Slow Monday morning session
Stocks are off to a cautious trading in with few major price changes. The most significant price change is Scotia Group with a price of $25.90 up from $25.16 on Friday.
Caribbean Cement traded 227,030 at $5 compared with a close of $4.21 on Friday. Sagicor Group traded 727,037 units and the price slipped to $11 from$12 on Friday. Proven Investments 8% preference share traded 8,000 and gained 50 cents to $5.50. Interest in National Commercial Bank has slowed with the bid in to buy 100,860 at $28.20 compared with the last sale of 52,070 units at $30. Twenty six stocks have traded so far with ten from the junior market. Caribbean Cream trading 100,000 units at $1.20, Jamaican Teas 194,500 shares at $3 after languishing at $2.55 for a long time.
No stock fell on TTSE Wednesday
At the close of the market, the Composite Index rose 0.17 points to close at 1,153.41, the All T&T Index rose 0.34 points to close at 1,968.83 and the Cross Listed Index remained at 44.32.
Gains| Stocks increasing in price at the close are, Ansa Mcal trading 1,500 shares to close with a gain of 1 cent at $67.02, Guardian Holdings trading 1,180 shares closed with a gain of 7 cents to end at $14.26. Proven Investments and National Commercial Bank are slated to take a major stake in the ownership in Guardian that once was majority owned by Jamaica Mutual Life.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings with 715 units at $13.90, Clico Investment Fund closed at $2.55 with 1,300 units, First Citizens Bank trading 1,875 shares to close at $35.78, Guardian Media trading 912 shares at $19.76, JMMB Group contributing 185,655 shares at 50 cents. Massy Holdings traded just 6 shares to close at $63.43, National Enterprises with 1,000 shares closed at $17.30, One Caribbean Media ended trading with 876 units at $22.30, Prestige Holdings had 662,100 units changing hands at $10 with a value of $6,621,000. Republic Bank had 2,650 shares trading with a value of $304,750 to close unchanged at $115, Scotiabank traded 5,600 units to close at $62.50 carrying a value of $350,000.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 1 stock with the offer that is lower.
IS a PE of 13 right for Proven?
Proven Investments is accomplishing an unusual feat in the local stock market that not many person were attracted to last year when stocks were selling dirt-cheap.
With the average PE of the market, around 5 times 2015 earnings, and with many blue chip stocks selling at no more than 7 times earnings, it is remarkable that Proven is getting strong demand for their rights issue with the company’s PE around 13 times 2015 earnings. Not surprisingly the directors have agreed to the issue being increased over the initial level of 122,896,618 shares with option for an equivalent amount now sanctioned, in keeping with the term of the prospectus. If both amounts are fully taken up it would increase the ordinary shares from 368,689,855 units to 614.6 million units and would raise nearly US$40 million in fresh capital for the investment bankers.
Proven in a release to the stock exchange advised that the Lead Brokers to the Offer have received applications in excess of the allotted US$19.66 million for the Renounceable Rights Issue of 1 new ordinary share for every block of 3 ordinary shares held in Proven Investments, as offered in the Prospectus dated March 12, 2015. The Board of Directors of Proven have therefore approved the upsizing of the shares made available for subscription, via the Conditional Offer described in the said Prospectus, and the extension of the closing date to April 17, 2015 to allow shareholders the ability to apply for additional shares over their original allotment, as contemplated by the Conditional Offer.
Proven reported profit from continuous operations of US$3.16 million for the nine months to December last year or just under 9 cents per share, in 2013 for the same period profit of US$2.79 million was reported.
There may be a number of factors encouraging investors to go after the stock in such numbers, one is the diversification the issue offers especially for large investors with large amounts of existing listings. With interest rates well under 10 percent a PE of 13 would not be regarded as expensive looked on by itself. Then again investors snapped up Sagicor Real Estate Fund at high prices two years ago in a market that was nowhere as bullish as the current market.
It will be interesting how this one trades in the months ahead and more so against some of the other top performing companies.
