The main market of the Jamaica Stock Exchange, ceded some grounds to close out Tuesday ‘s trading. Advancing stocks being just below decliners.
At the close the All Jamaica Composite Index lost 118.15 points to close at 213,521.41 and is just 9 points adrift from the all-time high reached on January 6. The JSE Market Index slipped 105.65 points to finish at 195,300.68 and the JSE combined index fell 50.23 points to close at 209,536.40.
The market closed with 40 securities changing hands, 16 stocks gained and 11 declined in the overall market, including 6 stocks rising and 5 falling, in the junior market.
At the close with 4,982,675 units valued at $90,430,065 changed hands, compared to 24,599,887 units valued at $157,873,358 changing hands on Monday. Of the stocks traded, the junior market accounted for 1,234,173 units, changing hands, valued at $7,873,809.
The average trade for the day in the main market ended at 138,833 shares compared to an average of 688,233 units traded on Monday. The average for the month to date, is 489,448 versus 840,062 units on the previous trading day, well below the average of 549,379 units, December ended with.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, Berger Paints ended trading of 32,268 shares to close at $6, Cable and Wireless ended with 1,623,683 units at $1.30, after gaining 15 cents, Caribbean Cement ended with a fall of $1 while trading 255,458 shares to close at $32, Carreras closed at $66.50 with 7,191 shares changing hands after falling by 25 cents. Grace Kennedy had 112,010 units trading, with the price rising 55 cents, to close at $40.65, Jamaica Broilers fell 88 cents and closed at $14.62 with 54,101 shares changing hands, Jamaica Producers traded 30,807 shares to end at $9.50, Jamaica Stock Exchange traded 72,932 shares, to end at $5.60, JMMB Group traded 79,284 units to end at $15.20. Kingston Wharves gained 51 cents in trading 11,095 units to close at 52 weeks’ high of $25.51, National Commercial Bank fell 25 cents swapping 10,672 shares to close at $51.75, investors swapped 877,115 units of 138 Student Living at $4.50. Pan Jam Investment traded 47,415 units with the price jumping $3.40 to end at a $30, Portland JSX traded 3,242 units to end with a loss of 80 cents at a 52 weeks’ low of $10.20.
Pulse Investments traded 24,651 units and gained 50 cents to close at $4.50, but ended trading with the offer at $4. Radio Jamaica traded 337,368 shares to close at $1.28, Sagicor Group closed with 4,900 shares changing hands with a rise of 9 cents at $28.30, Scotia Group with 49,400 shares changing hands, rose 50 cents to close at $36.50, Scotia Investments fell 1 cent with 16,232 units trading, to end at $32.49. Seprod traded 21,012 shares but lost 89 cents in closing at $29.51, Supreme Ventures lost 14 cents in trading 37,216 units at $5.15 and Proven Investments traded 14,970 ordinary shares to close at 21.99 US cents.
Jamaican stocks cede ground on Tuesday
Jamaican stocks close at new high on Monday
Seprod closed at 52 weeks’ high on Monday of $30.40.
At the close the All Jamaica Composite Index jumped 2,649.71 points to close at 213,639.56 and is just 9 points adrift from the all-time high reached on January 6. The JSE Market Index surged 2,369.31 points to finish at 195,406.33 or 8 points below the high on the 6th of January. Thanks to moderate gains in the junior market, the JSE combined index climbed 2,217.41 points to close at an all-time high of 209,586.63.
The market closed with 40 securities changing hands, 16 stocks gained and 11 declined in the overall market, including 7 stocks rising and 3 falling, in the junior market.
At the close with 24,599,887 units valued at $157,873,358 changed hands, compared to 34,147,320 units valued at just $169,240,005 changing hands on Friday. Of the stocks traded, the junior market accounted for 7,394,074 units, changing hands, valued at $28,781,077.
