More than twice the number of securities changing hands in market activity on the Trinidad & Tobago Stock Exchange on Wednesday resulting from 16 trading compared to 7 on Tuesday as trading levels rose for the last two days.
At the close, 3 stocks advanced, 6 declined and 7 were unchanged as 256,519 shares traded at a value of $2,932,389 compared to Tuesday’s trades of only 58,067 units valued at a mere $755,391.
The Composite Index declined 1.10 points to 1,240.49, the All T&T Index remained at 1,791.21 and the Cross Listed Index was down 0.30 points to 92.63 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| The last traded prices of securities that rose and the volume changing hands were Guardian Holdings added 9 cents, closing at a 52 weeks’ high of $16.60 with 5,052 shares, JMMB Group closing at $1.28, with a 1 cent gain trading 34,300 stock units and Point Lisas gained 12 cents to close at $4 with 3,002 shares.
Losses| The last traded prices of securities declining and the volume changing hands are Clico Investment with a loss of 1 cent, to a 52 weeks’ low of $20.74 with 7,328 shares, Massy Holdings shedding 7 cents to close at a 52 weeks’ low of $48.92 with 6,069 shares, National Enterprises fell 1 cent to $10.47 with 705 shares. NCB Financial Group ended with a loss of 5 cents, to $5 with 91,520 shares valued at $457,600, Trinidad & Tobago NGL lost 1 cent with 2,910 shares to close at $22.49 and West Indian Tobacco closed at a 52 weeks’ low of $125.49, having lost 1 cent with 839 shares changing hands.
Firm Trades| The last traded prices of securities and the volume traded unchanged at the close of trading were First Citizens closed at $31.67 with 538 shares, First Caribbean International traded 500 shares at $8, Grace Kennedy closed at $2.85 with 75,000 shares. Prestige Holdings exchanged 500 shares at $10.65, Republic Financial Holdings closed at $102 with 100 shares, Scotiabank remained at $58.02 with 24,890 shares valued at $1,444,118 and Trinidad Cement closed at $4.20 with 3,266 shares. The market closes on Thursday for Independence day holiday.
Market activity surges on TTSE
Trading jumps from Monday’s levels
Trading on the Junior Market of the Jamaica Stock Exchange ended on Tuesday with 26 securities changing hands with 11 advancing, 9 declining and 6 trading unchanged. The market index inched higher by 3.19 points to 3,093.37.
The volume traded amounted to 2,320,590 units valued at $10,336,084, compared to 1,303,888 units valued at $6,225,235 on Monday.
Trading ended with an average of 89,253 units for an average of $397,542 in contrast to 65,194 units for an average of $311,262 on Monday. The average volume and value for the month to date amounts to 249,420 units valued at $1,528,275, in contrast to 258,319 units at an average of $1,591,093 previously. In contrast, July closed with average of 536,395 units at $1,905,441 for each security traded.
Trading ended with the market sentiments looking mixed for Wednesday’s activity as 4 stocks ended with bids higher than their last selling prices and 5 with lower offers.
At the close of the market, the volume of stocks changing hands and their last traded price are: Access Financial settled at $47 with 2,250 shares, Blue Power traded at $40 with 1,300 shares, CAC 2000 finished with a loss of 9 cents, at $7.86 with 4,068 stocks trading, Caribbean Cream traded at $6.50 with 56,600 stocks, Caribbean Producers finished 15 cents higher at $3.80 with 15,000 stock units exchanged. Consolidated Bakeries traded 29 cents higher at $2.30 with 4,500 stocks, Derrimon Trading closed 80 cents higher at $7.90 with 4,000 units, Dolphin Cove concluded trading with a loss of 20 cents, at $17.30 with 2,050 stocks, Express Catering settled 15 cents higher at $4.15 with 436,106 units, General Accident finished 22 cents higher at $2.82 with 67,500 stocks, Honey Bun closed 20 cents higher at $5 with 22,869 shares. ISP Finance settled with a loss of $1, at $19 with 400 units, Jamaican Teas concluded with a loss of 10 cents, at $4.90 with 90,678 shares, Jetcon Corporation ended with a loss of 21 cents, at $5 with 69,256 units, KLE Group closed 1 cent higher at $3.01 with 40,899 stocks, Knutsford Express concluded trading 34 cents higher at $14.40 with 6,770 stocks. Lasco Distributors traded at $7 with 186,808 shares, Lasco Financial settled with a loss of 20 cents, at $3.60 with 204,349 stock units, Lasco Manufacturing concluded market activity with a loss of 15 cents, at $4.45 with 45,888 shares, Main Event closed at $4.50 with 343,513 shares, Medical Disposables closed with a loss of $1.25, at $4.25 with 42,000 shares. Paramount Trading ended 10 cents higher at $2.70 with 10,500 stocks, Stationery and Office finished with a loss of 10 cents, at $4 with 655,536 stocks after trading at a low for the day of $3.50, Derrimon Trading preference share concluded trading 3 cents higher at $2.03 with 7,000 stocks, Eppley 9.5% preference share finished 5 cents higher at $7.25 with 500 units and Eppley 10% preference share traded at $6.60 with 250 stock units changing hands.
