Insurance premium financer, Eppley jumped again in the early morning session on the Jamaica Stock Exchange, to add $69.24 to the $75.76 gained on Monday as 160,000 units of the stock traded at $650 to record a gain of almost 29 percent in two days. The trade took place as the company announced that up to 487,703 new ordinary shares priced at $650 each will be made available to ordinary stockholders on the record date for the issue, on Friday 6 May 2016.
Eppley has 796,249 ordinary shares issued currently. The amount traded represents 20 percent of the issued shares. NCB Capital; Markets bought 41,716 units with the rest being crossed by Mayberry for clients.
Berger Paints traded 132,384 shares to gain 10 cents to $4.10 and was the only one other security trading over 100,000 shares. Honey Bun trading just 2,000 shares hit a new high of $18.
After 77 minutes of trading, on Tuesday, the average volume traded amounts to 25,536 units per active stock, compared to an average of 19,944 units in the mid-morning session on Monday. Notwithstanding the low volume, the main market indices record gains but the junior index declined.
Trading resulted in activity in 20 securities, accounting for 638,410 shares changing hands as 13 stocks gained and 6 declined.
The market saw the all Jamaica Composite Index gained 387.32 points to 170,888.73, the JSE Market Index rose 346.33 points to 153,846.84, the JSE combined index ended with a rise of 230.74 points to 164,768.46 and the junior market index eased 8.83 points to 2,150.50.
Mayberry Q1 profit hardly moved
Total comprehensive income for the March quarter at investment bankers, Mayberry Investments, increased 165 percent to $364 million, compared to $137.6 million in the 2015 quarter. The more investment sensitive number, net profit, was just $94 million compared to $82 million in the corresponding 2015 quarter.
Earnings per share ended at 8 cents, up from 7 cents in 2015, making the stock at $3.40, fully priced based on current market valuation measures. Profit was boosted by $209 million in realised trading gains compared with $53 million in 2015 but suffered from unrealised investment loss of $94 million versus a gain of $12 in 2015.
Income from fees and commissions jumped 204 percent to $38.9 million. Net interest income suffered a reduction of 34 percent or $33.4 million to reach $65 million, dividend income declined from $57 million to $18.6 million and net foreign exchange gains ended at $34 million, down from $40 million.
The decrease in net interest income was as a result of the reduction in the size of the repo portfolio. A general decline in the global bond market due to speculation about US interest rates and changes in the market conditions which impacted the bond prices in the portfolio.
Operating expenses for the period rose 27 percent to $204 million from $161 million for the corresponding period in 2014, “The increase in expense is due to increased costs for consultancy as well as legal and professional services” Gary Peart, Chief Executive Officer stated. Additional provision for credit losses of $7.5 made during the period compared to a write back during 2015 of $5 million contributed to the increase.
Gary Peart, Chief Executive of Mayberry Investments.
The group made investments in four associated companies since July 2015, making Lasco Financial Services, Blue Power Group, Caribbean Producers and Iron Rock Insurance Company associates and contributed $28 million in profit, there was no income from associates in the 2015 period.
At the end of the period stockholders’ equity was $6.6 billion, an increase of $2.3 billion over the corresponding period in 2015. Net book value ended at $5.50 per share and big premium to the last traded price of $3.40 on the Jamaica Stock Exchange.
JSE sharp jump to start May – Monday
Trading on the Jamaica Stock Exchange on Monday ended with sharply reduced volumes compared the levels traded on Friday and in recent weeks and months, with 37 securities changed hands, accounting for only 1,377,118 units valued at a mere $23,284,334, in all market segments. The junior market accounted for 534,047 shares valued at $3,394,975 as 15 stocks in the overall market gained, 12 declined including 8 of the stocks rising and 3 declining, from the junior market.
At the close of trading there were 2 new 52 weeks’ closing highs in the junior market.
The JSE Market Index rose sharply by 3,461.33 points to end at 153,500.51. The all Jamaica Composite Index surged 3,871.05 points to 
close at 170,501.41 and the JSE combined index jumped 4,179.76 points, to close at 164,537.72.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 14 stocks with bids higher than their last selling prices and 5 with lower offers.