The average trade for the day in the main market ended at 688,233 shares compared to an average of 1,241,085 units traded on Friday. The average for the month to date, is 840,062 versus 991,892 units on the previous trading day, well below the average of 549,379 units, December ended with.IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Berger Paints ended trading of 616,346 shares to close at $6, Cable and Wireless ended with 1,036,695 units at $1.15, after gaining 7 cents, Caribbean Cement ended with a fall of $3 while trading 36,007 shares to close at $33, Carreras closed at $66.75 with, 9,147 shares changing hands. Grace Kennedy had 37,432 units trading, with the price falling 35 cents, to close at $40.10, Jamaica Broilers rose by 50 cents and closed at $15.50 with 1,161,456 shares changing hands, Jamaica Producers traded 88,336 shares to end at $9.50, Jamaica Stock Exchange traded 405,100 shares, to end at $5.60, JMMB Group traded 1,148,746 units to end at $15.20. 1 Kingston Wharves gained 44 cents in trading 6,985 units to close at $24.99, National Commercial Bank traded 11,735 shares to close at $52, investors swapped 8,566,723 units of 138 Student Living at $4.50. Pan Jam Investment traded just 950 units with the price jumping $3.40 to end at a 52 weeks’ closing high of $30, Portland JSX traded 2,000 units to end with a gain of 75 cents at $11.
Sagicor Group closed with 254,756 shares changing hands with a loss of 83 cents at $28.21, Scotia Group with 35,233 shares changing hands, rose 98 cents to close at $36, Scotia Investments gained $1 with 114,529 units trading, to end at $32.50, Seprod traded 334,564 shares to gain 40 cents in closing at a 52 weeks’ high of $30.40. Supreme Ventures lost 11 cents and traded 3,224,068 units at $5.29, Proven Investments traded 25,000 ordinary shares to close at 21.99 US cents, JMMB US 6% preference share ended at US$1.09, with 36,325 units changing hands and JMMB 7.25% preference share ended at $1.50, with 64,216 units being traded.
Jamaican stocks jump in early trading
Jetcon trades at a new high of $9 on Monnday.
Investors seem to be reacting positively to an announcement by Jetcon Corporation of a likely dividend and stock split as they drove the stock up by a $1 to a new high of $8 in trading 171,500 units, shortly after opening and shot up to $9 where trading is frozen for an hour with 172,334 units trading in all. Caribbean Producers, traded 500,000 shares and rose 40 cents to $4, General Accident Insurance traded 4,413,793 shares at $2.90, tTech rose 10 cents to $6 with 180,684 shares changing hands, Lasco Manufacturing had 1,600,000 units trading at $5.08. Caribbean Cream traded 6,000 at $6.55 and then recovered to $7 with 47,823 units trading. In the main market, Berger Paints traded 616,346 units to end at $6,
Cable & Wireless climbed to $1.12 with 426,500 units and then fell back to $1.05 with 499,382 units, JMMB Group had 1,122,175 shares trading at $15.30 and Supreme Ventures lost 32 cents and traded 3,205,834 units at $5.08.Volumes rose sharply with high volume in some selected stocks as 32 securities traded at 10:45 am, compared to 29 on Friday. A total of 11 securities advanced and 11 declined, resulting in a volume of 12,710,223 shares changing hands, carrying a value of $68,889,688, compared of 1,490,866 shares changing hands, carrying a value of $16,271,265 on Friday. The average number of shares traded, amount to 397,194 units versus 51,409 units on Friday.
The all Jamaica Composite Index jumped 2,246.61 points to 213,236.46, the Jamaica Stock Exchange Market Index gained 2,008.86 points 194,985.46, the Jamaica Stock Exchange combined index climbed 1,964.37 points to 209,277.56 and the junior market index rose 9.88 points above the record close on Friday to 2,769.35.
IS PE of 40 rational for junior stocks?
Honey Bun shot up by more than 500% in 2016 shortly after stock split.
