In Jamaica Stock Exchange trading in the early morning session on Wednesday all main market indices rose robustly as investors started trading across a wide number of securities but with muted volumes but with two main market stocks trading at new 52 weeks’ high.
Trading resulted in activity in 28 securities, accounting for a mere 603,583 units as 17 stocks gained and 5 declined. The average number of shares traded is just 21,557 units compared to an average of 40,087 units on Tuesday.
Grace Kennedy traded just 522 shares at a 52 weeks’ high of $91.66 and so did Jamaica Producers Group that traded 76,038 shares up to a new 52 weeks’ high of $40. Palace Amusement could also trade at a new high with the bid at $140 to buy 500 shares. Elsewhere, Supreme Ventures traded 104,250 shares at $5, Caribbean Cream traded 80,555 shares at $4.47 and Lasco manufacturing traded 72,600 shares at $4.35.
After 75 minutes of trading in the early morning session, on Wednesday, the all Jamaica Composite Index rose 775.66 points to 169,667.10, the JSE Market Index rose 693.56 points to 152,754.51, the JSE combined index gained 942.52 points, to 163,474.62 and the junior market index rose 29.17 points to 2,123.15.
JSE makes early trading gains
JSE loses ground on Tuesday
Grace traded at a new 52 weeks’ high on the JSE Tuesday.
Investors pushed the price of 13 stocks in the overall market up, 13 down, including 4 stocks rising and 6 declining, from the junior market as two stocks in the main market hit new highs.
The JSE Market Index moved down by 1,629.32 points to end at 152,050.95. The all Jamaica Composite Index declined by 1,822.18 points to close at 168,891.44 and the JSE combined index dropped 1,945.68 points, to close at 162,532.10.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 17 stocks with bids higher than their last selling prices and 4 with lower offers.At the end of market activities, Cable & Wireless closed at $1.28 after trading 14,655 units, Caribbean Cement traded 100,000 shares and fell $2 and close at $24, Carreras gained 69 cents with 69,370 units trading to close at $65.20. The price of 1834 Investments gained 2 cents to close at $1.01 with 89,139 units, Grace Kennedy traded 12,167 units to gain $1 and closed at $91. Jamaica Broilers closed with a rise of 39 cents to $14.60 while trading 2,600 shares, Jamaica Producers traded 98,860 shares at $34.99, after a loss of 1 cent, JMMB Group traded 156,747 shares but declined 43 cents to close at $9.50, Kingston Properties closed with a rise of $3.30, to a 52 weeks’ high of $9.80, after trading 3,000 units.
Margaritaville Turks traded 49,500 to end at 20 US cents, National Commercial Bank traded 82,360 shares, to close with a rise of 45 cents at $40.25. Pan Jamaican Investment fell back $1.70 to close trading at $121 but with 14,738 shares changing hands, Radio Jamaica rose 2 cents in trading 12,525 shares at $1.32, Sagicor Group ended with 963,187 shares changing hands, to end at $22.30. Sagicor Real Estate Fund traded 9,981 shares but ended with a loss of 15 cents at $10, Scotia Group closed at $30 while 249,275 units changed hands, Supreme Ventures closed at $5.24 with 19,300 shares changing hands, after gaining 24 cents and JMMB Group 7.5% preference share traded with 20,000 shares at $1.04 with a loss of 1 cent.
Stock split revs Pan Jam’ stock not profit
Pan-Jamaican Investment Trust (Pan Jam) recently announced a proposed 5 for 1 stock split which sent the stock flying to $125 from below $90. The company also announced a second dividend for the year with the stock trading ex-dividend on May 27. The dividend is for 75 cents per share, payable on June 22, to shareholders on record as at May 31.
The latest payment makes the second dividend of the same amount in March this year. In June 2015, the company paid a dividend of seventy cents per shares.
Pan Jam also advised that on May 13, four members of the management team were issued stock grants under the Long Term Incentive Plan totaling 242,691 shares.
The group reported net profit attributable to owners for the quarter ended March of $721 million, up from $542 million in the 2015 first quarter, an increase of 33 percent. Earnings per stock unit amounted to $3.44 compared to $2.59 for the same period in 2015. Earnings from ongoing operations seem headed for $15 per share for this year.
Performance for the quarter reflect a gain of $185 million arising from the divestment of shares in Hardware and Lumber and an increase of $149 million in the share of associated company and joint venture companies’ results. These more than compensated for decreases of $43 million and $84 million in property and other income respectively.
Property income was reduced by lower rental income as a result of a reduction in average occupancy from 85 percent in March 2015 to 81 percent in the current year as well as reduced booking of property revaluation gains. In the first quarter of 2015, other income increased by a one-off lease buyout amounting to $87 million. Operating expenses increased principally as a result of pension costs related to the reorganisation of the group’s pension arrangements as well as amortization of new property management software. Operating expenses rose to $288.59 million from $259.57 million while Finance costs rose sharply to $130 million from $94 million.
