Trading activity on the Jamaica Stock Exchange Main Market ended on Wednesday, with the volume of stocks traded rising 11 percent and the value surging 36 percent more than on Tuesday, following trading in 51 securities compared with 58 on Tuesday, with 18 rising, 24 declining and nine ending unchanged.
A total of 8,316,427 shares were traded valued at $88,916,615 compared with 7,470,394 units at $65,380,690 on Tuesday.
Trading averaged 163,067 shares at $1,743,463 versus 128,800 shares at $1,127,253 on Tuesday, compared to October with an average of 214,410 stock units at $1,325,907.
Transjamaican Highway led trading with 1.54 million shares for 18.5 percent of total volume, followed by Scotia Group with 1.51 million units for 18.1 percent of the day’s trade and Wigton Windfarm with 1.33 million units for 16 percent of the day’s trade.
The All Jamaican Composite Index shed 2,746.69 points to close at 348,729.70, the JSE Main Index dipped 4,097.53 points to 314,703.29 and the JSE Financial Index shed 1.17 points to conclude trading at 68.26.
The Main Market ended trading with an average PE Ratio of 12.1. The JSE Main and USD Market PE ratios are based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows 10 stocks ended with bids higher than their last selling prices and six with lower offers.
At the close, Caribbean Cement declined $1.98 to $49.01 and closed with an exchange of 46,234 stocks, GraceKennedy rallied 50 cents to close at $73.50 after investors traded 4,585 units, Guardian Holdings fell $30 in closing at $410 after 3,848 shares were traded. Jamaica Broilers skidded 98 cents to end at $32.99 with 44,119 stock units clearing the market, Jamaica Producers popped 82 cents and ended at $19.90 with traders dealing in 7,100 shares, Jamaica Stock Exchange lost 60 cents to $8.50 after a transfer of 5,664 stocks. Kingston Properties dipped 70 cents to close at $7, with 730 units changing hands, Kingston Wharves advanced 50 cents in closing at $28.50 in an exchange of 25,283 stock units, Massy Holdings dropped 80 cents to end at $98, with 824 shares crossing the market. MPC Caribbean Clean Energy rose $11.47 and ended at $87.97 after exchanging 10 stock units, Proven Investments gained 64 cents to finish the day at $23.69 in trading 939 units, Sagicor Group shed $2 and ended at $42.60, with 25,185 stocks crossing the exchange. Scotia Group declined 70 cents to end at $34 with a transfer of 1,505,779 units, Seprod lost $2 in closing at $76.50 with stakeholders exchanging 1,699 stocks, Supreme Ventures shed 50 cents to close at $26, with 187,628 shares crossing the market and Sygnus Real Estate Finance dropped $1.40 to $9.55 with an exchange of 16,028 stock units.
In the preference segment, Eppley 7.75% preference share fell 78 cents to end at $19.22 after 500 shares passed through the market and Jamaica Public Service 7% increased $6.46 in closing at $48.46 while exchanging 361 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise
Profit at Dolla jumps 59% in Q3
Microlender Dolla Financial reported results for the quarter ending September, with profit rising a solid 59 percent to $102 million after tax, from $70 million in the prior year’s September quarter and a profit of $328 million for the nine months to September a b 74 percent increase over the $188 million generated in 2022 for the similar period.
Profit for the September quarter was marginally lower than the June quarter. Still, revenues from loans of $300 million in the September period were slightly higher than the $294 million in the June quarter.
After provision for loan impairment losses, net interest income climbed 65 percent to $243 million in the quarter, from $150 million in the prior year and by 75 percent to $724 million for the nine months versus $414 million in 2022.
Administrative costs climbed faster than revenues, with a jump of 83 percent for the quarter to $150 million and the nine months by 92 percent to $420 million.
Loans receivable net of provision for loss amount to $2.6 billion, an increase of $1.5 billion or 125 percent over September 2022, and grew by just $69 million over the June quarter. Funds borrowed amount to $1.85 billion and increased $100 million over the June quarter. Funds on hand are almost $147 million, with most available for lending.
The company needs to take on additional debt to maintain the hectic growth in the loan portfolio and profitability going forward. The significant acquisition of shares in the company by Mayberry Investments and Supreme Venture should provide them with a constant potential source of funding to maintain the growth in the loan portfolio, supportive of an annual increase in profits going forward.
According to the company’s commentary on the results, “business loans accounted for 82 percent of the total loan portfolio, while personal loans accounted for the remaining 18 percent. Secured loans constituted 81 percent of the portfolio, with unsecured loans making up the remaining 19 percent. The collateralised loan strategy has proven instrumental in maintaining the loan portfolio quality, with non-performing loans holding steady at 9 percent, remaining within budgeted expectations and below the sector average.”
