More fall for JSE stocks – Tuesday

Salada Foods traded at a all-time high of $18 on Tuesday.

In moderate trading, the Jamaica Stock Exchange fell for the second day in a row on Tuesday, leading to, the All Jamaican Composite Index declining 2,005.90 points to 344,114.23 and the JSE Index shedding 1,827.60 points to 313,526.94.
Trading in the main market ended with 4,859,195 units valued at $60,716,560 compared to 4,879,200 units valued at $45,250,338 on Monday.
Market activities resulted in 28 securities trading including 2 in the US dollar market compared to 29 securities trading on Monday. At the end of trading, the prices of 13 stocks rose, 7 declined and 8 traded unchanged, including Grace Kennedy that ended at a 52 weeks’ closing high of $58.50 and Salada Foods at a closing all time high of $18.
The day’s volume was led by, Mayberry Jamaican Equities with 1,244,346 units and 25.6 percent of the main market volume, followed by 1834 Investments with 1,006,761 units and 20.7 percent of the day’s volume and Carreras with 740,950 units accounting for 15.25 percent traded volume.
Stocks with major price changes| Berger Paints ended at $22 after rising 99 cents with 4,801 stock units changing hands, Caribbean Cement dropped $5 to $45 exchanging 260,066 shares, Jamaica Broilers traded 17,670 stock units and added $1.50 to end at $25.50, JMMB Group lost $1 and ended at $29 trading 343,345 shares, PanJam Investment rose 50 cents and finished trading 28,787 shares at $52.50, Sagicor Real Estate Fund finished with a loss of 50 cents to close at $14, exchanging 57,552 units, Salada Foods jumped $1.50 to settle at an all-time high of $18, trading 13,000 shares Scotia Group traded 16,750 units and rose 52 cents to end at $52.52, Seprod jumped $2 in trading 6,994 units at $36 and Supreme Ventures fell 51 cents in trading 56,290 shares at $15.
Trading in the US dollar market closed with 60,825 units valued at US$11,992, as Proven Investments rose 12 cents and closed at 20 US cents trading 59,325 shares and Sygnus Credit Investments traded 1,500 shares at 10 US cents. The JSE USD Equities Index eased 0.07 points to 159.24.
Trading resulted in an average of 186,892 units valued at an average of $2,335,252 for each security traded. In contrast to 180,711 units for an average of $1,675,938 on Monday. For the month to date an average of 195,162 shares valued at an average of $3,826,002 versus 196,186 shares valued at an average of $4,035,512 on Monday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 5 closing with lower offers.

13 Junior Market stocks gain – Tuesday

In Junior Market trading on Tuesday 4 stocks traded at a 52 weeks’ high and one at a 52 weeks’ low as the prices of 13 securities advanced, 7 declined and 4 remained unchanged.
In spite of the positive price movement at the close, the Junior market index declined 22.15 points to close at 3,135.85 with 25 securities changing hands, compared to 27 on Monday. Trading resulted in 1,564,416 units valued at $8,693,578 changing hands compared to 2,611,628 units valued at $11,933,757 on Monday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 2 stocks ending with bids higher than their last selling prices, 3 closed with lower offers.
Trading closed with an average of 62,577 units for an average of $347,743 in contrast to 124,363 units for an average of $568,274 on Monday. The average volume and value for the month to date amounts to 182,596 units valued at $994,997, compared to 201,586 units, valued at $1,097,411 previous trading day. Trading in July, averaged 154,060 units valued at $655,146 for each security traded.
At the close of trading Cargo Handlers settled at $10.89, with 308 shares, Caribbean Cream ended trading with a loss of $1.08 at $4.72, trading 30,431 shares, Caribbean Flavours traded 15,000 stock units and jumped $1.50 to a 52 weeks’ high of $14.50, Caribbean Producers finished trading 88,000 units and gained 12 cents to close at a 52 weeks’ high of $6.89, after trading as high as $7.15, Consolidated Bakeries closed 1 cent higher at $2.17, with 229,179 shares changing hands. C2W Music ended with a gain of 4 cents to $1.75, as 1,400 shares traded, Derrimon Trading concluded trading 120,000 shares and climbed 50 cents to a new closing high of $25.50, Dolphin Cove finished at $16.50, while exchanging 184 stock units, Elite Diagnostic settled 5 cents higher at $2.85, with 5,000 units. Everything Fresh traded 244,413 shares and ended at $1.90, Express Catering traded 3 cents higher at $8.03, with 131,000 shares, FosRich Group finished trading of 64,858 shares with a loss of 24 cents at $2.76, General Accident closed with 13,000 stock units trading and fell 10 cents to $3.70, GWest Corporation ended 7 cents higher at $2.27, with 36,282 units. Honey Bun concluded trading with a loss of 1 cent at $4.50, in exchanging 13,700 shares, Iron Rock finished at $3.50, with 186,606 shares, Jamaican Teas ended trading with a loss of 5 cents at $4, with 8,401 stock units changing hands, Jetcon Corporation traded 256,529 units and gained 5 cents to end at $4.05. Key Insurance finished trading 9,147 shares and rose by 45 cents to $3.47, KLE Group closed 19 cents higher at $3, with 6,129 shares trading, Knutsford Express ended with a rise of 5 cents to $11.35, as 17,350 shares were traded, Lasco Distributors concluded trading of 45,066 stock units at $3.99. Lasco Financial finished with a loss of 40 cents at $5.50, exchanging 12,136 units, Lasco Manufacturing settled with a loss of 5 cents at $3.95, with 28,671 shares and Medical Disposables jumped $1.29 in trading 1,626 shares at $6.49.
Prices of securities trading for the day are those at which the last trade took place.

