NCB Capital stock talk

September 20, 2017 by

NCB Capital Markets (NCBCM) recommends that investors maintain focus on stocks of companies with diversified revenue streams by operations, geography and currency in its latest recommendations on the Jamaican stock market.
According to the brokerage house, main market companies tend to have more mature operations, stronger fundamentals and are likely to pay more attractive dividends for investors heavily dependent on cash flows. This should form the core of a moderate investor’s equity portfolio. Investors with the appropriate risk appetite should also take a closer look at some Junior Market stocks given that the potential for growth is greater than their main market counterparts. More aggressive investors should also consider taking an active approach to stock market investing by crystalizing gains on stocks that are trading above their fair value estimates, with a view to re-enter at more favourable prices in the near term.

Jamaica Broilers is a recommended buy by NCBCM

Interestingly, there are only three stocks recommended as buys, with six stocks placed on the sell list.
NCBCM recommends investors buy Jamaica Broiler with a forward price of $24, JMMB Group with a forward price of $23.80 and PanJam Investment with a forward price of $43.63.
The brokerage house is recommending selling Caribbean Cement, based on their assessment that the fair value price for the cement producer is $29.92 which is below the current price of $29.99, also on the sell list is Honey Bun, that they are saying that the PE ratio and price to book multiples for Junior Market manufacturing companies were used to derive a fair value estimate of HONBUN with a forward price of $3.70. Jamaica Producers is on the sell list as well with a forward price of $12.99 based on a price to book valuation, Mayberry Investments’ forward price is put at $3.95 and therefore a sell NCBCM says. The fair value of Scotia Group is estimated at $46.48, which is below the current price. The projected dividend yield of 3.5% is not sufficient to offset expected capital loss the NCB Financial brokerage arm says.

Scotiabank is a recommended sell by NCBCM

Stocks that are recommended as holds are Carreras based on the justified P/E and Dividend Discount Model resulted in valuation for Carreras up to $113.91 per share. Kingston Wharves forward price is $29.24, close to existing market price and Sagicor Group with fair value estimate of $34.21.
Ratings Definitions| BUY: The company has sound or improving fundamentals that should allow it to outperform the broader market over the next 12 months. The risk factors to achieving price targets are minimal.
HOLD: We believe the stock is fairly valued at the current price. The company may have issues affecting fundamentals that could take some time to resolve. The risk factors to achieving price targets are moderate. Some volatility is expected.
SELL: The stock is overpriced relative to the soundness of the company’s fundamentals and long-term prospects or the stock is fully priced.

Filed Under: Company News, JSE Combined, Stock Market Tagged With: , , , , , , , , , , , , ,

Berger investors rebuffing Ansa offer

September 19, 2017 by

Berger Paints traded at a high as $11.55 on Tuesday.

