Banks push JSE to new high – Friday

Stocks surged higher, at the close of trading on the main market of the Jamaica Stock Exchange on Friday with the market ending at record closing levels as JMMB Group NCB Financial and Scotia Group record strong gains, pushing the JSE All Jamaican Composite Index to a record close of 300,363.16.
Trading on the main market ended with 22 securities changing hands, 7 advanced, 6 declined and 11 traded firm with 4,504,312 units valued at $68,391,852 compared to 94,545,441 units valued at $1,119,081,050 on Thursday. In the US dollar market 425,898 units traded for a value of US$102,239 for two securities.
In market activity, volumes are those trades for the day and the closing prices are those at which the last trade took place. At the close on market activity, Barita Investments ended trading with a loss of $1 at $8, with 40,452 stock units trading, Cable & Wireless finished at $1.10, with 42,361 units, Caribbean Cement settled 54 cents higher at $26.55, with 3,000 shares, Carreras closed at $12, after 462,635 stock units changed hands, Grace Kennedy closed with a loss of 5 cents at $42.75, with 12,005 shares. Jamaica Broilers ended with a loss of 5 cents at $17.95, with 1,858 units, Jamaica Producers ended trading at $16, with 2,278 stock units, Jamaica Stock Exchange concluded trading $1.20 higher at $7.20, with 1,064,940 shares switching owners, JMMB Group finished $3 higher at $26, after trading 21,667 units, Mayberry Investments ended trading with a loss of 40 cents at $4.10, with 15,378 shares. PanJam Investment ended with a loss of $3.48 to $38.52, with 9,732 units, Portland JSX ended trading after falling 50 cents to an all-time low of $8.50, with 50,000 stock units after the company reported a loss for the six months to August of US$221,251. Radio Jamaica settled at $1.15, trading 10,100 shares, Sagicor Group traded with a loss of $1.49 cents at $38.51, with 7,700 units changing hands, Sagicor Real Estate Fund finished trading 4 cents higher at $13.25, with 19,700 stock units, after it traded at an all-time high of $15. Salada Foods closed at $8.50, with 350,000 shares, Scotia Group ended $3.08 higher at $50.98, with 414,399 stock units, Seprod traded 339 units at $30 and Supreme Ventures finished 37 cents higher at $11.85, with 130,790 shares.
In the main market preference segment, Jamaica Money Market Brokers 7.5%, ended trading 700,000 shares at $2 and JMMB Group 7.5% ended 1 cent higher at $1.15, with 870,000 stock units changing hands.
In the US dollar market segment, Productivity Business traded 5,898 shares at 57.5 US cents and Proven Investments closed with 420,000 units trading at 23.5 US cents.

All Jamaica cracks 300,000 for first time

Jamaica Stock Exchange all Jamaica Index closes above 300,000 on Friday.

The JSE All Jamaican Composite Index surged 5,376.82 points to close above the 300,000 points level for the first time, as JMMB Group, NCB Financial and Scotia Group recorded strong gains and pushed the index to a record close at 300,363.16.
The JSE Index jumped 4,898.89 points to close at a record 273,664.81 and in the US dollar market the USD Equities Index closed at 184.36.
Come Tuesday, when trading resumes it will be interesting to see how NCB trades since the stock closed at the equivalent of $100 in Trinidad on Thursday. At the close on Friday, there were only 33,603 units on offer for the stock. A break out of NCB is likely to see the market moving decisively away from the resistance, around the 300,000 points level. On Tuesday, Berger Paints that was suspended pending the closure of the Ansa Coating mandatory buyout offer, at the end of the day there were information on the out-turn of the offer.
Trading on the main market of the Jamaica Stock Exchange finished on Friday with 22 securities changing hands, 7 advanced, 6 declined and 11 traded firm with 4,504,312 units valued at $68,391,852 compared to 94,545,441 units valued at $1,119,081,050 on Thursday. In the US dollar market 425,898 units traded for a value of US$102,239 for two securities.
Trading ended with an average of 204,741 units for an average of $3,108,721 in contrast to 4,110,671 units for an average of $48,655,698 on Thursday. The average volume and value for the month to date amounts to 2,279,320 units valued at $30,989,186 and an average of 2,498,747 units at $34,245,233, previously. In contrast, September closed with average of 283,480 units at $3,630,990 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 2 with lower offers.