Total assets amounted to $28.3 billion at the end of March while stockholders’ equity increased to $22.4 billion, equating to a book value per stock unit of $106.86.
Since Pan Jam announced the stock split, the stock rose to $125 on the Jamaica Stock Exchange, up from $88 at the beginning of May.
1m mobile phones cheer investors
Cable and Wireless is celebrating the recent attainment of 1 million mobile customers but investors should be celebrating as well. This milestone could mean big bucks for investors as the company moves out of losses into profit.
At the end of March 2015, the total number of cell phone customers stood at 838,000 users, the increase to 1 million resulted in 162,000 new customers. The growth in the numbers place the company around 35 percent market share as it continues to eat away at the competitor’s market share. Importantly, it translates to additional revenues that is close to $2 billion per annum. This is important for a company that suffered operating loss of $2.2 billion in 2015 and $700,000 million loss for the nine months to December 2015. With continued growth expected in the number of mobile customers, for the current fiscal year to March 2017, should move the company into a clear profit from operation, for the time since the year ending March 2007.
IC Insider.com is projecting 20 cents per share for the current fiscal year. The stock traded at $1.28 on the Jamaica Stock Exchange but could well rise when the company release full year results for 2016 March year end, by the end of May.
JSE volume remains low on Friday
Margaritaville Turks traded 531,220 shares at 20 US cents on friday
Trading volumes remained low on the Jamaica Stock Exchange on Friday even as the active number of securities remain at elevated levels. The market closed with 35 securities changing hands, accounting for just 3,475,337 units valued at $40,616,397, in all market segments. The junior market had 2,388,762 shares valued at $2,388,762 trading.
Investors pushed the price of 13 stocks in the overall market up, 13 down, including 3 stocks rising and 4 declining, from the junior market. The JSE Market Index moved down by 192.18 points to end at 153,690.27. The all Jamaica Composite Index declined by 214.93 points to close at 170,713.62 and the JSE combined index slipped 54.76 points, to close at 164,532.54.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the 
Investor’s Choice bid-offer indicator reading showed 18 stocks with bids higher than their last selling prices and 5 with lower offers.
At the end of market activities, Berger Paints traded with 4,500 shares to close at $4.38, Cable & Wireless fell 5 cents and closed at $1.28 after trading 143,757 units, Carreras dropped $1.49 with 20,051 units trading to close at $64.51, Grace Kennedy traded 100 units to gain $1 and closed at $90. Hardware and Lumber jumped $3.50 to end at $16 as 500 shares changed hands, Jamaica Broilers closed with a fall of 43 cents at $14.21 while trading 3,664 shares, Jamaica Producers traded 10,000 shares at $35, Margaritaville Turks traded 531,220 to end at 20 US cents.
National Commercial Bank traded 37,465 shares, to close with a fall of 19 cents at $39.80. Pan Jamaican Investment climbed back $1.70 to close trading at $122.70 but with just 400 shares changing hands, Radio Jamaica rose 3 cents in trading 70,612 shares at $1.30, Sagicor Group ended with 71,400 shares changing hands, fell 20 cents, to end at $22.30. Scotia Group closed with a fall of $2.70 to end at $30 while 81,365 units changed hands, Scotia Investments fell $1.09 to $25 with 12,880 shares changing hands, Sterling Investments lost 92 cents and closed at $11.98 with 24,800 shares trading. Supreme Ventures closed at $5 with 16,339 shares changing hands, after falling 29 cents and Proven Investments traded with a gain of 2 US cents to 20 US cents with 49,000 shares trading.
Pulse needs a mentor of sorts
Kingsley Cooper Chairman of Pulse
Subsequent to the annual general meeting, the directors pushed through an extraordinary meeting to consider and approved a rights issue. The legitimacy of that meeting is in question. For one the Jamaica Stock Exchange that should have been advised of the proposition a week ahead of the board meeting to consider the rights and the results of the meeting within 48 hours was not done until a few days ahead of the meeting. More importantly, the notice sent to shareholders did not meet the minimum 21 days required by law as the notice was posted around 19 days before the meeting date.
The board at the AGM admitted they were unaware that they could have submitted interim results in the past when the audit of a prior period was incomplete.
Now the company has released its nine months results showing profit of $191.5 million versus $148 million for the nine months of 2015, and $58 million compared to $48 million in the March quarter. The profit includes fair value gains on investment property of $26 million in the quarter and $78 million for the nine months. Revenues came in at $65 million for the quarter versus $57 million in 2015 and for the nine months revenues were 17 percent ahead of 2015 at $216 million.
The company paid a dividend of 6 cents per share in January this year but it is nowhere to be found in the interim statement. It should be shown as a separate line item on the cash flow statement as well as in the statement of changes in equity. Then on the list of directors’ holdings Oliver Holmes who resigned from the board some time ago is still shown in the list as a director but with no shares owned.
Sharp dip in JSE volume on Thursday
Margaritaville Turks traded at a new 52 weeks’ high on Thursday.