JSE lost altitude – Monday

Carib Cement jumped $7.99 to end at a 52 weeks’ closing high of $50.

In moderate trading, the Jamaica Stock Exchange closed down on Monday after the All Jamaica Composite Index hit a new high of 347,919.92 points in early trading.
At the close trading,  advancing stocks were the same as stocks, leading to the All Jamaican Composite Index to decline by 880.86 points to 346,120.15 and the JSE Index in shedding 802.56 points to end at a record close of 315,354.54.
Trading in the main market ended with 4,879,200 units valued at over $45,250,338 compared to 11,481,249 units valued $123,719,859 on Friday.
Market activities resulted in 29 securities trading including 2 in the US dollar market compared to 26 securities trading on Friday. At the end of trading, the prices of 9 stocks rose, 9 declined and 11 traded unchanged, including
Caribbean Cement traded at an all-time closing high of $50 with very low volume while the Jamaica Stock Exchange traded at a 52 weeks’ high of $8.50 but pulled back at the close to $8.
The day’s volume was led by, Mayberry Jamaican Equities with 2,626,900 units and 53.84 percent of the main market volume, followed by Jamaica Stock Exchange with 822,926 units and Victoria Mutual Investments with 298,913 units.
Stocks with major price changes| Barita Investments lost 50 cents and ended at $9, trading 7,186 stock units, Caribbean Cement jumped $7.99 to a 52 weeks’ closing high of $50 exchanging a mere 610 shares, but ended with the being offered at $45 Jamaica Broilers traded 27,922 stock units and added $1.90 to end at $24, Mayberry Investments lost 25 cents to end at $8 trading just 18,821 shares, Kingston Wharves lost 75 cents to end at $51.50, after trading 2,500 stock units, NCB Financial Group lost 50 cents and ended trading at $103.50, exchanging 42,838 shares, Scotia Group traded 9,910 units and shed 80 cents to end at $52, Supreme Ventures fell 29 cents in trading 81,921 at $15.51 and Wisynco Group fell 25 cents to close at $9.25 after trading 197,432 shares.
Trading in the US dollar market closed with 35,200 units valued at US$65,830 as JMMB Group 5.75% preference share rose 12 cents and closed at US$2.15 trading 35,200 shares and Margaritaville rose 1 cent in trading 5,000 shares at 18 US cents. The JSE USD Equities Index rose 0.47 points to 159.31.
Trading resulted in an average of 180,711 units valued at over $1,675,938, in contrast to 478,385 shares valued at $5,154,994 on Friday. For the month to date an average of 196,186 shares valued at an average of $4,035,512 versus 198,469 shares valued at an average of $4,438,731 on Monday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 10 stocks ended with bids higher than their last selling prices and 4 closing with lower offers.