The main market of the Jamaica Stock Exchange closed trading with 25 securities changed hands, with declining stocks just edging out advancing ones, while 3 stocks traded in the US dollar market.
The market closed with 9 stocks advancing and 11 declining based on the price the trade took place.
Some noted trades include Berger Paints that continues to trade above the price on $10.88 offered by Ansa Coatings to acquire the minority holdings. Investors continue to rebuff the offer by buying the stock at the close at $11 with 153,142 shares changing hands, up to $11.55 and a low of $10.85. The stock closed with a bid to buy 103,462 units at $11 and just 2,935 units offered at $11.70 and few shares offered close to this range.
Some other trades of note are Jamaica Producers 4 million unit trade with the price dropping nearly $1 and a $3.75 jump in the price of Seprod.
At the close of market activity, Barita Investments traded at $8.15, having lost 85 cents with 4,900 units, Cable and Wireless lost 3 cents to close at $1.05 with 18,708 shares, Caribbean Cement traded $2 lower to $28 with only 240 units, Carreras closed at record high of $11.50, gaining 25 cents with 223,703 shares trading, Grace Kennedy fell 99 cents and settled at $42.01 with 11,117 shares. Jamaica Broilers closed at $16.04, losing 86 cents with just 200 units, Jamaica Producers dropped 99 cents to $15.01 exchanging 4,075,641 shares, Jamaica Stock Exchange ended with a loss of 65 cents at $6.35 with 5,000 units, JMMB Group closed at $21 trading 14,000 shares. Kingston Properties closed at $7 with 598,296 shares changing hands, Kingston Wharves exchanged 1,500 units at $32, Mayberry Investments gained 20 cents, closing at $4.70 with 11,020 shares, NCB Financial Group traded 98 cents higher to $89.98 with 42,825 shares, 1834 Investments rose 10 cents and closed at $1.40 with 3,480 units. PanJam Investment gained $1.43, closing at $35.50 with 103,000 shares, Pulse Investments closed at $1.40, losing 30 cents with 58,680 shares trading, after the company released audited accounts showing lower profit in 2017 than in 2016, due mainly to the treatment of taxation. Sagicor Group closed with gains of 50 cents at $34.50 trading 8,700 shares, Sagicor Real Estate Fund closed at $11, after gaining 38 cents with 2,747 units, Salada Foods fell 50 cents, trading at $8 with 9,000 shares, Scotia Group closed $1 higher to $51 exchanging 147,026 shares, Seprod advanced $3.75 to $33 with 16,309 shares, Supreme Ventures closed 10 cents lower to $11 exchanging 145,884 shares. Productive Business Solution US ordinary share closed at 65 US cents trading 48,360 units, Proven Investments US ordinary share traded 27,635 units at 24 US cents, JMMB Group US 6% preference share exchanged 8,617 units at US$1.12, Jamaica Money Market Brokers 7.25% preference share closed at $2.50 with 650 units and JMMB Group 7.5% preference share lost 4 cents, closing at $1.15 with 100,000 units.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

More recovery for JSE – Tuesday

September 19, 2017 by

Seprod shares jumped $3.75 on Tuesday.

Trading picked up on the main market stocks of the Jamaica Stock Exchange on Tuesday over Monday’s low level and the market indices made strong gains, continuing the recovery from last week’s steep fall and adding to Monday’s gains.
At the close the All Jamaica Composite Index advanced 4,308.59 points to close at 288,621.38, the JSE Market Index gained 3,925.61 points to 262,966.73 while the JSE US dollar market index inched higher by just 0.47 points to 191.75.
At the close of trading, 25 securities changed hands in the main market with 3 trading in the US dollar market, leading to 9 stocks advancing and 11 declining. The main market ended with 5,755,768 units valued at $88,334,159 changing hands compared to 4,567,079 units valued at $32,966,262 at the close on Monday. Trading in the US dollar market accounted for 84,612 units valued at US$47,715 bringing the total of all trades to J$94,584,782.
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 a fairly strong at 8 stocks with bids higher than their last selling prices and none with a lower offer.
The main market ended trading with an average of 230,231 units for an average of $3,533,366 for each security traded compared to an average of 182,683 units valued at $1,318,651. The average volume and value for the month to date ended at $340,965 units with an average value of $3,892,714 compared with an average of 352,182 units with an average value of $3,275,641 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
At the close Carreras rose to a new 52 weeks’ high of $11.50 after the 10 to 1 stock took effect on the market on Monday and Seprod jumped $3.75 to $33 while Scotia Group closed at $51.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , ,

Berger buyout offer extended

September 19, 2017 by

Berger Paints is worth more than $20 per share.

Ansa Coatings International, the major shareholder in Berger Paints Jamaica, announced an extension of their offer to acquire minority shares in the company to October 9.
No other change has been made to the offer and no reasons have been given for the extension.
It may be that the circular containing the recommendation of the directors having just been released at the end of last week would not have given enough time for some shareholders to respond to the recommendations. It is also an indication that the majority of the shareholders are not buying into the price being offered. If they were it would be expected that the extension notice would have mentioned a high level of acceptance and so encourage others to do likewise.
Berger’s minority shareholders are being offered $10.88 for each share, but the price has been consistently above this price for most of 2017 while the value based on earnings and market valuation being in the $20 range.