Investors pushed the price of 16 stocks in the overall market up, 11 down, including 3 stocks rising and 4 declining, from the junior market. The JSE Market Index moved up 13.42 points to end at 153,882.45. The all Jamaica Composite Index rose 15.01 points to close at 170,928.55 and the JSE combined index gained 44.21 points, to close at 164,532.54.
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 10 with lower offers.At the end of market activities, Barita Investments ended with 20,617 units trading, to close at $3.05, with a fall of 45 cents, Berger Paints rose 10 cents with 5,389 shares to close at $4.38, Cable & Wireless gained 7 cents and closed at $1.33 after trading 227,698 units, Caribbean Cement traded 3,800 shares to close at $26. Carreras jumped $1.99 with 300 units trading to close at $66, Grace Kennedy traded 18,430 units to gain 90 cents and closed at $89, the price of 1834 Investments declined by 3 cents in trading 34,839 units to close at 99 cents, Jamaica Broilers closed with a rise of 14 cents at $14.64 while trading 13,182 shares.
Jamaica Producers traded 2,000 shares at $35, Kingston Wharves loss 13 cents in trading 4,000 stock unit at $11.52, Margaritaville Turks traded just 200 shares and gained 2.5 cents to end at a record 20 US cents, National Commercial Bank traded 10,108 shares, to close with a rise of 14 cents at $39.99. Pan Jamaican Investment pulled back $3.94 to close trading at $121 with 3,969 shares changing hands, Radio Jamaica rose 15 cents in trading 33,600 shares at $1.27, Sagicor Group ended with 201,084 shares changing hands, and gained 30 cents, to end at $22.50. Scotia Group closed with a gain of $1.70 to end at $32.70 while 20,246 units changed hands, Seprod lost 50 cents and closed at $17.50 with 21,667 shares trading, Supreme Ventures closed at $5.39 with 41,000 shares changing hands after rising 59 cents and Proven Investments traded at 18 US cents with 21,329 shares.
Moderate JSE trading Thursday
Trading levels have been moderate in the early Thursday morning session on the Jamaica Stock Exchange with a fall in the average number of securities trading after 75 minutes of the market’s opening compared with the levels on Wednesday. 
The volume traded dropped sharply compared the the amount traded on Wednesday.
After 75 minutes of trading in the early morning session, on Thursday, the all Jamaica Composite Index rose 69.79 points to 170,983.33, the JSE Market Index rose 62.40 points to 153,931.43, the JSE combined index gained 139.33 points, to 164,627.66 and the junior market index rose 7.94 points to 2,129.12.
No trade accounted for 100,000 units or more with Barita Investments coming closest as the price fell 45 cents to $3.05 while trading 90,700 shares.
Trading resulted in activity in 25 securities, accounting for a mere 382,827 units versus 3,602,821 shares changing hands on Wednesday as 13 stocks gained and 6 declined. The average number of shares traded is just 15,313 units compared to an average of 128,672 units on Wednesday.
Kingston Wharves Q1 profit jumps
Profit before taxation for the March quarter Kingston Wharves jumped 53 percent from $212 million in 2015, to $325 million in 2016. Net profit attributable to shareholders was 48 percent higher at $276 million over the $187 million generated in the similar period in 2015 and resulted in earnings per stock unit of 19 cents, up from 13 cents in 2015.
The strong growth in profits stemmed from revenues that rose 18 percent to $1.2 billion for the quarter, the growth came from an increase of 18 percent from terminal operations and 17 percent from Logistics and Ancillary Services.
“The Group generated revenues of $943 million from terminal operations, with significant contributions from increases in domestic container and motor units. Domestic container and trans-shipment motor units volumes both grew by 20 percent while domestic motor units realized a significant 64 percent increase over the prior year. Kingston Wharves anticipates continued growth in this key segment for the remainder of 2016 as we perfect both our business development and marketing strategies and continue to gain greater operational efficiencies” Jeffrey Hall, Chairman reported to shareholders in their report accompanying the quarterly.
Logistics & Ancillary Services| “The Logistics and Ancillary Services segment also realized significant advances, with total revenue of $257 million. This was attained primarily as a result of the expansion of our local and international customer bases through aggressive market outreach and improved service levels and capabilities in line with Jamaica’s Logistics Hub Initiative,“ Hall, further stated.
Gross profit climbed well ahead of revenues, at 34 percent over the 2015 period and was major factor contributing to the profit gains as well as Administrative expenses that increased by 19 percent to $236 million. Finance costs rose marginally to $39.7 million from $37.2 million while taxation almost doubled to $45 million.
Stockholders’ Equity stood at $17.7 billion and borrowed funds at $2.33 billion at the end of March while short-term investments and cash funds amounted to $3.3 billion. In 2015 the company reported net profit of $1.26 billion or 88 cents per share, for an increase of 49 percent over the $843 million earned in 2014.
The stock last traded on the Jamaica Stock Exchange at $11.65.