FCIB 2nd Caribbean bank to abort US listing


FirstCaribbean aborts IPO for NYSE listing.

Firstcaribbean International Bank (FCI) announced that they have withdrawn their planned initial public offering ahead of its plan to list on the New York Stock Exchange.
The Trinidad and Tobago Stock Exchange advised today, that they received notice from FCI advising of the withdrawal of the US registered public offering and listing of its shares on the NYSE in view of market conditions at this juncture. FCI had filed a registration statement in December 2017 relating to this public offering and proposed listing on the NYSE under the symbol “FCI”.
The company is the second Caribbean based banking group to have moved forward with plans to list on that stock exchange. The first was NCB Group in 2013, incurring a $680 million hit from the costs relating to aborted Initial Public Offering (IPO) in the 2013 fiscal year to September, according to the company’s audited financial statements.
The banking group was attempting to raise fresh capital in the international market, during the turbulent period ahead of the country reaching an agreement with the International Monetary Fund (IMF). The amount involved was written off against income thus helping to depress profits for the year.

NCB lost $700M in its aborted NYSE IPO plans in 2013.

Since then NCB has gone on to report record profits in 2017 with a 28 percent increase in the first quarter to December last year. At the same time FCIB that struggled for several years as it was battered by Caribbean countries in deep recession only saw a rebound in fortunes in recent years.
In 2013, the FCIB group adjusted profit was just US$35 million rising to $83 million in 2014 and onto $123 million the following year then $143 million in 2016 and $151 million last year, but revenues have just barely grown as loans have stagnated with US$6.36 billion in 2017 from US$6.3 billion in 2013.

JSE majors add 2,000 points – Wednesday

Trading on the Jamaica Stock Exchange main market ended with the JSE All Jamaican Composite Index recovering an additional 2,016.95 points to close at 324,446.16 on Wednesday after regaining 3,026.80 of the nearly 7,000 points lost on Tuesday to end at 322,429.21 as advancing stocks edged out declining ones.
The JSE Index regained an added 1,837.67 points to end at 295,607.13 after rising 2,757.76 on Wednesday in clawing back from more than 6,000 points plunge on Tuesday.
At the close, 28 securities traded, the same number as on Tuesday and ended with the prices of 13 stocks rising, 10 falling and 5 trading firm, in the main and US dollar markets.

Cable & Wireless Head quarters.

At the close of trading, Jamaica Broilers rose 99 cents to end at $21, Grace Kennedy lost 96 cents to $48, Kingston Wharves rose $1.48 to $40, NCB Financial Group traded with a loss of 99 cents at $96.52 and Scotia Group recovered $1.50 to $52.
Main market activity ended with 22,695,573 units valued at over $68,289,795 compared to 84,503,992 units valued at $180,560,263 on Tuesday. At the close of trading, Cable & Wireless closed with 16,941,044 shares trading amounting to 74.64 percent followed by Ciboney Group with 3,146,042 units and 13.86 percent and Wisynco Group with 1,207,289 units 5.32 percent.
Trading resulted in an average of 872,907 shares valued at $2,626,531, for each security traded, compared to 3,129,777 shares valued at $6,687,417 on Tuesday. The average for the month to date is 1,296,927 shares with a value of $5,228,826 and previously 1,355,881 shares with a value of $ 5,651,699. In contrast, March closed with an average of 626,526 units with an average value at $20,492,207 for each security traded.
The US dollar market closed on Wednesday with Proven Investments trading 547,109 units valued at over $109,430 and closed with a loss of 2 cents at 20 US cents. Trading ended with the market index falling 9.33 points, to close at 163.97.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and 6 with a lower offers.
For more details of market activities see – Cable & Wireless grabs 75% of JSE trades – Wednesday.

