MVL Stockbrokers sold a series of large trades in several stocks in early Wednesday trading and VMBS Wealth was the main buyer in what appears to be prearranged trades. The trades had negligible impact on the market indices. IC Insider has been reliably informed, that the trades reflect transfer of shares that were held at the JCSD under broker MVL Stockbrokers for VMBS Wealth pension funds and have been transferred to VMBS Wealth as the brokerage house. So far its is unclear why the change was not effected by a instructions to the Stock Exchange to simply switch the broker’s accounts.
A total of 32 securities with a volume of only 32,708,601 units valued at $359,295,340 have traded with 13 stocks declining versus only 6 that rose.
The All Jamaica Index trades at 108,749.59 to dip 117.62 points, JSE Market Index fell 105.24 points to 98,244.17. The combined index slipped 114.26 points to be at 100,935.78 and the junior market index 916.82, down 1.66 points.
Significant trades are Grace Kennedy with 1,399,021 units, Jamaica Stock Exchange 2,105,142 shares, JMMB Group 8,580,291 shares Lasco Manufacturing 12,000,000 units and Sagicor Group 2,940,000.
MVL & VMBS Wealth big trades on Wednesday
$100m of Scotia Group trade cancelled
In Mondays trading on the Jamaica Stock Exchange, MVL Stockbrokers purchased 5 million Scotia Group shares at $20 each, amounting to $100 million. Towards the end of the close in the market, the trades were no longer posted.
A check with the manager of the stock exchange Marlene Street Forrest, stated that “the matter of the trade was brought to my attention and on checking it was discovered that the broker incorrectly entered the order as 5 million units when it should have been 500,000 units. Based on the investigation done and the information gathered, all the selling brokers were contacted to get there approval about the cancellation. This is the norm is such cases, where cancellation is contemplated as such the trades were reversed”. Instructions were given to place orders for $5 million each of Carreras, National Commercial Bank and Scotia shares, Ed Mckie of head of MVL Stockbrokers informed IC Insider. The orders were on behalf of an institution not a pension fund, IC Insider was advised.
In early trading in the market today, there were three significant bids to buy 5 million units of each Carreras at $34, National Commercial Bank at $18 and Scotia at $20. Scotia trades were the only one executed, the other bids were withdrawn before any trade took place. At the end of trading none of the Scotia Shares were traded and the bid was removed. In all likelihood the bids for the smaller quantities will resurface shortly.
5m share orders for Carreras, NCB & Scotia Group
MVL Stockbrokers are in the market early Monday with three significant bids to buy Carreras at $34, National Commercial Bank at $18.12 and Scotia at $20.
The bids are for 5 million units of each of the stock. So far they bought all but 1,700 of the 2,618,405 Scotia Bank Shares at $20.
Information gleaned recently is that a pension fund was in the market for large blocks of shares and the bids of such size could be connected with the pension fund needs.
On Friday, Scotia Investment bought all the Scotia shares to tradefor parties connected with the brokerage house.
