It is now official National Commercial Bank (NCB) will be acquiring nearly 30 percent of Guardian Holdings subject to regulatory approvals, making them the largest shareholder in the Trinidad based company that was previously controlled by Jamaica Mutual Life.
The announcement now confirms the ICInsider.com report earlier in the year of NCB’s strong interest in the insurance group of companies. The move is in keeping with IC Insiders’ earlier understanding that both NCB and Proven Investments were targeting approximately 36 percent of Guardian, with the targets being – Tenetic Limited block of 35.84 million which, amounts to 15.46 percent of the company and Arthur Lok Jack’s direct holding of 6.29 percent or 14.59 million units. Arthur Lok Jack’s is listed as having a beneficial interest in Tenetic. Royal Insurance Trinidad holds 22.33 million units or 9.63 percent and RBC Trust T&T controls 4.99 percent or 11.57 million shares. The release from the Guardian shareholders indicates that IFC, who recently bought into Group, is one of the sellers, with no mention of RBC.
The acquisition of Guardian would be a complete reversal, returning the company to its Jamaican roots. Guardian was once majority owned by Jamaica Mutual Life, who sold out their holdings sometime before they ran into problems in Jamaica and folded. The Jamaican entities consider the company to be clean, well run and considerably undervalued. Guardian last traded in Trinidad at TT$13.90.
Guardian is primarily a Life Insurance company but also owns a general insurance arm. NCB operates the well known OMNI Life Insurance Company. Part of the likely synergy in future would be a merger of general insurance companies that both entities own, with Omni to be sold to the Life Insurance arm, resulting in economies of scale. The possibility exists that an expanded general Insurance company could be listed on the stock exchanges within the Caribbean, thus spreading the risk associated therewith. Guardian’s profit attributable to equity shareholders for the nine months to September was $235 million, down from $286 million for 2014.
Net Income from Insurance Activities grew by $80 million to $533 million from $453 million in 2014, however. Investment activities generated net income of $527 million as against $629 million in 2014, a result significantly affected by the fair value losses of $66 million (2014 gains $27 million) that were occasioned by extreme market uncertainty during the month of September. IC Insider estimates that NCB could see profits rising around 40 cents per share for the 2016 financial year if the deal is finalized soon and on the assumption that the price is around the last traded price of the stock.
Bulls retreat on JSE – Friday
The JSE Market Index lost 480.67 points to 140,626.96, the all Jamaica Composite Index fell 537.18 points to end at 156,113.73 and the JSE combined index declined 149.43 points to end at 147,291.47.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 8 stocks with bids higher than their last selling prices and 7 with lower offers.
In trading, Cable and Wireless closed with 1,389,853 units changing hands at $1.52 after the price gained 9 cents, Caribbean Cement climbed 20 cents to end at a 52 weeks’ high of $19.20, with 75,115 shares changing hands, Carreras rose 90 cents to close at $56 with 13,048 units trading. Ciboney did not trade but had a bid to buy 125,000 units at 19 cents and just below, are bids between 16 cents and 18 cents to buy 2.38 million units. Desnoes & Geddes ended with 44,130 shares trading at $30, Gleaner traded 23,325 units at $1.95, Jamaica Broilers lost 60 cents as it traded 266,093 shares to close at $8. Jamaica Producers traded 18,661 shares to end at $31, JMMB Group lost 14 cents while trading 5,400 shares to close at $10.11. Kingston Wharves ended with 76,220 shares changing hands at $11.30 after losing 17 cents, National Commercial Bank closed with a loss of $1.19 as 105,766 shares changed hands to end at $36. Pan Jamaican Investments declined by $1 to end at $89 with 12,618 units changing hands. Pulse Investments traded 10,000 shares and ended at $2.50 after falling 50 cents, Sagicor Group fell 5 cents in trading 39,505 units to end at $16.65. Scotia Group had 19,600 shares changing hands and closed at $27, Supreme Ventures had 250,643 units changing hands but the price rose 10 cents to $4.80. Proven Investments ended at 22.9 US cents with 108,528 changing hands, Jamaica Money Market Brokers 7.50% preference share traded 75,000 units with the price ending at $1.80.
Indices fall across the board at JSE – Friday
The JSE Market Index dropped 1,705.59 points to 139,748.01, the all Jamaica Composite Index dived 1,828.45 points to end at 155,132.57 and the JSE combined index declined by 1,636.11 points to end at 146,548.58.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of only 7 stocks with bids higher than their last selling prices and none with lower offers.
In trading, Barita Investments closed with 238,852 shares trading to at $4, Cable and Wireless closed with 1,644,431 shares changing hands and 4 cents to close at $1.59, after trading at a high for the day of $1,64, Caribbean Cement traded 79,075 shares changed hands at $16.50 with a loss of $1, Carreras gained 95 cents to end at $57, with 21,592 units trading. Desnoes & Geddes ended with 113,325 shares trading at $30, Gleaner traded 58,166 shares at $1.90, Grace Kennedy traded 4,563 shares and closed with a gain of 50 cents at $75, Jamaica Broilers traded 241,910 shares to close at $8.49 and lost 26 cents. Jamaica Producers rose $1.76 while trading 75,712 shares at $26.50, The Jamaica Stock Exchange gained 25 cents in trading 17,835 shares, to end at $13.50, JMMB Group rose by 11 cent while trading 192,697 shares to close at $10. Kingston Wharves ended with 19,500 shares changing hands at $11.25, Mayberry Investments closed with 115,000 units trading for 5 cents higher at $4.40, National Commercial Bank closed with a fall of $1.94 as 1,365,817 shares changed hands to end at $37.01, Pan Jamaican Investments traded 12,955 shares at $88.25 for a loss of 5 cents, Pulse traded 91,500 shares at a new 52 weeks’ closing high of $3 as the price gained 50 cents, after trading at $3.20. Sagicor Group lost 7 cents in trading 170,002 units at $16.55 at the close, Sagicor Real Estate Fund ended with 239,750 shares trading at $10. Scotia Group ended with 153,444 shares changing hands, closed with a fall of 89 cents to end at $26.31, Scotia Investments lost $1 and ended at $27 with 30,000 shares changing hands, Seprod rose 1 cent to $18.51 with 13,250 shares trading and Supreme Ventures ended at $4.75 after falling 2 cents with 35,500 shares.