4 stocks rise on TTSE 2 fall – Thursday

Market activity on the Trinidad & Tobago Stock Exchange ended Thursday, with 14 securities trading, against 15 on Wednesday, with 4 stocks advancing, 2 declining and 8 remaining unchanged.
Trading volume remained low, resulting in 293,550 shares valued at $2,488,584 changing hands, compared to 186,626 shares valued at $3,719,226 on Wednesday.
At close, the Composite Index gained 0.84 points on Thursday to 1,263.90, the All T&T Index rose 1.95 points to 1,700.29, while the Cross Listed Index shed 0.04 points to close at 111.63.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 1 stock with the bid lower than the last selling price and 5 with lower offers.
Gains| Clico Investments closed with an increase of 1 cent and completed trading at $20.16, with 24,533 units, First Citizens finished 19 cents higher and concluded at a 52 weeks’ high of $32.70, after exchanging 2,000 shares, JMMB Group rose 1 cent and ended at $1.86, with 39,000 stock units changing hands and Sagicor Financial added 4 cents and completed trading at $7.80, with 47,615 units.
Losses| Ansa McAl shares fell 5 cents and completed trading at a 52 weeks’ low of $59.95, with 19 units changing hands and First Caribbean International Bank closed with a loss of 15 cents at $9.35, after exchanging 59,150 shares.
Firm Trades| Grace Kennedy ended trading at $3.15, with 99,926 units, Massy Holdings ended at $47, with 250 stock units changing hands, National Flour settled at $1.68, after exchanging 1,824 shares, Republic Financial Holdings ended at $101.58, with 600 stock units changing hands, Scotiabank settled at $62.56, after exchanging 3,480 shares. Trinidad & Tobago NGL concluded trading at $27.25, after exchanging 11,138 shares, Trinidad Cement ended at $2.60, with 4,000 stock units changing hands and West Indian Tobacco settled at $88.55, after exchanging just 15 shares.
Prices of securities trading for the day are those at which the last trade took place.

Jamaica’s company taxes jump 23%

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Corporate taxes continue to be a star performer for Jamaica government revenues, having increased their input by a strong 23 percent over forecast, to February.
According to the government fiscal report, businesses paid $34 billion in corporate taxes to February or just over $6 billion more than projected. In spite of that level of performance, PAYE contributed more in taxes, at $48 billion even as government raised the threshold to $1.5 billion for individuals and cutting around $25 billion in the individual tax bill.
Corporations will be making big payments in March that should hike the amount they will pay for the fiscal year to be well ahead of the February figure. The forecast at the start of the fiscal year, was for a total take of $50.6 billion compared to $46 billion for 2016. The forecast for 2018/19 is for an intake of $63.9 billion or an increase of 26 percent over the 2018 forecast. If the trend for the just concluded fiscal year holds to March, the projected increase for the new fiscal would be just around $3 billion.

Scotia Group to contribute most to 2017/18 corporate taxes

Other areas performing well above budget projections include, Travel taxes up by 12.5% to $17.5 billion, GCT on local goods and services 4.8 percent to $83 billion, Education taxes up 6 percent to $24 billion and special consumption taxes on local goods up 10 percent to $26 billion.
Listed companies will contribute around $21 billion to the corporate tax take for the just concluded fiscal year according to data taken from financial statements. The bulk of the listed companies’ contribution will come from Scotia Group with $5.7 billion, NCB Financial $5 billion, Sagicor Group $2.9 billion, Carreras just over $1 billion, Grace Kennedy around $1 billion, JPSCo and JMMB Group just under $1 billion. Other billion dollar contributors should include Desnoes and Geddes and Wray and Nephew.

JSE main market moves higher – Wednesday

Caribbean Cement surged to a record close of $40 on the news that they could save $2B from lease buyout.

The main market Jamaica Stock Exchange, closed higher at the end of trading on Wednesday with Caribbean Cement jumping sharply and Scotia Group bouncing back to $54.
At the close, the all Jamaican Composite Index rose 897.85 points to 322,561.10 and the JSE Index climbed 818.04 points to 293,889.63.
Trading closed with 31 securities changing hands, down from 28 on Tuesday, leading to 9 advancing, 11 declining and 11 trading firm, in the main and US dollar markets. Securities closing with sizable price changes include, Caribbean Cement climbed $6.44 to end at a 52 weeks closing high of $40. Grace Kennedy lost $1 to end at $50, JMMB Group lost $1 to $25, PanJam Investment declined $1 to $42 and Scotia Group rose $2 to $54.
Main market activity ended with 71,072,740 units valued at $6,270,318,116 compared to 5,286,653 units valued at $240,796,595 changing hands on Tuesday. NCB Financial Group closed with 61,822,679 units accounting for 86.99 percent of traded shares followed by Jamaica Broilers with 2,036,473 units for just 2.87 percent of the volume for the day and Mayberry Investments with 2,010,259 units.
Trading results in an average of 2,450,784 shares valued at $216,217,866 for each security traded, compared to 195,802 shares valued at $8,918,392 on Tuesday. For the month to date, an average of 706,388 units with an average value at 25,336,441 traded, compared to 576,343 units with an average value at 10,044,835 changing hands on the previous trading day. In contrast, February closed with average of only 213,336 units valued at $3,392,475 for each security traded.
Trading in the US dollar market on Wednesday, ended with 37,700 units valued at US$50,918 changing hands with JMMB Group 5.75% US dollar preference share contributing 33,300 units at US$1.50 and Proven Investments with 4,400 units at 22 US cents, leaving the market index at 169.16.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and 2 with a lower offer.
For more details of market activities see – NCB dominated the JSE main market – Wednesday.
Daily Trading, Jamaican Stocks, Jamaica Stock Exchange,Trading Activity, Emerging markets, Proven Investments, JMMB Group,Scotia Group,