Yes, interest rates are at their lowest levels in decades, the Jamaican dollar hit rock bottom and bounced and business confidence as measured by the stock market, is at an all-time high. Even then there is little rationale for Cargo Handlers to be selling at a PE of 38 based on estimated 2017 earnings and worse, 51 times 2016 earnings.
IC Insider.com checked with an officer of the company, to get an understanding as to what was going on with the stock. Are profits running well ahead of 2016, there was no evidence of that, according to the company, operations are running close to that of 2016, was the response. Are there expansion plans on the table? The answer was there are no such plans in the works. Well, it could be the fact that the economy of Montego Bay where the company operates, is said to be growing at 7 percent per annum, be a factor. Some persons think it may be the dividend yield, but that makes no sense whatsoever as the yield would be a mere 2 percent, at the present stock price if all profit of 41 cents per share for 2016 were paid out. The only answer, the stock appears cheap to many, in dollar terms with the 10 to 1 stock split that took place in late 2016 and supply continues to be relatively low.
The stock is selling well in excess of the average market and the next highest valued in the junior market, Honey Bun that is at a PE of 21 based on 2016 earnings but a more moderate 14 times projected 2017 earnings.It not surprising that Cargo Handlers heads the list of most overvalued stocks on both the main and junior market.
The company reported profit climbing 25 percent for their September quarter last year and 31 percent for the full year before taxation and could result in earnings of 55 cents per share for 2017. That would still leave it with an eye popping PE of 38 times current year’s earnings. At this level of PE investors are assuming that profits will be rising around 38 percent per annum for a while and that does not seem rational, if that were the case, then Access Financial should be selling around $137 per share, with earnings seemingly likely to grow around 30-40 percent per annum, for a while.
Jetcon Flavours in TOP 5
There were few changes in the TOP 5 listing this past week, but Jetcon fell out of the list having climbed to $7 at the close of the week, to help flavour in Caribbean Flavours into the top list.
Price movements saw Access Financial edging towards the exit with the bid now at $26.50 and buying pushing the price up during the week as a connected party bought stock at $25.50. The stock last traded at $25.20 and closed without any stock being offer for sale.
The stocks of the main market listing, remained without change but Cement saw its price moved up to close out the week at $36 as well as did JMMB Group with heavily trading during the week.
Paramount exits TOP 5 overvalued stocks
Paramount
Iron Rock Insurance entered the junior list as operating results fall behind forecast.
There seems to be little rationale for Cargo Handlers to be selling at a PE of 35 based on estimated 2017 earnings and worse 51 times 2016 earnings. The stock is selling well in excess of the average market and the next highest valued in the junior market, Honey Bun that is at a PE of 21, based on 2016 earnings but a more moderate 14 times projected 2017 earnings.
It not surprising that Cargo Handlers heads the list of most overvalued stocks on both the main and junior market, followed by Kingston Wharves and 138 Student Living.
Iron Rock projected losses in the prospectus for 2016 of $30 million and a small profit of $3 million which includes foreign exchange gains of $7 million in 2018. Year to date losses to September last year, are running well ahead of the prospectus’ forecast with losses of $38 million with the September quarter’s losses ended at $14 million. More worrying is that projections of gross premium income of $169.36 million in 2016 rising to $414.97 in 2017 are well off what seems to be occurring in 2016 with results for the nine months showing gross premium of just $59 million well below forecast by $110 million. With all of this happening investors pushed the stock up to $4 for a premium above the listed price.
Jamaican stock indices eased again on Friday
The main market of the Jamaica Stock Exchange, lost some more grounds at the close on Friday but the junior market hit a new closing high, even as advancing stocks beat out declining ones 2 to 1.
At the close the All Jamaica Composite Index , fell 208.15 points to close at 210,989.85 The JSE Market Index lost 186.11 points to finish at 193,037.02. Thanks to moderate gains in the junior market, the JSE combined index fell by a smaller 107.92 points to close of 207,369.22.
The market closed with 44 securities changing hands, 1stocks gained and 11 declined in the overall market, including 11 stocks rising and 5 falling, in the junior market.
