Watch SOS this week

In the Junior Market activity last week, Stationery & Office Supplies moved back to $5 after the company released impressive results for the year to June. Buying also came in for Barita Investments and Berger Paints while during the week and Scotia Group raced to a record high.
For the coming week investors should continue to keep eyes on NCB Financial Group, Berger Paints, that is priced currently at a PE of 6 times 2018 earnings, Caribbean Producers and Stationery & Office Supplies that IC Insider.com upgraded earnings to 50 cents per share from 40 cents previously, with the initial public offer helping to drive more business subsequent to the June quarter, with reports of sales rising faster than the 25 percent levels experienced in the second quarter.
Caribbean Producers with improved 2017 results over 2016 with profit doubling, moved up to $4 during the week, before closing at $3.11 on Friday, after a big trade and should head back to the $4 range in the coming week.
Last week Insider.com stated, “with cut in BOJ benchmark interest rate by 25 basis and a fall in the August Treasury bill rates, the entire main market is on IC Insider.com’s watch list as the All Jamaica Composite Index could move to the 300,000 points mark before long.”
IC Insider.com also stated, “the most noted move in the Jamaica Stock Exchange last week was Scotia Group racing to a record high of $52 but ending the week without any stock being offered for sale. This stock has to head the stocks to watch list this week.”
The All Jamaica Composite Index rose to 296,779.53 points during the past week and by the end of the week closed at a 291,332.10 up from 289,247.13 at the end of the previous week and Scotia Group ended at a record high of $60.

Volume jumps 54% for JSE – Friday

Trading volume on the Jamaica Stock Exchange rose 54 percent above Thursday’s level but the market indices fell as advancing stocks just edged out those falling. Four securities traded in excess of 900,000 units each, accounting for 59 percent or 3.9 million units of the volume traded.
At the close the All Jamaica Composite Index declined 1,854.36 points to close at 291,332.10, the JSE Market Index declined 1,689.53 points to 265,436.52 and the JSE US dollar market index slipped 0.75 points to 186.39.
At the close of trading, 27 securities changed hands in the main market with 2 trading in the US dollar market, leading to 10 stocks advancing and 9 declining. The main market ended with 6,670,620 units valued at $121,164,271 changing hands compared to 4,327,138 units valued at $83,944,827 at the close on Thursday. Trading in the US dollar market accounted for 12,162 units valued at US$2,997 bringing the total of all trades to J$121,553,893.
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 8 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 247,060 units valued at $4,487,566 for each security traded compared to an average of 173,086 units valued at $3,357,793. The average volume and value for the month to date ended at 185,774 units with an average value of $3,116,747 compared with an average of 173,517 units with an average value of $3,465,932 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.

Thursday’s trading ends with new record

Scotiabank pushed up the JSE indices on Thursday.

The main market the Jamaica Stock Exchange surged sharply in the morning session on Thursday to new record highs, with the All Jamaica Composite Index jumping 6,239.79 points to 296,779.53 and the JSE Market Index climbing 5,685.16 points to 270,399.75 at 9:50, after Scotia Group jumped to a record high of $59.99.
The advance decline ratio was a negative 3 to 1 as the market cooled before the close, to end with the All Jamaica Composite Index still jumping 2,646.72 points to a record close at 293,186.46, the JSE Market Index climbed 2,411.46 points to record close of 267,126.05. The JSE US dollar market index gained 4.53 points to end at 187.14. Technical indicators are pointing to still higher closes ahead with 370,000 points on the All Jamaica seems probable before the rally faces major resistance, having seemingly cleared the 290,000 level.
The recent surge in the market over the past two weeks have been driven almost singlehandedly by Scotia Group moving from around $46 to the current adding approximately 13,000 points to the index. At the close of trading 26 securities changed hands in the main market with 3 trading in the US dollar market, leading to 5 stocks advancing and 14 declining.
The main market ended with 4,327,138 units valued at $83,944,827 changing hands compared to 3,180,409 units valued at $81,180,237 at the close on Wednesday. Trading in the US dollar market accounted for 20,410 units valued at US$6,756 bringing the total of all trades to J$84,816,398.
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 7 stocks with bids higher than their last selling prices and just 1 with a lower offer.
The main market ended trading with an average of 166,428 units valued at $3,228,647 for each security traded compared to an average of 127,216 units valued at $3,247,209. The average volume and value for the month to date ended at 172,185 units with an average value of $3,440,103 compared with an average of 173,624 units with an average value of $3,492,967 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.

Scotia jumps to record close of $57.99 – Wednesday

Scotia Group shares jumped sharply to end at a record $57.99 on Wednesday.

