Volumes traded were moderate in trading on the Jamaica Stock Exchange in the main market on Wednesday, but the indices that slipped close to 1,000 points in the first hour of trading recovered to suffer a mild declined at the end.
The market closed with 39 securities changed hands, accounting for 3,600,852 units valued at $56,805,624, in all market segments. The junior market accounted for 952,289 units of the shares traded, valued at $5,433,865. Investors pushed the price of 16 stocks in the overall market up, 12 were pushed down including 9 stocks rising and 5 declining, from the junior market.
The JSE Market Index fell 152.90 points to end at 151,348.17. 
The all Jamaica Composite Index slipped 171.01 points to close at 168,094.29 and the JSE combined index declined 61.78 points, to close at 162,711.68.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 5 with lower offers.
At the end of market activities, Berger Paints traded 40,000 shares to rise 11 cents and closed at $4.25, Cable & Wireless gained 1 cent and closed at $1.40 after trading 495,304 units, Caribbean Cement traded 77,185 shares as the price dropped $1.99 to close at $26, Carreras traded 373,051 shares but fell by 50 cents, to $63.50. Grace Kennedy gained $1 and closed at $85 with 108,960 shares changing hands, Jamaica Broilers ended at $14.50 while trading 167,381 shares, JMMB Group fell 15 cents in trading 1,081,028 shares to close at $9.85, Mayberry Investments fell 5 cents in trading 16,093 shares at $4.20, National Commercial Bank gained 5 cents while trading 3,740 shares, to close at $39.85. Pan Jamaican Investment did not trade but the bid moved up to $99, a dollar above the last selling price, after the company announced a 5 for 1 stock split, Radio Jamaica traded 154,400 shares to end at $1.10. 
Sagicor Group ended with 22,092 shares changing hands and lost 10 cents to end at $22.90, Sagicor Real Estate Fund traded 1,500 shares to close at $10 after declining by 10 cents, Salada Foods traded 6,000 shares to end at $8.80 after trading at an intraday low of $7.50. Scotia Group closed at $31 while 6,144 units changed hands, Scotia Investments jumped $1.44 and ended trading 37,876 shares to close at $27.44, Seprod fell $1 to close at $17 with 1,500 units changing hands and Supreme Ventures closed at $5.49 with 27,617 shares changing hands.
JSE reverses large early losses – Wednesday
Pan Jam’s 5 for 1 split
IC Insider.com long standing BUY RATED stock, Pan-Jamaican Investment Trust (PJAM) may now be set to come into its own with an announced 5 for 1 stock split approved by the board in February, with the Jamaica Stock Exchange being informed more than 2 months after they should have been.
The stock last traded on the Jamaica Stock Exchange at $98, but based on its earnings of $15.19, the price should be much higher. The stock price has struggled for some time to achieve the valuation that most other stocks in the main market have attained, since the start 2015. As one of the highest priced stocks on the Jamaican market, investors have been looking elsewhere, to invest their money, leaving the stock attractively priced and undervalued.
Various investors in the past, have been saying that the company needed to split the stock to make it more attractive for investors. Management felt otherwise, saying that a split would make it appear to be a penny stock, in the eyes of overseas investors.
It seems like the decision of both Jamaican Teas and the Lasco group to split and the impact that the spilt has had on the prices of these stocks may have convinced the Pan Jam directors to take the plunge.
The company in a release to the Stock Exchange today, advised that the following resolution was recommended by the Board of Directors at its meeting held on February 29, 2016: “Special Resolution- Resolution for the Sub-Division of Shares – “That each of the 250,000,000 ordinary shares in the capital of the company be subdivided in 5 ordinary shares each thereby making a total share capital of 1,250,000,000 ordinary shares of no par value at the existing total stated capital of 2,141,985,000 with effect from the close of business on May 31, 2016”.
The resolution is subject to approval at the Annual General Meeting scheduled for Thursday, May 26, 2016.
Interestingly, the Jamaica Stock Exchange rule states that a company is required to give notice to the Exchange of at least a week in advance, the date of the Board meeting at which the declaration or recommendation of a dividend, bonus issue or rights issue will be considered. Question did Pan Jamaican comply?
JSE majors down nearly 1,000 points
Trading after 75 minutes in the early morning session on the Jamaica Stock Exchange, on Wednesday, saw the main market shedding ground, with the all Jamaica Composite Index falling almost 991.84 points after an hours and 20 minutes of trading, but recovered to lose 555 points shortly after. At the same time the junior market just inched up.