At the close with 34,147,320 units valued at $169,240,005 changed hands, compared to 6,801,958 units valued at $105,007,240 changing hands on Thursday. Of the stocks traded, the junior market accounted for 1,879,103 units, changing hands, valued at $12,784,650.
The average trade for the day in the main market ended at 1,241,085, shares compared to an average of 242,331 units traded on Thursday. The average for the month to date, is 991,892 versus 742,670 units on the previous trading day, well below the average of 549,379 units, December ended with.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the 
Investor’s Choice bid-offer indicator reading shows 9 stocks with bids higher than their last selling prices and 4 with lower offers.
In market activity, Barita Investments lost 17 cents, and ended trading 24,311 shares, to close at $6, Berger Paints traded 18,379 units at $6, Cable and Wireless ended with 603,857 units to end at $1.08, after gaining 10 cents, Caribbean Cement ended with a rise of 60 cents while trading just 15,154 shares to close at $36. Carreras recovered 75 cents and closed at $66.75 with 16,835 shares changing hands. 1834 Investments rose 4 cents to end at $1.32 with 102,524 units changing hands, Grace Kennedy had 3,256 units trading, with the price falling 20 cents, to close at $40.45. Jamaica Broilers declined by 50 cents and closed at $15 with 14,107 shares changing hands, Jamaica Producers traded 66,566 shares and rose by 9 cents to end at $9.50, Jamaica Stock Exchange in trading 67,603 shares, ended at $5.60, 
JMMB Group traded 23,852 units and gained 19 cents to end at $15.20. National Commercial Bank traded 30,975 shares to close at $52, 138 Student Living ended trading with 30,734,795 shares at $4.50, Portland JSX traded 12,922 units at $10.25 after falling 72 cents. Sagicor Group closed with 246,978 shares changing hands with a rise of 94 cents to end at $29.04, Scotia Group with 88,319 shares changing hands, rose 1 cent to close at $35.02, Scotia Investments with 24,440 units trading, ended at $31.50, Seprod traded 5,546 shares in closing at $30. Supreme Ventures traded 50,536 units to gain 29 cents to close at $5.40 and Proven Investments traded 11,998 ordinary share to close at 22 US cents.
Kremi’s profit fall pushes stock down
Caribbean Cream fell $1 to $7 while trading 199,000 units in response to the company posting profit of $19 million in the November quarter, down from $39 million in the same period in 2015. Profit for the year to date is up to $137 million from $124 million in 2015. More trading took place with 1,000 units at $7.50 but 300,000 units were offered at $7.45.
Notwithstanding the sharp fall of Caribbean Cream price, the junior market index rose moderately. The main market index rose as well. In trading elsewhere, Lasco Distributors had 599,260 units trading at $7, 
AMG Packaging hit a new high of $32.55 and Blue Power traded at a new high of $35.50.
Market activity has been moderate so far resulting in 29 securities traded at 10:45 am, compared to 26 on Thursday. A total of 11 securities advanced and 7 declined, resulting in a volume of 1,490,866 shares changing hands, carrying a value of $16,271,265, compared of 1,790,982 shares changing hands, carrying a value of $22,912,791 on Thursday. The average number of shares traded, amount to 51,409 units versus 68,884 units on Thursday.
The all Jamaica Composite Index rose 773.25 points to 211,971.25, the Jamaica Stock Exchange Market Index gained 691.43 points 193,914.56 the Jamaica Stock Exchange combined index climbed 707.44 points to 208,184.58 and the junior market index rose 6.45 points above the record close on Thursday to 2,759.63.
Jamaican stocks mostly up – Thursday
The main market of the Jamaica Stock Exchange, lost some more grounds at the close on Thursday but the junior market hit a new closing high, even as advancing stocks beat out declining ones 3 to 1.
