The JSE main market suffered reversal of the big gains recorded on Wednesday, as Scotia Group pulled back from the closing price of $31.49 to $30, helping to knock 1,006 points off the all Jamaica composite index and pushing the other main market indices down sharply as well. The junior market inched up a bit as trading volumes are light on the final trading day of 2015.
The all Jamaica Composite Index declined by 1,006.49 points to 165,379.60 the JSE Market Index declined 900.62 points to 148,917.14, the JSE combined index fell by 843.70 points to 156,609.79 and the junior market index is up 0.75 points to 1,792.90.
A total of 23 securities traded amounting to 423,132 units changing hands with 13 rising, while 4 declined.
Interesting trades include, Gleaner Company with just a small volume at $1.30 but now has a bid to buy 16,000 units at $2 with the offer at $2.50, this comes after shareholders in Radio Jamaica and the Gleaner voted on Wednesday to approve the merger of the Gleaner’s media business with Radio Jamaica. Pan Jamaican Investment traded just 4,140 shares at $94 for a $1 gain, Sagicor Group traded only 424 shares at $18.51 but has a bid at $19 which is 49 cents higher than they last sale price with only one offer at $20.05 to sell a mere 2,000 shares and Scotia Group traded 95,636 units with the last transaction at $30.
JSE down early Thursday trading
RJR shareholders set to halt merger
A number of the larger shareholders are of the view that the deal does not benefit them as much as it bails out a struggling Gleaner that has had great difficulty making a profit from the media business for several years now.
One point put forth is that is that print media is not an area of growth compared with the electronic media, that is seen as having good growth potential. The effect of the merger would result in a dilution of the RJR shareholders interest the disgruntled shareholder say and that appears to be the case initially. The proponents of the merger says there will be savings and added revenues amounting to $275 to $450 million that will enhance the fortunes of the new group, but only half of that will be attributable to the existing RJR shareholders.
What have not been said publicly, is that since the valuation in March, much have changed with RJR fortunes improving and Gleaner’s lagging, which would most likely change the values of each.
For the nine-months, the Gleaner made $130 million net profit or 122 per cent more than the $58.6 million earned a year earlier. Revenues continued its downward drift, by 5.6 percent to $2.38 billion, partially helped by a fall of $34 million in investment income to $90 million while media income fell $120 million for the same period. RJR was going in the opposite direction with profit jumping 227 percent in the September quarter to $30 million and 44 percent in the June quarter to $22 million from revenues that rose 24 percent in the September quarter and 7 percent in the June quarter.
IC Insider’s forecast is for RJR to make $320 million for the year to March based on existing operations and for the Gleaner to report $240 million for the year to December 2015 from all its current operations.
Apart from Gleaner offering the media assets they will contribute $665 million in cash and equivalent. While the latter could theoretically buy around 50 percent of RJR’s current outstanding shares, at existing prices under $4, supply would not allow them to do so. By pumping in the funds that is likely to be earning very low returns until they can be used in an efficient manner, will result in dilution of existing RJR shareholders’ interest.
With 75 percent of shareholding required to approve the deal, there are enough disgruntled shareholders on the RJR side to vote it down. Based on feed-back received from some larger holders, it appears that at best the principals of both companies will have to go back to the drawing board and involve the larger shareholders in the talks if they are to succeed, something Chairman of the Gleaner Oliver Clarke says he is not opposed to.
Shareholders openly opposed to the deal, account for 49 million shares or 13.7 percent others who have been opposed at least up to recently, would bring the tally to more than 21 percent.
20 stocks gained on JSE – Thursday
A total 20 stocks in the combined markets gained, 11 declined including 3 preference shares. Four stocks closed at 52 weeks’ high and one at an intraday high.
At the close the JSE Market Index climbed 450.69 points to 146,147.21, the all Jamaica Composite Index rose 503.67 points to end at 162,284.04 and the JSE combined index gained 748.48 points to close at 152,990.17. The main market faces resistance test around the 165,000 points level, on the all Jamaica composite index.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 13 stocks with bids higher than their last selling prices and 2 with lower offers.
JSE majors rise moderately – Wednesday
Trading ended on the Jamaica stock market with 7,296,773 units valued at $35,344,599 changing hands, in all market segments with 35 securities trading. The junior market accounted for 1,962,619 units, valued at $7,767,219. A total 12 stocks in the combined markets gained, 13 declined. 5 stocks closed at 52 weeks’ high and 1 at an intraday high.
At the close the JSE Market Index climbed 530.12 points to 145,696.52, the all Jamaica Composite Index rose 592.44 points to end at 161,780.37 and the JSE combined index gained 298.10 points to close at 152,241.69. The main market continues to face a test around the 165,000 points resistance level, on the all Jamaica composite index.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 13 stocks with bids higher than their last selling prices and 5 with lower offers.