Steady trading for Junior Market

The Junior Market of the Jamaica Stock Exchange settled on Thursday with 20 securities changing hands, resulting in an exchange of 969,013 units valued at $4,496,741 compared to 827,619 units valued at $4,771,002 on Wednesday.
At the close of market activities, the prices of 7 securities advanced, 5 declined and 8 remained unchanged leading to the Junior Market Index losing 2.43 points to close at 2,909.26. Trading ended with an average of 48,451 units for an average of $224,837 in contrast to 33,105 units for an average of $190,840 on Wednesday. The average volume and value for the month to date amounts to 69,963 units 252,557 valued at $317,553 and 71,783 shares at an average value of $319,802, previously. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Friday’s trading activity with 1 stock ending with the bid higher than their last selling price and 2 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place, accordingly, Access Financial closed at $38, with 4,080 units trading, AMG Packaging ended 14 cents higher at $3.49, with 8,200 stock units, Blue Power concluded trading at $44, with just 1,100 shares, Caribbean Cream traded with a loss of 70 cents at $6, after trading 46,737 shares, Caribbean Producers closed 2 cents higher at $3.72, with 392,821 units, Derrimon Trading ended trading with a loss of 99 cents at $7, with 78,700 shares. Express Catering settled with a loss of 5 cents at $4.55, with 66,900 stock units changing hands, General Accident traded 30 cents higher at $3, with 2,125 units, Honey Bun finished trading with a loss of 20 cents at $4, with 15,101 units, Jamaican Teas ended trading 9 cents higher at $4.10, with 31,362 stock units, Jetcon Corporation concluded trading at $5, with 12,000 shares changing hands, KLE Group settled 10 cents higher at $2.50, with 2,730 stock units. Knutsford Express traded at $14.89, with 6,138 shares, Lasco Distributors traded 50,544 units at $6, Lasco Financial closed at $4.50, with 62,557 shares, Lasco Manufacturing ended with a loss of 5 cents at $3.75, after exchanging 114,774 stock units, Main Event ended at $5.15, trading 4,594 stock units. Medical Disposables concluded trading at $5.30, with 41,260 shares and Stationery and Office settled 1 cent higher at $4.71, after 2,500 units traded. In the junior market preference segment, Derrimon Trading closed with a loss of 5 cents at $1.95, with 24,790 units traded.

Met Opera Live hits a high-note on screen

Photo: James Levine, Conductor with
Golda Schultz; Kathryn Lewek; Charles Castronovo; Markus Werba; Christian Van Horn; Tobias Kehrer & René Pape in
Julie Taymor’s production of Mozart’s “Die Zauberflöte”; dress rehearsal photographed: Wednesday, September 20, 2017; 11:00 AM at The Metropolitan Opera; New York, NY. Photograph: © 2017 Richard Termine
PHOTO CREDIT – Richard Termine

Palace Amusement Company, a Jamaica Stock Exchange listed company presents Mozart’s Die Zauberflöte (The Magic Flute), a delightful opera at Carib 5 in Cross Roads, this Saturday October 14th.
The opera that starts at 11:55 am will be transmitted live in HD from the Met in New York, features the legendary James Levine conducting Tony Award winner Julie Taymor’s production of Mozart’s masterpiece, Die Zauberflöte. The young prince Tamino, finds himself in a strange land, forced to undergo mysterious tests so he can rescue, then marry, the woman he loves, Pamina. Golda Schultz plays Pamina with Charles Castronovo as prince Tamino, Markus Werba as Papageno, Christian Van Horn as Sprecher, and René Pape as Sarastro.
Norma
If you missed last week’s live transmission of Bellini’s Norma, catch the encore this Sunday, 11:30 am at Palace Cineplex. Norma, tells the story of a high Priestess (Norma) who has secretly broken her vows to love Pollione, a Roman. Norma becomes revengeful as she learns of her lover’s affairs with her protégé, Adalgisa. Sondra Radvanovsky plays the titular role, Joyce DiDonato is her archrival, Adalgisa and Tenor Joseph Calleja is Pollione -Norma’s unfaithful lover.

Sondra Radvanovsky and Joseph Calleja in Bellini’s “Norma.

The Met: Live in HD launched its twelfth season Saturday, October 7, 2017 with Bellini Norma, taking in an estimated attendance of 71,581 in North America and earning a gross of $1.5 million. It was seen live on more than 900 screens. An estimated additional 111,760 people saw it live on 800 screens in 37 countries in Europe, 11 countries in Latin America, Russia, Egypt, Israel, Jamaica, Morocco, and for the first time live to Belarus and Ukraine.
Alternative Content – MoBay| For the next four months Montegonians will get back in on the action from Palace Amusement’s Alternative Content. For a limited time only, Palace Multiplex will be bringing your favourite National Theatre Live plays starting with the must-see, Obsession starring Jude Law, this Thursday at 6:00 pm. Tickets are available at box office or online at palaceamusement.com.

