Investors pushed the price of Caribbean Flavours to $9.99 during the past week and out of the IC Insider’s TOP 5 of junior market stocks list, allowing Blue Power to return at the bottom of the list. AMG Packaging price fell back and the stock moved up on the list to number 2 spot.
In the IC Insider’s TOP 5, the candidates remain unchanged but Caribbean Cement benefited from an announcement that the Cemex Group who are offering to but majority stake in Trinidad, if successful may consider delisting shares in Barbados and Jamaica including subsidiaries after a full review of the Caribbean operations. Carib Cement moved to 4th position and is worth watching in the week to come. There are 6 offers in the market at the close of trading on Friday, ranging from $36.48 to sell 10,000 units, 10,000 units at $37, the next is 2,300 shares at $44 with the next being at $45 and $60. Bids for the stocks are not very aggressive with the only meaningful one being at $34.01 to buy 69,000 shares.
Flavours out Blue Power in TOP 5
Key Insurance in at top of TOP 5
Key Insurance listing ceremony.
IC Insider’s forecast is for earnings per share of approximately 35 cents for 2016, for Key, suggesting the potential for a big rise in the stock price. It is noted that the only offer for the stock is 34,688 at $3.50 with the highest bid at $2.15 to buy 40,700 shares.
Jetcon Corporation has fallen out of the Top five due to a combination of a rise in Jetcon’s price, following strong third quarter results and the ascension of Key Insurance to the list. Access Financial that has been in the TOP 5 for a long time also reported strong increased profit, with a hike of 95 percent for the September quarter and a 60 percent rise to $353 million for the six months to September.
Barita could be the star performer from the TOP 5 main market stocks as demand has come in for the stock, while supply has declined.
While the investment bank reported 54 cents per share for the full year to September, earnings from ongoing operations is more like 65 cents per share. Most importantly, the information that says the stock is an outstanding buy candidate, is the quality of the final quarter results, with strong growth in fee income and net interest income and less reliance on investment and foreign exchange gains. The final quarter results, suggest earnings should end up around $1.50 in 2017. JMMB Group came in with big increased earnings, one off gains may have played a big role in the big increase but even without that, the stock is undervalued with earnings from ongoing operations in the $2 range.
Record profit for National Commercial Bank
National Commercial Bank ended its financial year to September with record profits helped by strong loan growth and big loan recovery of loans that were previously quarantined as doubtful.
The big Jamaican bank posted profit after tax and minority interest of $5 billion for an increase of 34 percent over the similar period in 2015 and a rise of 27 percent for the full year to $15.6 billion.
Earnings per share ended at $2.03 for the fourth quarter and $6.35 for the year. NCB recovered bad loan resulting in a positive flow of $291 million in the last quarter reducing the full year charge to $612 million compared to $1.8 billion in 2015.
Revenues net of interest expense rose 12 percent to $13.6 billion for the quarter and 9.6 percent to $52 billion for the full year. Net interest income grew 8.3 percent for the year to $28.1 billion. NCB results of a boost from Associated company profit, that rose from $122 million to $443 million in the September quarter and to $832 million from $434 million in 2015.
Loans, the critical contributor to revenue growth grew a strong 14.3 percent for the year to reach $189 million while investment securities declined modestly.
The group declared a dividend of 90 cents per share bring the full year payment to $2.25. The stock which remains IC Insider Buy Rated, last traded on the Jamaica Stock Exchange at $45.50 and is in strong demand with limited supply.
JSE feeds public with erroneous info
Jamaica Stock Exchange is one of Jamaica important financial institutions. It is responsible for billion of dollars of investments. Investors rely on it to be transparent and to provide accurate and timely information on which investment decisions can be made. Why does the feed the public with erroneous information, and leave it out in the public without moving speedily to correct same?
Cargo Handlers posted their full year results to September, with profit of $154 million after tax, up from $136 million in 2015 and $30 million for the fourth quarter versus $29 million in 2015.
All of the above is fine but the company is reporting earnings per share as 40 cents for the quarter and $3.30 for the 12 months, based on what they have erroneously claimed are based on the weighted average number of shares held during the period. That of course is nonsense. The company split its stock into 10 units for each one held, subsequent to the year-end, hence there were no additional shares issued up to September. Even if the stock split occurred during the financial year, the split would not give rise to computing the average number of shares in issue. With a stock split or stock bonus the earnings per share is to be computed on the full amount of shares issued at the time of the financial report. Only when fresh capital is introduced from outside the company, would the weighted average number of shares be computed.
The earning per share is in fact 80 cents, for the 2016 last quarter and $4.16 for the 12 months. Unfortunately, the Stock Exchange posted the results with the error from Monday and they are still on the website with no change to date and no note to inform investors of the error. If the Jamaica Stock Exchange wants to be taken seriously it needs to do better than this.