At the end of market activities, Berger Paints traded 3,200 shares at $4, Cable & Wireless lost 2 cents and closed at $1.35 in trading 160,020 units, Caribbean Cement traded 7,498 shares but the price fell by 6 cents to close at $26.50, Carreras fell 50 cents while trading 6,000 shares, to close at $62.50. Rebranded Gleaner Company, 1834 Investments, gained 16 cent to close at $1.15 in trading only 833 shares, Jamaica Broilers had 14,350 units changing hands, to close at $14.15. JMMB Group fell by 50 cents in trading 6,250 shares to close at $9.50, Kingston Wharves traded just 1,000 shares to close with a gain of 85 cents at $11.15,
Mayberry Investments traded 32,088 shares but gained 10 cents to close at $3.40. National Commercial Bank declined by 50 cents while 20,586 shares traded, to close at $40.50, Pan Jamaican closed at $88 with 2,616 shares changing hands. Radio Jamaica traded 34,500 shares and climbed 5 cents to close at $1.20, Sagicor Group fell 10 cents to end with 5,705 shares changing hands at $22.40, Scotia Group closed with a rise of 50 cents, to end at $30.50 while 491,344 units changed hands. Scotia Investments closed with 8,374 shares trading with a gain of 50 cents to $26, Seprod ended with 19,777 units trading with a loss of $1.30 at $15.60 and Supreme Ventures fell 6 cents and closed at $5 with 9,000 shares changing hands.
Slow trading in morning session – Monday
Trading in the early morning session on the Jamaica Stock Exchange, after 85 minutes of trading, 
on Monday, the average volume traded amounts to 19,944 units per active stock, compared to an average of 657,664 units traded in the mid-morning session on Friday. Notwithstanding the low volume the market indices record strong gains.
By just under one and a half hour of trading a total of 28 securities accounting for 558,419 shares changed hands as 10 stocks gained and 7 declined.
The market saw the all Jamaica Composite Index gained 1,413.41 points to 168,043.77, the JSE Market Index rose 1,263.82 points to 151,303.00, the JSE combined index ended with a rise of 1,612.99 points to 161,970.95 and the junior market index gained 42.97 points to 2,107.82.
Watch their money not their words
Natalia Gobin-Gunter Chairman and Deputy Managing director inserting name strip to indicate listing of Key Insurance on the junior market.
The survey findings of carried out amongst Jamaica’s business executives, show wild swings in their views on current conditions since the start of the data in 2005, while the index of future business conditions was far more predictive of actual business developments. The attached chart shows this up quite clearly. Other findings of the survey also points out that the top management of the various companies were was off the mark when it came to inflation, interest rates and the rate of exchange of the local dollar. One of the clearest measures to test what the executives say and do, is a comparison of the sentiments on business conditions and the performance of the stock market.
When it came time for the business community to put their money where their mouth is, it turned out to be vastly different from what they were saying in the Business Condition Survey. One measure of the business community’s bet on the future, is shown in the attached graph. The graph shows future expectations are is much more aligned with future business conditions than with current ones.
What the business sector did, reflected itself in a much smoother monthly movement than what they said about the future. When it comes to money, the stock market reflects what people are doing with their money as opposed to what they say. The chart shows the movement in the all Jamaica Composite Index, plotted against the two business surveys published by the country’s central bank.The movement of the stock market seems a better predictor of future expectations, than the surveys, as shown by the smoother movement of the stock market compared with the sentiments data. What is also true, is that the future expectations and the stock market movements are fairly closely aligned with each other.
Profits up 18% at Eppley
The insurance premium financer Eppley, reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. The profit resulted in earnings per share of $13.27 in the first three months to March this year.
The improved results emanated from interest income of $43 million, down from $44.94 million in the first quarter of 2015 while net interest income ended at $15.4 million compared with $15.95 million in the 2015 quarter. Other operating income ended at $11.64 million from $5 million in 2015.
Administrative expenses climbed a big 34 percent to $16.48 million from $12.3 million.