Junior Market trading drops

Trading on the Junior Market of the Jamaica Stock Exchange dropped on Wednesday even with 25 securities changing hands as investors exchanged just 827,619 units valued at $4,771,002 compared to 2,217,305 units valued at $9,814,861 on Tuesday.
The Junior Market Index advanced by 9.31 points to close at 2,911.69 as 8 securities advanced, 10 declined and 9 remained with the prices unchanged.
Trading ended with an average of 33,105 units for an average of $190,840 in contrast to 100,787 units for an average of $446,130 on Tuesday. The average volume and value for the month to date amounts to 71,783 units valued at $ $319,802, previously 78,790 units valued at an average of $343,165. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Thursday’s trading activity as 3 stocks ended with bids higher than their last selling prices and 2 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place, accordingly, Blue Power ended trading with a loss of $5 to $44, with 2,100 stock units, CAC 2000 finished with a loss of 50 cents at $6.50, trading 30,770 shares, Cargo Handlers settled 50 cents higher at $10, with 1,500 stock units, Caribbean Cream added 60 cents to $6.70, with 4,810 stock units trading, Caribbean Flavours finished trading with a loss of 10 cents at $11.90, with 10,000 shares. Caribbean Producers closed with a loss of 4 cents at $3.70, exchanging 24,000 shares, Derrimon Trading dipped 1 cent to $7.99, with 5,000 stock units, Eppley finished at $12, with 1,517 units, Express Catering settled 10 cents higher at $4.60, with 28,301 stock units, Honey Bun finished trading with a loss of 29 cents at $3.80, with 20,003 stock units changing hands, Iron Rock gained 10 cents to end at $2.90, with 30,000 shares. ISP Finance ended with a loss of $1.95 down to $18, with 10,000 units, Jamaican Teas ended trading with a loss of 9 cents at $4.01, with 32,324 stock units, Jetcon Corporation concluded trading 50 cents higher at $5, after 1,358 units were exchanged, KLE Group ended with a rise of 12 cents to $2.40, with 47,665 stock units, Knutsford Express traded at $14.89, with 10,187 shares. Lasco Distributors finished trading at $6, with 159,013 units, Lasco Financial closed 25 cents higher at $4.50, with 10,400 stock units, Lasco Manufacturing ended 5 cents higher at $3.80, with 27,045 units, Main Event ended trading at $5.15, with 47,602 shares, Medical Disposables concluded trading 15 cents higher at $5.30, after 17,000 units changed hands. Paramount Trading finished with a loss of 30 cents at $2.50, trading 15,000 shares, Stationery and Office settled at $4.70, with 16,146 shares and tTech finished trading at $7, with 174,928 shares. In the junior market preference segment, Eppley ended trading 5 cents higher at $6.55, with 100,950 stock units being traded,

Increased cost squeezes Kremi’s profit

Caribbean Cream delivered better results in the August quarter than in May period with an increase in revenues of 18 percent versus a 1 percent increase in the first quarter.
Profit declined in the latest quarter but by 23 percent, to $35.6 million versus a 40 percent fall in for the six months to $70 million, down from $117.6 million. Cash generated from operations came in at $98 million but Kremi spent $102 million on acquisition of fixed assets.
Gross profit declined by just 4 percent in August quarter versus 14 percent in the May quarter as increase of direct cost outpaced the rise in revenues. In the end revenues came in at $354 million in the August quarter up from $319 million in the May quarter and $300 million in yin 2016 and for the six months $673 million from $615 million in 2016.
Administrative, selling and distribution expenses increased moderately from $71 million to $76 million in the quarter and form $136 million to $147 million for the half year.
At the end of August cash and equivalent amounted to $175 million and borrowed funds $90 million. Shareholders’ equity stands at $662 million.
Earnings per share for the half year is 19 cents and 9 cents for the August quarter. IC Insider.com is forecasting earnings of 50 cents for the full year to February 2018 and 75 cents for 2019. The stock last traded at $6.70 for a PE of 13.4 which is in line with the Junior Market valuation.