Cargo Handlers last quarter’s net position flowed from a 17 percent rise in revenues to $78 million and 29 percent increase for the full year to $324 million. Other operating expenses rose 19 percent for the quarter to $39.8 million and for the full year 28 percent to $132 million.
The numbers may not show it fully, but growth may have slowed considerably, as such growth in profit in the medium term could be quite moderate as can be gleaned from the movement in the quarterly results. At a price of $12 per share, with 375 million units issued the stock price is a tad rich currently with one of the highest junior market PE ratios at 30 times the 2016 earnings. Expectations of investors in the stock have to be that the December quarter’s earnings will rise close to 50 percent, to justify the current price. That level of profit increase looks steep.
Kazakhstan stock market 2016 best
Kazakhstan or Peru stock markets seem set be the top performing markets in 2016, taking over from Jamaica, the top performer in 2015, according to data compiled from Bloomberg Market.
Data show that the S&P/BVL Peru General Index is up 53.97 percent for 2016 up to Friday but the movement seems to have stalled since October 19 and the Kazakhstan Stock Exchange Index gained 50.51 percent and is currently rising.
The Jamaica Stock Exchange was rated the top performing market in 2015, but data sourced suggests that it will be hard pressed to wear that crown in 2016. For the year to date the JSE market index is up 13 percent, but that pales in comparison to a number of markets that have delivered gains that are much higher. The junior market index with the fast growing companies with 37 percent gain this year, is in at 5th position, Bloomberg did not report data publicly on this index.
The positive for the local market, is that many of the top performing markets seem to be declining while the JSE is on the rise and usually rallies in the latter part of the year. With undervalued Scotia Group and National Commercial Bank could benefit from the release of full year results by early December. If investors react positively to the results they could climb sharply and pull the overall market up, giving it a shot at the top spot. That would require a big 70,000 points gain to possibly hit the top spot.
The other markets that have been doing very well in 2016 to date are, Buenos Aires Stock Exchange Merval Index up 43.51 percent, Ibovespa Brasil Sao Paulo Stock Exchange Index rising 42.10 percent, BCT Corp Costa Rica Stock Market Index is up 33.04 percent, Bermuda Stock Exchange Index rose 25.64 percent, Budapest Stock Exchange Budapest Stock Index climbed 25.49 percent.
Kazakhstan has a population of 17.04 million in 2013 according to the World Bank, the stock market has 116 listing of shares by 98 companies.
JSE jumps sharply in early trading
Gains in the prices of Scotia Group and National Commercial Bank that traded at a new high help in pushing the main market indices much higher in early trading on Friday on the Jamaica Stock Exchange.
A number of new highs were created in the morning session with Berger Paints trading 5,000 at a new high of $6.55 and Paramount Trading had a small volume changing hands at a new all-time high of $29 after rising $2 and Sterling Investments traded at a new high of $15.50. CAC 2000 fell to an all-time low with 1,000 shares trading down to $4.50.
The all Jamaica Composite Index jumped 2,708.08 points to 188,297.20, the Jamaica Stock Exchange Market Index surged 2,421.51 points to 169,412.96, the Jamaica Stock Exchange combined index climbed 2,272.32 points to close at 182,482.82 and the junior market index inched up 2.59 points to 2,469.69.
Jamaica Stock Exchange stock was adjusted the 5 for 1 stock split at the commencement of trading this morning to take into effect that was approved at an Extraordinary General Meeting held on October 25, but attempts to trade have been blocked as the bids remains at the old price.
At 10:45 am, a total of 27 securities traded, resulting in a volume of 1,938,366 shares changing hands carrying a value of $18,934,325, compared to 633,945 shares changing hands carrying a value of $6,888,082, on Thursday.
The average number of shares traded amounts to 71,791 units compared to 28,816 on Thursday. Market activity resulted in 6 stocks falling while the prices of 10 securities rose.
Stocks with good volumes in the main market are Cable & Wireless with 765,410 at 85 cents, Ciboney Group traded 241,019 units at 18 cents and Jamaica Money Market Brokers 7.25% preference share traded 100,100 units at $2.40, Caribbean Producers with 137,000 units at $3.50, Lasco Manufacturing with 120,958 shares trading at $4.80.
JSE stock split effective today
Jamaica Stock Exchange stock price will adjust at the commencement of trading this morning to take into effect the 5 for 1 stock split that was approved at an Extraordinary General Meeting held on October 25.
Record date for the stock split is November 8 but the ex-stock split date takes effect on November 4. At the close of trading on Thursday, the price the stock traded at was $27.90 and will result in an opening price of $5.58.
The stock split will result in an additional 561,000,000 ordinary shares will be listed, increasing the issued shares from 140,250,000 to 701,250,000.