In trading, Cable and Wireless fell 15 cent4 with 2,728,949 units changing hands to close at $1.15, Caribbean Cement fell 11 cents to end at $18.09 with 797,423 shares changing hands, Carreras closing at $60.75, with 4,700 units changing hands. Ciboney lost 3 cents to close at 20 cents with 270,000 shares, Gleaner closed with 964,454 units changing hands at $1.30, Grace Kennedy rose $4, with 4,066 units changing hands, to finish at a new 52 weeks’ high of $85, but the stock was offered at the end of trading at $84. Jamaica Broilers fell by 30 cents to close at $10.20 with 219,382 shares changing hands, Jamaica Producers traded 47,400 shares to end at $32, the Jamaica Stock Exchange did not trade but closed with the bid at $18.34 compared with Tuesday’s close of $16, offers declined to only two lots of 22,000 shares. JMMB Group traded 7,965 ordinary shares, but fell 39 cents to end at $10.11, Mayberry Investments had 68,466 shares trading at $4.20 for a gain of 10 cents, National Commercial Bank rose 69 cents to end at $39.70, with 55,480 units changing hands, Sagicor Group closed with 45,707 units changing hands with a gain of 30 cents at $17.50. Sagicor Real Estate Fund lost 2 cents in trading 5,000 shares at $10.20. Scotia Group declined by $1.39 with 1,470 shares changing hands at $28.61, Supreme Ventures ended at $4.60 with 66,460 units changing hands and JMMB87.5% preference share traded 35,700 units but fell 10 cents to close at $2.80.
Slow start in early trading
Trading was off to a slow start in early trading with only two stocks trading amounting to a mere 3,200 units at 9.50 am on the Jamaica Stock Exchange on Wednesday. By 9.55 am trading picked up 10 companies’ stocks changing hands.
At 10:45 am, only 18 securities traded as 5 stocks rose and 5 declined with 2,810,331 units changing hands. The all Jamaica Composite Index rose 713.39 points to 161,901.32, the JSE Market Index gained 638.34 points to 145,804.74, the JSE combined index increased by 337.11 points to 152,280.70 and the junior market index is down 29.74 points to 1,637.17.
Interesting trades include Caribbean Cream with 1,029,160 shares at $3.70, Gleaner traded 957,914 units at $1.31, Lasco Distributors has so far seen 203,870 units trading between $4.60 and the current price of $4.56 but is seeing supply declining at these levels, with 5 offers ranging from $4.90 to $5 and Lasco Manufacturing had 256,617 trading as high as $3.55 but fell back to $3.
JSE majors slip big on Tuesday
Trading ended on the Jamaica stock market with 30,385,484 units valued at $406,775,349 changing hands, in all market segments with 33 securities trading. The junior market accounted for 20,742,505 units, valued at $215,634,789. A total 16 stocks in the combined markets gained, 13 declined. 3 stocks closed at 52 weeks’ high 1 at a 52 weeks’ low and 1 at an intraday high.
At the close the JSE Market Index dipped 1,419.09 points to 145,166.40, the all Jamaica Composite Index declined 1,585.92 points to end at 161,187.93 and the JSE combined index dropped 1,556.54 points to close at 151,943.59. The main market continues to face a test around the 165,000 points resistance level, on the all Jamaica composite index.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 9 stocks with bids higher than their last selling prices and 4 with lower offers.
In trading, Cable and Wireless fell 1 cent with 1,964,197 units changing hands to close at $1.30, Caribbean Cement gained 33 cents to end at $18.20 with 144,558 shares changing hands, Carreras closing at $60.75, with 6,795 units changing hands. Gleaner fell 4 cents with 44,000 units changing hands at $1.30, Grace Kennedy rose$1.12, with 274 units changing hands, to finish at a new 52 weeks’ high of $81. Jamaica Broilers closed at $10.50 with 35,591 shares changing hands, Jamaica Producers traded 49,462 shares while gaining 10 cents, to end at $32, the Jamaica Stock Exchange lost 70 cents with 38,776 units changing hands, to close at $16, JMMB Group traded 39,484 ordinary shares at $10.50, after rising by 30 cents. Mayberry Investments had 17,928 shares trading at $4.10 for a loss of 25 cents, Montego Bay Ice fell $2.60 in closing at $14.90 with 1,250 shares trading, National Commercial Bank ended at $39.01, with 3,136,195 units changing hands, 138 Student Living had another large trade, with 1,754,230 units at $4.50 following big trades on Friday and Monday. Pan Jamaican Investments traded 24,662 and gained 50 cents to end at $93, Radio Jamaica traded 16,000 units at $3, Sagicor Group closed with 757,157 units changing hands with a loss of 30 cents to $17.20, Sagicor Real Estate Fund gained 22 cents in trading 10,000 shares at $10.22. Scotia Group declined 98 cents with 654,660 shares changing hands at $30, Scotia Investments jumped $2.05 with 5,000 shares changing hands at $31, Supreme Ventures ended at $4.60 with 45,200 units changing hands. Proven Investments ordinary share had 811,000 units trading at 19.5 US cents, for a loss of 2.5 cents and JMMB7.5% Preference share traded 42,350 units and gained 9 cents to close at $1.99.
