Rising stocks outnumbered falling ones at the close of trading on the Junior Market of the Jamaica Stock Exchange on Tuesday, with activity in 44 securities compared to 45 on Monday and ending with prices of 18 rising, 13 declining and 13 closed unchanged following a with 60 percent decline in the volume of stocks traded, with 63 percent lower value than on Monday
Trading ended with an exchange of 3,694,150 shares for $8,717,041 down from 9,154,038 units at $23,562,473 on Monday.
Trading averaged 83,958 shares at $198,115, compared with 203,423 units at $523,611 on Monday with the month to date, averaging 149,309 units at $340,147 compared to 162,808 stock units at $369,487 on the previous day and March with an average of 221,659 units at $464,382.
Spur Tree Spices led trading with 887,601 shares for 24 percent of total volume followed by Dolla Financial with 450,473 units for 12.2 percent of the day’s trade and Derrimon Trading with 311,439 units for 8.4 percent market share.
At the close of trading, the Junior Market Index rallied 14.99 points to close at 3,759.98.
The Junior Market ended trading with an average PE Ratio of 12.7, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2025.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and two with lower offers.
At the close, Access Financial dropped $2.06 and ended at $19.80 crossing the exchange 50,337 shares, Cargo Handlers increased $1.40 to $13.90 with traders dealing in 23 units, Caribbean Cream popped 32 cents to end at $3.90 in an exchange of 139 shares. Caribbean Flavours fell 14 cents in closing at $1.56 with 32,003 stock units crossing the market, Dolphin Cove gained 29 cents to close at $19.70 with an exchange of 3,178 shares, Express Catering rose 24 cents to finish at $3.94 after 12,001 units passed through the market. Fontana skidded 33 cents to $8.66 as investors exchanged 71,814 stocks, Future Energy climbed 8 cents to end at $3.48 with a transfer of 92,469 stock units, Honey Bun advanced 8 cents in closing at $7.08 after an exchange of 17,379 shares. JFP Ltd rallied 7 cents and ended at $1.28 with investors transferring 63,260 stock units, Main Event sank 23 cents to close at $13.57, with 4,176 stocks changing hands and tTech increased 21 cents to finish at $2.22 with investors trading 9,035 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
No rewards for Purity’s minority shareholders
After just over 11 years of listing on the Junior Market of the Jamaica Stock Exchange shareholders of Consolidated Bakeries are yet to see any meaningful returns from their $1.88 per share investment in the company, with the price now hovering at just over $2 and no dividend payment during the period, the situation is made worse with the company granting heft salary increases, with no increase in profit for 2023.
In their most recent financial report with revenues rising nearly 11 percent a gross profit jumped by $57 million to $594 million, only the majority of owners benefitted from that improvement. Management paid out the increase in gross profit to themselves and other workers in 2023. Minority shareholders received no benefit.
Management remuneration for directors climbed by nearly $6 or 27 percent to $26.6 million from $21 million. Salaries and related expenses included in direct manufacturing cost, jumped a staggering 40 percent or $42 million to $146 million from $104 million in 2022, this was the major factor that gross profit was not higher.
Salaries for selling and distribution rose by $21 million or 19 percent to $128 million from $107 million in 2022. Surprisingly, administrative salaries and related expenses remained flat at $103 million. In total, salaries rose by $70 million, some $13 million more than the increase in gross profit and just $28 million excluding the direct labour cost.
Other income contributed $4.6 million to profit, up from $2.4 million in 2022. Profit after Corporate taxes of $4.3 million for the year, slipped to $13 million from $14 million in 2022, after tax of $3.9 million.
Administrative costs rose only 2.8 percent from $266 million to $274 million but selling and distribution costs jumped a sizeable 21.2 percent to $247 million from $203 million. Depreciation and amortization costs climbed 15.7 percent to $41 million from $36 million. Finance charges rose to $20 million from $16 million in 2022, with borrowings increasing by $67 million during the year which helped in funding addition to fixed assets of $106 million, with equipment accounting for $49 million and motor vehicles $46 million.
Other areas with above average cost increases are Security with a rise of 21.5 percent to $15 million, Insurance up 18.6 percent to $19 million, and rented space jumped 110 percent to $8 million from $3.8 million. Professional fees rose 38.4 percent to $19 million from $14 million and other expenses climbed 33 percent from $17.5 million in 2022 to $23.2 million in 2023.
Not all items of cost rose. Bank charges declined from $5.7 million to just over $4 million, a drop of 28 percent. Utilities fell 11 percent from $36.7 million to $32.6 million. Repair and maintenance declined by 61 percent to $3 million from $7.6 million.
The operations generated Gross cash flow brought in $58 million but growth in inventories, additions to fixed assets offset by loan inflows and a reduction in payables resulted in a cash deficit of $27 million for the year.
Current assets ended the period at $276 million inclusive of trade and other receivables of $114 million, cash and bank balances of $66 million. Current liabilities ended the period at $242 million, with net current assets ending at just $34 million.
At the end of December, shareholders’ equity amounts to $710 million with loans totalling $253 million up from $187 million in 2022 of which long term borrowings amount to $166 million and short term at $88 million. One loan amounting to $40 million is due to be repaid in full in 2024 and the rest have full repayments dating from 2026 to 2033 with annual payments.
Earnings per share was 6 cents for the year. IC Insider.com computation projects earnings of 30 cents per share for the fiscal year ending December 2024, with a PE of 7 times the current year’s earnings based on the price of $2.19 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value ended the period at $3.13 with the stock selling at a steep 30 percent discount to book value.
Falling prices dominates the JSE USD Market
Trading on the Jamaica Stock Exchange US dollar market ended on Monday, with a 38 percent drop in the volume of stocks being exchanged after a 68 percent fall in value from that of Friday, resulting in trading in nine securities, compared to eight on Friday with prices of one rising, five declining and three ending unchanged.
The market closed with an exchange of 130,853 shares for US$9,068 down from 209,773 units at US$28,768 on Friday.
Trading averaged 14,539 units at US$1,008 versus 26,222 shares at US$3,596 on Friday, with a month to date average of 34,790 shares at US$2,925 compared with 40,669 units at US$3,482 on the previous day and March that ended with an average of 49,394 units for US$3,593.
The US Denominated Equities Index increased 0.96 points to settle at 244.99.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.3. The PE ratio is computed based on the last traded price divided by projected earnings done by ICInsider.com for companies with their financial year ending and or around August 2024.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, AS Bryden ended at 22.02 US cents in an exchange of 652 stocks, First Rock Real Estate USD share lost 0.48 of one cent to close at 4.02 US cents with investors dealing in 41,146 units, Margaritaville ending at 10 US cents in switching ownership of 500 shares. Proven Investments slipped 0.02 of a cent in closing at 14.87 US cents as investors exchanged 3,890 stock units, Sterling Investments sank 0.05 of a cent and ended at 1.6 US cents after trading 11,335 shares, Sygnus Credit Investments ended at 8 US cents with 54,969 stocks clearing the market and Transjamaican Highway dipped 0.01 of a cent to 2.17 US cents after an exchange of 18,184 units.
In the preference segment, Productive Business Solutions 9.25% preference share gained 10 cents in closing at US$12.10 with 77 stock units crossing the market and Sygnus Credit Investments E8.5% fell 10 cents to finish at US$10.70 in an exchange of 100 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.