Trading on the Jamaica Stock Exchange, saw big gains in the market indices with the junior market out pacing the gains with a jump of 42 points or 1.8 percent and led the combined index to gain over 1,000 points in the early morning session.
The market commenced the week with more than 1 million shares each trading in Cable & Wireless 1,591,675 units as the price held firm, Carreras traded 1,136,267 units as the price fell 50 cents for and National Commercial Bank had 319,588 shares trading at $40. Volume traded in other stocks was very moderate.
Barita Investments traded 9,250 shares at $3.51 with the price gaining 26 cents, Mayberry Investments traded 500 and gained 35 cents to $3.85, Seprod gained 99 cents in trading 1,000 shares at $21.50 and Jamaican Teas gained 40 cents in trading 27,700 shares at $4.
At 10:45 am 20 securities traded, resulting in a volume of 3,175,290 shares changing hands compared to 33,336,371 shares carrying a value of $1,215,936,825 on Friday. The average number of shares traded amounts to 158,765 units compared to 1,515,290 units on Friday. The number of stocks falling are 4 while the prices of 9 securities rose as the market continues to consolidate.
The all Jamaica Composite Index gained 813.86 points to 177,744.33, the Jamaica Stock Exchange Market Index climbed 727.73 points to 159,976.80, the Jamaica Stock Exchange combined index jumped 1,106.08 points to close at 172,387.46 and the junior market index rose 41.88 points to 2,338.84.
Buy stocks before the explosion
Image courtesy of suphakit73/FreeDigitalPhotos.net
Both markets have some appealing choices that offer investors a great deal of potential upside. Investors have been making big mistakes by ignoring these opportunities. The errors keep showing in junior market stocks where many wait until prices start to move before trying to buy, at which time the volumes dry up and prices have to move steeply for sellers to be induced to dispose of stocks. Recent cases in point are, ISP Finance, the stock was available under $3 but there were very few buyers, now there are many buyers with bids in the $6 region, a level at which there has been no stock offered for sale since it traded nearly 23,000 units at $6, earlier in September. Jetcon Corporation is another case, with the stock trading below the $3 level for a long time until recently, even as the profit of the company is running at almost twice the pace of 2015, now they are more investors interested at the higher prices at a time when the supply has evaporated. Caribbean Cream is yet another, with IC Insider pointing to strong increase in profits for a long time, now buyers are in at much higher prices but supply is limited. tTech is yet another example with the stock trading for a long time in the $4 region now there is virtually no supply as interest in the stocks grows.
While some investors focus on trailing quarterly earnings as the basis for valuing stocks, they tend to miss out on companies with explosive growth in profits. There is also the tendency to ignore one off time items. The case of Caribbean Cement is an excellent one. A Brokerage house has the earnings at just over $2 for 2016, but the ongoing earnings are likely to be in the $5.50 region for 2016 and this is what they should be using to value the company. Investors seem to miss the main point. The company incurred cost for reducing labour which will show up as lower operating cost in future periods, but investors don’t seem to appreciate that fact, added to what now appears to be an economy that is growing and could grow even more making Cement, a huge buy. The same can be said for National Commercial Bank and Scotia Group that are having a great 2016.An indication of where values could reach based on this year’s earnings can be gleaned from three stocks selling at PE ratios that are 16 to 17.5 times this year’s earnings with 11 out of the 29 junior listings having a PE of 10 times or more with, an average of 13.5. The average of the junior market is now at 10 times 2016 earnings with several stocks selling below. In the main market the top 11 stocks average PE is just over 15 with the overall average for the market at 9.
Based on close of the market on Friday the stocks to watch in the coming week are AMG Packaging that fell back sharply in the past week and is on IC Insiders top 5 junior market buys, Blue Power with limited supply. Cargo Handlers still in demand with the announcement of the 10 to 1 stock split and with the bid at $87.05 versus the last sale of $86.10. Caribbean Cream with limited supply and increased buying, Honey Bun with good demand and declining supply, but the price could be heavy with a PE of 17. The 2016 fiscal year ends this month, so investors may want to focus on the 2017 numbers as the main reason for buying. ISP Finance with no supply but with bid at $6.50 compared to last sale of $6 and with the success of the $150 million bond issue, could move if some supply appear.
Scotiabank with profit up 47% for the July quarter the stock could be very active this week.
