JSE indices jump on Tuesday

The main market of the Jamaica Stock Exchange recovered nearly 30 percent of Monday’s losses with the main indices rising more than 1,800 points at the close on Tuesday.
At the close, the All Jamaican Composite Index jumped 2,051.32 points to close at 337,518.92 and the JSE Index climbed 1,868.99 points to close at 307,517.84.
Trading in the main market ended with 2,446,501 units valued $62,753,272 compared to 4,603,500 units valued $97,930,099 on Monday.
Market activities resulted in 27 securities trading including 4 in the US dollar market compared to 29 securities trading on Monday. At the end of trading, the prices of 12 stocks advanced, 12 declined and 5 closed unchanged.
The day’s volume was led by, Scotia Group with 722,516 shares and 29.53 percent of the day’s volume followed by Carreras with 18.82 percent of trading in an exchange of 460,377 shares and Jamaica Broilers with 256,820 units, accounting for 10.5 percent of the day’s volume.
Stocks with major price changes are, Caribbean Cement lost $2 and finished trading 8,484 shares at $40, Carreras fell 50 cents to finish at $9, Grace Kennedy dropped 25 cents to $51.76, with 46,464 stock units trading, Jamaica Broilers gained 56 cents and closed trading at $26.01, with 256,820 stock units, Kingston Wharves rose 65 cents and ended at $51, trading 6,020 shares, Supreme Ventures ended at $14.51, after falling 50 cents as 138,024 shares traded and Sygnus Credit Investments rose 50 cents to $13 trading 61,700 units.
Trading in the US dollar market closed with 102,860 units valued at US$17,357 as JMMB 6% ended with a gain of 0.5 cent and closed at $1.03 in trading 2,200 stock units and Productivity Business fell 2 cents and completed trading at $0.56 with 500 shares changing hands, Proven Investments rose 0.95 cents to 17 US cents with 59,160 shares and Sygnus Credit Investments closed with 41,000 units trading with a loss of 1.48 cents at 11 US cents. The JSE USD Equities Index slipped 0.21 points to 146.69.
Trading resulted in an average of 106,370 units valued at an average of $2,728,403 compared to 164,411 units valued at an average of $3,497,504 for each security traded on Monday. The average volume and value for the month to date amounts 145,966 units valued at $2,917,169 compared to 148,084 units valued at $2,927,889 on Monday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 12 stocks ended with bids higher than their last selling prices and 2 closing with lower offers.

JSE in sharp fall on Monday

The main market of the Jamaica Stock Exchange dropped sharply on Monday falling more than 3,350 points, as the market pulled back sharply from the recent record high, but advance decline ratio was even.
Trading in the main market ended with 4,603,500 units valued $97,930,099 compared to 2,441,530 units valued $54,632,965 on Friday.
At the close, the All Jamaican Composite Index dived 3,687.52 points to close at 335,467.60 and the JSE Index declined by 3,359.74 to 305,648.85.
Market activities resulted in 29 securities trading including 1 in the US dollar market compared to 26 securities trading on Friday. At the end of trading, the prices of 12 stocks advanced, 12 declined and 5 closed unchanged and JMMB Group traded at an intraday all-time high of $31 but fell back to $30.02 at the close.
The day’s volume was led by, Carreras for the second in a row with 28.13 percent of trading in an exchange of 1,294,964 shares, followed by Scotia Group with 775,144 shares and 16.84 percent of the day’s volume and Ciboney Group with 707,000 units, accounting for 15.36 percent of the day’s volume.
Stocks with major price changes are, Carreras lost 50 cents to finish at $9, Grace Kennedy dropped 99 cents to $52.01, with 21,707 stock units trading, Kingston Wharves rose 35 cents and ended at $50.35, trading 2,100 shares, NCB Financial jumped $2 to $97 trading 63,512 units. Portland JSX fell $1 to $8, in trading 900 units, Sagicor Real Estate Fund dropped 45 cents and closed at $14.05, exchanging 20,468 shares and Sygnus Credit Investments declined 50 cents to $12.50 trading 153,800 units.
Trading in the US dollar market closed with 45,000 units valued at US$7,426 as Proven Investments was the only stock trading with the price rising 1.04 cents to 16.05 US cents. The JSE USD Equities Index rose 5.86 points up to 146.90.
Trading resulted in an average of 164,411 units valued at an average of $3,497,504 for each security traded. In contrast to 90,427 units for an average of $2,023,443 on Friday. The average volume and value for the month to date amounts 148,084 units valued at $2,927,889 compared to 146,947 units valued at $2,885,584 on Friday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 9 stocks ended with bids higher than their last selling prices and 3 closing with lower offers.

