433 on Thursday.
Trading resulted in an average of 139,302 units valued at an average of $2,772,600 for each security traded, in contrast to 107,694 units valued at an average of $2,020,709 on Thursday. For the month to date an average of 231,683 shares valued at an average of $4,230,129 versus 237,871 shares valued at an average of $4,333,974 on Thursday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
The day’s volume was led by, Sagicor Real Estate Fund with 726,521 shares accounting for 18.6 percent of the volume traded, followed by Mayberry Jamaican Equities with 610,068 units and 15.6 percent of the day’s volume and PanJam Investment with 497,356 units and 12.8 percent of the main market volume.
Stocks with major price changes| Berger Paints gained 42 cents and settled at $19.02, in exchanging 73,786 shares, Caribbean Cement climbed $2.40 to finish at $47.50, trading 47,600 shares, Grace Kennedy ended trading 83,590 shares falling 50 cents to close at $58.50, Jamaica Broilers gained 38 cents to close at $23.50, trading 19,403 stock units, Jamaica Producers finished trading 442,125 units in losing 69 cents to end at $17.30, JMMB Group ended at $29, in exchanging 169,455 shares after rising 69 cents, NCB Financial Group jumped $4.99 and ended trading of 15,077 shares at $110, 
Portland JSX fell 52 cents to end at $9.48, trading 5,000 units, Sagicor Group lost 35 cents and settled at $37.65, with 78,045 shares trading. Sagicor Real Estate Fund dropped $1.84 and settled at $11, exchanging 726,521 shares, Salada Foods gained 75 cents and ended trading 4,223 stock units to close at $17.50, Scotia Group fell 30 cents to $52.00, after trading 95,271 units, Seprod jumped $5 and finished trading 23,700 shares at $45, Supreme Ventures lost 49 cents and ended at $15.50, in the trading of 52,446 shares and Stanley Motta closed with 3,000 units changing hands after falling 31 cents to close at an all-time low of $5.
Trading in the US dollar market closed with 606,470 units valued at US$128,831 as Proven Investments accounting for 600,000 shares and closed at 22 US cents, Sygnus Credit Investments traded 4,913 shares rose 0.05 cents to 9 US cents and Sterling Investments traded 1,557 units at 9 US cents. The JSE USD Equities Index lost 2.30 points to close at 166.03.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 4 closing with lower offers.
Modest gain for Junior Market – Friday
Lasco Manufacturing traded 7 million shares
The Junior Market, closed with the market index rising 15.28 points to 3,192.42, during Friday’s session the index rose as much 51 points but receded towards the end.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 3 stocks ending with bids higher than their last selling prices, 1 closed with a lower offer.
The market closed with 26 securities changing hands, compared to 30 on Thursday, resulting in the prices of 10 advancing, 6 declining and 6 remaining unchanged.
The day’s trading ended with 15,120,642 units valued at over $55,182,607 changing hands, compared to 15,342,524 units valued at $89,754,042 on Thursday. While the traded volume was dominated by Caribbean Producers with 11.58 million shares and Indies Pharma with nearly 2.48 million units, Friday closed with Lasco Manufacturing contributing 7 million units followed by Key Insurance with 3.68 million units, Lasco Distributors with 2.59 million shares while Indies Pharma chipped in with 887.7 thousand shares.
Trading closed with an average of 687,302 units for an average of $2,508,300 in contrast to 590,097 units for an average of $3,452,079 on Thursday. The average volume and value for the month to date amounts to 280,667 units at $1,375,747, compared to 256,357 units at $1,308,040 on the previous trading day. Trading in July, averaged 154,060 units valued at $655,146 for each security traded.
At the close of trading, Blue Power concluded trading 500 units at $47, Caribbean Cream lost 32 cents and closed at $5.30, trading 71,500 shares, Caribbean Flavours traded 50 cents higher at $16, with 6,481 stock units, Caribbean Producers finished trading 2,740 units and rose 19 cents to $6.79, Derrimon Trading concluded trading with a loss of $1.57 down to $21, exchanging 74,100 shares. Elite Diagnostic settled with a loss of 15 cents at $3, trading 296,533 units, Everything Fresh traded 141,505 shares and ended at $2.20, Express Catering traded 3,965 shares and rose 30 cents to $8.30, General Accident closed 19 cents higher at $3.80, with 197,170 stock units changing hands, GWest Corporation ended at $2, trading 29,592 units. Honey Bun concluded trading at $4.50, with 10,205 shares, 
Indies Pharma pulled back 6 cents in trading 887,723 shares to end at $2.54, after trading at an all-time high of $2.70 during the day, Jamaican Teas ended trading with a loss of 5 cents at $4.25, with 6,032 stock units, Jetcon Corporation added 2 cents at $4.01 and traded 53,353 shares, Key Insurance traded 3,684,607 shares and rose 1 cent to $3.06. Lasco Distributors concluded trading with a loss of 10 cents at $3.85, while exchanging 2,589,994 stock units, Lasco Financial finished 40 cents higher at $5.90, with 26,226 units traded, Lasco Manufacturing settled 12 cents higher at $3.85, with 7,001,050 shares, Medical Disposables closed at $5.10, as 16,166 shares changed hands. Paramount Trading finished trading 10,000 stock units at $3, Stationery and Office closed 10 cents higher at $8.60, exchanging 1,600 units and tTech concluded trading of 9,600 shares while rising 49 cents higher to $5.50.
Prices of securities trading for the day are those at which the last trade took place.
Just 1 stock rose 4 fell on TTSE – Friday
The Trinidad & Tobago Stock Exchange ended trading on Friday in 14 securities against 8 on Thursday, with 1 advancing, 4 declining and 9 trading unchanged at the close as republic closed at a 52 weeks’ high.
Market activity resulted a slippage of volume traded to 169,268 shares at a value of $11,763,279, compared to 55,296 shares at a value of $1,271,791.
At close of the market the, Composite Index the Composite Index lost 0.23 points on Friday to 1,245.42, the All T&T Index gained 0.01 points to 1,713.10, while the Cross Listed Index gained 0.06 points to close at 104.65.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows the market continuing to be weak as it closed with 3 stock ending with higher bids than the last selling prices and 2 with lower offers.
Stocks closing with gains| Massy Holdings gained 5 cents and concluded trading at $47.00, after exchanging 29,007 shares.
Stocks closing with losses| JMMB Group fell 2 cents and concluded trading at $1.78, after exchanging 2,049 
shares, Scotiabank closed with a loss of 2 cents and completed trading 195 units at $65, Trinidad & Tobago NGL shed 4 cents and settled at $30.01, after exchanging 1,662 shares and West Indian Tobacco lost 1 cent and completed trading at $88.54, with 113,000 units changing hands.
Stocks trading with no price change| Clico Investments ended market activity at $20, with 4,020 stock units changing hands, First Caribbean International Bank completed trading 210 units at $8.49, First Citizens settled at $34.91, after exchanging 763 shares, Grace Kennedy ended at $2.90, with 2,330 stock units changing hands, Guardian Holdings completed trading of 8,803 units at $16.60, LJ Williams B share settled at 75 cents, after exchanging 3,680 shares, NCB Financial Group settled at $6.14, after exchanging 1,000 shares, Republic Financial Holdings concluded trading at $103.50, after exchanging 400 shares and Sagicor Financial ended at $7.75, with 2,149 stock units changing hands.
Prices of securities trading for the day are those at which the last trade took place.