Main market activity has been fluid, there are no indications from Friday’s trading, that there will be much change. Investors should keep an eye on Barita Investments, IC Insider’s Top stock in the main market, with bids at $3.51 at the close on Friday, compared with a last sale price of $3.25. There are currently only 5 offers on the board, amounting to 70,000 units and Scotia Group that is set to report earnings for 2016 in the region of $4 per share, after reporting a 47 percent jump in the July quarter. Investors may want to keep an eye out for Cable & Wireless that could well report decent profit for the 12 months to March next year. Note the company’s year end is set to change to December.
Derrimon in Paramount out – Top 5
AMG Packaging is IC Insider’s top junior market stock for growth in the next 12 months.
Paramount Trading price movement is directly related to limited supply of the stock. There are good prospects for increased earnings to flow from expansion into the processing of lubricants, for the local market. Production is expected to get on the way in the first quarter of 2017. With a PE ratio of 7.6 times 2017 projected earnings, the stock remains attractive. With the limited supply, the stock seems a prime candidate for a stock split later this year.
Jetcon Corporation seems set to move out of the top 5 by the end of the week, if the trend of increased demand and limited supply continues. During the past week, the stock gained 24 percent based on the closing bids that were higher than the last sale price. AMG Packaging fell sharply in the week and has pushed the stock to top of the list, while Medical Disposables has moved down to 3 due to a revision downwards of earnings to 60 cents per share and an increase in the stock price.
Derrimon enters as number 4 but the company is highly leveraged but expanding. Derrimon Trading reported slightly increased profit of $32.2 million or 12 cents per share up from $30.6 million in the June quarter with profit of $58.5 million compared to $51.2 million for the six months to June, with 3.5 percent growth is sales in the June quarter and 6 percent for the six months year over year. Other income grew but the company’s share of associated profit fell in both periods, while costs were held tightly.Barita Investments is the only stock in the top 5 main market list, to show any major change, with the bid moving up to $3.51 at the close of the week and seeming set to trade in the $4 region sooner than later, with limited supply on the offer.
Republic jumps $4 on TTSE – Friday
Republic Financial Holdings jumped sharply in Friday’s trading
Market activity resulted in 251,003 shares valued at $4,238,930 changing hands, well below the $22,225,458 traded on Thursday.
The Composite Index declined 0.02 points to close at 1,156.68, the All T&T Index fell 0.03 points to close at 1,818.36 and the Cross Listed Index ended unchanged at 65.90 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 7 stocks with bids higher than their last selling prices and 2 with offers that were lower.
Gains| Angostura Holdings ended with 6,000 shares changing hands to close at a 52 weeks’ high with a gain of 5 cents at $14.05, Republic Financial Holdings jumped $4 to close at a 52 weeks’ high of $114, with 4,076 shares changing hands at a value of $448,814. Scotiabank gained 1 cent and closed with 13,737 shares changing hands with a value of $ $794,823 to end at $57.86 and Trinidad and Tobago NGL that closed at $23.52 with 3,674 units changing hands after rising 1 cent.
Losses| National Enterprises lost 1 cent to close with 765 shares changing hands at $10.45 and West Indian Tobacco traded 2,500 shares valued at $316,875 to close $126.75 after falling 25 cents.
Firm Trades| Agostini’s traded 21,683 shares valued at $375,131, to end at $17.30, Ansa Merchant Bank traded 100 units to close at $40.01, Clico Investment Fund closed with 75,630 shares changing hands, valued at $1,708,505, to end at $22.60, First Citizens traded 1,106 units at $35. Grace Kennedy closed with 75,000 shares changing hands at $2.52, Guardian Media ended with 805 shares changing hands at $19.75, Massy Holdings ended with 50 shares changing hands, to end at $54.80, National Commercial Bank ended with 9,960 shares changing hands to close at $2.64, Point Lisas closed with 1,420 shares trading to close at $3.51, Prestige Holdings with 6,060 units changing hands ended at $10.83 and Trinidad Cement traded 18,142 shares to close at $3.12.
10 JSE stocks rise 10 fall -Friday
Grace Kennedy traded nearly 28M shares on Friday.
Trading led to the prices of 10 securities gaining out of a total of 37 that traded, with 10 declining in the overall market, including 5 stocks rising and 2 falling, in the junior market.
At the close of the market to 56,335,591 units valued at $1,576,979,024, changed hands, compared to the 2,177,808 units valued at $15,988,922 changing hands on Friday. The junior market accounted for 4,977,327 units valued at $32,514,713 of the total traded on Friday.