Stocks to Watch this week

The main market pulled back on but blasted to a new intraday high on Friday confirming that the bull run is in its early stages, while the Junior Market continues to bounce around.
The main market has gained nearly 3,600 points for July, thus mirroring the start of the usual summer rally on the Jamaica Stock Exchange.
The main market is being steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below the index and the Junior Market is being steered by an upward rising long term support line and the start of a golden cross.
The market saw many developments that confirm that a bull market is in place with all three initial public offers closing ahead of the scheduled close.
The past week saw a few strong results being posted and more are expected this week that should include NCB Financial and Proven Investments. Barita Investments got the offer to buy 75% of the shares at $9.20 each. IC Insider.com is of the view that the stock is worth much more with good prospects to build on the strong foundation that it has. Jamaican Stock Exchange released strong gains in profit and announced a dividend as well, and could benefit from both, with eyes focused on even greater improvement in 2019. Caribbean Cement stock is another to watch, with the annual general meeting on this week and results for the June quarter due. Margaritaville had a bid of 16.9 cents versus a last sale of 15 cents and is being offered at 18 cents to sell 43,795 units, Proven Investments had a bid of 16 cents versus a last sale of 15 cents and is being offered at 18.5 cents to sell 1,050 units.
Medical Disposables came in for strong demand in the past week with the price going as high as $5.50. Trading during the week removed supplies that was overhanging the market leaving little supply at the end of the week and could go higher in the coming week. Caribbean Cream after posting a 59 percent increase in profit for the 2019 first quarter saw no more continuation of the demand that lifted the price into the $6 region but could well make some increased interest this week.

2 new IC TOP 10 listings

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This weeks’ review comes against the back drop of the main market hitting a record high on Friday in the morning session and the Junior market continuing to eke out modest gains.
Unlike last week when there are several changes to the TOP stocks, there are only two new additions this week. Victoria Mutual Investments and Jamaican Teas are out of the TOP 10 with Berger Paints that fell in price to $18.76 and Caribbean Cream are back in the TOP 10 lists.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
The past week saw a few results being posted and more are expected this week, including NCB Financial and Proven Investments that entered the TOP 10 last week, both are expected to report positive gains with NCB continuing from increases seen up to the second quarter and Proven that President, Christopher Williams informed IC Insider.com is performing well in all divisions, see Collapse of the JSE US market.
The PE ratio for Junior Market Top stocks averages 7.4 compared to an average PE for the overall market of 11.8, based on 2018 estimated earnings and the main market PE stands at 7.5 for the top stocks, compared to a market average of 12.5, this is a good indication of the level of undervaluation of these stocks.
IC Insider.com last week stated that there are warning signs of a tsunami that is on the way for the market. During last week one more sign came to the fore with a sharp drop in Treasury bill rates again, this coupled with scarcity of supply for many stocks. Investors seem to be going about their business as if prices will remain around current levels for a prolonged period. Late comers to buying stocks who try to join the party will find get stocks but at a much higher prices as the year rolls on and that is confirmed by technical indicators in both the Main and Junior markets.
The TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 40 percent to the market.