Stocks traded more than 100,000 units are, Jamaica Broilers with 428,004 shares, Cable & Wireless with 185,438 units, Lasco Distributors with 191,873 units at $7.65, tTech had 113,861 units changing hands up $4.50, Radio Jamaica had 102,300 units trading at $1.10.
Caribbean Cement fell back by $1.99 with 62,758 shares at $26 and Honey Bun traded at a new high of $19.55 with 10,000 shares having changed hands.
Trading resulted in activity in 28 securities, accounting for 910,214 shares changing hands as 8 stocks gained and 10 declined. The average number of shares traded is 32,508 compared to an average of 70,975 units on Tuesday.
The market saw the all Jamaica Composite Index dropped 555.06 points to 167,710.24, the JSE Market Index fell 496.30 points to 151,004.77, the JSE combined index ended with a fall of 458.55 points to 162,314.91 and the junior market index gained just 0.18 points to 2,168.33.
JSE reverses most of early losses – Tuesday
Carib Cement jumped $1.99 to close at $27.99 on Tuesday.
The market closed with 37 securities changed hands, accounting for 5,791,740 units valued at $159,776,122, in all market segments. The junior market accounted for 1,364,688 units of the shares traded, valued at $9,672,342. Investors pushed the price of 18 stocks in the overall market up, 7 were pushed down including 7 stocks rising and 3 declining, from the junior market.
The JSE Market Index fell 42.46 points to end at 151,501.07. The all Jamaica Composite Index slipped 47.48 points to close at 168,265.30 and the JSE combined index rose 75.85 points, to close at 162,773.46.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 5 with lower offers.
At the end of market activities, Berger Paints traded 99,158 shares to rise 14 cents and closed at $4.14, Cable & Wireless closed at $1.39 after trading 154,987 units, Caribbean Cement traded 154,987 shares as the price jumped $1.99 to close at $27.99, Ciboney traded 418,270 shares at 13 cents after gaining 1 cent. Grace Kennedy closed at $84 with 945,030 shares changing hands, Jamaica Broilers lost 5 cents to end at $14.50 while trading 428,112 shares, JMMB Group rose 50 cents in trading 20,044 shares to close at $10, Kingston Wharves traded 95,600 shares, to close at $11.65. Margaritaville Turks fell 0.50 US cent in trading 402,850 shares at 16.50 US cents, National Commercial Bank gained 3 cents while trading 990,580 shares to close at $39.80, Pan Jamaican Investment jumped $1 with 12,640 shares trading at $98,
Radio Jamaica traded 15,327 shares to end at $1.10. Sagicor Group ended with 41,056 shares changing hands with a gain of 31 cents to end at $22.30, Sagicor Real Estate Fund traded 131,542 shares to close at $10.10 after rising 10 cents, Scotia Group rose 50 cents to close at $31 while 8,841 units changed hands. Scotia Investments ended trading 19,695 shares to close at $26, Seprod Fell $1 to close at $16 with 13,284 units changing hands, Supreme Ventures gained 22 cents and closed at $5.49 with 6,693 shares changing hands, Proven Investments ordinary share traded 431,660 units at 17.05 US cents, down from 19 US cents.
JSE majors down juniors up
Trading in the early morning session on the Jamaica Stock Exchange, on Tuesday saw the main market being active with stocks trading for 16 minutes before trading took place in the junior market. Trading resulted in the main market indices dropping and the junior market enjoying a moderate bounce.
Three stocks traded more than 100,000 units with Jamaica Broilers with 428,004 shares, Cable & Wireless Jamaica 118,112 units, Ciboney traded 418,270 units at 13 cents, Margaritaville Turks with 301,350 units, Proven Investments had 299,182 units changing hands but the price slipped to 17.05 US cents.
After 75 minutes of trading, on Tuesday, the average volume traded amounts to 70,975 units per active stock, compared to an average of 22,162 units in the mid-morning session on Monday.
Trading resulted in activity in 25 securities, accounting for 1,774,364 shares changing hands as 9 stocks gained and 6 declined.
The market saw the all Jamaica Composite Index dropped 986.08 points to 167,326.70, the JSE Market Index fell 881.71 points to 150,661.82, the JSE combined index ended with a fall of 676.76 points to 162,020.85 and the junior market index bounced 13.76 points to 2,170.67.
Strong JPS financial performance
Jamaica’s main power generator, Jamaica Public Service Company, delivered improved results for its shareholders for 2015. The company reported US$26.5 Million in profit and US$30.7 Million total Comprehensive income for the full year to December. The result was an improvement over the $23 Million and $7.5 Million recorded respectively in 2014.