9 months’ high for Junior Market – Monday

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Derrimon ended at a new closing 52 weeks’ high on Monday.

The Junior Market move higher at the close of trading on Monday rising 31.40 points to close at 3,158 as the number of declining and advancing stocks were equal for a second day.
At the end of market activity, one stock traded at a 52 weeks’ intraday high and one closed at a 52 weeks’ high. Trading ended with 27 securities changing hands, compared to 26 on Friday, with 11 advancing, 7 falling and 9 remaining unchanged.
The market closed with, 2,611,628 units valued at $11,933,757 compared to 1,989,152 units valued at $15,833,326 on Friday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 8 stocks ending with bids higher than their last selling prices, 2 closed with lower offers.
Trading closed with an average of 124,363 units for an average of $568,274 in contrast to 76,506 units for an average of $608,974 on Friday. The average volume and value for the month to date amounts to 201,586 units valued at $1,097,411, compared to 213,423 units valued at $1,178,519 previous trading day. Trading in July, averaged 154,060 units valued at $655,146 for each security traded.
At the close of trading, AMG Packaging ended at $1.95 after rising 4 cents trading 930 stock units, Blue Power jumped $5 to $45, in exchanging 10,166 units, CAC 2000 finished trading and lost 1 cent to end at $8, with 2,000 shares changing hands, Cargo Handlers climbed 89 cents to $10.89, trading 500 shares, Caribbean Producers finished trading 2,645 units with a rise of 27 cents to $6.77. Derrimon Trading concluded trading of 23,900 shares and rose $1 to end at a 52 weeks’ closing high of $25, Elite Diagnostic settled with a loss of 10 cents at $2.80, after exchanging 66,552 units, Everything Fresh traded 51,500 shares and ended at $1.90. Express Catering traded with a loss of 10 cents at $8, with 120,080 shares, FosRich Group finished trading 10 cents higher at $3, after swapping 1,116,649 shares. Honey Bun concluded trading 19,521 shares and gained 61 cents to close at $4.51, Iron Rock lost 57 cents to close at $3.50, with 13,394 shares changing hands, Jamaican Teas ended trading 24,588 stock units and added 15 cents to $4.05, KLE Group gained 31 cents to $2.81, exchanging 669 shares. Lasco Distributors concluded trading of 73,800 stock units with a loss of 1 cent to close at $3.99, Lasco Financial finished 11 cents higher at $5.90, trading 1,012,633 shares, Lasco Manufacturing settled at $4, trading 12,500 shares, Main Event ended trading 15,000 shares with a loss of 19 cents at $5.81. Medical Disposables dropped $1.20 to $5.20, with 28,901 shares and Stationery and Office closed 50 cents higher at $9.50, trading 5,700 units. In the Junior Market preference segment, Eppley 8.25% concluded trading at $6.20, with 10,000 units, changing hands.
Prices of securities trading for the day are those at which the last trade took place.

JSE PE ratios heading higher

The stock market combined index climbed from 82,934.95 points at the end of 2013 to 324,801.52 on Friday, for increase of 292 percent but the average PE ratio has moved from 7.3 by just under 100 percent to peak at an average of 14.5 times last year December.
During the same period, Treasury bill rates tumbled 75 percent from just over 8 percent to 2 percent or were 300 percent more than they are now. While the fall in interest rate would appear to be close to the rise in the market index, the much slower increase in the PE ratio indicates that the major part of the rise is due to increased profits.
Based on the trends in interest rates and PE ratios, coupled with the serious shortage of supply of several stocks, currently, the PE ratio of the market will rise from the current level of 12.5, first to the high of 14.5 reached at the end of December last year and should move on to around 17 to 18 by the end of the year or early 2019.
A look at the chart, indicates that investors are more cautious in moving stock valuation higher. The PE ratio seems to be moving higher each year since the sharp jump in 2015, suggesting that the increase in PE is not yet over. The other factor is that interest rates have fallen faster in 2018 than for some time, investors seem to need more time to digest the rapid change in rates and determine how long it likely to remain at very low levels.
The big question to come will be, when will interest rates start to reverse? If the PE hits 17 by year end, it would represent an approximate 35 percent increase from current levels. Quite a number of stocks are selling above the average of 12.5 presently. A total of 24 stocks in both markets trade above 12.5 and 7 each in the main market and Junior Market selling above 16 times current year’s earnings.