JSE quiet bullishness continues
Interest in the Jamaica stock market, improved on Tuesday resulting in 24 stocks securities changing hands and the main market indices gaining more than 1,000 points. There were 11 stocks advancing, 8 declining, ending in 8,794,289 units trading, valued at $42,590,814, in all market segments. A almost doubling of profits of Supreme Ventures and a the decision by the company to pay out over $800 million in dividends, helped to push the market.
strong> Main Market| The JSE Market Index gained 1,092.76 points to 81,900.29, the JSE All Jamaican Composite index rose 1,221.75 points to close at 90,286.63, the highest it has been since early July 2013 and the JSE combined index gained 1,016.39 points to close at 83,557.44.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 8 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Cable & Wireless concluding trading with 111,000 shares changing hands to close higher by 7 cents at 55 cents, Carreras exchanging 25,000 shares while trading of 8 cents higher to $44.18. For Desnoes & Geddes there was dealing in 98,827 shares at 10 cents higher to $5.50, Jamaica Money Market Brokers contributing 17,448 shares in trading for 2 cents more at $6.92. Jamaica Producers closed trading with 1,013,600 shares changing hands while gaining $1.30 to $17, National Commercial Bank closed with 58,458 shares changing hands and rising 91 cents to a new 52 weeks’ high of $23, Proven Investments finished trading with 421 units and put on 0.49 cents to 18 US cent. Radio Jamaica saw trading in 7,422 shares, to end with an increase of 2 cents to $1.37, Scotia Investments ended with 5,000 units with a gain of $2.45 at $27.50 and Supreme Ventures closed with 3,295,614 shares to close 40 cents up at $2.40, after the company release large gain in profits for 2014 and announced increased dividend payments.
Firm| The stock in the main market to close without a change in the last traded prices is, Grace Kennedy that contributed 16,959 shares at $61.50.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Gleaner closing with 20,000 units as the price slipped 4 cents to 91 cents. Jamaica Broilers finishing with 8,008 shares trading lower by 4 cents, to $4.06, Sagicor Group in trading 532,911 shares lost 15 cents to $10.30 and Scotia Group finishing trading with 48,092 shares with a loss of 50 cents to $21.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 17,000 shares trading at $3.04, Jamaica Money Market Brokers 7.50% preference share traded 2,635,000 shares at $2, Proven Investments 8% preference share traded with 260,593 shares changing hands at $5.
JMMB crosses 5M of its shares
At the end of trading on the Jamaica Stock Exchange, the prices of 9 stocks rose, 5 declined as 27 securities changed hands, ending in 7,105,912 units trading, valued at $40,386,959, in all market segments.
Main Market| The JSE Market Index lost only 0.09 points to 79,880.66, the JSE All Jamaican Composite index declined by a mere 0.18 points to close at 88,028.58 and the JSE combined index gained 0.69 points to close at 81,799.97.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 7 stocks with bids higher than their last selling prices and 3 with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of the close in the main market are, Caribbean Cement finishing with 20,000 shares while gaining 24 cents to $2.85, Gleaner closing with 100 shares to gain 2 cents at 85 cents. Jamaica Money Market Brokers with 5,146,081 ordinary shares, gained 7 cents to $7, Kingston Wharves traded 850 shares with the price jumping 20 cents to $5.75. National Commercial Bank traded only 7,853 shares to end with an increase of 2 cents to a new 52 weeks’ closing high of $22.02 and Sagicor Group with 12,644 shares trading 6 cents higher to close at $10.31.
Firm| The stocks in the main market to close without a change in the last traded prices are, Cable & Wireless ending trading with 311,206 units at 48 cents, Grace Kennedy closed with 9,728 units to end at $60, Jamaica Broilers concluding trading with 30,300 shares at $4.02, Sagicor Real Estate Fund ended trading 215 shares at $6.70.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Scotia Group closed with 13,433 shares trading lower by 20 cents to $20.80 and Supreme Ventures in trading 100 units, the price slipped 3 cents to $1.82.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 15,800 units to end with an increase of 1 cent to $3.04 and Proven Investments 8% preference share traded 135,400 units changing hands to close at $5.