JSE jumped on Thursday

The main market of the Jamaica Stock Exchange recovered the losses of the previous two days and added more to the indices in the process on Thursday as trading remains subdued with less than half the value traded on Wednesday.
Trading in the main market ended with 2,808,119 units valued $38,691,449 compared to 2,665,607 units valued $71,318,160 on Wednesday.
At the close, the All Jamaican Composite Index jumped 1,768.07 points to 338,276.19. and the JSE Index climbed 1,610.91 points to 308,207.79.
Activities in the main market and US dollar market resulted in 24 securities trading including 2 from the US dollar market, compared to 26 securities trading on Wednesday. At the end of trading, the prices of 8 stocks advanced, 9 declined and 7 closed unchanged.
The day’s volume was led by, JMMB Group with 25.3 percent of trading in an exchange of 711,490 shares, followed by Ciboney Group with 687,852 units accounting for 24.5 percent of the day’s volume and JMMB Group 7.5% preference share with 500,000 shares or just under 18 percent.
Stocks with major price changes are, Caribbean Cement gained 99 cents to finish at $40, exchanging 66,139 shares, Jamaica Broilers jumped $2.54 to $26.50, with 50,891 stock units trading, JMMB Group gained 44 cents and ended at $30, trading 711,490 shares, Jamaica Producers shed 50 cents to $17 trading 30,582 units. Mayberry Investments fell 49 cents and settled at $6.50, with 53,128 units, Proven Investments lost 50 cents trading 750 shares in the Jamaican market to close at $26.50, Sagicor Real Estate Fund lost 90 cents and closed at $14.10, exchanging 10,100 shares, Pulse Investments rose 45 cents trading 98,245 shares to close at $3.40, Scotia Group rose 50 cents to $51, with 1,830 units.
Trading resulted in an average of 122,092 units valued at over $1,682,237, in contrast to 111,067 shares valued at $2,971,590 on Wednesday. The average volume and value for the month to date amounts 151,016 units valued at $2,952,092 compared to 152,906 units valued at $3,041,409 on Wednesday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market closed with 10,150 units valued at $1,252. Sygnus Credit was the only stock trading in the US market, the price rose 1.47 cents to 12.48 US cents. The JSE USD Equities Index rose 1.39 points up to 141.04.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 3 closing with lower offers.

Collapse of the JSE US market

Amazingly, while the JSE main market has been recording several record highs this year and the Junior market is up more than 10 percent for the year, the US dollar market has gone in the opposite direction.
The US dollar based market index is at its lowest level since February 2010 and also at levels not seen since mid-2016, with the index closing at 139.56 on Tuesday this week.
In February 2017, Margaritaville hit a high of 37 US cents and Proven Investments reached a high of 32 US cents, both have been sliding since, and hitting a 52 weeks’ low of 15 cents recently. Interestingly, Proven, the darling of many investors in the past, had very little buying interest in recent times. Margaritaville trades at 15 US cents and have lost 60 percent from the high and Proven has fallen 53 percent. Margaritaville suffered last year from dislocation that two hurricanes had on Turks and Caicos Islands and by extension on its operations while Proven picked up losses from the revaluation of the Jamaican dollar, but should recover from it, for the current year. In addition, the company raised capital by way of a rights issue that has not been put to work to avoid a dilution in returns on investment. With the fall in the price of Proven the stock is now IC Insider.com’ TOP 10 buy listed. At the same time, that the US issue has fallen the Proven Jamaica dollar listing still has a bid for 1,830 units at J$26.50 or almost 20 US cents.
Also dragging down the market is Sterling Investments US dollar listing that have fallen from 12 US cents to 8.55 US cents.
For the fiscal year to March, Proven reported US$5.68 million or 0.94 cents per share for shareholders versus $8.85 million in 2017. $8 million of the 2017 earnings was non-recurring, coming from gain on acquisition of a subsidiary. Importantly, the company suffered from the revaluation of the Jamaican dollar in the last half of the fiscal year, resulting in a loss of $444,000 but resulted in a $3.3 million turn from gains of $2.9 million in 2017. Even without the benefit of foreign exchange gains profit from ongoing operations was up nearly 100 percent from $6.6 million to $12.6 million for the year. The first quarter results that are expected to be released next week should show recovery from the FX losses. “All our segments are doing well and this year should be our best ever” Christopher Williams, President of the Company told IC Insider.com. “We await regulatory approval for the investment brokerage company in the Cayman Island,” Williams stated.
Margaritaville reported a loss of US$88.5 thousand in the February quarter, from revenues of US$1.8 million and US$4.06 million for the nine months period that delivered profit of $147,324 versus $339,122 in 2017.