3 new highs for Junior Market – Friday

Iron Rock hits 52 weeks’ high of $4.07 on Friday.

The Junior Market move higher at the close of trading on Friday rising just 0.99 points to close at 3,126.60 as the number of declining and advancing stocks were equal for a second day.
At the end of market activity, three stocks traded at a 52 weeks’ high and one closed at a 52 weeks’ low.
The market closed with, 1,989,152 units valued at $15,833,325.80 compared to 17,879,196 units valued at $94,384,927 on Thursday and ended with 26 securities changing hands, compared to 22 on Thursday, with 10 advancing, 10 falling and 6 remaining unchanged.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 8 stocks ending with bids higher than their last selling prices, 3 closed with lower offers.
Trading closed with an average of 76,506 units for an average of $608,974 in contrast to 812,691 units for an average of $4,290,224 on Thursday. The average volume and value for the month to date amounts to 213,423 units valued at $1,178,519, compared to 245,494 units valued at $1,311,926 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 at $36, exchanging 1,800 shares, AMG Packaging ended with a loss of 9 cents at $1.91, trading 7,000 stock units, Blue Power concluded trading at $40, with 4,820 units, Cargo Handlers settled with a loss of 89 cents at $10, trading 310,120 shares, Caribbean Flavours traded 5,000 stock units and rose 50 cents to $13. Derrimon Trading concluded trading of 236,050 shares and rose $1 to a 52 weeks’ high of $24, after trading at $25 ahead of the close as news broke that the company entered into an agreement to acquire Woodcats International. Dolphin Cove finished at $16.50, with 816 stock units changing hands, Elite Diagnostic settled 15 cents higher at $2.90, with 90,678 units, Everything Fresh traded 157,069 shares and lost 1 cent to end at 1.90, Express Catering traded 72,934 shares and ended 10 cents higher at a 52 weeks’ high of $8.10. FosRich Group finished trading 26,184 shares with a loss of 7 cents to end at $2.90, General Accident climbed 40 cents to $3.80, after trading 8,350 stock units, Honey Bun concluded trading with a loss of 41 cents at $3.90, with 1,000 shares, Iron Rock jumped 92 cents higher to close at a 52 weeks’ high of $4.07, with 553,112 shares changing hands. Jamaican Teas ended trading with a loss of 15 cents at $3.90, with 5,000 stock units, Jetcon Corporation traded at $4, with 29,302 units, Key Insurance finished trading 12,547 shares with a loss of 45 cents to end at $3.02, Knutsford Express ended with a loss of 21 cents at 52 weeks’ low of $11.30, after exchanging 2,000 shares. Lasco Distributors concluded trading at $4, with 4,740 stock units, Lasco Financial traded 68,728 units and finished 39 cents higher at $5.79, Lasco Manufacturing rose 7 cents to end at $4, trading 38,000 shares, Main Event ended trading with a loss of 85 cents at $6, with 15,400 shares traded. Medical Disposables traded 92,420 shares and rose 40 cents to $6.40, Stationery and Office closed at $9 after gaining 97 cents with 238,725 units changing hands and tTech concluded trading at $5, with 2,357 shares trading. In the junior market preference segment, Eppley 8.25% concluded trading with a loss of 1 cent at $6.20, with 5,000 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.