Filed Under: Company News, General Business News Tagged With: , , , , ,

Earlier JSE trade settlement coming

September 19, 2017 by

Investor in securities listed on the Jamaica Stock Exchange (JSE) starting December 11, this year, will see a change in the time required to settle transactions, from 3 days to 2.
The stock exchange and Jamaica Central Securities Depository (JCSD), will change the time for settlement of transactions from the current period of trade date plus three (3) days (T+3) to trade date plus two (2) days (T+2).
According to the exchange, “this faster settlement cycle will align the JCSD to International Standards, facilitate Increased liquidity and better cash management for stockbrokers and investors, and be generally more efficient for all stakeholders.”
“The change to T+2 will see the JSE on par with other global markets by the end of 2017,” said JSE’s Managing Director, Marlene Street Forrest.

Filed Under: JSE Combined, Stock Market Tagged With: , , ,

High price movements on Monday

September 18, 2017 by

NCBFG jumped $8.94 to $89 on Monday.

On a day of low trading activity 4 securities were dominant by movement in their prices on the main market of the Jamaica Stock Exchange as the market posted sizable gains in the indices.
Carreras rose 45 cents in closing at $11.25 with 205,850 shares after the 10 for 1 stock split, recently approved by shareholders. NCB Financial Group jumped $8.94 to $89 and Scotia Group recovered $4.95 of the loss on Friday to end at $50 and Caribbean Cement climbed $2.50 to $30.
At the close of market activity, Berger Paints slipped 50 cents to close at $11 with 60,411 shares, Cable and Wireless closed at $1.08, losing 2 cents with 146,795 stock units, Caribbean Cement advanced $2.50 to $30 with 2,000 units, Carreras rose 45 cents and closed at record high of $11.25 with 205,850 shares after the stock split, Ciboney Group lost 1 cent, trading 93,564 shares, closing at 16 cents, Grace Kennedy lost 50 cents and ended at $43 with 1,479 units. Jamaica Broilers gained 90 cents, closing at $16.90 with 42,927 shares, Jamaica Producers traded 205 units at $16, Jamaica Stock Exchange with gains of 65 cents, in closing at $7 with 1,370 units, JMMB Group closed at $21 exchanging 154,472 shares after trading as high as $23 in the morning session. Kingston Wharves ended with a loss of 40 cents at $32 with 3,142 units, Mayberry Investments gained 28 cents, in closing at $4.50 with 10,000 shares, NCB Financial Group traded $8.94 higher to $89 while exchanging 163,270 shares, 1834 Investments closed at $1.30 with 2,614,586 shares. PanJam Investment fell 43 cents, to close at $34.07 with 6,675 units, Pulse Investments closed at $1.70, losing 10 cents with 129,552 shares, Sagicor Group traded 29,148 stock units at $34, Sagicor Real Estate X Fund rose 2 cents, and closed at $10.62 with 3,000 units, Scotia Group closed $4.95 higher to $50 while exchanging 49,759 shares, Scotia Investments slipped 30 cents to $37 with 24,700 shares, Seprod exchanged 12,869 shares at $29.25 and Supreme Ventures closed 39 cents lower at $11.10 with 150,730 units. Productive Business Solution US ordinary shares closed at 65 US cents after gaining 5 cents trading 2,000 units, JMMB Group US 6% preference share traded 4,380 units at US$1.12, Jamaica Money Market Brokers 7.25% preference share closed at $2.50 with 13,600 units, Jamaica Money Market Brokers 7.5% preference share exchanged 645,775 units at $2 and Proven 8.25% cumulative redeemable preference share closed at $5.50 with 1,200 units.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

JSE rebounds on limited trading – Monday

September 18, 2017 by

NCB Financial stock stock price recovered from the fall to $80.1 on Friday, to close at $89.