JSE majors slip on Monday
Trading ended on the Jamaica stock market with 10,283,114 units valued at $50,915,307 changing hands, in all market segments with 33 securities trading. The junior market accounted for 1,290,587 units, valued at $4,845,099. A total 11 stocks in the combined markets gained, 10 declined while 4 stocks closed at 52 weeks’ high and 1 traded at an intraday high.
138 Student Living had another day of with a large trade of 8,520,000 units at $4.50, valued at $38.34 million, much less than the 58,949,590 units valued at $265,273,155 traded on Friday.
At the close the JSE Market Index fell 38.30 points to 146,585.49, the all Jamaica Composite Index eased 42.80 points to end at 162,773.85 and the JSE combined index added 156.87 points to close at 153,500.13. The main market continues to face a test around the 165,000 points resistance level, on the all Jamaica composite index.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 9 stocks with bids higher than their last selling prices and 4 with lower offers.
In trading, Cable and Wireless gained 1 cents with 77,265 units changing hands to close at $1.31, Caribbean Cement fell 33 cents to end at $17.87 with 16,000 shares changing hands, Carreras gained 75 cents, in closing at a new 52 weeks’ high of $60.75, with 42,612 units changing hands. Gleaner rose 8 cents with 8,320 units changing hands at $1.34, Grace Kennedy fell 12 cents, with 1,230 units changing hands, to finish at $79.88. Jamaica Broilers price jumped $1.86 to $10.50 with 19,726 shares changing hands, Jamaica Producers traded 1,000 shares at $31.90, The Jamaica Stock Exchange share lost $2.25 with 28,610 units changing hands to close at $16.70, Kingston Wharves had trading in 9,509 shares at $11.35. Mayberry Investments had 65,011 shares trading at $4.35, for a loss of 35 cents, National Commercial Bank rose just 1 cent and ended at $39.01, with 29,432 units changing hands, Radio Jamaica traded 1,000 units early in the day at $2.25 and ended the day at $3 while 11,400 units changed hands. Sagicor Group closed with 61,827 units changing hands at $17.50, Salada Foods lost 51 cents in trading 51,562 shares at $8.50, Scotia Group declined by 1 cent with 8,741 shares changing hands at $30.98, Supreme Ventures rose 60 cents to end at $4.60, with 7,128 units changing hands and Proven Investments had 16,130 shares trading at 22 US cents, for a loss of 0.99 cents.
Stocks eke out more gains – Thursday
The junior market accounted for 43,233,932 units, valued at $166,308,887 as 19 stocks in the combined markets gained, 14 declined, 5 stocks closed at 52 weeks’ high and 1 traded at an intraday high, but pulled back before the close.
While the main market indices rose, the gains were low at under 250 points with the JSE Market Index climbing 152.28 points to 144,410.21, the all Jamaica Composite Index rising 170.18 points to end at 160,342.85 and the JSE combined index adding 224.86 points aided by junior market gains, to close at 150,962.10. The main market faces a test at 165,000 points resistance level, on the all Jamaica composite index, but based on the churning of price movements in recent weeks, it is likely to take some more trading days to break through that level if the break takes place.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 12 stocks with bids higher than their last selling prices and 5 with lower offers.
In trading, Berger Paints ended with 45,252 units trading with a decline of 15 cents to $3.15, Cable and Wireless rose 9 cents with only 198,570 units changing hands to close at $1.40, at the close, there were over 2 million units on the offer at $1.40 with bids not looking particularly strong at $1.30 and below. Caribbean Cement closed with a loss of 20 cents to end at $18, with 53,180 shares changing hands. Carreras fell 4 cents in closing at $59.01 with a mere 20,543 units trading, Ciboney traded at 27 cents with 65,000 units changing hands, Gleaner traded at $1.26 down 14 cents with 228,000 units trading, Grace Kennedy gained $1.50, with 10,581 units changing hands, to finish at $79.50. Jamaica Broilers price rose $1.90 to $10.50, with 71,366 shares changing hands, the stock was offered for sale at $9.90 at the close. The Jamaica Stock Exchange share traded 22,665 units and lost 5 cents to close at $18.95, Kingston Wharves saw trading in 15,000 shares at $11.35 as the price slipped 5 cents, National Commercial Bank rose 34 cents and ended at $38.70 with 173,608 units changing hands, Pan Jamaican Investment had 13,000 units changing hands at $92.11, having lost 89 cents. Pulse Investments traded 148,669 shares with a loss of 40 cents to end at $2.10, Radio Jamaica lost 60 cents to land at $3 with 12,900 shares trading, Sagicor Group closed with 24,780 units changing hands but the price gained 6 cents to end at $16.81. Scotia Group gained 89 cents with 94,242 shares changing hands at $29, Supreme Ventures fell 15 cents to end at $4.50 with 37,168 units changing hands. Proven Investments rose 0.99 US cents had 145,550 shares trading at 22.99 US cents, followed by Proven Investments 8% preference share with 17,675 units trading at $5.10 with a loss of 40 cents.