JSE falls again on Wednesday

The main market of the Jamaica Stock Exchange suffered more declines on Wednesday, following losses on Tuesday and the All Jamaican Composite Index lost 724.91 points to close at 336,508.12 and the JSE Index declined 660.48 points to 306,596.88.
Trading in the main market ended with 2,665,607 units valued $71,318,160 compared to 2,832,561 units valued at over $81,949,830 on Tuesday.
Activities in the main market and US dollar market resulted in 26 securities trading including 2 from the US dollar market, compared to 30 securities trading on Tuesday. At the end of trading, the prices of 10 stocks advanced, 12 declined and 4 closed unchanged.
The day’s volume was led by, Caribbean Cement led with 37.64 percent of trading in an exchange of 1,003,349 shares, followed by Barita Investments with 500,653 units and Sagicor Group with 461,652 shares.
Stocks with major price changes are, Berger Paints lost $1.50 to close at $19.50 trading just 1,637 shares, Caribbean Cement lost $2.14 and finished at $39.01, exchanging 1,003,349 shares, Grace Kennedy rose $1.48 to $53, trading 1,000 shares, Jamaica Producers added 50 cents to $17.50 trading 116,704 units. Kingston Wharves dropped $3.12 and closed at $50.85 with 350 stock units, NCB Financial Grouprose $1.75 to $98, trading 14,980 shares, Pulse Investments rose 65 cents trading 25,000 shares to close at $2.95, Sterling Investments fell 51 cents to $10.50 with the trading of 2,700 units.
Trading resulted in an average of 111,067 units valued at an average of $2,971,590 for each security traded. In contrast to 108,945 units for an average of $3,151,917 on Tuesday. The average volume and value for the month to date amounts 152,906 units valued at $3,041,409 compared to 155,968 units valued at $3,046,939 on Tuesday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market closed with 62,614 units valued at $7,800 as Proven Investments rose marginally to close at 15.01 US cents trading 22,614 shares and Sygnus Credit traded 40,000 units and inched up to 11.01 US cents. The JSE USD Equities Index rose 0.09 points up to 139.65.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ended with bids higher than their last selling prices and 4 closing with lower offers.

Volume up prices down on JSE on Tuesday

Trading picked up on the Jamaica Stock Exchange on Tuesday, compared to the very modest level on Monday. Trading ended with an exchange of 2,832,561 units valued at over $81,949,830 compared to a mere 1,455,806 units valued just $24,016,207 on Monday.
The pickup in trading did not result in the continuation of a rise in the indices that occurred on Monday and the All Jamaican Composite Index lost 865.50 points to close at 337,233.03 and the JSE Index declined 788.57 points to 307,257.36.
Activities in the main market and US dollar market resulted in 30 securities trading including 4 from the US dollar market, compared to 28 securities trading on Monday. At the end of trading, the prices of 7 stocks advanced, 14 declined and 9 closed unchanged.
The day’s volume was led by, Sagicor Group with 758,030 shares, settling at $38.75 followed by Wisynco Group trading 584,757 units and finished at $9.35.
Stocks with major price changes are, Caribbean Cement lost $1.35 and finished at $41.15, exchanging 933 shares, Grace Kennedy dropped $1.48 and ended at $51.52, trading 40,825 shares, Jamaica Broilers lost 55 cents to $23.95 trading 101,933 units. Kingston Wharves jumped $1.97 finished at a 52 weeks’ high of $53.97 with 9,631 stock units, NCB Financial Grouprose 25 cents to $96.25, trading 251,351 shares, PanJam Investment dropped $1.50 and closed at $53, as 14,820 stock units traded. Pulse Investments lost 70 cents as 27,498 shares traded down to $2.30, Sagicor Group fell $1.25 to $38.75 with the trading of 758,030 units, Sagicor Real Estate Fund jumped $1.05 and settled at $15.10, exchanging 8,443 shares, Seprod lost 49 cents to $34.01 in trading 3,092 units and Supreme Ventures lost 95 cents and ended at $15.05, as 134,214 shares traded and Sygnus Credit traded 6,998 units and rose 45 cents to close at $13.20.
Trading resulted in an average of 108,945 units valued at over $3,151,917, in contrast to 60,659 shares valued at $1,000,675 on Monday. The average volume and value for the month to date amounts 155,968 units valued at $3,046,939 compared to 160,016 units valued at $3,037,085 on Monday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market closed with 207,453 units valued at $17,742 as JMMB Group 5.75% preference share completed trading at $1.03 with 20,000 stock units, Sterling Investments lost 0.5 cents and finished at a 52 weeks’ low of 8.5 US cents with 190,000 shares changing hands, Proven Investments closed at 15 US cents trading 346 shares, an attempted trade at 9 cents was cancelled as it would have exceeded 30 percent move in a day and Sygnus Credit traded 14,000 units at 11 US cents. The JSE USD Equities Index dropped 9.82 points up to 139.56.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 5 closing with lower offers.

