Trading on the Jamaica Stock Exchange, continue to see gains in the market indices. The main market gained over 750 points measured by the all Jamaican Composite index and the junior market rose by nearly 20 points on relatively low volume.
AMG Packaging traded 26,361 shares and climbed $1.99 to $16.99, General Accident Insurance had 253,080 shares trading at $2.10 and Lasco Distributors traded 185,161 units at $7 from the junior market. Cable & Wireless had 106,261 units changing hands at 99 cents Jamaica Stock Exchange traded 125,285 units at $27.40, Proven Investments traded cents and JMMB Group 7.50% preference share traded 130,000 units at $1.10.
At 11:45 am 32 securities traded, resulting in a volume of 1,552,704 shares changing hands carrying a value of $9,196,894, compared to 697,409 shares with a value of $5,991,867 on Wednesday at 10.45 am. The average number of shares traded amounts to 48,522 units compared to 24,049 units on Wednesday. Market activity resulted in 9 stocks falling while the prices of 11 securities rose.
The all Jamaica Composite Index jumped 786.26 points to 182,041.40 the Jamaica Stock Exchange Market Index climbed 703.06 points to 163,819.16, the Jamaica Stock Exchange combined index jumped 862.33 points to close at 175,771.86 and the junior market index fell 20.47 points to 2,321.39.
More gains for JSE stocks – Thursday
JSE stocks in sharp 3 day jump
Stocks had a bullish day on Wednesday on the Jamaica Stock Exchange, as advancing stocks had a near 2 to 1 advantage over declining ones. The market indices climbed sharply as the all Jamaican Composite Index jumping nearly 2,000 points, but trading resulted in much less volumes passing through the market compared with Tuesday.
At the close of the market prices of 21 securities gained out of a total of 46 trading, while 12 declined in the overall market, including 6 stocks rising and 5 falling, in the junior market.
At the close, 4,442,113 units valued at $19,544,716, changed hands, compared to the 7,614,266 units valued at $192,616,632 changing hands on Tuesday. The junior market accounted for 635,440 units valued at $2,690,732 of the total traded on Wednesday.
The market index ended with good gains, with the JSE Market Index climbing 1,733.79 points to end at 163,116.10. The all Jamaica Composite Index jumped 1,938.97 points to close at 181,255.14 and the JSE combined index surged 1,432.39 points, to end at 174,909.53.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 12 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, Barita Investments traded 47,767 shares and gained 50 cents to close at $4, Berger Paint lost 35 cents to close at $4.70 with 11,300 units, Cable & Wireless continues to garner more support and rose 1 cent to close at 95 cents, with 22,766 units changing hands. Caribbean Cement jumped $1.54, to close at $27.54 with 126,265 units changing hands, Carreras fell 50 cents and closed at $65 with 17,705 units trading, Grace Kennedy rose 31 cents, with 3,196 shares changing hands at $42.80, Jamaica Broilers had 107,149 shares changing hands and gained 6 cents to end at $15.06. Jamaica Producers ended with a gain of 20 cents to close at $8.50 with 22,250 units trading, Jamaica Stock Exchange fell 40 cents to end at $27 while trading 11,327 shares, JMMB Group traded 359,924 units and rose 26 cents to $10.25. Kingston Wharves traded 7,500 shares to close at $17.10, after rising 10 cents, National Commercial Bank traded 3,182 shares and closed with a gain of $1 at $42,
Pan Jamaican Investments gained 5 cents and closed at $24 after trading 11,100 shares. Radio Jamaica ended with 72,000 units trading at $1.42, Sagicor Group traded 6,400 shares to close at $23.02. Sagicor Real Estate Fund traded 1,044 shares to close with at $10.35 with a 15 cents rise, Scotia Group gained 1 cent to close at $30.51 with 29,975 shares changing hands, Scotia Investments had 8,090 units changing hands at $26, for a loss of 10 cents. Seprod closed at $21 with 3,764 shares trading, Sterling Investments fell 75 cents to close at a new high of $14.25 with 16,963 units changing hands. Jamaica Money Market Brokers 7.25% preference share traded 20,000 units at $2.40, JMMB Group 7.50% preference share traded 2,341,500 units at $1.10 and Jamaica Money Market Brokers 7.50% preference share traded 549,576 units at $2.10.