The improvement was due to a combination of factors, including growth in energy sales, improved generation efficiency and lower than expected finance costs.
The Company earned operating revenues of US$760 million for the year, a decline of $263 million or 26 percent than in 2014, due primarily to the 46 percent decrease in fuel costs recovered from customers, offset by a 2 percent increase in energy sales. JPS states that the increased energy sales, 1.9 percent above the 2014, reversed a three year trend of declining sales. “The increase was attributed to warmer weather, lower fuel costs and increased consumer confidence. As a result, the non-fuel revenues were approximately $7M or 1.7 percent above budget.”
The company also stated that it recorded the best thermal plant fleet Heat Rate ever: which also better than the target set. Operating expenses of $200 million incurred in the current year compares to $191 million in 2014. Excluding depreciation and amortisation expenses, the increase flowed from $5 million increase in other operating expenses which moved from $137 million while depreciation and amortisation expenses increased to $58 million as opposed to $54 million in 2014.
Net finance costs decreased by $13 million or 23% from $55 million in 2014 to $42 million in 2015 mainly as a result of a reduction in net losses suffered on foreign currency transactions and balances. Cash inflows from operating activities improved from $106 million in 2014 to $119 million in 2015. The improved inflows from operating activities were offset by increases in the cash outflows from investing and financing activities. Cash outflows from financing activities increased marginally from $64 million in 2014 to $65 million in 2015. Cash outflows from financing activities increased from $36 million in 2014 to $57million in 2015. At the end the cash position saw net cash & cash equivalents decreasing from $8 million in 2014 to $6 million.
JPS has preference shares listed on the Jamaica Stock Exchange but no ordinary shares.
JSE drops 2,100 points on Monday
Scotia Group dropped $2.49 on Monday
At the close of trading, 12 stocks in the overall market gained, 15 declined including 5 stocks rising and 5 declining, from the junior market.
The JSE Market Index dropped 1,890.26 points to end at 151,543.53. The all Jamaica Composite Index dived 2,114.01 points to close at 168,312.78 and the JSE combined index fell 1,649.69 points, to close at 164,347.30.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 7 with lower offers.At the end of market activities, Cable & Wireless closed at $1.39 after while trading 65,950 units, Caribbean Cement traded 55,688 shares as the price fell 49 cents to close at $26, Carreras gained 50 cents while trading 19,576 shares, to close at $64. Grace Kennedy rose 50 cents to $84 with 7,042 shares changing hands. Jamaica Stock Exchange rose 45 cents to end at $21 while trading 108,346 shares, JMMB Group lost 50 cents in trading 16,326 shares to close at $9.50, Kingston Wharves traded 7,400 shares and gained 15 cents, to close at $11.65, Margaritaville Turks rose 1 US cent in trading 46,700 shares at 17 US cents. National Commercial Bank fell 23 cents while trading 27,361 shares to close at $39.77,
Pan Jamaican Investment jumped $3 with 36,922 shares trading at $97, Radio Jamaica traded 366,763 shares and dropped 9 cents, to end at $1.10, Sagicor Group ended with 16,250 shares changing hands with a loss of 31 cents at $22.69. Scotia Group dropped $2.49 to close at $30.50 while 16,127 units changed hands, Scotia Investments ended trading 1,000 shares and gained 80 cents to close at $26, Supreme Ventures fell 8 cents and closed at $5.27 with 15,698 shares changing hands, Proven Investments ordinary share traded 113,178 units at 19 US cents, down from 20 US cents. JMMB 6% US preference share lost 5 cents in trading 50,000 units at US$1.05, JMMB Group 7.5% preference share traded 3,612,600 units at $1.05 and Jamaica Money Market Brokers 7.50% preference share traded 533,800 units at $2.15.
Juniors inch up on Monday
The junior market inched forward at the close on Monday, after trading 1,306,308 shares valued at $6,667,614. The market index added 10.11 points to end at 2,156.91, while a total of 14 securities traded, with 5 advancing and 5 declining.
The junior market closed on a soft note with a total of 5 stocks closing with bids higher than their last selling prices and 5 ended with lower offers.
At the end of trading, Blue Power traded 560 units and gained $1.50 to close at $13.50, Caribbean Cream traded 793,503 units and gained 9 cents to end at $4.80, Consolidated Bakeries ended with 5,000 shares changing hands at $1.23, Dolphin Cove had 40,524 shares trading with a gain of 4 cents to end at $12.55. Honey Bun lost 25 cents to end at $18 with 27,551 shares trading, ISP Finance traded 20,719 shares but fell 10 cents to close at $2.70, Jamaican Teas traded 5,000 shares to end at $3.90. 
