jamaica

Minority deserves better

September 11, 2017 by IC Insider.com

SOS directors released June’s quarterly results even though the JSE rules require the first report to be relased for the September quarter.

The investing public seems not to be treated with the respect it deserves. It appears that many companies thing of investors last, not recognizing that they are shareholders just like the majority owners.
The last persons seen are the first to be remembered and is equivalent to out of sight out of mind. That seems to be the case with shareholders in the Caribbean. Newly listed Stationery & Office Supplies release of the June quarterly report although not required by the Jamaica Stock Exchange is an example of good corporate governance and is to be applauded.
In Trinidad for example, there is little liquidity in that market and the directors refuse to do anything about it. In Jamaica many companies tend to stick with the minimum regulations of the stock exchange, even when the recent examples in Jamaica say how important it is to ensure that there is adequate liquidity in the market.
The current regulation for listings in Jamaica, is for new listed companies to file their first quarterly report in the quarter ending after listing. The rule is inadequate to protect investors. Information is critical for the capital market to function properly, as such investors should not have to wait more than two quarters to get a quarterly report. In 2016, there was the very poor decision by Wentworth Graham the then head of the regulatory arm of the Jamaica Stock Exchange to permit 1834 Investments to wrongly withhold the December quarterly report from the public. This was based on improper interpretation of the rules relating to the release of financial information.

Main Event release their first report in June after their January IPO.

Earlier this year Main Event issued their IPO and included interim results to September 2016, with the year end of October. The IPO was in January but it was not until June that shareholders had information on the out turn of the operations for 2016 as well as for the first quarter this year. As it turned out, profit of $60 million at the 11 month period melted down to $56.5 million for the full year. The audited report was only signed on the June 5, more than 7 months after the year end while the first quarter results were never released but the second quarter to April was released within the deadline of June 15.
The management of Stationery & Office Supplies may have had a lot to shout about with pretax profit jumping 146 percent to $20.3 million for the June quarter this year and hence the release of the results to Jamaica Stock Exchange in less than a month of listing on the Junior Market.
Under the stock exchange rules it need not have put out the six months report having been listed in August. Some persons may see it as self interest in the release, but there is no evidence of that. The release provides the investing public with pertinent information in a timely manner, on which they can make their investment decisions. The hope is that the Jamaica Stock Exchange rules will be strengthened quickly to ensure that pertinent information is release on a timely basis to the public.

Filed Under: Commentary, General News Tagged With: 1834 Investments, Daily Trading, Emerging market, jamaica, Jamaica Stock Exchange, Jamaican Stock, Main Event Entertainment, Stationery & Office Supplies, Trinidad, TTSE

Advancing stocks shine – Wednesday

October 5, 2016 by IC Insider.com

JMMB Group closed at a 52 weeks’ high on Wednesday.

The Jamaica Stock Exchange gave back some of the gains enjoyed on Tuesday with some small decline after the market surged close to 1,000 points early in the morning session but failed to hold these gains and ended down by 10:45 AM. Trading closed with 41 securities trading as the prices of 19 gained while 11 declined in the overall market, including 10 stocks rising and 4 falling, in the junior market.
At the close 4,936,602 units valued at $80,553,639, changed hands, compared to 1,458,426 units valued at just $21,510,810 changing hands on Tuesday. The junior market accounted for 1,995,508 units valued at $10,428,547 of the stocks traded.
At the close, the JSE Market Index lost 619.07 points to end at 166,445.68. ICI -JSE sum -5-10-16

The all Jamaica Composite Index fell 692.34 points to close at 184,978.75 and the JSE combined index slipped 28.68 points, to end at 179,348.16.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 12 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Berger Paints traded 49,851 shares and gained 10 cents to close at a 52 weeks’ high of $5.60, Cable & Wireless gained 3 cents to close at 90 cents with 18,516 units trading, Caribbean Cement rose 50 cents in trading 201,487 shares to close at $30.50, Carreras dropped $1 with 74,889 shares changing hands at $65. Trading in 1834 Investments ended with 31,636 shares changing hands to close at $1.24, Grace Kennedy closed with 11,459 shares changing hands at $42.45 after falling 5 cents, Jamaica Producers ended with 40,200 shares changing hands as the price gained 30 cents to close at $8.40. JMMB Group climbed $1.01 in trading 91,100 units to close at a 52 weeks’ high of $14.01, Mayberry Investments traded 973,100 shares to close at $3.70, ICI -JSE fn Qts -5-10-16