At the close of trading, the JSE Market Index dived 1,017.74 points to end at 159,249.07. The all Jamaica Composite Index dropped 1,138.18 points to close at 176,930.47 and the JSE combined index sank 749.64 points, to end at 171,281.38.At the close, IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 14 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, investors picked up 2,041,685 units of Cable & Wireless, the price gained 2 cents in closing at 80 cents, Caribbean Cement fell by $1 to close at $26 with 992,947 units changing hands, Carreras traded 40,840 shares and lost 52 cents to close at $65.50, Grace Kennedy gained $1.55, with 27,892,196 shares changing hands at $43. Jamaica Broilers had 8,030,326 shares changing hands and fell 5 cents to end at $14.50, Jamaica Producers ended unchanged at $8.40 with 509,740 units trading, Jamaica Stock Exchange fell by 50 cents to end at $26.50 while trading 10,200 shares, JMMB Group traded 4,116,935 units and lost 20 cents to $9.80. Kingston Wharves traded 1,800 shares to close at $17.55, Mayberry Investments ended with 2,292,911 shares changing hands, to close at $3.50,
National Commercial Bank had 3,037,523 shares trading and closed with a loss of 25 cents at $40, Pan Jamaican Investments lost 94 cents and closed at $23.51 after trading 326,021 shares. Pulse Investments traded 37,200 shares with a rise of 35 cents to close at $4, Radio Jamaica closed at $1.40 after 110,101 shares changed hands, Sagicor Group traded 358,270 shares while gaining 53 cents to close at $23.10. Sagicor Real Estate Fund traded 4,590 shares to close with a fall of 3 cents at $10.12, Scotia Group dropped $1.80 to close at $30.71 with 1,238,805 shares changing hands. Seprod gained 81 cents to close at $20.51 with 12,000 shares trading and Proven Investments gained 0.95 cent with 297,060 units changing hands to close at 19.99 US cents.
Trading activities climb on TTSE – Thursday
Trading activity on the Trinidad and Tobago stock market closed Thursday with losses in the two of the market indices. Volume traded rose above the 43,000 units changing hands on Wednesday. At the close 13 securities changed hands, 4 rose, 2 fell while 7 remained unchanged.
Market activity resulted in 396,924 shares valued at $22,225,458 changing hands, well over the $694,381 traded on Wednesday.
The Composite Index declined 0.21 points to close at 1,156.70, the All T&T Index fell 0.54 points to close at 1,818.39 and the Cross Listed Index ended with a gain of 0.01 points to 65.90.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 7 stocks with bids higher than their last selling prices and 3 with offers that were lower.
Gains| Republic Financial Holdings gained 1 cent to close at $110, with 60,000 shares changing hands at a value of $6,599,993, Sagicor Financial Corporation closed with a gain of 2 cents with 4,430 shares changing hands at $6.62. Scotiabank gained 5 cents and closed with 61,705 shares changing hands with a value of $3,569,632 to end at $57.85 and Trinidad and Tobago NGL that closed at $23.51 with 12,122 units changing hands after rising 1 cent.
Losses| Massy Holdings lost 15 cents and ended with 64,689 shares carrying a value of $3,551,396 changing hands, to end at $54.80 and National Enterprises lost 5 cents to close with 1,029 shares changing hands at $10.45,
Firm Trades| Angostura Holdings ended with 2,150 shares changing hands to close unchanged at $14, Ansa McAl traded 102,794 units to close at $62.70, Clico Investment Fund closed with 70,975 shares changing hands, valued at $1,604,035, to end at $22.60, First Citizens traded 1244 units at $35. Guardian Media ended with 805 shares changing hands at $19.75, National Commercial Bank ended with 12,768 shares changing hands to close at $2.64 and Trinidad Cement traded 2,213 shares to close at $3.12.
20 JSE stocks rose – Wednesday
Advancing stocks outnumber declining ones on Wednesday almost 2 to 1.
At the close of the market to 6,452,961 units valued at $39,142,493, changed hands, compared to the 3,862,389 units valued at $14,970,110 changing hands on Tuesday. The junior market accounted for 3,294,451 units valued at $15,960,574 of the total traded on Wednesday.
At the close of trading, the JSE Market Index declined 230.01 points to end at 159,370.56. The all Jamaica Composite Index fell 257.23 points to close at 177,066.34 and the JSE combined index lost 129.39 points, to end at 171,162.18.