The Board approved a dividend of $9 per share payable on April 20 to ordinary shareholders on record as of April 11. The board disclosed that they expect to maintain this level of dividend each quarter, to be adjusted with the final quarterly dividend each year, to distribute the vast majority of annual earnings.
Rights Issue|Eppley will be issuing additional ordinary shares to fund the expansion of our business through a rights issue to existing shareholders who will be advised shortly of the terms of the issue.
Proceeds from the rights will improve the equity capital which now stands at a paltry $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares. Leverage was 3.2 times equity capital at the end of the quarter, with the average cost of debt at 10 percent. At the end of the quarter, cash was $164 million and net asset value of $394 per share, while invested funds consisting mainly of loans, leases and receivables amounted to $1.26 billion, with an average yield of 16%.
Eppley last traded at $505 on the junior market of the stock exchange and boast a PE of 6 based on projected earnings of $80 per share for 2016 which would result in earnings growing by 14 percent over 2015 out come.
JSE ends April positively – Friday
Mayberry Investments traded 17.65m shares on the JSE on Friday.
The JSE Market Index that plummeted sharply by 2,934.82 points on Thursday, recovered just 527.92 points on Friday to end at 150,039.18. The all Jamaica Composite Index gained 590.41 points on Friday but in contrast to the drop of 3,282.21 points on Thursday as it closed at 166,630.36 and the JSE combined index that dived 2,789.11 points on Thursday enjoyed a slight increase by 94.38 points, to close at 160,357.96. The decline in the movement in the main market on Friday, breaks the four consecutive trading days that the indices gained prior to today out turn.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 21 stocks with bids higher than their last selling prices and 5 with lower offers.
At the end of market activities, Berger Paints gained 10 in trading 2,472 shares at $4, Cable & Wireless lost 2 cents and closed at $1.37 in trading 349,000 units, Caribbean Cement traded 83,248 shares but the price fell $1.44 to close at $26.56, Carreras rose 50 cents while trading 16,265 shares, to close at $63. Rebranded Gleaner Company, 1834 Investments, gained 1 cent to close at 99 cents in trading 101,900 shares, Jamaica Broilers had 25,000 units changing hands, to close with a loss of 35 cents at $14.15. Jamaica Stock Exchange traded 5,000 units and declined by $1, to close at $21, Kingston Wharves traded 21,644 shares to close at $11.15, with a loss of 5 cents, Mayberry Investments traded 17,650,039 shares but fell 2 cents to close at $3.30.
National Commercial Bank gained $1.20 while 180,965 shares traded, to close at $41, after the company released improved results for the March quarter, Pan Jamaican lost $1 to close at $88 with 4,860 shares changing hands. Radio Jamaica traded 94,200 shares and climbed 7 cents to close at $1.15. Sagicor Group gained 45 cents to end with 12,844 shares changing hands at $22.50, Scotia Group closed with a loss of $1, to end at $30 while 10,421 units changed hands, Supreme Ventures gained 1 cent and closed at $5.06 with 160,489 shares changing hands. Proven Investments closed with 8,677 ordinary shares trading at 20 US cents and JMMB Group 6% preference share ended with 62,630 units trading with a loss of 5 cents at $1.10.
Mayberry 17m trade – Friday
Mayberry Investments dominated trading with 17,605,039 shares but the price declined to $3 in 
the mid-morning session on the Jamaica Stock Exchange. Other trades of import are Lasco Distributors with 684,917 units at $7.20 and Lasco Financial Services 422,346 units at $3.
After 90 minutes of trading, on Friday, the average volume traded amounts to 657,664 units per active stock, compared to an average of 149,862 units traded in the mid-morning session on Thursday. A total of 30 securities accounting for 19,729,923 shares changed hands as 7 stocks gained and 11 declined.
The market saw the all Jamaica Composite Index gained 623.18 points to 166,663.13, the JSE Market Index rose 557.22 points to 150,068.48, the JSE combined index ended with a rise of 116.53 points to 160,380.11 and the junior market index declined 39.14 points to 2,064.26.