4,700 points drop for JSE – Thursday

Investors chopped 4,700.74 points off the Jamaica Stock Exchange all Jamaican Composite Index to end at 319,507.99 and slashed 4,282.91 points off of the JSE Index to close at 291,107.90 in main Market trading on Thursday with a ratio of 5 stocks rising to 1 falling.
Trading closed with 29 securities changing hands, leading to only 3 advancing, 14 declining and 12 trading firm, in the main and US dollar markets. A few securities closed with sizable price changes as NCB Financial Group fell 99 cents to $98.50, Sagicor Group declined 90 cents to $35.60 and Scotia Group lost $2 to $54.
Main market activity ended with 14,969,349 units valued at $264,028,466 changing hands, versus 99,164,384 units valued at $151,125,249 on Wednesday.
Wisynco Group closed with 9,043,043 units and accounted for 60.41 percent of traded shares, Supreme Ventures with 1,767,895 units amounted to 11.81 percent of trading and NCB Financial Group with 5.97 percent of trades with 893,212 units.
Trading results in an average of 516,184 shares valued at $9,104,430 for each security traded, compared to 366,575 shares valued at $6,045,010 on Wednesday. For the month to date an average of 668,629 units with an average value at 11,259,206 traded, compared to 684,251 units with an average value at 11,503,301 traded on the previous trading day. In contrast, February closed with average of only 213,336 units valued at $3,392,475 for each security traded.
There was no trading in the US dollar market on Thursday.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 2 with a lower offer.
For more details of market activities see – Investor bids $1,300 for Palace shares – Thursday.

Pulse no 1 stock in 2016 & 2017

Data going back 30 years show that on only very rare occasions more than 2 stocks appear in the TOP for two consecutive years. 2017 is one such exception with 3 stocks doing so.
Pulse Investments retains the number 1 best performing main market stock position in 2017 with a gain of 256 percent, the stock also was also in the TOP 10 in 2016 at number 1 position for local stocks with gains, then of 350 percent. Berger Paints ended at the number 6 best performing stock in 2016 with gains of 200 percent and repeated in the 2017 TOP 10 with a rise of 196 percent, for the 2017 number 2 spot. Palace Amusement ended at 7 position in 2016 with a rise of 134 percent and rose 187 percent in 2017 to hold down the number 3 spot and is followed by Supreme Ventures at number 4.
The stocks from the 2017 top 10 that could repeat in 2018 include Berger Paints, Palace and Pulse, with JMMB Group looking to have a chance.

NCB & LascoFin close acquisitions

NCB Financial and Lasco Financial are reporting conclusion of the acquisition of their new subsidiaries.
NCB Financial acquisition of the majority shares in Bermuda’s Clarien Bank that was subject to regulatory approval by the Bermudan authorities is concluded.
Clarien has assets just over U$1.16 billion and reported profit of US1.2 million for 2016 before incurring an overall loss when other comprehensive loss is factored in, netting a loss of US$572,000 for the year. Results were weighed down by impairment losses on loans amounting to US$8.6 million in the year compared to US$9.2 million in 2015.
Lasco Financial advised that Scotia Group Jamaica has completed the transfer of Scotia Jamaica Microfinance Company Limited to the company. No details of the purchase price is mentioned but Scotia Group reported on the balance sheet as of October, assets held for sale amounting to $664 million which most likely represent the assets of CrediScotia.

