JSE

Over 25 years of useless circuit breaker

October 20, 2020 by IC Insider.com

Frequent interruption to trading stocks on the Jamaica Stock Exchange caused by the Circuit Breaker rule that shuts down activity in a company’s stock for an hour is frustrating for investors once the price moves by 15 percent or more from the closing price of the previous trading session.
Introduced by the JSE in the 1990s based on some investors’ complaints about large swings in the price movements of some stocks, the circuit breaker has not been effective in safeguarding investors’ interest by allowing information to flow to investors as to the reasons for sharp price movements. In place for more than 25 years, the mechanism serves no useful purpose, hinders trading and have not resulted in the presentation of new information for stocks so halted to justify stopping in trading.

In the past, this publication made suggestions to modify the system as it operates currently, to simplify it and allow for fewer losses in trading time for stocks subjected to the circuit breaker rule. There is no move by the JSE to implement changes since the price limit increase to 30 percent. It appears that the JSE does not seem to get it. It is better to improve what currently exists to help boost business rather than seeking other businesses.
If the rule is retained, keep it simple that all involved in the market can easily understand.
For example, if the maximum daily price movement is 30 percent, let that be the figure so that anyone can compute what it will be. There is no logic to state that prices can move by 30 percent, which happens in some cases and not in others. There should be no difference to the daily maximum price, whether it gets there in one movement or more than one. Currently, a 15 percent price movement triggers a re-computation of the maximum price of less than 30 percent. If a stock’s reference price starts the day at $10, then the day’s maximum price would be $3. Every investor can compute this. There is no reason to adjust the maximum if it trades initially at $12, with the maximum price for the day dropping to $12.65?
The second modification to the circuit breaker rule is reducing the time that stocks are frozen. An hour break is far too long and prevents prices from moving above 15 percent within an hour of the market’s close.
If there is a need for the circuit breaker, why not break for 15 minutes instead of an hour so that trading can take place more freely. The Stock Exchange still has the power to halt trading in any stock or the market if they consider it prudent.
The Circuit Breaker rule. No stock should trade +/-15% from the close price or the effective close price at the market’s opening. The effective close price is determined whenever the closing bid is greater than the close price or whenever the closing ask is less than the close price. If the Circuit Breaker is triggered, the security will be halted for an hour to allow for the release, circulation and absorption of any relevant market news and a cool-down period while investors consider their options. After the hour, the security will be released for trading and the new reference price, which is a simple average of the trigger price and the close price, will be used to determine the trading range for the remainder of the day. The trade price that triggered the Circuit Breaker should not be +/-15% outside of the original prescribed price band. The stock will not be allowed to trade +/- 15% of the new reference price.

Filed Under: JSE Combined, Stock Market Tagged With: Circuit breaker, Jamaica Stock Exchange (JSE)., JSE

AMG profit jumps 65%

April 17, 2016 by IC Insider.com

amg-2 Revenues at AMG Packaging rose by only 4 percent for the February 2016 quarter to $157 million up from a decline of 1 percent in the first quarter and for the six months an increase of 1.7 percent to $308 million.
Profit for the quarter out performed revenues by a wide margin, jumping 43 percent to $23 million although the company incurred $10.5 million in startup cost for the tissue operations in the quarter and $16.4 million for the six months, pulling profit down to a 65 percent increase to $52 million.
Earnings per stock came in at 23 cents for the quarter and 51 cents for the six months with IC Insider projecting that excluding the cost for the tissue operation earnings per share should hit $1.35 for the full year. The stock last traded on The Jamaica Stock Exchange at $13.
The results showed gross profit climbing 56 percent to $55 million for the quarter and 53 percent to $106.7 million for the six months as gross profit margin climbed by 35.5 percent for the quarter from 23.6 percent in 2015 and to 35 percent for the six months from 23 percent in 2015.
Increases in administrative and other none manufacturing cost were well contained with an overall increase of only $4 million for the half year.
Information gleaned is that the tissue operation has high profit margins, this augurs well for the company going forward once the new operation which have been tested is up and running at optimal levels for a while. While management speaks to the plan to commence production in the third quarter it will be the 206/17 fiscal year that should add to revenues and profit.
AMG is currently, engaged in the production of cardboard boxes for packaging and is embarking on an expansion into tissue paper processing.