Major reversals in the closing prices Scotia Group, NCB Financial Group along with a rise in the price of Carreras after the 10 for 1 stock split, drove the Jamaica Stock Exchange indices sharply higher at the close on Monday.
At the end of trading, the All Jamaica Composite Index jump of 7,363.43 points after rising over 9,000 points in the first hour of trading and settled at 284,312.79. The JSE Market Index held on to a big rise of 6,708.92 points by the close to 259,041.12 after the index surged close to 9,000 points in early morning trading. The JSE US dollar market index rose 4.60 points to 191.28.
Trading was light resulting from 25 securities changing hands in the main market with 2 trading in the US dollar market, leading to 9 stocks advancing and 9 declining. The main market ended with 4,567,079 units valued at $32,966,262 changing hands compared to 58,667,241 units valued at $128,145,103 at the close on Friday. Trading in the US dollar market accounted for 6,380 units valued at US$6,206 bringing the total of all trades to J$33,779,196.
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 ended with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 182,683 units, for an average of $1,318,651 for each security traded, compared to an average of 2,256,432 units valued at $4,928,658 on Friday. The average volume and value for the month to date ended at 352,182 units with an average value of $$3,275,641 compared with an average of 367,951 units with an average value of $3,438,723 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , ,

Scotia drops $6.95 & NCB $10.19 – Friday

September 15, 2017 by

NCB $10.19 on Friday.

Stocks advancing on the Jamaica Stock Exchange were edged out 11 declining stocks 10 on Friday, but that did not prevent the All Jamaica Composite Index tumbling by a record 10,134.09 points as investors pushed down the prices of Scotia Group to $45.05 within 2 minutes of the close and NCB Financial to $80.06.
The sharp fall in the market on Friday does not appear to be an indication that the upward climb in the market has ended. The 6 to 2 positive Investor’s Choice bid-offer indicator suggests that the majority of prices could be rising on Monday.
At the close of market activity, Berger Paints gained of 50 cents, and closed at $11.50 with 28,241 shares, Cable and Wireless closed at $1.10, after falling 9 cents with 28,080 stock units changing hands, Caribbean Cement exchanged 7,900 units at $27.50, Carreras lost 3 cents and closed at $107.97 with 62,828 shares, Ciboney Group fell 3 cents trading 388,884 stock units at 17 cents, Grace Kennedy climbed $1.50 and ended at $43.50 with 6,005 units. Jamaica Broilers gained 25 cents, closing at $16 with 347,061 shares, Jamaica Producers traded $1 higher to $16 with 58,252 stock units, Jamaica Stock Exchange lost 16 cents to close at $6.35 with 536 units, JMMB Group with a loss of 20 cents, closed at $21 exchanging 147,249 shares. Kingston Properties exchanged 83,308 stock units at $7, Kingston Wharves climbed $1.55 to $32.40 with 13,777 shares, NCB Financial Group dropped a whopping $10.19, closing at $80.06 with 268,345 stock units, 1834 Investments ended with a loss of 4 cents at $1.30 with 2,384 units. PanJam Investment rose 65 cents and closed at $34.50 with 109,570 shares, Pulse Investments gained 10 cents, closing at $1.80 with 189,637 units, Radio Jamaica closed at $1.05, after gaining 1 cent with 2,039,632 shares, Sagicor Group traded 53 cents lower to $34 with 174,537 stock units, Sagicor Real Estate X Fund ended with a loss of 40 cents at $10.60 with 4,000 units, Scotia Group dropped $6.95 lower to $45.05 exchanging 306,497 shares, Sterling Investments gained 10 cents to close at $12 with 6,371 units and Supreme Ventures closed at $11.49 while gaining 69 cents with 24,710 shares changing ownership, Proven Investments US ordinary share closed at 23.99 US cents trading 219,700 units, Jamaica Money Market Brokers 7.5% preference share exchanged 4,369,225 units at $2, JMMB Group 7.5% preference share closed at $1.19 with 112 units and Sagicor Bank Jamaica Class A 7.75% cumulative redeemable preference share gained 5 cents to close at $1.05 with 50,000,000 units traded.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Record fall closes week for JSE – Friday

September 15, 2017 by

Scotia Group dropped from at record high of $60 before nine months reuslts and fell to $45.05 after.