Good gains for JSE indices on Monday

After falling sharply on Friday the Jamaica Stock Exchange climbed on Monday, when the All Jamaican Composite Index rose 1,436.28 points to close at 338,098.53 and the JSE Index rising 1,308.61 points to 308,045.93 as trading levels was miniscule.
Activities in the main market and US dollar market resulted in 28 securities trading including 4 from the US dollar market, compared to 30 securities trading on Friday. At the end of trading, the prices of 9 stocks advanced, 11 declined and 8 closed unchanged from an exchange of 1,455,806 units valued just $24,016,207, compared to 6,932,808 units valued $147,102,076 on Friday.
The day’s volume was led by, Victoria Mutual Investments with 435,070 shares amounting to 29.9 percent of the volume traded followed by Supreme Ventures with 195,697 units or 13.44 percent of the day’s volume.
Stocks with major price changes are, Caribbean Cement rose $1.50 and finished at $42.50, with 80,467 shares, Grace Kennedy climbed $1.25 and ended at $53, trading 11,209 shares. Kingston Wharves jumped $2 finished at $52 with 15,755 stock units, NCB Financial Grouprose $1.50 to $96, with 30,760 shares, PanJam Investment dropped 50 cents and closed at $54.50, as 5,784 stock units traded. Portland JSX lost 90 cents as 8,000 shares traded at $9, Sagicor Group rose 86 cents to $40 with the trading of 119,751 units, Seprod lost $1 to $34.50 in trading 2,851 units and Supreme Ventures ended at $16, with 195,697 shares and rose $1.
Trading resulted in an average of 60,659 units valued $1,000,675, in contrast to 266,646 shares valued at $5,657,772on Friday. The average volume and value for the month to date amounts 160,016 units valued at $3,037,085 compared to 168,594 units valued at $3,230,262 on Friday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading in the US dollar market continue to be modest and closed with 40,390 units valued at US$23,566. JMMB Group 6% preference share completed trading at $1.03 with 20,000 stock units, Margaritaville gained 1.5 cents and finished at 16.8 US cents with 20,000 shares changing hands, Proven Investments lost 3 cents and closed at a 52 weeks’ low of 15 US cents trading 11,940 shares and Sygnus Credit traded 7,500 units and lost 1 cent to end at 11 US cents. The JSE USD Equities Index dropped 2.67 points up to 149.38.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ended with bids higher than their last selling prices and 2 closing with lower offers.

Several changes to IC TOP stocks

There are several changes to the TOP stocks, following an eventful week of trading on the Jamaican Stock Exchange, with the main market posting records on all five days and closing at record highs, on four of them.
Former TOP 10 Junior Market listing, Derrimon Trading ordinary share, traded at an all-time high of $23 during the week, while former TOP 10 main market listings also hit new highs during the week, these are Jamaica Broilers trading briefly at a record high of $33, PanJam Investment at $58.99 and Pulse Investments trading up to $3.50 and current TOP 10 listing, CAC2000 hits a new record high of $10.
The TOP 10 listings at the end of the week, have a number of changes. Caribbean Producers returns with after the price slipped back to $5.30 from $5.50 and Caribbean Cream that was shunned by investors based on poor 2018 full year results, jumped 29 percent to $6.25 following the release of the first quarter results, with profit rising 59 percent. Medical Disposables renters the TOP 10 as well as Elite Diagnostic, replacing AMG Packaging and Caribbean Flavours both with earnings downgrade. Proven Investments US dollar listed stock is now in the TOP 10 with the price closing down to 18 US cents during the week and Victoria Mutual Investments return to the list, replacing Salada Foods and Grace Kennedy that rose from $52 to $54.
The PE ratio for Junior Market Top stocks averages 6.7 compared to an average PE for the overall market of 11.4, based on 2018 estimated earnings and the main market PE stands at 7.8 for the top stocks, compared to a market average of 13, this is a good indication of the level of undervaluation of these stocks.
The sharp movement in the prices of some main market stocks this past week, encouraged by minimal supplies, is a warning sign of a tsunami that is on the way for the market. Late comers to buying stocks who try to join the party will find get stocks but at a much higher prices than weeks ago.
The TOP 10 stocks now trade at an average discount of 41 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 40 percent to the market.