Filed Under: Buy Rated, Company News, Company Results Tagged With: AMG Packaging, JSE

3 new record close on Friday

October 16, 2015 by IC Insider.com

The JSE Main Index recorded an all-time high at the close of Friday on the Jamaica Stock Exchange of 120,592.56 points, the first time since April 26, 2005 with the then all-time high of 120,385.49 points. The newer JSE Combined Index and the JSE Select Index also recorded all-time highs at 125,132.75 points and 4,024.14 points respectively at the markets close on Friday.
The JSE Select Index enjoyed the record high from as far back as January 24, 2005, with a close of 3,714.71, the same day as the all Jamaica Composite Index. The junior market ended at a new closing record high of 1,262.69 on Friday but traded just over the 1,300 points level during trading on Tuesday October 13, to have hit the highest point in the history of that market.
In the process of scaling the new highs the JSE Select Index has gained 81 percent for the year to date and the JSE main Index put on 58 in 2015 to date. The junior market is up by 84 percent for this year has scaled a number of records this year on its way to today’s record close.
This now leaves the All Jamaican Composite index to scale the record high of 138,917.59 reached on 24th of January 2005 which is just over 5,000 points away. The market could face some resistance around 150,000 points on the all Jamaica composite Index.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: JSE

25% jump in Berger Jamaica profit

February 19, 2015 by IC Insider.com

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Berger Paints Jamaica enjoyed a 25 percent jump in after tax profit, for the December quarter and 12 percent for the nine months to December, thanks to lower tax rate as profit before tax was up 16 percent and only 4.5 percent respectively.
Sales revenues were up 9 percent in the quarter, to $679 million and 6 percent for the nine months to reach $1.496 billion. Profit before tax, amounted to $84 million for the quarter, up from $72.5 million and $95.3 million versus $91 million.
After providing $21 million for tax, net profit for the quarter ended at $63 million or 30 cents per share, and for the nine months, earnings ended at $71.5 million or 33 cents per share.
At year end, cash ended at $48 million compared $41 million at the end of March, but current assets climbed to $891 million from $674 million at March and $792 million at the end of 2013. Current liabilities rose as well, to $422 million from $390 million at the end of 2013 and $290 at March last year.
Going forward, Berger should benefit from the lower price for oil on the world market as a major input into producing paints is oil based products. Profits for the year to March, should end around 34 cents. Investors should be seeing a large portion of the profit being paid out as dividend, with the stock price now at $1.56, the yield could exceed 10 percent. IC Insider forecast 54 cents per share for the 2016 fiscal year.
Berger Paints Jamaica is listed on the Jamaica Stock Exchange.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Berger Paints, JSE

Demand for some junior stocks, supply low

January 26, 2015 by IC Insider.com

Trading activity on the Junior Market closed with only 5 securities trading and ended with 76,353 units valued at $161,387 changing hands. The JSE Junior Market Index rose 0.41 points to close at 693.11, with the price of 1 stock advancing and 2 declining.
At the close of the market, there were 6 stocks with bids higher than their last selling prices and only 1 with the offer that was lower. The junior market closed with 4 securities closing with no bids to buy and 6 securities that had no stocks being offered for sale.
At the close, Honey Bun traded 4,686 shares at $1.95, Knutsford Express Services closed with 15,000 shares trading, 5 cents lower at $5.80, Lasco Distributors ended trading with 14,569 units at $1.40, Lasco Financial Services closed with 37,098 shares changing hands while gaining 5 cents to $1.05 and Lasco Manufacturing lost 1 cent in trading 5,000 shares at $1.18.