National Commercial Bank traded 892,203 shares and declined 10 cents to end at $42, Pan Jamaican Investments lost 55 cents and closed at $23.40 after trading 11,215 shares. Radio Jamaica gained 30 cents in trading 52,835 shares to close at $1.70, Sagicor Group traded 6,291 shares and ended at $23.81, Sagicor Real Estate Fund traded 10,769 shares but fell 13 cents to close at $10.12, Scotia Group dropped $1.49 and closed at $30.01 with 4,228 shares changing hands. Scotia Investments jumped $3.50 with 11,920 units changing hands to close at $30, Proven Investments traded 49,063 shares at 20 US cents, Jamaica Money Market Brokers 7.50% preference share traded 388,250 units at $2.10 after falling 3 cents and Jamaica Public Service 9.5% preference share traded 9,675 units at $1,247 each.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: 1834 Investments, Berger Paints, Cable & Wireless, Caribbean Cement, Carreras, Daily Trading, Grace Kennedy, jamaica, Jamaica Broilers, Jamaica Producers, Jamaican stocks, JMMB Group, junior market, Mayberry Investments, National Commercial Bank, Pan Jamaican, Proven Investments, Radio Jamaica, Sagicor Group, Sagicor Real Estate Fund, Scotia Group, Supreme Ventures, Trading Activity

Big island states poor currency performers

September 29, 2015 by IC Insider.com

The smaller economies within the Caribbean region appear to be better managed than the larger economies in the region. IC Insider.com looked at the exchange movements of Jamaica, Costa Rica, Guyana and Dominica Republic between 1972 to date, to see how they performed against each other.
No studies appear to be have been done on this feature of the region and the major reasons why large states seems to be managed so poorly compared to the much smaller ones. The major movement in exchange rates of the countries’ currencies against the United States dollar speaks eloquently of the differences in management quality or could it be that the larger countries are much more difficult to manage? The smaller islands of Barbados, the Eastern Caribbean and the Cayman Islands have maintained the value of their currencies to that of the US from 1972 until now.
At the beginning of 1972 it took 6.635 colon to purchase one United States dollar, by 1989, the amount increased to 79.7335 colon for an increase of 12 times the 1972 value. By the end of 1999 it required 50 times the amount in 1972 or 331.796 colons to buy the US dollar. By 2009 it took 554.5 colon to buy the US dollar or 83.6 times the amount in 1972. As of September this year it requires 80.2 times the amount in 1972 to purchase the US dollar which trades at 532.45 colon to US$1.
In the case of Guyana it took GY$2.087 in 1972 to buy the Us dollar but by 1989 it required 13.4 times the amount as in 1972 as the rate slipped to GY$27.95. By 1999 it was taking GY$178.63 or 85.6 times the 1972 figure, for the next ten years the change slowed markedly to GY$202.876 or 97 times the 1972 and in September 2015 the rate inched up to GY$205.79.
In the case of Dominican Republic it took 1 peso in 1972 to buy the Us dollar but by 1989 it required 6.53 times the amount as in 1972 as the rate slipped to 6.53 pesos. By 1999 it was taking 16.09 or 16 times the 1972 figure. By 1999 the Dominican peso fell further in value, requiring 35.35 pesos or 35 times the 1972 figure to buy the buck. In September 2015 the rate climbed to 44.26 pesos to the US dollar or 44 times the amount in 1972.
Jamaica has turned out to be by far, the worst performing currency in the Caribbean region since 1972 and probably the worst managed economy. Between 1972 and September this year, it takes 154.55 more Jamaican dollar to buy one United States dollar as the country’s economy has performed poorly. Having been trading at 77 Jamaican cents to the US dollar for a number of years, by the January 10, 1973, the Jamaican dollar was devalued by 15 percent to 91 cents to one US dollar. On the January 13, 1978, the official rate had moved to $1.05, by May 10, the rate ended at $1.55 and ended at $1.69 on the last day of the year. On May 2, 1979 the rate moved to $1.78 where it stayed until November 1983, at which stage the rate moved to $3.15. By 1985 the rate climbed to $5.50 and to $6.50 by the end of 1989, taking 365 percent more Jamaican dollars to buy the US dollar, since 1983 and requiring 8.44 times the amount in 1972.
Ten years later in 1999, the rate reached $41.42, requiring 637 percent more local currency to but one US dollar than ten years before, and 53.8 times the amount in 1972. By the end of 2009, the rate moved to $89.60, requiring just over twice the amount of Jamaican dollars for one US dollar. At the end of trading on Friday September 25, 2015 at just over $119 to 1 US dollar for the first time, requiring 33 percent more Jamaican dollars to purchase the US dollar, than at the end of 2009.