At the close, IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 11 stocks with bids higher than their last selling prices and 4 with lower offers, suggesting continued fluidity in price movements immediately ahead.In market activity, Berger Paints traded 29,614 units and rose 6 cents to end at $5.05, investors picked up just 255,635 units of Cable & Wireless, the price rose 1 cent in closing at 80 cents, Caribbean Cement traded 19,195 shares to close with a gain of 59 cents at $26.59. Carreras traded 6,001 shares and fell 42 cents to close at $65.60, Investors traded 51,984 shares of 1834 Investments to close with a loss of 1 cent at $1.24, Grace Kennedy ended at $41.45, with 5,982 shares changing hand, Jamaica Broilers lost 20 cents with 91,362 shares changing hands, to end at $14.55. Jamaica Producers ended at $8.50 with 34,510 units trading, Jamaica Stock Exchange ended at $26.50 while trading 5,000 shares, JMMB Group traded 24,877 units and fell 10 cents to $9.90. Kingston Wharves fell $1.20 in trading 1,032 shares to close at $16.20, Mayberry Investments ended with 535,795 shares trading at $3.50, National Commercial Bank had 7,738 units changing hands, to close with a gain of $1.15 at $40.25, trading in shares of 138 Student Living, ended with 641,007 units changing hands, to gain 20 cents at the close at $4.70. Pan Jamaican Investments gained 40 cents and closed at $24.40 after trading 123,656 shares,
Radio Jamaica closed at $1.40 after 5,000 shares changed hands, Sagicor Group traded 44,896 shares while rising 50 cents to close at $23.10, Sagicor Real Estate Fund traded 16,000 shares to close with a gain of 20 cents at $10.35. Scotia Group closed with a gain of 50 cents at $30.50 with 112,598 shares changing hands, Scotia Investments had 196,976 units changing hands at $26, Seprod gained 1 cent to close at $19.51 with 5,000 shares trading, Supreme Ventures dipped 23 cents with 57,000 units changing hands to close at $4.75. JMMB Group 7.50% preference share rose 1 cent in trading 377,528 units to close at $1.09 and Jamaica Money Market Brokers 7.50% preference share closed with 500,000 units changing hands for a 1 cent rise to $2.09.
19 JSE stocks rose on Tuesday
Jamaican stocks recovered some of the losses of the past two trading days with all three main market indices rising over 1,270 points when the market closed on Tuesday with the advance declining ratio be positive close two to one. The volume of stocks trading more than doubled, the volume traded on Monday, as the volume in Cable & Wireless climbed 230 percent to 2.1 million.
At the close of the market to 3,862,389 units valued at $14,970,110, compared to the 1,421,290 units valued at $14,318,294 changing hands on Monday. The junior market accounted for 531,125 units valued at $2,288,358 of the total traded on Tuesday.
At the close of trading, the JSE Market Index jumped 1,531.08 points to end at 159,600.57. The all Jamaica Composite Index surged 1,712.27 points to close at 177,323.57 and the JSE combined index climbed 1,272.91 points, to end at 171,291.57.
At the close, the prices of 19 securities gained out of a total of 33 that traded, with 11 declining in the overall market, including 7 stocks rising and 2 falling, in the junior market.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 13 stocks with bids higher than their last selling prices and 8 with lower offers, suggesting continued fluidity in price movements ahead.
In market activity, Berger Paints traded 19,410 units and lost 1 cent to end at $4.99, investors picked up 2,134,925 units of Cable & Wireless gained 4 cents in closing at 79 cents as the stock gained some support at these lower levels. Caribbean Cement traded 62,686 shares to close with a gain of 40 cents at $26, Carreras traded 2,955 shares and gained 2 cents to close at $66.02, Investors traded 74,479 shares of 1834 Investments to close 15 cents higher at $1.25, Grace Kennedy rose 15 cents and ended at $41.45, with 37,527 shares changing hands. Jamaica Broilers rose 23 cents with 121,227 shares changing hands, to end at $14.75. Jamaica Producers ended with a loss of 9 cents at $8.50 with 16,259 units trading, JMMB Group traded 15,188 units and rose 15 cents to $10. Kingston Wharves gained 40 cents in trading 44,675 shares to close at $17.40, National Commercial Bank had 22,790 units changing hands to close with a loss of $1 at $39, Pan Jamaican Investments fell 50 cents and closed at $24 after trading 40,560 shares.
