National Commercial Bank stock price hit a new 52 weeks high of $20 in trading on the Jamaica Stock Exchange on Monday with 1,066,318 shares changing hands. One million units of the stock was bought and sold by Stockbroker, Sagicor Investments at $20 each.
After three consecutive days of declining stocks beating out advancing ones last week, breaking the trend that was in place since the start of the year, with no trading day closing with number of declining stocks being more than advancing ones, activity on the exchange returned to the trend prior to the days of decline on Monday. At the close on Monday, the prices of 10 stocks gained, 6 declined as 23 securities changed hands, ending in 4,912,390 units trading, valued at $30,624,883 in all market segments. The positive advance, decline ratio did not prevent large declines in the main market indices as Carreras gave back most of the gain it enjoyed on Friday.
Main Market| The JSE Market Index lost 765.65 points to 77,062.39 , the JSE All Jamaican Composite index declined 856.03 points to close at 84,877.64 and the JSE combined index declined by 716.44 points to close at 78,938.30.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows stocks with bids higher than their last selling prices and stocks with offers that were lower.
Gains| Stocks gaining with last traded prices at the end of trading in the main market are, Cable & Wireless closing with 715,292 units changing hands, with a gain of 1 cent at 51 cents. Gleaner had 3,000 shares changing hands to close 2 cents up, at 82 cents, Grace Kennedy closed with 17,480 shares trading with a gain of 5 cents at $63, Jamaica Broilers ending with 2,000 units changing hands to close with 1 cents gain at $4.01. Jamaica Money Market Brokers finished with 4,000 ordinary shares with the price gaining 3 cents to $6.60, Jamaica Stock Exchange with 48,688 units changing hands to close with a gain of 10 cents at $2.10, National Commercial Bank closed at a new 52 weeks high with 1,066,318 shares changing hands and gained of 69 cents at $20. Proven Investments ended with 35,970 units changing hands to close 0.02 cent higher at 21.02 US cents, new all-time high and Sagicor Group closed with 20,820 shares trading with a gain of 5 cents at $10.20.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints closed with 1,439 units trading at $1.55, Desnoes & Geddes concluding trading with 1,100 shares changing hands at $4.80, Mayberry Investments ended with 1,381,873 units trading to end at $2 and Scotia Group in trading 30,195 units at $20.50.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, the price of Carreras slipped $1.88 to closed with 1,650 units trading as at $37.62 and Radio Jamaica ended with 1,986 shares trading lower by 20 cent to $1.10.
Preference| Jamaica Money Market Brokers 7.25% preference share closed with 200 units being active, with the price rising 1 cents to $2.50, Jamaica Money Market Brokers 7.50% finished with 1,502,471 units trading at $2 and Proven Investments 8% preference share traded 1,555 units traded at $5.
10 JSE stocks rose 6 declined Monday
Sugar helps Seprod hike profit
Seprod reported a hike in profit of 14 percent for the six months to June this year, slower than the 34 percent increase in the first quarter. The company posted profit of $698 million for the half year, up from $614 million in 2013 and $298 million in the quarter versus $317 million in the 2013 quarter.
Seprod, involved in the manufacturing and processing of food products, oils, sugar, milk as well as a food product distribution business, enjoyed an 8 percent rise in revenues to $8 billion from $7.4 billion and 12 percent to $4.17 billion in the second quarter from $3.7 billion in the 2013 June quarter. While revenues climbed, Seprod suffered a reversal in the positive gains in investment income in 2013 with a fall of $110 million in the quarter and $118 million in the half year.
Gross profit grew a very strong 53 percent in the June quarter and a much lower 32.8 percent for the six months over the same period in 2013. Gross profit margins climbed to 29.70 percent in the June 2014 quarter, up from only 18.8 percent in 2013, for the six months 29.7 percent and 22.7 percent, respectively. These are good signs of an improving performance of the group. A major part of the improved performance, is the contribution the sugar manufacturing segment made.
Segment results show operating profit for the half year rising 61 percent, against revenues climbing only 11.4 percent, Distribution segment’s operating profit, fell from $99 million to $68 million. The group’s sugar operations made a loss of $15 million in the June quarter for the group net of minority interest and $30 million for the six months, a big improvement over the $166 million lost for the June quarter last year, and $200 million for the six months to June, 2013.
The group is now in the last six months of the year, when little income will be generated from the sugar operation at Golden Grove Sugar Factory in St Thomas. The cost associated with this operation will be absorbed and will dent profits in other areas. For the second half of 2013 the group picked up $322 million in losses from the sugar operation. Much progress has been made in reducing losses in the sugar operation but there is still some way to go to move to a profitable business. A lot will depend on increasing significantly, the amount of canes to be milled by the factory and by extension the sugar to be produced. They now need to produce around 3,000 to 4,000 tonnes more sugar, to break even.
Expenses| Selling expenses rose sharply by 43 percent in the quarter to $142 million compared with $100 million in 2013 and 22 percent for the six months to $241 million from $198 million. Administrative cost rose 25 percent to $428 million in the quarter versus $373 million in 2013. For the six months period, it rose only 7 percent from $784 million to $839 million.
Finances| Seprod has $4 billion in cash and investments. Borrowing stood at $2.55 billion up from $2.26 billion at June 2013, current assets are well in excess of current liabilities by more than 2 to 1 and equity stands at a strong $10 billion.
Longer term| For 2015 and beyond, a lot is predicated on the fortunes of the sugar operations in St Thomas, where the target is for the processing of 300,000 tonnes of canes and to produce around 25,000 tonnes of sugar. In 2013, Management indicated that the cane farms are already planted and increased production should be coming in from the 2014 crop. For the 2014 crop the factory, reached its highest-ever production levels, with 19,300 tonnes of sugar.
the group produced profits of $907 million last year and is expected to better this in 2014 by some. The stock remains buy rated.