Junior Market drops again

The Junior Market Index after falling 14.30 on Friday, declined further on Monday by 26.18 points to close at 2,906.00 as trading ended with 21 securities changing hands of which 6 advanced, 5 declined and 10 remained with prices unchanged.
Market activity resulted in an exchange of 904,019 units valued at $4,463,382 compared to 1,976,686 units valued at $6,469,834 on Friday.
Trading ended with an average of 43,049 units for an average of $212,542, in contrast to 89,849 units for an average of $294,083 on Friday. The average volume and value for the month to date amounts to 74,618 units valued at $323,637 and 81,597 units valued at $348,195, previously. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Tuesday’s trading activity as 4 stocks ended with bids higher than their last selling prices and 4 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place. At the close, AMG Packaging finished with a loss of 10 cents at $3.30, trading 604 units, Cargo Handlers ended at $9.50, trading 101,214 stock units, Caribbean Producers closed at $3.70, with 55,335 units, C2W Music closed at $0.49, exchanging 4,882 shares, Derrimon Trading gained 1 cent to end at $8, with 6,050 units, Dolphin Cove finished at $17.50, trading 4,162 shares. Eppley ended at $12, with 4,429 units changing hands, Express Catering settled at $4.40, with 63,989 units, General Accident concluded trading at $2.73, with 10,857 stock units, Honey Bun lost 20 cents at $4.10, with 3,000 shares, Jamaican Teas ended 5 cents higher at $4.10, with 50,135 shares. Jetcon Corporation concluded trading 1 cent higher at $5, with 70,000 stock units, KLE Group traded with a loss of 22 cents at $2.28, after 14,000 stock units traded, Knutsford Express settled at $14.89, with 1,120 shares, Lasco Distributors ended with a loss of 29 cents at $6, with 78,848 units, Lasco Financial gained 5 cents to end at $4.25, with 97,639 shares, Lasco Manufacturing concluded trading 201,526 units at $3.50. Main Event ended 8 cents higher at $5.18, with 35,041 units, Medical Disposables settled at $5.30, with 15,000 stock units, Paramount Trading rose 1 cent to $2.80, with 29,294 units and Stationery and Office finished with a loss of 8 cents at $4.70, with 56,894 shares traded.

Record 299,091 points for JSE on Monday

Sagicor Group traded at a 52 weeks’ closing high of $39.99 on Monday.

In another record close for the Jamaica Stock Exchange, the All Jamaican Composite Index ended on Monday just shy of the 300,000 mark after climbing 1,334.26 points to an all-time closing high of 299,091.16 and the JSE Index, pushed higher by 1,215.66 points to a record close at 272,505.87.
Trading on the Main Market of the Jamaica Stock Exchange ended with 23 securities changing hands, 9 advanced, 12 declined and 2 traded firm with 310,999,356 units valued at $2,974,897,171 compared to 5,262,809 units valued at $149,711,405 on Friday as Supreme Ventures accounted for 307 million units while Sagicor Group traded at a 52 weeks’ closing high of $39.99.
In the US dollar market, trading accounted for 2,300 units valued at US$1,380 as just one security traded resulting in the price rising and the JSE USD Equities Index advancing 2.29 points to close at 187.15.
Trading ended with an average of 13,521,711 units for an average of $129,343,355 in contrast to 250,610 units for an average of $7,129,115 on Friday. The average volume and value for the month to date amounts to 48911643 3,041,577 units valued at $42,110,123 and previously 927,164 units valued at $15,214,449. In contrast, September closed with average of 283,480 units at $3,630,990 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 6 stocks with bids higher than their last selling prices and none with lower offers.