JSE reported of profit of $32 million for the June quarter versus $15 million in 2015 and $158 million compared to $102 million for the six months to June 2015. The improvement in net profit flowed from a 52 percent rise in revenues to $188 million for the June 2016 quarter compared with $124 million in 2015 and $525 million for the half year to June for a rise of 37 percent versus $382 million in 2015. Earnings per share for the half year ended at $1.12 versus 73 cents in 2015. The JSE had a big month of trading in August with some special trades that took place thus swelling the volumes and value to $6.6 billion for July to August compared to $6.5 million for the June quarter.
Cement jumps back to $30.50
Caribbean Cement climbed $3 to $30.50 with 5,500 units to recover most of what it lost on Tuesday as investors had reacted negatively to the third quarter loss the company reported. 
Paramount Trading had a small volume changing hands but the stock traded at a new all-time high of $27 after rising $3.
Trading volume is very low after 80 minutes trading having taken place. Caribbean Cream with 100,000 units trading down to $7.05 is the sole stock with a volume in 6 figures.
The all Jamaica Composite Index climbs 1,338.30 points to 186,051.61, the Jamaica Stock Exchange Market Index gained 1,196.67 points to 167,405.00, the Jamaica Stock Exchange combined index rose 1,115.25 points to close at 180,306.17 and the junior market index inched up 0.53 points to 2,439.08.
At 10:50 am, a total of 28 securities traded, resulting in a volume of 337,469 shares changing hands carrying a value of $9,036,840, compared to 2,927,694 shares changing hands carrying a value of $45,399,096, on Tuesday.
The average number of shares traded amounts to 12,052 units compared to 121,987 on Tuesday. Market activity resulted in 9 stocks falling while the prices of 11 securities rose.
Majors drop juniors up in early trading
Caribbean Cement reported a small loss due partly to the closure of its plant for upgrading in the September quarter and investors marked the stock down at the start of trading to $31.50 from the closing price of $33 on Friday. The fall of Cement helped push the market index down in early trading.
Junior market index rose due mainly to a 50 cents rise in the price of Access Financial and gains in Lasco Manufacturing. Apart from a few stocks, trading on the Jamaica Stock Exchange continues to be moderate on in early trading on Monday.
The all Jamaica Composite Index dipped 683.11 points to 186,156.68, the Jamaica Stock Exchange Market Index lost 610.82 points to 167,498.95, the Jamaica Stock Exchange combined index eased by 464.71 points to close at 180,403.82 and the junior market index climbed 9.90 points to 2,440.10.
At 10:45 am, a total of 20 securities traded, resulting in a volume of 4,494,219 shares changing hands carrying a value of $8,329,082, compared to 548,724 shares changing hands carrying a value of $3,478,798, on Friday.
The average number of shares traded amounts to 224,711 units compared to 26,130 on Friday. Market activity resulted in 4 stocks falling while the prices of 6 securities rose.
In trading activity, Cable & Wireless had 100,000 shares changing hands at 85 cents, JMMB Group 7.50% preference shares traded 290,100 units at $1.08, trading in 1834 Investments resulted in 3,343,870 shares changing hands at $1.20 and General Accident Insurance traded 633,843 shares at $3.
Lawsuit may cost CAC $200m
Steven Marston,
Chief Executive Officer
CAC in a release to the Jamaica Stock Exchange stated that the court ruled in favour of the Claimant and awarded damages of US$372,100 and J$568,187 plus loss of profits of $7,077,874. Interest at commercial rates and legal fees were also awarded.
CAC further advised that on application, the court granted a stay of execution of 42 days and that its legal counsel is reviewing the judgment but, in the interim, the company will be providing for these amounts less the insurance amount of $20 million in the 2016 accounts.
IC Insider estimates that the company will likely be hit with a total cost of US$1 million and J$100 million before the insurance coverage when interest and legal fees are factored in.
The judgement resulted from a claim in negligence and or breach of contract as a result of a fire that occurred at the Claimant’s premises on May 11th, 2003. The Claimant prevailed at first instance in the Supreme Court with CAC appealing the judgment on account of the trial judge in the Supreme Court excluding the testimony and or report of the Company’s expert from the evidence. The Court of Appeal held that the exclusion of such evidence “created an unnecessary imbalance which was not in the interest of justice.”
CAC reported a loss of $9 million after tax for the July 2016 quarter and profit of $31 million after tax for the nine months period, compared to $39 million for the July 2015 quarter and a profit of $71.6 million for the nine months to July 2015.The net results came from sales revenues of $679 million for the nine months period compared to $674 million for 2015 and $198 million for the July quarter versus $259 million in 2015. The company saw a large climb in administrative cost of 42 percent for the nine months in 2016 and 57 percent for the quarter.
CAC successfully raised $120 million before cost of approximately $10 million in its initial public offering in December 2015. The stock traded traded on the junior market of the Jamaica Stock Exchange at $6.30 on Monday.