Jetcon Corporation closed at $3 while 5,044 units traded, KLE Group fell 60 cents in trading 53,000 shares and closed at $1.60, Lasco Distributors closed with 41,950 units trading, to close with a gain of 5 cents at $7.55, Lasco Financial closed with a rise of 2 cents at $3.49 with 38,362 shares changing hands. Lasco Manufacturing closed at $4.50 with 252,544 shares trading, Paramount Trading ended with 175 shares changing hands at $10.80, after losing 5 cents and tTech fell 20 cents and ended with 22,376 shares changing hands, to close at $4.25.
JSE majors fall in early trading – Monday
Trading in the early morning session on the Jamaica Stock Exchange, on Monday saw the main market indices dropping sharply by just under 1,500 points as per the all Jamaica Composite Index. The junior market enjoyed a moderate bounce.
Three stocks traded more than 100,000 units with Caribbean Cream having 109,103 shares trading up to $4.99 but last traded at $4.80 followed by Jamaica Stock Exchange with 100,100 units at $21 and Jamaica Money Market Brokers 7.50% preference share with 108,800 units at $2.15.
After 75 minutes of trading, on Monday, the average volume traded amounts to 22,162 units per active stock, compared to an average of 92,039 units in the mid-morning session on Friday.
Trading resulted in activity in 29 securities, accounting for 642,698 shares changing hands as 11 stocks gained and 10 declined, representing continued fluidity in price movements.
The market saw the all Jamaica Composite Index dropped 1,489.34 points to 168,937.45, the JSE Market Index fell 1,331.71 points to 152,102.08, the JSE combined index ended with a fall of 1,132.78 points to 163,214.52 and the junior market index bounced 9.99 points to 2,156.79.
Steady progress at NCB
For the six months ended March, this year, National Commercial Bank (NCB) reported net profit of $6 billion or $2.44 per share, an increase of $594 million or 11 percent over the similar period in 2015. Profit after tax ended 10.2 percent higher at $3.6 billion, $332 million more than for the 2015 period, as loans and advances grew $14.8 billion for a 9.4 percent increase to $172.7 billion.
For the six months period, operating income increased by 8.6 percent, or $2 billion, compared with the six months to March, 2015. Contributing to this increase, are net interest income increasing by 9.4 percent, or $1.2 billion, due to growth in the net loans and investment securities portfolios and a reduction in interest expenses driven by the decline in the repurchase agreements portfolio. Premium income grew by $687 million, or 18.5 percent, due to higher levels of life insurance and annuity contracts and net fee and commission income increasing by 7.9 percent, or $384 million, mainly due to credit related fees from the growth in the loan portfolio, corporate finance and unit trust commissions arising from growth in those product lines.
“Operating expenses increased by 10.8 percent, or $1.8 billion, over the six months ended March, 2015 as policyholders’ and annuitants’ benefits and reserves, were up by $977 million, or 51 percent, due to increased actuarial reserves related to life insurance and annuity contracts sold. Staff costs climbed by 9.4 percent, or $593 million. Other operating expenses, were up by $366 million, or 5.5 percent, due to technical, consultancy and professional charges, licensing and processing fees” NCB directors’ report to shareholders stated.
“We anticipate a steady performance for the second half of the financial year as we pursue our strategic objectives and implement various initiatives under our digitisation agenda.”
“Commercial banking activities, comprising the Retail & SME, Payments Services, Corporate Banking, and Treasury & Correspondent Banking segments, produced combined operating profits of $4.6 billion for the six months ended March, 2016, an increase of 6.9 percent, or $299 million, when compared to the six months ended March, 2015. Our Treasury & Correspondent Banking segment was the largest contributor to operating profit for the period.” The directors’ report went on to state.
IC Insider.com is projecting earnings of $5.65 for the year to September. The stock traded on Friday on the Jamaica Stock Exchange at $40 and would be valued at a PE of 7.2.
Non-performing loans totalled $8.5 billion as at March, down from $8.8 billion at March 2015, representing 4.8 percent of the gross loans compared to 5.4 percent a year ago. Customer deposits of $251 billion, increased by 19.5 percent over the twelve months, at a much slower pace than growth in the critical area of lending.
NCB ended with equity of $92 billion at the end of the quarter but lending only accounts for 58 percent of customers’ deposits and funds under securitisation arrangements.