Fresh from the announcement that Scotia Group is changing their chief executive officer, the stock continued on its merry way and jumped sharply at the start of trading on Wednesday to a new high, before ending trading at another record close.
Scotia ended the day trading 153,874 shares with the price climbing $2.99 to a record close of $57.99.
A the close of trading the All Jamaica Composite Index declined 790.64 points to close at 290,539.74, the JSE Market Index fell 720.36 points to 264,714.57 and the JSE US dollar market index declined 4.57 points to 182.61. At the close of trading, 25 securities changed hands in the main market with 3 trading in the US dollar market, leading to 12 stocks advancing and 5 declining. The main market ended with 3,180,409 units valued at $81,180,237 changing hands compared to 3,062,518 units valued at $54,223,292 at the close on Tuesday. The US dollar market accounted for 1,054,890 units valued at US$243,418 bringing the total of all trades to J$112,337,685.
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 4 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 127,216 units valued at $3,247,209 for each security traded compared to an average of 122,501 units valued at $2,168,932. The average volume and value for the month to date ended at $173,624 units with an average value of $3,492,967 compared with an average of 189,094 units with an average value of $3,574,886 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.

Profit jumps 146% at SOS in Q2

Stationery & Office Supplies Montego Bay office.

Profit jumped 146 percent at the recent Junior Market listing, Stationery & Office Supplies, to $20.3 million in the June quarter this year, before corporation tax of $8.8 million. For the six months period to June, profit before tax rose 33.4 percent to $50.4 million.
Revenues climbed 23.7 percent in the latest quarter to $212 million and 22 percent to $432 million for the six months. Gross profit climbed 25.5 percent to $99.5 million for the June quarter, flowing from increased gross profit margin while year to date, the increase was lower at 20.5 percent to $208 million. Expenses closed the June quarter at $79.2 million versus $71 million, an increase of 11.6 percent. For the year to date, the increase is a high 17 percent but still lower than the increase in revenues.
The 2017 result to date, is almost equal to the total 2016 results before tax of $53 million. Gross cash flow resulted in cash of $23 million being generated after an increase in working capital $28 million. The company spent $32 million on acquisition of fixed assets which required borrowing $4 and utilizing some cash on hand.
Businesses need adequate capital to grow and when debt reaches a certain level it becomes more challenging to access borrowed funding. Sometimes owners become concerned with increasing debt and this may hold back the performance of the business. Growth in the SOS’ business was putting pressure on cash resources resulting in borrowings rising, with $141 million outstanding at the end of June amounting to 50 percent of the equity. The need to expand to meet an increasing demand for its products would have placed added pressure on the owners to find the funds to finance the expansion.
The capital that came from the Issue of shares to the public will go a far way in improving the company’s finances and allow it to fund expansion, including paying for additional fixed assets which it was committed to at the time of the IPO.

Some team members at SOS who helped in the growth in prfoits for 2017

The Stationery and Office Supplies executive body that helped to grow profit in 2017

IC Insider.com’s observations are that listing on the stock exchange brings huge benefits to companies. The constant exposure results in increased business, the capital injection allows for increased focus on inventory selection and choices, all of which feed into increased sales. The increased pace of sales growth in the second quarter may well be connected with the publicity received prior to listing and it would be surprising if the pace of growth does not pick up in the second half of the year and well into 2018.
At a last traded price of $4.20 on the Junior Market of the Jamaica Stock Exchange, the stock remains a buy to benefit from future growth. IC Insider.com projects earnings before tax at 50 cents per share based on the average number of shares issued for the year, up from 40 cents when the shares were offered for sale and $1 for 2018 which is projected to continue to show strong growth in revenues. IC insider.com gathers that sales have picked up strongly after the IPO with many more walk in customers being seen than before. later in 2017, online marketing website and increased sales to the Eastern Caribbean will commence which should add to growth in sales going forward.
The company, under the stock exchange rules need not have put out the six months report, having been listed in August. The release is to be applauded. It is in the investing public’s interest, to have pertinent information on which they can make their investment decisions.

JSE blast away 290,000 to a record 291,330

The All Jamaica index of main market stocks of the Jamaica Stock Exchange blast through the critical resistance level of 290,000 during the morning session on Tuesday and held above it at the close to end at a record close as Scotia Group jumped $3 to a new high.
The All Jamaica Composite Index jumped 3,269.07 points to end at a record close of 291,330.38, the JSE Market Index surged 2,978.49 points to a record close of 265,434.95 and the JSE US dollar market index declined 11.04 points to 187.18.
At the close of trading, 25 securities changed hands in the main market with 2 trading in the US dollar market, leading to 10 stocks advancing and 12 declining. The main market ended with 3,062,518 units valued at $54,223,292 changing hands compared to 9,375,844 units valued at $169,350,761 at the close on Monday. Trading in the US dollar market accounted for 86,450 units valued at US$20,960 bringing the total of all trades to J $56,927,184.
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 5 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 122,501 units valued at $2,168,932 for each security traded compared to an average of 309,660 units valued at $7,056,282. The average volume and value for the month to date ended at 189,094 units with an average value of $3,574,886 compared with an average of 222,390 units with an average value of $4,277,863 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.