JSE main market slips on Monday
The market closed with activity in 41 securities, leading to 9,839,984 units valued at $50,044,573 changing hands, in all market segments. A total of 15 securities rose and 12 declined with 4 stocks ending at 52 weeks’ closing high and 2 at intraday high.
The JSE Market Index fell 140.31 points to 138,302.07 the all Jamaica Composite Index declined 156.81 points to end at 153,516.65 and the JSE combined index eased by 20.44 points to end at 145,188.76.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 9 stocks with bids higher than their last selling prices and 2 with lower offers.
In trading, Barita Investments closed with a gain of 15 cents to $3.80 with 1,000 shares trading, Cable and Wireless close with 1,304,419 shares changing hands to close at $1.40 after rising to $1.49 in early trading. With the company’s parent having announced today that it has agreed to accept an offer from Liberty Global for the shares of CWC Plc interest could well build again in the local stock. Carreras rose $1 to end at $57 with 17,200 units trading, Ciboney gained 2 cents in closing at a 52 weeks’ high of 12 cents, Desnoes & Geddes ended with 269,196 shares trading at $30.02, Gleaner Company traded at 562,609 shares and gained 1 cent to end at $1.91. Jamaica Broilers traded 12,290 shares to close at $8.79 with a gain of 4 cents, JMMB Group lost 90 cents while trading 1,028,832 shares to close at $9.90. Mayberry Investments lost 4 cents and closed with 369,000 units trading with a loss of 5 cents at $4.30, National Commercial Bank close with 118,880 shares changing hands to end with a rise of $1 at $36 after trading at an intraday high of $37. Pulse Investments traded 229,058 shares with a decline of 20 cents for a close of $1.80, Sagicor Group lost 2 cents in trading 482,103 units at $16.43 at the close, Scotia Group ended with 8,029 shares changing hands, closed with a rise of 39 cents at $26.50. Supreme Ventures ended at a 52 weeks’ high $4.80 after adding 15 cents with 47,709 shares changing hands and Proven Investments ordinary share gained 2 US cents and ended at 23 US cents with 18,934 units changing hands. Jamaica Money Market Brokers 7.50% preference share traded 220,500 units at $2, Jamaica Money Market Brokers 8.50% preference share traded 1,313,000 units and ended at $3.49 with a gain of 4 cents.
Profit results help rally Jamaican stocks
The Jamaica stock market made further gains on Thursday as investors continue to respond positively to the release of company results. The market closed with activity in 41 securities, leading to 16,060,816 units valued at $115,028,197 changing hands, in all market segments. A total of 14 securities rose and 11 declined with 5 stocks ending at 52 weeks’ closing high and 1 at intraday high.
The JSE Market Index rose 466.62 points to 138,363.46, the all Jamaica Composite Index gained 521.47 points to end at 153,585.26 and the JSE combined index increased by 704.78 points to end at 145,062.08.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 11 stocks with bids higher than their last selling prices and none with lower offers.
In trading, Berger Paints closed at $3.80 with 36,600 shares trading, Cable and Wireless lost 5 cents, with 1,954,862 shares changing hands to close at $1.45. On offer were 4,120,449 shares at $1.50 with bid in at $1.45 to buy just 1,972 units. Caribbean Cement fell 20 cents to end at $17.80 with 339,495 shares changing hands. Carreras dropped 1 cent to end at $55.50 with 45,965 units trading, Gleaner traded 58,700 units at $1.90, Grace Kennedy closed at $74.97 after shedding by 3 cents with 162,604 shares changing hands, Jamaica Broilers traded 516,635 shares to close at $9.25. Jamaica Producers traded 20,776 shares as the price dropped $4 to end at $25, Jamaica Stock Exchange traded 10,500 shares at $14, JMMB Group closed 26,000 shares trading at $11. Mayberry Investments closed with 675,799 units trading at $4.39 with a loss of 1 cent, National Commercial Bank close with 357,912 shares changing hands to end with a rise of 50 cents at $34.50, Pan Jamaican rose 5 cents in trading 70,486 shares to end at $88.10. Pulse Investments traded 44,369 shares with a rise of 22 cents for new 52 weeks’ closing high of $1.72, Radio Jamaica closed 10 cents higher with 117,214 units at $5, Sagicor Group traded at $16.26 with 541,857 shares changing hands and lost 25 cents. Scotia Group ended with 196,030 shares changing hands and closed with a gain of 85 cents at $27.75, Supreme Ventures ended with 8,006,732 shares changing hands at $4.70 and Proven Investments ordinary share rose 1.2 US cents and ended at 23 US cents with 65,812 units changing hands.