Filed Under: JSE Junior Market, Stock Market Tagged With: Daily Trading, Honey Bun, JSE, junior market, Knutsford Express Services, Lasco Distributors, Lasco Financial Services, Lasco Manufacturing

Only 3 Junior market stocks traded Wednesday

January 21, 2015 by IC Insider.com

Caribbean Producers price fell on Wednesday

Trading on the Junior Market closed with only 3 securities traded with 1 advancing and 1 declining to end with 131,269 units valued at $252,447 changing hands. The JSE Junior Market Index rose 6.54 points to close at 702.97, with the price advancing.
At the close of the market, there were 5 stocks with bids higher than their last selling prices and 1 with the offers lower. The junior market closed with 4 securities ending with no bids to buy and 5 securities that had no stocks being offered for sale.
Lasco Manufacturing closed at $1.20 with a gain of 4 cents as 45,204 shares changed hands, Dolphin Cove traded 1,500 shares to end at $8.50 and Caribbean Producers closed with 84,565 units trading at $2.11 with a fall of 4 cents.

Filed Under: JSE Junior Market, Stock Market Tagged With: Caribbean Producers (CPJ), Dolphin Cove, JSE, junior market, Lasco Manufacturing

Another director jumps KLE

August 14, 2014 by IC Insider.com

Craig Powell one of the directors and shareholder of KLE Group when the company had its IPO in 2012 finally gave up trying to turn the struggling entity around and resigned as a Director with effect from August 11, 2014, the Jamaica Stock Exchange was informed today. The signs were on the table for all to see when Powell in July, sold 7,181,043 units out of the 10,693,750 share he owned, at a huge discount to the IPO price.

Filed Under: Company News, General Business News, Insider Trades Tagged With: Craig Powell, JSE, KLE director

D&G dominates trade as JSE gains

June 13, 2014 by IC Insider.com

There was trading in 25 securities on the Jamaica Stock Exchange with 7 rising and 4 declining as 3,530,162 units changed hands valued at $40,444,650 on Friday with Desnoes & Geddes being the dominant trade with 1.99 million units valued at $9.1 million.Main Market| The JSE Market Index advanced by 164.38 points to close at 70,496.64, the JSE All Jamaican Composite gained 183.80 points to 77,536.24 and only 3 companies in the main market advanced in price and 3 declined.
Gains| Stocks recording gains at the end of trading in the main market are Desnoes & Geddes with 1,986,182 shares changing hands to close with a gain of 35 cents at $4.60, Cable & Wireless with 8,199 units to close with the gain of a cent at 28 cents and Sagicor Real Estate Fund 14,690 shares, in closing 2 cents higher at $6.10.

Firm| The stocks in the main market to close without a change in price are, Berger Paints with 4,890 units in closing at $1.70, Ciboney with 60,000 units and closed at 7 cents, Grace Kennedy had 449,339 units changing hands to close at $54, Jamaica Broilers 25,474 shares and closed at $4.57, Jamaica Money Market Brokers with 41,722 ordinary shares closed at $6.50, Kingston Wharves with 10,000 units, closed at $5.05, Sagicor Group 17,540 shares to close at $9.10, Salada Foods, 5,885 units and closed at $8, Scotia Group saw 156,453 units trading to end at $19.30 and Supreme Ventures 58,900 units landed the closing price at $1.95.
Declines| The number of stocks that declined in the main market are Jamaica Producers with 923 shares changing hands, in closing 20 cents lower at $17, National Commercial Bank having 90,950 shares in closing at $1.48 down to $17 and Scotia Investments with 6,520 shares closing at $24 for a fall of $1.50.

Preference| Jamaica Money Market Brokers (JMMB) 7.50% preference shares traded 78,844 units to close unchanged at $2, JMMB 7.25% preference shares had 141,150 units changing hands to close 5 cents up at $2.50 and JMMB 8.50% preference shares traded 17,000 units to close with a gain of 1 cent at $3.51.
Junior Market| The JSE Junior Market Index inched up by 1.58 points to close at 715.42 as 6 stocks traded with 2 advancing and 1 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Lasco Distributors with 46,700 shares to close at $1.21 with a gain of 3 cents and Lasco Manufacturing with 21,823 shares to close 1 cent higher at $1.05.

Firm Trades| The stocks in the junior market stocks that traded and closed at the same price as the previous trading day are Caribbean Producers with 76,978 units, closing at $2.65, Consolidated Bakeries 10,000 at 90 cents and Lasco Financial with 50,000 units in closing at $1.15.
Declines| Only one stocks declined in the junior market at the end of trading with Jamaican Teas having 150,000 shares changing hands to close 25 cents down at $3.25.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.