JSE AJI breaks 290,000 points

Helped by a jump of $2.99 in the price of Scotia Group shares in the early morning session on Tuesday to reach a record $54.99, the All Jamaica Composite Index is up to record levels, breaking through the critical resistance of 290,000 points.
The move today have lifted the gains in All Jamaica by an impressive 38 percent for year to date. If the market continues to hold above the 290,000 points mark, it could be setting up for a huge rally ahead with no major resistance levels in sight for sometime to come.
The market index sits just above the resistance level, having exceeded the level at 10.30 earlier in trading today before Scotia Group price fell back to $51.60, after trading just 2,384 shares for the day so far.
At 10:30am, the All Jamaica Composite Index rose 2,173.29 points to 290,234.60, the JSE Market Index rose 1,980.12 points to 264,436.58 and the JSE US dollar market index remained at 198.22 and the Junior Market lost 4.13 points to 3,071.28.

JSE falters on Monday with 3 new highs

Scotia ended at a new closing high of $52 on Monday.

The main market of the Jamaica Stock Exchange retreated on Monday after it surged sharply on Friday to a record close. At the close of trading the market indices slipped over 1,000 points and sits just below a major resistance level around 290,000 points on the all Jamaica index.
The market closed with 3 new closing highs, as Scotia Group ended at $52, up from $50 on Friday, recently listed Productivity Business Solutions (PBS) US dollar ordinary climbed to 72 cents while the preference share traded a small amount at $105. Jamaica Broilers was the dominant trade by far accounting for 7.49 million units amounting to 80 percent of the volume traded on Monday.
The All Jamaica Composite Index fell 1,185.82 points to close at 288,061.31, the JSE Market Index declined 1,080.42 points to 262,456.46 and the JSE US dollar market index advanced 11.04 points to 198.22 as PBS gained on Friday’s closing price.
At the close of trading, 24 securities changed hands in the main market with 3 trading in the US dollar market, leading to 10 stocks advancing and 8 declining. The main market ended with 9,375,844 units valued at $169,350,761 changing hands compared to 1,353,000 units valued at $37,486,124 at the close on Friday. Trading in the US dollar market accounted for 5,702 units valued at US$1,783 bringing the total of all trades to J$169,580,732.
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 5 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 390,660 units valued at $7,056,282 for each security traded compared to an average of 54,120 units valued at $1,499,145. The average volume and value for the month to date ended at $222,390 units with an average value of $4,277,863 compared with an average of 54,120 units valued at $1,499,145 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.
Some of the stocks to watch when trading resumes on Tuesday are Barita Investments that closed at $10.25 but has a bid of $9.50 to sell 50,000 units, Berger Paints with buying at $12 for over 9,000 units with the last price on Monday being $11.50, Scotia Group and Supreme Ventures.

New record for JSE main market

The main market of the Jamaica Stock Exchange surged to a new high at 11 am on Friday with the all Jamaica Composite index jumping 4,315.47 points to a record 284,872.86 while the main market index rose 3,931.88 points to a record 259,551.43.
The Combined Index climbed 3,602.38 points to a record 272,379.47 as market sentiments suggest that the market may be at an early stage of a major bull run. The Junior Market slipped 1.95 points to 3,096.95 while the US dollar market index is unchanged at 182.58.
Sagicor Group traded 242,800 units valued $8 million and Lasco Distributors had 214,992 units trading valued at $1,68 million and Salada Foods had 100,000 units changing hands with a gain of 50 cents to $8.50.

Sharp movement in some JSE stocks

Scotia Group closed at a new high of $50 on Thursday.

Scotia Group jumped $3 to hit an all-time high of $50 and Supreme Ventures hit a new high of $12 but the movements were inadequate to prevent to market index of the Jamaica Stock Exchange from slipping at the close on Thursday.
Sterling Investments dropped to a 52 weeks’ low of $12.75 while Investors sold Berger Paints shares down to $13 on Thursday from $15.80 close on Wednesday with a low offer by the Ansa McAl group of $10.88 per share, to buy out the minority shareholders.
Productive Business Solutions that went to the public to raise fresh capital had the US dollar ordinary shares and the preference shares were listed at the start of the day but there was no trading in them.
The All Jamaica Composite Index declined 252.73 points to close at 280,557.39, the JSE Market Index gained 230.27 points to 255,619.55 and the JSE US dollar market index rose 3.69 points to 182.58.
At the close of trading, 29 securities changed hands in the main market with 2 trading in the US dollar market, leading to 14 stocks advancing and 11 declining. The main market ended with 5,056,094 units valued at $68,305,370 changing hands compared to 4,844,593 units valued at $284,429,479 at the close on Wednesday. Trading in the US dollar market accounted for 52,749 units valued at US$12,720 bringing the total of all trades to J$69,946,219.
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 8 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 174,348 units valued at $2,355,358 for each security traded compared to an average of 210,634 units valued at $12,366,499. The average volume and value for the month to date ended at $184,094 units with an average value of $4,336,090 compared with an average of 184,581 units with an average value of $4,435,127 on the previous trading day. The average volume and value for July ended at 160,668 units with an average value of $2,691,438.