JSE’s directors not empowered to split stock
Directors of the Jamaica Stock Exchange approved a 5 for 1 stock split effective October 5, 2016 but the directors do not have the power to effect the change without the approval of shareholders at a general meeting.
According to a release today on the JSE website, the board of directors at a meeting approved the stock split of the company effective in October at the JSE’s board meeting held on September 21, the stock is expected to reflect the split in the price on the JSE on October 3, 2016. The release goes on to state that “as a result of the proposed stock split, the JSE will list an additional 561,000,000 ordinary shares, increasing the issued shares from 140,250,000 to 701,250,000”.
But there is a bit of a problem with the implementation of the decision. The directors have no power to effect the split. A change in the number of issued share capital has to be approved at a general meeting of the company. No resolution has been put to the shareholders at a meeting so to date and none is planned as such the decision will be voidable if legally challenged.
This development is strange as all of the several companies who have split their stock have had it approved by the shareholders at a general meeting. The latest is Cargo Handlers who have called an extraordinary meeting solely to approve it, admittedly, in this case the number of the authorised shares would be inadequate to facilitate it.
Best practice suggests that the directors should err on the side of caution even if they feel otherwise. Shareholders have the power to make fundamental changes to a company not the directors, the latter are just servants.
The Companies Act makes it very clear the subdivision of the shares must be approved in a general meeting. It is very clear directors can only recommend changes to the share capital, they have no power as directors to change it.
An extract of section 65 of the companies Act of Jamaica states.
(1) A company limited by shares or a company limited by guarantee and having a share capital, if so authorized by its articles, may alter the conditions of its articles as follows, that is to say, it may—
(a) increase its share capital by new shares of such amount as it thinks expedient;
(b) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
(d) subdivide its shares, or any of them, into shares of smaller amount than is fixed by the articles, so, however, that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived.
(2) The powers conferred by this section must be exercised by the company in general meeting.
The company had in issue only 140 million shares with nine of the broker members holding 10 million units each leaving only a small amount to trade regularly. The stock which now sells at $27 tends to be a bit illiquid and it is expected that the split will foster greater liquidity and allow the stock to trade more freely.
JSE main market jumps sharply
Trading on the Jamaica Stock Exchange, 
saw big gains in the market indices main market with more than 1,500 points rise in the all Jamaican Composite Index as advancing stocks overpowered decliners in early trading but with limited volumes. The junior market index slipped below the 2,300 points level.
At 10:45 am 29 securities traded, resulting in a volume of 697,409 shares changing hands compared to 6,040,541 shares carrying a value of $5,991,867 on Tuesday. The average number of shares traded amounts to 24,049 units compared to 251,689 units on Tuesday. Market activity resulted in 6 stocks falling while the prices of 13 securities rose.
The all Jamaica Composite Index jumped 1,510.12 points to 180,826 the Jamaica Stock Exchange Market Index climbed 1,350.32 points to 162,732.63, the Jamaica Stock Exchange combined index jumped 1,007.40 points to close at 174,484.54 and the junior market index fell 23.85 points to 2,294.16.
The main contributors to the gain in the indices include a $1 rise in the prices of Caribbean Cement and National Commercial Bank and a jump of $1.39 in the price of Scotia Investments, while a fall in the price of Dolphin Cove from $15 to $13.70 had a negative effect on the junior market index.
JSE stocks make strong gains – Tuesday
$85 million of NCB’s shares traded on Tuesday
At the close of the market, prices of 16 securities gained out of a total of 40 trading, while 13 declined in the overall market, including 5 stocks rising and 6 falling, in the junior market.
At the close, 7,614,266 units valued at $192,616,632, changed hands, compared to the 12,416,676 units valued at $159,207,495 changing hands on Monday. The junior market accounted for 907,063 units valued at $3,876,442 of the total traded on Tuesday. Carreras accounted for $66,047,705 and National Commercial Bank $85,057,375 of the value of stocks traded amounting to 78 percent of all trades.