New closing high for JSE – Friday

The Jamaica Stock Exchange took another sizable jump to end at a record close on Friday as advancing stocks out-numbered declining stocks in continuation of the market’s record bull run.
At the close trading, the All Jamaican Composite Index rose 305.19 points to 347,001.01, the first time it closed above 347,000 points and the JSE Index climbed 278.07 points to end at a record close of 316,157.10. The market has gained 9.6 percent for the year to date, the shortage of stocks and low interest rates suggest that the gain for the rest of the year should exceed that of the first 7 months.
Trading in the main market ended with 11,481,249 units valued $123,719,859 compared to 7,873,698 units valued at $335,479,879 on Thursday.
Market activities resulted in 26 securities trading including 2 in the US dollar market compared to 28 securities trading on Thursday. At the end of trading, the prices of 13 stocks rose, 8 declined and 5 traded unchanged, including Caribbean Cement trading at an intraday high of $50 and Salada Foods trading at an all-time high of $17 before pulling back at the close, to a 52 weeks’ high of $16.50.
The day’s volume was led by, Mayberry Jamaican Equities with 9,408,575 units 81.95 percent of the main market volume, followed by Scotia Group with juts 351,092 units and Jamaica Stock Exchange with 281,270 units.
Stocks with major price changes| Berger Paints rose $1 and ended at $21, trading 9,539 stock units, Caribbean Cement fell $1.49 to $42.01 exchanging 76,432 shares, Jamaica Broilers traded 46,334 stock units and dropped $3.40 to end at $22.10, Jamaica Stock Exchange rose 49 cents to close at $8, with 281,270 shares changing hands, JMMB Group rose 50 cents and ended at $30, trading 27,350 shares. Mayberry Investments lost 75 cents to end at $8.25 trading just 8,335 shares, Kingston Wharves finished at $52.25, after rising 25 cents with 3,842 stock units, NCB Financial Group lost 80 cents and ended trading at $104, exchanging 27,159 shares, PanJam Investment jumped $1 to $52 trading 87,500 stock units. Salada Foods jumped $1.50 and ended trading at 52 weeks’ closing high of $16.50, with 35,500 stock units, Scotia Group traded 351,092 units and gained 80 cents to end at $52.80 and Sygnus Credit Investments fell 49 cents in trading 12,010 at $12.
Trading in the US dollar market closed with 174,520 units valued at US$31,642 as Proven Investments fell 1 cent and closed at 19 US cents trading 3,200 shares and Sygnus Credit Investments fell 0.25 cents in trading 12,010 at 0.0975 US cents. The JSE USD Equities Index rose 3.70 and closed at 154.43
Trading resulted in an average of 478,385 units valued at an average of $5,154,994 for each security traded. In contrast to 302,835 units for an average of $12,903,072 on Thursday. For the month to date an average of 198,469 shares valued at an average of $4,438,731 versus 185,362 shares valued at an average of $5,398,127 on Thursday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 6 closing with lower offers.

JSE end at a new close – Thursday

The Jamaica Stock Exchange took another sizable jump to end at a record close on Thursday as advancing stocks out-numbered declining stocks in continuation of the market’s record bull run.
At the close trading, the All Jamaican Composite Index jumped 2,217.67 points to 346,695.82 and the JSE Index climbed 2,020.55 points to end at a record close at 315,879.03.
Trading in the main market ended with 7,873,698 units valued at $335,479,879 compared to 3,458,733 units valued at $66,593,492 on Wednesday.
Market activities resulted in 28 securities trading including 2 in the US dollar market compared to 27 securities trading on Wednesday. At the end of trading, the prices of 12 stocks rose, 8 declined and 8 traded unchanged, including Grace Kennedy trading at an intraday high of $58 and Mayberry Investments trading at an all-time high of $9 before pulling back at the close.
The day’s volume was led by, Grace Kennedy with 5,253,678 units accounting for 66.72 percent of the main market volume, followed by Carreras with 899,233 units or just 11.42 percent of the day’s volume and JMMB Group 7.50% preference share with 500,000 units and 6.35 percent of the day’s volume.
Major price changes| Grace Kennedy jumped $1.01 to finish at a record high of $58.05, JMMB Group rose 40 cents ended at $29.50, trading 13,087 shares. Mayberry Investments climbed $1.60 to end a record closing high of $9 trading just 1,000 shares, Kingston Wharves finished at $52, after falling 50 cents with 3,842 stock units NCB Financial Group gained 60 cents and ended trading at $104.80, trading 27,159 shares, Sagicor Real Estate Fund rose 50 cents and settled at $14.50 exchanging 3,300 shares, Sterling Investments gained 40 cents to $14.50 after 68,200 shares traded, Scotia Group traded 351,092 units and gained $1.30 to end at $52.80 and Seprod added 99 cents to finish trading at $34, with an exchange of just 750 shares.
Trading in the US dollar market closed with 5,754 units valued at US$5,330 as JMMB Group 6% preference share completed trading of 16,500 stock units and rose 1 cent to end at $1.05, Proven Investments fell 1 cent and closed at 19 US cents trading 3,200 shares. The JSE USD Equities Index closed unchanged at 154.43
Trading resulted in an average of 302,835 units valued at an average of $12,903,072 for each security traded. In contrast to 138,349 units for an average of $2,663,740 on Wednesday. For the month to date an average of 185,362 shares valued at an average of $5,398,127 versus 157,082 shares valued at an average of $2,241,849 on Wednesday. July closed with an average of 169,022 units valued at $3,514,756, for each security traded.
IC bid-offer Indicator| At the end of trading, the Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and 3 closing with lower offers.