Portland JSX closed at $11 with 15,450 shares changing hands, Radio Jamaica lost 2 cents to close at $1.40 after 84,764 shares changed hands, Sagicor Group traded 24,100 shares while rising 10 cents to close at $22.60, Sagicor Real Estate Fund traded 12,524 shares to close with a loss of 5 at $10.15. Scotia Group closed at $30 with 26,885 shares changing hands, Scotia Investments climbed 50 cents with 4,280 units changing hands at $26, Supreme Ventures gained 22 cents with 2,000 units changing hands to close at $4.98, Proven Investments traded 3,125 units to close at 19 US cents and JMMB Group 7.50% preference share lost 2 cents in trading 563,355 units to close at $1.08.
4 stocks rise 3 fall on TTSE on Tuesday
Trading activity on the Trinidad and Tobago stock market closed Tuesday with gains in the two of the market indices. Volume traded fell back below 350,000 units changing hands. At the close 10 securities changed hands, just 4 rose, 3 fell while 3 remained unchanged.
Market activity ended with 332,193 shares valued at $5,056,419 changing hands, up from the $3,107,756 traded on Monday. The Composite Index fell 0.42 points to close at 1,155.43, the All T&T Index fell 1.08 points to close at 1,816.06 and the Cross Listed Index ended with a gain of 0.03 points to 65.88.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 7 stocks with bids higher than their last selling prices and 5 with offers that were lower.
Gains| National Enterprises rose 10 cents and closed with just 200 shares changing hands at $10.50, Sagicor Financial Corporation rose 2 cents to close with 3,706 shares changing hands at $6.60. Scotiabank gained 3 cents and closed with 10,100 shares, valued at $581,902, changing hands at $57.63 and West Indian Tobacco traded 7,042 shares with a value of $894,334 to close at a 52 weeks high of $127.
Losses| Ansa McAl lost 70 cents and traded 4,601 units to close at a 52 weeks’ low of $62, Clico Investment Fund closed with 15,420 shares valued at $348,624 changing hands, and lost 4 cents to end at $22.60 and Guardian Holdings lost 21 cents and ended with 205,214 shares, for a value of $2,626,739 changing hands to end at $12.80.
Firm Trades| First Citizens traded 2,168 units at $35, Grace Kennedy ended with 33,000 shares trading at $2.52 and National Commercial Bank ended with 50,742 shares changing hands to close at $2.64.
Mayberry active in insider trades
Mayberry Investments is one of the listed companies in which there are regular trades done by insiders, the period since August into September have a number of moderate trades. Mayberry Investments has traded heavily in LASCO Financial Services shares recently to top up their holdings.
A connected party of Mayberry Investments purchased 15,766 shares on September 2, 10,500 shares on September 1. A related party purchased 13,289 shares on August 31, while on August 30. Directors trading in the company’s stocks include a purchase of 60,000 shares and sale of 10,000 shares on August 3 and purchase of 2,000 shares on August 15, 37,300 shares on August 10 and 73,539 shares on August 10-18. A sale of 19,496 shares on August 22, 11,000 shares on August 11, 10,000 shares on August 10, while another 21,000 shares were sold on August 10-11.
Mayberry Investments was the main buyer of LASCO Financial Services shares recently in an effort to up their holdings to maintain their 20 percent holding in light of an increase in the issued shares in connection with the staff option plan an informed source told IC Insider. The inside trades resulted from a connected party purchasing 552,729 of the company’s shares on September 2, while on August 24, a connected party sold 37,480 shares and a connected party purchased 701,234 shares.
A connected party of Caribbean Producers sold 54,074 CPJ shares on September 7 and on September 1 connected parties sold a combined total of 3,245,289 shares.
An Officer of Trinidad Cement purchased through the TCL’s Employee Share Ownership Plan 107,715 TCL shares on September 6 and a related party sold 15,000 TCL shares over the period August 16-18.
A National Commercial Bank, related parties purchased 27,664 shares on August 30. Parties connected with Blue Power Group purchased 48,421 shares during the period June 30 to August 18 and sold 2,000 shares on August 18.
A Supreme Ventures connected party sold 8,000,000 shares and another sold 1,223,602 shares on August 3 and August 16, respectively. A connected party sold 838,345 shares and a member of the Senior Management purchased 12,465 shares on September 8.
A Director has sold 50,000 Honey Bun shares on August 22 and on August 12 a director sold 10,050 shares and an Eppley connected party sold 121,667 shares in the company on August 12.