Big losses for JSE – Thursday
Mayberry Investments traded most shares on the JSE with 2,315,000 units.
The JSE Market Index plummeted 2,934.82 points to end at 149,511.26, the all Jamaica Composite Index dropped 3,282.21 points to 166,039.95 and the JSE combined index dived 2,789.11 points, to close at 160,263.58. The decline in the movement in the main market on Thursday, breaks the four consecutive trading days that the indices gained prior to today out turn.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 19 stocks with bids higher than their last selling prices and 5 with lower offers. The higher bids jumped sharply, but that is most likely associated with month end widow dressing.At the end of market activities, Berger Paints traded 19,399 shares at $3.90, Cable & Wireless closed at $1.39, in trading 1,517,355 units, Caribbean Cement traded 29,736 shares and rose $2 to close at $28, Carreras fell 50 cents while trading 1,805 shares, to close at $62.50. Slimmed down Gleaner Company, now rebranded as 1834 Investments, lost 2 cents to close at a 52 weeks low, of 98 cents, Hardware and Lumber had 10,240 shares trading with a loss of 55 cents at $12.50, Jamaica Broilers had 22,805 units changing hands, to close with a gain of 50 cents at $14.50. Jamaica Stock Exchange traded 15,000 units and rose $1, to close at $22, JMMB Group traded 23,873 shares and shed 50 cents to end at $10, Kingston Wharves traded 6,174 shares to close at $11.20, with a loss of 10 cents, Mayberry Investments traded 2,315,000 shares but fell 58 cents to $3.32, National Commercial Bank lost 20 cents in trading 589,045 shares, to close at $39.80.
Pulse Investments traded 185,515 shares with a fall of 30 cents to close at $2.50, Radio Jamaica traded 94,200 shares and climbed 7 cents to close at $1.15, Sagicor Group fell 15 cents to end with 605,440 shares changing hands at $22.05, Sagicor Real Estate Fund traded 25,645 shares to close at $10.15 after falling 10 cents, Scotia Group closed with a loss of $2.99 to end at $31 while 20,164 units changed hands, Scotia Investments traded 115,465 shares to close at $25.50 and Supreme Ventures closed at $5.39 with 240,047 shares changing hands for a loss of 34 cents, Proven Investments closed with 24,500 ordinary shares trading and gained 2 US cents to 20 US cents and JMMB Group 7.50% preference shares ended with 1500,00 units trading at $1.04.
More gains for JSE stocks – Wednesday
Scotia Group jumped $3.44 on Wednesday
The JSE Market Index gained 1,175.25 points to end at 152,446.08, the all Jamaica Composite Index rose 1,314.36 points to 169,322.16 and the JSE combined index climbed 1,524.74 points, to close at 163,052.69.
The increased movement in the main market on Wednesday is the fourth consecutive trading days that the indices have gained.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 11 stocks with bids higher than their last selling prices and 6 with lower offers.At the end of market activities, Cable & Wireless rose 4 cents to close at $1.39, in trading 41,211 units, Caribbean Cement traded 337,237 shares and rose $2 to close at $26, Carreras fell $1.99 while trading 64,337 shares, to close at $63, Jamaica Broilers had 288,526 units changing hands, to close with a loss of 25 cents at $14. Jamaica Producers lost $1.43 to close at $33.50, but only 1,000 shares changed hands,
Jamaica Stock Exchange traded 30,330 units at $21, JMMB Group traded 311,461 shares and rose 50 cents to end at $10.50, National Commercial Bank rose $1 in trading 5,614 shares, to close at $40. Pulse Investments traded 72,980 shares with a rise of 30 cents to close at $2.80, Radio Jamaica traded 62,954 shares and lost 12 cents to close at $1.08, Sagicor Group rose 5 cents to end with 11,500 shares changing hands at $22.20. Scotia Group closed with a gain of $3.44 at $33.99 with 365,623 units changing hands, Scotia Investments lost $1.94 with 7,295 shares to close at $25.50 and Supreme Ventures closed at $5.39 with 23,800 shares changing hands for an 11 cents loss.