Junior Market bounces – Thursday

The Junior Market move higher at the close of trading on Thursday rising 39.96 points to close at 3,125.61 as the number of declining and advancing stocks were equal but with a bounce in volume.
The market closed with, 17,879,196 units valued at $94,384,927 compared to 6,775,011 units valued at $40,419,386. on Wednesday. Lasco Financial accounted for bulk of the trade with 16.75 million units.
Trading ended with 22 securities changing hands, compared to 22 on Wednesday, with just 6 advancing, 6 falling and 10 remaining unchanged. General Accident traded at a 52 weeks’ high of $3.90 but closed lower at $3.40.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading had 7 stocks ending with bids higher than their last selling prices, 2 closed with lower offers.
Trading closed with an average of 812,691 units for an average of $4,290,224 in contrast to 307,955 units for an average of $1,837,245 on Wednesday. The average volume and value for the month to date amounts to 245,494 units valued at $1,311,926, compared to 105,288 units valued at $575,717 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 at $36, trading 4,041 shares, AMG Packaging ended 10 cents higher at $2, exchanging 1,200 stock units, Blue Power concluded trading at $40, with 200 units, Caribbean Producers finished trading 100,000 units but lost 27 cents at $6.50, Derrimon Trading concluded trading 15,000 shares at $23. Elite Diagnostic settled at $2.75, trading 6,000 units, Eppley ended trading 78 cents higher at $9.96, with 15,030 shares, Everything Fresh traded 96,968 shares and lost 7 cents to end at $1.91. Express Catering traded with a loss of 10 cents at $8, with 41,451 shares changing hands, FosRich Group finished trading 41,146 shares and rose 40 cents to $2.97, with shares. General Accident closed with a loss of 46 cents at $3.40, trading 27,032 stock units, Honey Bun concluded trading and rose 6 cents to $4.31, with 7,000 shares, Iron Rock finished trading at $3.15, with 50,052 shares, Jamaican Teas ended trading 5 cents higher at $4.05, with 25,091 stock units changing hands. Jetcon Corporation traded 18,720 units at $4, Lasco Distributors concluded trading 412,642 stock units, at $4, Lasco Financial finished 10 cents higher at $5.40, with 16,753,104 units, Lasco Manufacturing settled at $3.93, exchanging 40,000 shares. Main Event ended trading at $6.85, with 2,006 shares changing hands, Medical Disposables traded with a loss of 20 cents at $6, with 50,000 shares and Stationery and Office closed with a loss of 1 cent at $8.03, trading 72,513 units. In the junior market preference segment, Eppley 9.5% finished at $5.98, with 100,000 shares.
Prices of securities trading for the day are those at which the last trade took place.

Profit jumps 58% at Proven

Investors in shares of PROVEN Investments pushed the price to a year’s low of 12 US cents last month but data now available suggest that they made a big mistake, as the stock now trades back at 20 US cents and profit that suffered from foreign exchange losses in the second half of 2018 fiscal year is now back up.
The investment bank just released first quarter results to June showing profit attributable to shareholders jumping 58.43 percent to US$1.79 million from the US$1.13 million in the same period last year. Annualized return on average equity translate to 8.56 percent and is consistent with Proven target set when they went public. The sharp jump in earnings resulted from net revenue for the quarter rising a 17.4 percent to US$8.5 million compared to US$7.25 million earned in the June 2017 quarter. According to the CEO Christopher Williams, “this was mainly due to a more efficient carry trade strategy and significant improvement in foreign exchange gains.”
Earnings per share for the quarter amounted to 0.29 US cent versus 0.20 US cents in 2017. An interim dividend of 0.25 US cent per share will be paid to shareholders on September 10.
According to the report released with the financials “spread income was the major contributor to revenue during the period, with a 16.97 percent improvement compared with the same period last year as net interest income totalled US$5.28 million. This increase reflects success in the carry trade strategy as the company was able to concurrently increase interest income while reducing interest expense by 18.30 percent.
Net foreign exchange gains totalled US$1.20 million, compared to just US$200,000 in the same period last year. While foreign exchange grew fees and commission income declined from $1.2 million to $894,000 due to change in reporting some fee income with some income now being booked over the period that they cover rather than at the time of billing, the impact for the full year should not reflect a major difference, IC Insider.com was informed.
Proven invests in a number of privately held entities except for Access Finance. The investment strategy seems to be working with most entities delivering increased returns in the quarter.