At the close the All Jamaica Composite Index , fell 82.08 points to close at 211,198.00 The JSE Market Index lost 1,374.61 points to finish at 193,223.13. Thanks to moderate gains in the junior market, the JSE combined index rose 240.58 points to close of 207,477.14.
The market closed with 43 securities changing hands, 23 stocks gained and 7 declined in the overall market, including 5 stocks rising and 6 falling, in the junior market.
At the close with 6,801,958 units valued at $105,007,240 changed hands, compared to 55,154,094 units valued at just $80,360,424 changing hands on Wednesday. Of the stocks traded, the junior market accounted for 3,135,713 units, changing hands, valued at $16,330,699.
The average trade for the day in the main market ended at 2,261,669 shares compared to an average of 1,243,069 units traded on Wednesday. The average for the month to date, is versus 224,468 units on the previous trading day, well below the average of 549,379 units, December ended with.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 13 stocks with bids higher than their last selling prices and 5 with lower offers.
In market activity, Barita Investments gained 17 cents and ended trading 112,000 shares to close at 52 weeks high of $6.17, after trading at a low of $5.55 for the day. Cable and Wireless ended with 178,465 units at 98 cents, after gaining 8 cents, Caribbean Cement ended with a rise of $1.40 while trading just 6,680 shares to close at $35.40, Carreras lost 75 cents and closed at $66 with, 44,510 shares changing hands, Grace Kennedy had 37,432 units trading, with the price rising 55 cents, to close at $40.65. Jamaica Broilers rose by 70 cents and closed at $15.50 with 6,615 shares changing hands, Jamaica Producers traded 113,500 shares to end at $9.41, Jamaica Stock Exchange rose by 1 cents in trading 84,987 shares, to end at $5.60, JMMB Group traded 5,079,776 units and fell 44 cents to end at $15.01.
National Commercial Bank traded 85,928 shares while rising of $1 to close at $52, Pan Jam Investment traded 6,975 shares and rose 8 cents to close at $26.60, Portland JSX traded 16,000 units at $11. Pulse Investments ended at $4 with 21,600 units changing hands, Sagicor Group closed with 25,000 shares changing hands with a loss of 40 cents at $28.10. Scotia Group with 28,023 shares changing hands, rose 51 cents to close at $35.01, Scotia Investments gained 40 cents with 38,160 units trading, to end at $31.50, Seprod traded 9,152 shares to gain 5 cents in closing at $30. Proven Investments traded 86,500 ordinary share to close at 22 US cents and JMMB US 6% preference shares ended at US$1.11, with 65,240 units changing hands.
Cargo Handlers’ new high, topping seen
Cargo Handlers traded 6,618 units at a new high of $21 in early market activity but cracks may now showing in the price movements, with just over 69,000 units on offer at $21 and thin demand under $20.80. The PE of the stock is at a high 35 times 2017 estimated earnings placing it well ahead of the nearest other stock.
Market activity has been moderate so far and resulted in 26 securities traded at 10:45 am, compared to 31 on Wednesday. 
A total of 11 securities advanced and 7 declined, resulting in a volume of 1,790,982 shares changing hands, carrying a value of $22,912,791, compared of 10,271,602 shares changing hands, with a value of $18,345,463 on Wednesday. The average number of shares traded, amount to 68,884 units versus 331,342 units on Wednesday.
Market activity was helped by Barita Investments traded 112,000 between $5.55 and $6.17 after audited accounts showed a lower profit than was shown when the results were first released. Cable & Wireless trading 178,465 units trading up to 98 cents, Caribbean Producers trading 100,000 at $3.60, JMMB Group trading 1,077,076 shares up to $15
The all Jamaica Composite Index lost 518.88 points to 210,761.20, the Jamaica Stock Exchange Market Index fell 463.97 points 192,832.56 the Jamaica Stock Exchange combined index dipped 291.45 points to 206,945.11 and the junior market index rose 13.50 points to 2,736.66 just ahead of the 2,734.21 high point in early trading on Wednesday.