The market index ended with good gains, with the JSE Market Index climbing 1,241.23 points to end at 161,382.31.
The all Jamaica Composite Index jumped 1,388.13 points to close at 179,316.17 and the JSE combined index surged 1,067.23 points, to end at 173,477.14.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 15 stocks with bids higher than their last selling prices and 7 with lower offers.
In market activity, Barita Investments gained 25 cents to close at $3.50 on Monday and seems set to rise further with the bid at $3.75 to buy 40,00 units, the stock is on offer at $4 to sell 47,767 shares at the close. Cable & Wireless continues to garner support in the mid 90 cents region and seems to be heading back over $1, but it shed 1 cent and closed at 94 cents, with 381,613 units changing hands, Caribbean Cement lost 60 cents, to close at $26 with 456,774 units changing hands. Carreras closed at $65.50 with 1,016,110 units trading, slightly less than the 1,137,767 shares traded on Monday, Grace Kennedy lost 1 cent, with 104,303 shares changing hands at $42.49, Jamaica Broilers had 88,541 shares changing hands and gained 45 cents to end at $15. Jamaica Producers ended with a loss of 20 cents to close at $8.30 with 175,143 units trading, Jamaica Stock Exchange fell 10 cents to end at $27.40 while trading 5,623 shares, JMMB Group traded 3,579 units and rose 18 cents to $9.99. Kingston Wharves traded 10,455 shares to close at $17, after falling 50 cents,
National Commercial Bank traded 2,083,020 shares and closed at $41. The price of 138 Student Living remained unchanged at $4.70, after 158,000 units changed hands, Pan Jamaican Investments gained 45 cents and closed at $23.95 after trading 7,185 shares.Portland JSX ended with 12,000 units trading at $11.39, Sagicor Group traded 103,169 shares and gained 21 cents to close at $23.02, Sagicor Real Estate Fund traded 21,100 shares to close with at $10.20. Scotia Group gained 49 cents to close at $30.50 with 7,349 shares changing hands, Scotia Investments had 133,013 units changing hands at $26.10, for a gain of 1 cent, Seprod fell by 50 cents to close at $21 with 2,724 shares trading, Sterling Investments gained 88 cents to close at a new high of $15 with 5,098 units changing hands, Supreme Ventures rose 20 cents to close at $4.90 with 1,874,873 units changing hands and Proven Investments closed at 19.99 US cents with 49,700 units trading.
Rising JSE’s stocks doubled – Monday
Supreme Ventures traded the most shares on Monday with 6.9m units
At the close of the market prices of 19 securities gained out of a total of 38 trading, with 11 declining, in the overall market, including 4 stocks rising and 5 falling, in the junior market.
At the close, 12,416,676 units valued at $159,207,495, changed hands, compared to the 56,335,591 units valued at $1,576,979,024 changing hands on Friday. The junior market accounted for 835,628 units valued at $4,086,204 of the total traded on Monday. The big trade of the day was Supreme Ventures with 6,871,362 units valued at $32,318,545 changing hands to close at $4.70 after falling 28 cents. Carreras traded over 1 million shares at a value of $73,955,605.
The market index ended with good gains, with the JSE Market Index climbing 892.01 points to end at 160,141.08. The all Jamaica Composite Index rose 997.57 points to close at 177,928.04 and the JSE combined index surged 1,128.53 points, to end at 172,409.91.