Filed Under: Feature Stories, FX Market, Stock Market Tagged With: Costa Rica, Costa Rica peso, Dominican Republic, Guyana, Guyanese dollar, jamaica, Jamaica dollar

Carreras climbs $2.29 pushes JSE

January 23, 2015 by IC Insider.com

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Carreras closed trading at $39.50 to end the day at a new 52 weeks’ high and Scotia Group after hitting $21.99 with 739,792 shares by mid-day, closed at $20.50 and were the main contributors to a strong increase in the main market indices on Friday. The gains were not adequate to stop the overall market from registering the third consecutive day of declining stocks out numbering advancing ones.
Activity on the overall Jamaican stock market, resulted in the prices of 6 stocks rising and 9 declining as 29 securities changed hands, ending in 5,019,576 units trading, valued at $36,430,375, in all market segments.
Main Market| The JSE Market Index gained 1,175.44 points to 77,828.04, the JSE All Jamaican Composite index rose 1,314.20 points to close at 85,733.67 and the JSE combined index gained 1,070.76 points to close at 79,654.74.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 3 with offers that were lower.

Scotiabank shares helped to push the index in Fridays trading.

Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Caribbean Cement ending with 12,825 units changing hands, to close with a gain of 5 cents at $2.35. Carreras swapped 124,240 shares to close with a gain of $2.29 at $39.50, the highest price it closed at since, November 6, 2013 when it then closed at $40. Jamaica Money Market Brokers closed with 93,329 ordinary shares trading, with a gain of 2 cents to $6.57, Scotia Investments contributed 5,000 units in trading to close 4 cents higher at $22.55 and Supreme Ventures had 10,600 shares changing hands, the price gained 15 cents to $2.15.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints in trading 1,569 units ended at $1.55, Cable & Wireless closed with 31,881 shares changing hands at 50 cents. Ciboney ended with 10,000 shares trading at 7 cents, Desnoes & Geddes closed with 909,979 units trading to end at $4.80, Jamaica Broilers closed with 89,998 units traded at $4, Jamaica Stock Exchange finished with 10,000 units changing hands at $2. Kingston Wharves exchanged only 827 units at $5.60, Mayberry Investments traded at $2, in swapping ownership of 200,406 shares, Proven Investments traded 17,000 shares at 21 US cents, Radio Jamaica closed with 800 shares changing hands at $1.30 and Scotia Group ended up with 750,762 shares changing hands at $20.50.

Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Gleaner closing with 64,463 units trading as the price slipped 5 cents to 80 cents, for a new 52 weeks low, Grace Kennedy finished with 23,770 shares trading lower by 50 cents to $62.50, Kingston Properties closed with 29,925 shares changing hands to close lower by 50 cents at $7, National Commercial Bank closed with 50,453 units as the price slipped 19 cents to $19.31, Pan Jamaican Investment finished with 26,363 units trading, the price eased by 10 cents to $52, Radio Jamaica ended with 560 shares trading lower by 15 cents to $10.05 and Sagicor Group closed trading with 10,947 units as the price slipped 30 cents to $6.65.
Preference| Eppley 10% preference share traded 34,500 units at $6 and Jamaica Money Market Brokers 7.50% preference share ended with 1,773,100 units trading at $2.

Filed Under: JSE Main Market Tagged With: Berger Paints, Broilers, Cable & Wireless, Caribbean Cement, Carreras, Ciboney, Desnoes & Geddes, Gleaner, Grace Kennedy, jamaica, Jamaica Money Market Brokers, Jamaica Stock Exchange, Kingston Properties, Kingston Wharve, Mayberry Investments, National Commercial Bank, Pan Jamaican Investment, Proven Investments, Radio Jamaica, Sagicor Group, Salada Foods, Scotia Investments

Wipe out of Ja fiscal deficit seems likely

July 1, 2014 by IC Insider.com

With two months out of the 2014/15 fiscal year reported on, the Peter Phillips led Ministry of Finance seems set to again report a wipe out of the fiscal deficit at the end of the fiscal year that ends in March 2015. The budget had suggested a deficit of just over $11 billion. So far there is a $5 billion improvement in the deficit to May with a $2.1 billion improvement in revenues and a $2.9 billion cut in expenditure with capital expenditure accounting for $1.5 billion of the expenditure reduction,but it would be the buoyancy of the revenues that would have been pleasing to the Minister. The country in the past has seen impressive performances in the early months of the financial year only to be face with cuts in expenditure later, as revenues failed to meet the targets set. It will not be clear if the current revenue trend continues, the next few months to come will paint a clearer picture of the likely outturn.
Total revenues which were projected at $52 billion ended at $54 billion and expenditure of $69.6 billion came in at $66.7 billion instead. $752 million less was spent on the wage bill and $676 on programs. Tax revenues brought in $1.87 billion more than projected. The deficit ended at $12.6 billion versus $17.6 billion projected.