As of September, shareholders’ equity stood at $938 million, up from $715 million at the end of September last year.
Profit resulted in earnings per share of 4 cents for the quarter and 13 cents for the year to date. IC Insider.com computation estimates earnings of 20 cents per share for the fiscal year ending December 2023, with a PE of 12.8 times the current year’s earnings based on the price of $2.56, the stock traded on the Jamaica Stock Exchange Junior Market. The PE ratio compares with an average of 10.9 for the Junior Market but less than 19.5 times the top 9 stocks. Net asset value ended the period at 38 cents, with the stock selling at 6.6 times book value.
Disappointing early Q3 results
Profits are the primary driver of stock prices. The early release of third quarter results for 2023 for some listed companies has been less than inspiring, with the majority reporting lower revenues and profits for the third quarter and, in some cases, reduced revenues and profits for the year to date. That is not the results the market needs to lift a sagging market weighted down by some poor profit results for the year and tight monetary policy being pursued by Jamaica’s Central Bank.
So far, Companies reporting include AMG Packaging, Caribbean Cream with it trading brand Kremi, Express Catering, Image Plus Consultants, Knutsford Express, Margaritaville, Mayberry Investments, Paramount Trading and Portland JSX Fund.
AMG Packaging reported a slight drop in full year earnings to August of $94 million. The 2023 performance is better than that of 2022, with the current year’s figures including a one-off charge and vastly increased taxation than in the previous year.
Profit after tax is down from $105 million in the previous year, but this is after taxation that climbed from $18 million to $39 million in the current year. Revenues in the current year come out at $1 billion, up from $996 million in the prior year. For the quarter, revenues fell to $230 million from $257 million, with profits after tax of $19 million, down from $25 million in the previous year. The 2023 result was dragged down by a one off charge relating to payroll tax credits that were not allowed in prior years, amounting to $11 million, had this not been the case, profits would have been higher than for the previous year. Additionally, the taxation charge for the year was $11 million versus just $5 million in the prior year’s fourth quarter.
Caribbean Cream reported revenues of $646 million for the 2023 August quarter versus $645 million in 2022, with the year to date revenues slipping into $1.25 billion from $1.257 billion in 2022. Profit fell to $3.6 million in the August quarter, down from $7 million in 2022, but is up to $10 million for the six months from $8.5 million in 2022.
Revenues and profits rebounded strongly at Express Catering in the first quarter to August 2023 versus 2022. Net profit for the quarter ended at US$843,114 for EPS of 0.051 US cents, up 29 percent from a profit of US$652,841, with EPS of 0.040 US cents in the similar period in 2022 as revenues climbed 30 percent to US$5.4 million from US$4.9 million in 2022 aided by a strong rebound in tourism traffic passing through the Sangster International Airport in Montego Bay, as well as the opening of new restaurants in the airport.
Image Plus reported sharply lower second quarter results, a 40 percent drop in earnings from $64 million before tax in 2022 to just $39 million for the second quarter as revenues declined by 7 percent to $254 million from $274 million in 2022 but remained flat for the half year at $554 million, resulting in pretax profit falling 33 percent from $153 million down to $103 million. The company indicated that revenues decreased due to machine breakdown.
Revenues at Knutsford Express jumped 18.5 percent for the first quarter ending August to $492 million from $415 million in the 2022 first quarter. The revenue improvement translated to slight growth in profit as cost rose nearly 26 percent to $380 million from $303 million. The company stated that it increased its workforce to manage growth. Before tax, profit increased marginally to $86 million from $84 million in the prior year.
Margaritaville was one company delivering improved revenues and profit for the 2023 first quarter, primarily reflecting improvement in tourism traffic in the Caribbean region. The company generated revenues of US$1.8 million in the August 2023 quarter, up solidly from US$1.42 million in the prior year and delivered gross profit of $1.33 billion this year versus US$1.03 million. Net profit surged to US$230,000 for the year to date against just US$94,000 in 2022.
Mayberry Investments released nine months’ results with a $985 million loss for the third quarter and $693 million loss for the nine months after reporting significant investment losses of around $2 billion in both periods, but shareholders’ equity remains strong at $15.75 billion.
Paramount Trading reported lower revenues and profits in the first quarter ending August, following what the company states is the conclusion of the best major six month contract to supply admixture to the construction sector. Revenues declined by 28 percent to $426 million from $595 million the year before and profits fell by 32 percent to $65 million from $97 million the previous year.
Portland JSX Fund reported a worsened loss of US$1,457,327 for the quarter to August this year, up from US$416,643 in the similar quarter in 2022 and a loss of US$8.71 million versus a profit of US$376,681 profit for the six months to August 2022.
The results reflect net fair value losses on investments of US$1.3 million in the quarter and US$8.3 million for the half year.