Trading sinks on TTSE – Tuesday
Trading on the Trinidad & Tobago Stock Exchange on Tuesday ended with 7 securities changing hands compared to 8 on Monday with market volume falling lower than the depressed level on Monday.
At the close, 2 stocks advanced, 3 declined and 2 were unchanged as 58,067 shares traded at a value of $755,391 compared to Monday’s trades of 84,002 valued at $566,877.
The Composite Index declined 0.12 points to 1,241.59, the All T&T Index fell 0.57 points to 1,791.21 but the Cross Listed Index added 0.05 points to 92.93 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 4 stocks with bids higher than last selling prices and 8 with lower offers.
Gains| The last traded prices of securities gaining and the volume changing hands are Guardian Holdings inching up 1 cent, to close at $16.51 with 1,410 shares and JMMB Group with a 1 cent gain, to $1.27 with 18,490 shares.
Losses| The last traded prices of securities declining and volume changing hands are First Citizens falling 1 cent to $31.67 with 1,513 shares and Trinidad & Tobago NGL trading 40 cents lower to $22.50 with 1,943 shares.
Firm Trades| The last traded prices of securities closing unchanged and the volume changing hands are, Angostura Holdings closed at $15 with 1,000 shares, Clico Investments closing at $20.75 with 25,875 shares valued at $536,648 and Sagicor Financial that remained at $8.30 with 7,836 shares.
NCB Financial hits another high
NCB Financial Group closed at another new high of $5.05 on the Trinidad & Tobago Stock Exchange on Monday as investors continue to respond positively to the strong nine months results of the group.
At the close of trading only 8 securities changed hands compared to 14 on Friday and all three indices advanced on a day when the volume and value of trades were lower than Friday. The market closed with 3 stocks advancing, 2 declining and 3 holding firm as 84,002 shares traded valued $566,877 compared to Friday’s trades of 161,029 valued at $1,432,085.
The Composite Index advanced 3.82 points to 1,241.71, the All T&T Index gained 0.08 points to 1,791.78 and the Cross Listed Index added 1.13 points to 92.88 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 3 stocks with bids higher than last selling prices and 8 with lower offers.
Gains| The last traded prices of securities that rose and the volume changing hands are, JMMB Group with gains of 3 cents closing at $1.26 with 1,000 shares, NCB Financial Group advancing to a 52 weeks’ high of $5.05, after gaining 5 cents with 1,000 shares changing hands and Republic Financial Holdings that closed 10 cents higher to $102 with 100 shares.
Losses| The last traded prices of securities declining and the volume changing hands are Trinidad & Tobago NGL with a loss of 10 cents, closed at $22.90 with 13,014 shares and Unilever Caribbean traded 2 cents lower to a 52 weeks’ low of $50.98 with just 45 units changing hands.
Firm Trades| The last traded prices of securities and the volume traded unchanged at the close of trading are, Grace Kennedy remaining at $2.85 with 39,200 shares, Sagicor Financial ending at $8.30 with 3,358 shares and Trinidad Cement having exchanged 26,285 shares closed at $4.20.
NCB’s eye-popping $1,200 in 5 years
“Unless something changes, NCB Financial Group is the best buy on the Jamaica Stock Exchange and will be for the next 5 years. My exit price? $1,200!” That is a recent quote from a seasoned financial analyst.
That is astounding, for a stock that traded on the Jamaica Stock Exchange just below $90 this past week and around $95 on the Trinidad market and was selling at $19 at the start of 2015. To reach $1,200 in 5 years, would require growth in profits averaging close to 30 percent per annum and the PE ratio rising to match that growth rate. If that were to happen it would mean that $100,000 invested now in the stock, would be worth $1,348,314 in 5 years.
How possible is that? First with interest rates receding to lower levels than they have been recently and seems poised to fall some more, PE ratios for stocks will increase. Not only will they increase but demand will increase for good quality stocks that are enjoying robust growth.
NCB delivered net profit of $14.7 billion for the nine months to June, this year, an increase of 48 percent over the prior year’s nine months profit of $9.9 billion. In the June quarter, profit grew 33 percent over 2016. Loans, the major fuel for growth in profits, increased a very strong 18 percent, year over year, in an economy that is probably growing around 2 percent in real terms.
If growth were to pick up, and that seems likely, with several major projects on the drawing board to commence sooner than later, with some already started, then lending could picked up even more, boosting profit in the process.
In this regard, investors should not ignore Sagicor Group that reported profit jumping 31 percent to $5.65 billion, for the six months to June this year over 2016, with a 5 percent rise in revenues to $30.36 billion and was negatively affected by realized losses on securities that were sold. In the June quarter revenues slipped to $15.1 billion from $15.29 billion in 2016, as net investment income dropped from $5.55 billion to $4.24 billion, but net profit increased from $2.4 billion to $3.06 billion. While growth in insurance premium is important to fuel continued gains in profit, it is the ability to manage the investment funds effectively that will generate the growth that will make the stock price move.
Sagicor not only has the life assurance arm, but a commercial bank as well, health insurance and manages pension and other funds and a property development and management division.
Interestingly, these two companies are heavy dividend payers, investors stand to gain from sharply higher dividend income if the profit continue to grow close to current levels.