JSE closes 1,000 points shy of 300,000

The market made another run at the 300,000 mark on the All Jamaican Composite Index on Monday, but fell just under 1,000 points shy, with the index ending at 299,091.16 points as the investors continued their bullish attack on a limited set of stocks.
The Main Market of the Jamaica Stock Exchange ended with 23 securities changing hands, 9 advanced, 12 declined and 2 traded firm with 310,999,356 units valued at $2,974,897,171 as Supreme Ventures accounted for 307 million units. One stock traded in the US market resulting in the price rising on small volume.
In market activity, volumes are those trades for the day and the closing prices are those at which the last trade took place. In the main activity, Barita Investments concluded trading 24 cents higher at $8, with 10,673 units changing hands, Cable & Wireless rose 2 cents to $1.02, with 126,398 shares, Caribbean Cement ended at $28, with just 144 units, Carreras ended trading with a loss of 2 cents at $13.48, with 252,898 stock units changing hands, Grace Kennedy finished with a loss of 40 cents at $43, in trading 38,318 units. Jamaica Broilers settled with a loss of 50 cents at $18, while exchanging 8,266 stock units, Jamaica Producers concluded trading with a loss of 80 cents at $15.20, with 6,459 shares, Jamaica Stock Exchange finished 10 cents higher at $7.70, with 27,315 units, JMMB Group traded 89 cents higher at $26, with 36,897 stock units, Kingston Properties settled with a loss of 5 cents at $7.15, with 2,000 units, Kingston Wharves finished 75 cents higher at $30.75, with 20,539 shares. Mayberry Investments exchanged 9,218 stock units at $4.50, property company, 138 Student Living finished 1 cent higher at $5.41, with 2,700 shares, PanJam Investment shed $1 to end at $43, with 11,244 stock units, Pulse Investments traded with a loss of 2 cents at $1.80, trading 69,750 shares, Radio Jamaica settled with a loss of 9 cents at $1.11, with 87,688 units. Sagicor Group jumped $4.99 to a record $39.99, with 52,394 shares, Sagicor Real Estate Fund closed with a loss of 8 cents at $13, after trading 3,100,000 units, Scotia Group fell 96 cents to $50, with 91,270 stock units, Seprod settled with a loss of $1.50 at $28.50, with 8,160 shares and Supreme Ventures finished with a loss of 60 cents at $9.50, with 306,999,685 stock units changing hands. In the main market preference segment, JMMB Group closed at $1.15, with 600 units and in the US dollar market Productive Business Solution rose 0.25 US cents in trading 2,300 units to close at 60 US cents.

Stinking Berger behaviour

There are some strange and shocking developments regarding the offer by Ansa Coatings International to purchase the minority shares in Berger Paints Jamaica.
First the directors in recommending that shareholders accept the offer made critical claims that are not back up by facts and they offer no information to support same. Secondly, the shares have been suspended in questionable manner and without adequate reasons.
The directors in recommending that shareholders accept the offer said,” in your directors view, it is highly likely that acceptance of the offer will take the aggregate holdings of ACI beyond 80 percent. Under the rules of the Jamaica Stock Exchange, where one shareholder either individually or collectively with concert parties holds more than 80 percent of the listed shares of a company, the stock exchange has the right to de-list such company. In fact the offeror has made it clear its intention to delist the Berger Shares.” The directors’ recommendation goes on to quote ACI statement that they will seek delisting if they acquire an additional 29 percent of the shares. “It is therefore clear that Berger Jamaica shares will in all probability be delisted from the JSE,” the directors’ statement concluded.
According to the directors, Ansa Coatings International controls 51.01 percent of the issued Berger Jamaica’s shares and as a result of this Offer, its holding will most likely exceed 75 percent.
It seems that for the recommendation to shareholders to be substantially based on the “highly likely that acceptance” taking the holdings of ACI beyond 80 percent and most likely exceed 75 percent, is highly flawed. Where did the directors get that information from and why did they not disclose the source in the recommendation. Why they did not think it appropriate to disclose the interim results figures up to August in the report?
At $10.88 per share, Berger is priced at 5 times the current years’ earnings against more than 13 for the main market, on what basis could it be regarded as a fair price?
The situation gets more curious and raises a huge question, is someone is trying to manipulate shareholders in giving away their shares at less than a fair price? That is the only conclusion to be arrived at, when without notice, the shares of Berger were without notice, suspended by the Jamaica Stock Exchange on Thursday, October 5, 2017 and is to remain suspended to Friday, October 13, 2017. According to a release late on Thursday, “this is to facilitate the processing of the transaction in respect to shareholders of the Company who have agreed to sell their shares to Asna Coating, as a part of their Takeover Bid of Berger.” That of course is a load of crap. Trading shares of Desnoes and Geddes a much bigger company was never suspended when Heineken acquired the minority shares in 2016, Hardware and Lumber shares were never suspended either, nor was Scotia Investments’ in Scotia Group’s recent acquisition of the minority shares. Why is there a need to prevent Berger shareholders who want to trade the shares if they so desire? Worse why is there need to suspend it beyond Monday?
The capital market cannot prosper as well as it should if the above abuses continue to take place without corrective action being taken. The Jamaica Stock Exchange and the Financial Services Commission should have intervened when the directors’ recommendation included information that was not backed up by facts and should have intervened and prevented the unwarranted suspension of trading in the company’s shares.