Investors pushed down the prices of Scotia Group from $51 to $45.05 within 2 minutes of the close and NCB Financial from $90 to $80.06, on the Jamaica Stock Exchange, knocking off around 6,000 points within 11 minutes of the close.
The sharp fall in the prices of the two stocks,  pushed an already battered All Jamaica Composite Index, down by a record 10,134.09 points to close at 276,949.36 points, and well off the intraday high of 296,779.53 points, reached at 9.50 am on September 7.
Friday’s decline is the largest in a single day, exceeding the 9,295.39 points fall on April 2004, down to 94,329.90. In percentage terms Friday’s move ranked pretty low representing 3.5 percent compared to 9 percent in 2004 fall. The JSE Market Index fell by 9,233.31 points to 252,332.20 and the JSE US dollar market index rose 0.89 points to 186.68.
The market was pulling back from short term resistance level close 300,000 points on the All Jamaica Composite Index. the market seems to have closed around a short term support level and should be consolidating next week, to again challenge the resistance level. With Scotia Group report unattractive nine months’ results, it is unlikely to deliver the punch it did when the market was making new highs during the first week in September. The market is moving within an upward moving channel,  clearly shown in the chart of the index. The odds favour the market moving within the channel for a while as investors await nine months’ results that will be the guide as to the direction of the market.
At the close of trading, 26 securities changed hands in the main market with 1 trading in the US dollar market, leading to 11 stocks advancing and 10 declining. The main market ended with 58,667,241 units valued at $128,145,103 changing hands compared to 5,966,372 units valued at $106,313,754 at the close on Thursday. Trading in the US dollar market accounted for 219,700 units valued at US$52,495 bringing the total of all trades to J$135,021,959.
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 2 with lower offers.
The main market ended trading with an average of 2,256,432 units valued at $4,928,658 for each security traded compared to an average of 284,113 units valued at $5,062,560. The average volume and value for the month to date, ended at 367,591 units with an average value of $3,438,723 compared with an average of 178,706 units with an average value of $3,303,275 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , ,

Scotia Group drops $2

September 14, 2017 by

Scotia Group price dropped as nine months results were soft.

Trading picked up on Thursday with value of trading increasing sharply over the low level on Wednesday, but the most prominent stock in the last two weeks, Scotia Group fell in response to lower than expected profits leading to a fall in the market indices.
The number of securities trading ended at 23 compared to 28 on Wednesday but the volume traded rose well ahead of Wednesday’s level at 6,273,419 units versus 2,295,944 units.
At the close of the market the volume of stocks changing hands and prices they last traded at, are Berger Paints exchanging 64,088 shares at $11, Cable and Wireless rising 9 cents, to $1.15 with 151,475 units, Caribbean Cement closing at $27.50 and losing 50 cents with 181,572 shares, Carreras closed at $108 with 20,739 stock units, Grace Kennedy with a loss of 5 cents, to end at $42 trading 1,480,399 shares. Jamaica Broilers dropped $1.05 to $15.75 with 696,244 shares, with investors reacting negatively to lower profit in the first quarter to July, with Net Profit from continuing operations coming in at $212.6 million versus $401.3 million. Jamaica Stock Exchange gained 2 cents to close at $6.51 with 288,079 shares, followed by JMMB Group that closed at $21.20, with a loss of 30 cents in exchanging 44,432 shares. Kingston Wharves ended with gains of 37 cents at $30.85 with 4,100 units, Mayberry Investments dropped 58 cents to $4.22, with 4,488 units, NCB Financial Group closed 25 cents higher to $90.25 with 44,389 shares, 138 Student Living traded 8,350 units at $4.75. PanJam Investment lost 40 cents to $33.85 with 400 units, Pulse Investments lost 5 cents, closing at $1.70 with 27,523 shares, Radio Jamaica fell by 16 cents, ending at $1.04 with 1,534,960 shares, Sagicor Group traded $1.28 higher to $34.53 with 32,438 stock units, Salada Foods gained 50 cents, ending at $8.50 trading 75,000 shares, Scotia Group closed $2 lower to $52 exchanging 182,331 units, Sterling Investments lost 10 cents to close at $11.90 with 264,322 shares, Supreme Ventures closed at $10.80, losing 20 cents with 5,722 units. Productive Business Solution US ordinary shares traded 6,820 units at 60 US cents, Proven Investments US ordinary shares closed at 23.99 US cents, with gains of 0.99 US cent, in exchanging 300,227 units and Jamaica Money Market Brokers 7.5% preference share traded 855,271 units at $2.

 

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,