Christopher Williams, Proven Investments CEO.

According to the release Proven Wealth net income totalled US$0.93 million for the quarter, representing more than a six -times increase compared to the same period last year. The firm continues its strategy to offer investment products to clients in reducing the previous reliance on repurchase agreements. Total Assets of the company as at June 2018 stood at US$120.5 million.
Proven Fund Managers continues to be one of the top players in the Asset and Pension Fund Management and Administration business. Profitability increased by almost 68 percent compared to the same period last year, with net profit of US$220,000 compared to US$130,000 million for 2017.
Access Financial Services appears to be maturing contributing nearly 21 percent increase in net profits attributable to PIL of US$790,000 or 44 percent of the group’s profit for the quarter. But according to Williams, profit at Access is growing around $10 million on a monthly basis and is expected to continue for the rest of the fiscal year barring unforeseen negative development. IC Insider.com gathers that they may be more acquisition in the period ahead for this subsidiary in a new market. Access seems to have absorbed the acquisitions last year that led to a hike in doubtful loan provisioning being above normal in the 2018 fiscal year. The loan portfolio was US$24.4 million up 22 percent over the balance at June 2017.
BOSLIL Bank headquartered in St Lucia is Proven Investments’ most recent acquisition and currently 75 percent owned by the group. BOSLIL contribution to group profits was just below Access at US$610,000 million. Total Assets of the bank stood at US$271 million and seems set to increase as the group has signed an agreement to acquire yet another banking entity that will fall under the arm of Boslil.
PROVEN REIT is involved in residential real estate development with two new developments scheduled to commence construction and are expected to be completed and sold over the next twelve to eighteen months. But the current fiscal year is not likely to benefit from these is they are successfully executed.
Operating expenses increased by 11.5 percent to US$5.6 million compared to US$4.9 million in 2017 but the expenses include US$236,000 in preference dividends that will not repeat as the company retires the preference shares on which dividend was paid while there was just over $400,000 provision made relating to the impact of IFRS 9. Excluding these two items profit for the quarter would have been much greater than reported.

Access Financial contributed much to Proven profit in the quarter.


At the end of June total assets amounted to US$575 million down slightly from US$599 million at June 2017 and liabilities fell from US$509 million in 2017 to US$470 million. Shareholders’ Equity grew to US$82 million from US$71 million as at June 2017 mainly from increased in the share capital following the rights issue last year.
The group has not been able to put the new capital fully to work as they awaited regulatory approval for the plan acquisition of a brokerage company in Cayman Island which has now been granted with the acquisition said by Proven to close at the end of the month. That may not be the only acquisition for Proven this fiscal year as the group seek to grow its overseas business and take advantage of the many investment opportunities management sees within the region.
In going forward, investors need to pay attention to the impact of foreign exchange trading and movement in the rate of exchange and the impact on profits positively or negatively, so the strong gains enjoyed in the quarter may not repeat in the rest of the year. The preference dividend and the provision for IFRS provisioning should not repeat and are likely to reduce cost going forward. Access continues to grow profit on a quarterly basis as the company increase loans granted and securities trading can add or subtract from profits depending how well the investment portfolio is managed.
With the continued focus on acquisition, the future could be brighter for the group, in addition IC Insider.com is forecasting a rise in the PE ratio from an average of 12.5 now to a higher level by year end.
The stock that was in the IC TOP 10 and slipped out this past week traded at 19 US cents on Thursday on the JSE US dollar market and sits just outside the Top list.