At the close, IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 16 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, Barita Investments rose 25 cents and ended with 61,030 units changing hands to close at $3.50, investors pushed the price of Cable & Wireless up by 15 cents to close at 95 cents and picked up 1,594,615 units as selling of the stock abates. Caribbean Cement rose 60 cents, to close at $26.60 with 10,315 units changing hands, Carreras traded 1,137,767 shares to close at $65.50, Investors traded 49,527 shares of 1834 Investments to close with a loss of 6 cents at $1.18, Grace Kennedy lost 50 cents, with 394,085 shares changing hands at $42.50. Jamaica Broilers had 678,683 shares changing hands and gained 5 cents to end at $14.55, Jamaica Producers ended with a gain of 10 cents to close at $8.50 with 108,851 units trading, Jamaica Stock Exchange gained $1 to end at $27.50 while trading 15,168 shares, JMMB Group traded 1,200 units and rose 1 cent to $9.81. Kingston Wharves traded 6,161 shares to close at $17.50, after falling 5 cents, Mayberry Investments had 12,000 shares changing hands, to close with a rise of 5 cents at $3.55, 
National Commercial Bank jumped by $1 with 321,588 shares trading and closed at $41, the price of 138 Student Living remained unchanged at $4.70, after 7,150 units changed hands. Pan Jamaican Investments lost just 1 cent and closed at $23.50 after trading 185,496 shares. Radio Jamaica rose 2 cents and closed at $1.42 after 8,000 shares changed hands, Sagicor Group traded 24,120 shares and fell 29 cents to close at $22.81. Sagicor Real Estate Fund traded 38,153 shares to close with a gain of 8 cents at $10.20, Scotia Group gained 30 cents to close at $30.01 with 6,124 shares changing hands. Seprod gained 99 cents to close at $21.50 with 2,333 shares trading and Proven Investments gained 0.95 19.99 US cents.
ISP $150M arsenal for expansion
ISP Finance got the money to expand lending
The bonds provide an arsenal funds that will allow for a major expansion of the company’s loan portfolio at a huge spread. At the end of December 2015, the company’s loan portfolio, before loan loss provision stood at $304 million and grew marginally to J$305 million at the end of June. After loan loss provision of $70 million, it stood at $234 million as of June this year versus $241 million at December and is up from the $225 million at the end of March 2016. The new funds should aid in a major increase in lending and should result in as welling of profits. In addition to these fresh cash injection, the company will have funds generated from profits to lend as well.
The Company will apply to the Jamaica Stock Exchange to list the bonds.
Junior market jumps sharply
Trading on the Jamaica Stock Exchange, saw big gains in the market indices with the junior market out pacing the gains with a jump of 42 points or 1.8 percent and led the combined index to gain over 1,000 points in the early morning session.
The market commenced the week with more than 1 million shares each trading in Cable & Wireless 1,591,675 units as the price held firm, Carreras traded 1,136,267 units as the price fell 50 cents for and National Commercial Bank had 319,588 shares trading at $40. Volume traded in other stocks was very moderate.
Barita Investments traded 9,250 shares at $3.51 with the price gaining 26 cents, Mayberry Investments traded 500 and gained 35 cents to $3.85, Seprod gained 99 cents in trading 1,000 shares at $21.50 and Jamaican Teas gained 40 cents in trading 27,700 shares at $4.
At 10:45 am 20 securities traded, resulting in a volume of 3,175,290 shares changing hands compared to 33,336,371 shares carrying a value of $1,215,936,825 on Friday. The average number of shares traded amounts to 158,765 units compared to 1,515,290 units on Friday. The number of stocks falling are 4 while the prices of 9 securities rose as the market continues to consolidate.
The all Jamaica Composite Index gained 813.86 points to 177,744.33, the Jamaica Stock Exchange Market Index climbed 727.73 points to 159,976.80, the Jamaica Stock Exchange combined index jumped 1,106.08 points to close at 172,387.46 and the junior market index rose 41.88 points to 2,338.84.
10 Stocks to avoid now
Junior market stocks gained 27 percent for the year to date but those in the main market have gone up just 6 percent over the same time. Seven stocks in the junior market have more than doubled two gained just over 90 percent and one over 80 percent.
In contrast the main market highest gain is at 93 percent followed by 64 percent. The above data points to the need for selective investment decision making to get the best out of investing in the stock market. Last week IC Insider started a list of top 5 stocks in the main and junior market. This week we introduce a list of the top 5 stocks to avoid at this time as some seems fully valued based on appreciation recently or in some cases the companies are not performing well. The list will be reviewed weekly and updates published. Even these stocks appreciate in the medium term they are likely to lag gains in the overall market.