Tuesday’s activity on the Jamaica Stock Exchange, resulted in the prices of 5 stocks rising and 4 declining as 20 securities changed hands, ending in 2,144,368 units trading, valued at 12,272,863.83, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 6 stocks with bids higher than their last selling prices and 10 stocks with offers that were lower.
Main Market| The JSE Market Index lost 76.43 points to 71,566.02 the JSE All Jamaican Composite index declined 85.47 points to close at 78,732.04 and the JSE combined index gained declined by 46.84 points to close at 73,455.89.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Jamaica Broilers exchanged 29,600 shares and rose 15 cents to at $4.15, Jamaica Producers with 13,114 shares as the price ended a cent higher at $15.51.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints had 22,799 shares trading at $1.60, Cable & Wireless with 40,855 shares changing hands ended at 29 cents, Jamaica Money Market Brokers had 15,100 ordinary shares changing hands at $7, National Commercial Bank with 422,293 shares traded at $17.55, Proven Investments had 7,000 units to close at 18 US cents, Sagicor Group 7,084 shares closed at $9.60 after trading as high as $10 earlier in the day, Sagicor Real Estate Fund with 16,000 units closed at $6.65, Scotia Investments with 555 shares at $21.40 and recently listed Sterling Investments with 100 shares changing hands, closed at $134.
Declines| The only stock with losing at the end of trading in the main market is, Scotia Group with 52,894 shares to close with a loss of 29 cents at $19.11.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 691,050 units at $3 and Proven Investments 8% preference share traded 6,000 units at $5.
5 up 4 down on JSE
JSE dips but more stocks rose than fell
Monday’s activity on the Jamaica Stock Exchange, resulted in the prices of 7 stocks rising and 6 declining as 22 securities changed hands, culminating in 1,554,769 units trading, valued at only $5,881,456, in all market segments.
Main Market| The JSE Market Index fell 463.89 points to 72,211.86 and the JSE All Jamaican Composite index declined 518.69 points to close at 79,454.19.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator showed 6 stocks with bids higher than their last selling prices and 7 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Desnoes & Geddes with 15,000 shares trading, closed 9 cents higher at $4.79, Grace Kennedy had only 500 shares changing hands and closed 50 cents higher to $59, National Commercial Bank had 100,468 shares trading with a gain of 10 cents at $17.80, Sagicor Group with 43,824 shares changing hands, 3 cents higher at $9.55 and Sagicor Real Estate Fund had 4,155 shares traded with a gain of 40 cents to $7.
Firm| The stocks in the main market to close without a change in the last traded prices are, Ciboney with 334,000 shares at 7 cents, Jamaica Broilers with 25,897 units closed at $4, Jamaica Money Market Brokers 47,314 ordinary share closed at $7.01, Jamaica Producers had 26,228 units trading at $15.50, Pan Jamaican Investment with 2,500 shares ended at $49, Seprod put through 5,955 units to close at $10.90 and Sterling Investments, a the stock exchange latest listing had 10,075 units trading at $134.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Berger Paints had 21,140 trading at $1.60, down 6 cents, Cable & Wireless with 429,210 shares, lost a cent at 29 cents, Caribbean Cement with 80,648 shares fell 25 cents to $2.11 and Scotia Group traded 3,000 shares with the loss of 96 cents to end at $19.04.
Sterling Investments trades at $134
Sterling Investments, the latest listing on the Jamaica Stock Exchange started trading on Monday with 56 trades ranging from 100 shares to 1,000 shares for a total of 10,075 shares. All the lots sold were executed by Proven Wealth Management, and only 3 lots purchased were done by other brokers.
at the close of trading, there were no stocks being offered for sale and no bids to buy. Sterling, a St Lucia registered company, was listed by introduction, as such there were no shares issued to the general public as an initial public offering. The total number of stock listed is 4,014,547 units which is up on the amount of 3.6 million reported in the 2013 audited accounts. The stock traded just below its net asset value of $138 per share at the end of June, but at a PE ratio of around 10.
Sterling Investment reported income of $70 million and comprehensive profit of $56.7 million, including $11 million from unrealized gain on investments, for the 2013 financial year. For the six months to June this year, income amounted to $25.7 million plus gain on sale of investments of $2.8 million and $25 million in Forex gains resulting in profit of $34 million for the half year. SIL generates interest income from the securities and capital gains realized from increases in the price of the securities.
Sterling Investments listing set for October
Sterling Investments Limited, (“SIL”) a St. Lucia registered investment company, is slated to be listed on the Jamaica Stock Exchange, on October 13. No shares will be offered to the public, but may be purchased after they are listed.
In 2013, the company generated income of $70 million and comprehensive profit of $56.7 million, including $11 million from unrealised gain on investments. For the six months to June this year, income amounted to $25.7 million plus gain on sale of investments of $2.8 million and $25 million in Forex gains resulting in profit of $34 million, for the half year. SIL generates interest income from securities owned and capital gains realized from increases in the price of the securities.
The company began operation in December 2012 and enjoyed growth in in total assets, to reach $492 million at the end of 2013, and net assets of $440 million, with a loan of $31.5 million. At the end of June this year, total assets climbed to $737 million, with net assets of $554 million and loans of $171 million. “Over 92 percent of SIL’s assets are invested in US dollar fixed income assets, comprising, Non-Investment Grade Corporate bonds 37 percent, Investment Grade Corporate bonds 29 percent, Municipal Bonds 26 percent and Private Equity 8 percent” the company reported at an investment forum used to introduce the proposed listing.
“Over the last 18-months, SIL’s net book value per share has grown by 38 percent after fees and distributions. This rate of return has been influenced by favourable movement in bond prices over the review period and movement in the Jamaican dollar. The average coupon rate on the securities in SIL’s portfolio in June 2014 was 8.34 percent per annum, while the average yield to maturity was 8.36 percent per annum,” management said. The company, however, uses leveraging which can boost the net income per share above the actual interest income, if all goes well. The total number of issued ordinary shares is 4,014,547 units giving a net asset value of $138 per share at the end of June.
“For the year 2013 a total of J$7.9 million was paid in dividends or J$2.96 per share for a dividend yield of approximately 3 percent, the Company pays dividends twice yearly,” Sterling said.
The directors of the company are, Derek Jones (Chairman), lawyer and former partner of Myers Fletcher, Michael Bernard, former CEO of Carreras, Maxim Rochester, former PriceWaterhouse partner and Charles Ross, CEO of Sterling.
The number of shares are very limited, and should result in a stock that is illiquid. With the return of stability to the local currency and the level of buoyancy now seen in the daily flows, at a time when inflows tend to be inadequate to meet supply, suggest that earnings going forward will not benefit much from local exchange rate slippage, on this basis earnings per share should normalise to around $45-50 million per annum, around $13 per share, not making for an attractive buy, unless one expects major movement in the local exchange rate, going forward.