NCB’s next stop Republic Holdings?

The price of US$2.45 offered by NCB Financial‘s for 32 percent more ownership in Guardian Holdings, is below the price the stock is trading at on the Trinidad and Tobago Stock Exchange of TT$18 or US$2.67. 
They need not worry, as they are virtually assured of getting the amount needed, based on the interest that Chairman Arthur Lock Jack has influence over in the Group. The acquisition of the added Guardian shares, will give the bigger NCB control over 2.6 million shares or just over 1.6 percent in Republic Financial Holdings, up from 2.17 million units in 2016, in Trinidad’s largest banking group. But that would be the start of a much bigger prize, that of control over Republic Holdings. Acquiring control of Republic while much more costly that the case of Guardian, will not be too difficult, as the Government of Trinidad and Tobago has directive over a large portion of Republic.
Clico Trust holds 40 million shares or 24.69 percent of Republic, the trust has a finite life of 10 years ending in 2021, while an addition 9.98 percent is held by CLICO Investment Bank (In liquidation) and Colonial Life owns 11.786 million units or 7.26 percent. All three amounts are subject to the direction of the Government of Trinidad who will be willing to sell to the right candidate, but the Colonial Group held 51 percent prior to the Government taking over some of the assets of the group.
The early target would be the Clico’s holdings, an amount set aside to compensate creditors in the Colonial Group. Sale of the Republic shares would allow for liquidation of the trust fund with investors getting an early exit and give NCB Financial an ownership level that would allow for booking any such acquisition as an associate.
Acquiring majority shares in Republic won’t be as easy as Guardian Holdings, while the capitalization of the latter is TT$4, Republic is now over TT$16 billion. NCB currently has assets at the end of September is US$5.5 billion but Republic assets are US$10.3 billion. Earnings per share for Republic at September 2016 was 88 us cents climbing in 2017 to US$1.16.
NCB Group total assets with the acquisition of majority shares in Clarien Bank will be in the region of US$7.6 billion and with majority shares in Guardian US$12 billion.
Acquisition of majority shares in Republic would give NCB a footprint in a number of Caribbean countries that the Bank has no interest in presently. The countries include Suriname, Guyana and Grenada.

NCB Group goes for 62% of Guardian

NCB set to increase shares in Guardian Holdings.

NCB Financial Group announced the launch an offer and take-over bid to acquire up to 74,230,750 ordinary shares in the Trinidad based Guardian Holdings at US$2.35 each, through its wholly-owned subsidiary, NCB Global Holdings Limited.
Guardian Holdings, a publicly-traded company listed on the Trinidad and Tobago Stock Exchange, and last traded at TT$16.55 around US$2.45. Guardian has 231,899,986 ordinary shares in issue with NCB Group holding approximately 69,547,241 units acquisition of the stated shares would take their holdings to 62 percent of the company and thus return the company back to Jamaican majority ownership which it had in the 1990s.
The offer, if successful, would result in NCBFG acquiring a controlling 62 percent interest in GHL following the 2016 acquisition of a 29.99 percent interest. Unless extended, the Offer period will close on January 12, 2018. Full acceptance of the Offer would result in a cash payment by NCBFG of the sum of up to approximately US$174,442,262 to the shareholders of GHL who accept the Offer.
Arthur Lok Jack Chairman of Guardian was one of the original sellers of Guardian shares to NCB and would have sold more at the time, but if NCB had acquired more then, it would have triggered the take over bid rule of the TTSE, requiring them to offer to buy the majority.
Guardian Group profit attributable to shareholders for the nine months ended September 2017 amounted to $254 million, a decline of $6 million compared to the corresponding period last year $260 million. NCB Group made profit of $19.1 billion for 2017, up from$14.45 billion in 2016.
The Offer will be conditional upon NCBFG acquiring control of GHL and obtaining regulatory and other approvals required to acquire the GHL Shares in Trinidad and Tobago, Jamaica as well as all other jurisdictions in which GHL and its subsidiaries are regulated.
According to President and Group CEO Patrick Hylton, “We believe that this partnership will not only support our strategy to expand regionally, but will provide numerous growth opportunities for both NCB and GHL. The successful completion of this Offer will be a significant milestone for our business and we anticipate the great potential that this presents.”
Last week NCB announced the acquisition of the majority stakes in Clarien Bank in Bermuda.