Jamaica’s 2016 inflation lowest in decades

‘Vegetables and Starchy Foods’ had a strong impact on November price movement.

‘Vegetables and Starchy Foods’ had a strong impact on November price movement.

Inflation in Jamaica is set to be the lowest in decades as prices rose 0.4 percent in November over the previous month, bringing the inflation for the calendar year-to-date rate to only 1.4 per cent, the lowest for many decades.
Price movements as measured by the consumer index amounts to just 1.7 percent compared to the November 2015. Inflation for the fiscal year-to-date registered an increase of 2.8 percent.
The price movement in November this year, is mainly as a result of a 0.5 percent rise in Food and Non Alcoholic Beverages and a 0.7 per cent increase in Housing, Water, Electricity, Gas and Other Fuels’ division. Higher prices for vegetables and starchy foods and a rise in the cost of electricity were items that were most impactful.

A unique listing could be your next IPO

UCC LogoThere is no listing even close to the next likely listing slated after Main Event comes to market, on the Jamaica Stock Exchange. It has no walls, no buildings, no one place of business, no borders, yet it could be a most profitable venture for investors.
Mayberry Investments, the broker bringing the Main Event IPO to market seems set to be the broker bringing this unique listing to the market by January as the Jamaica Stock Exchange opens up to some never before thought of companies that can be listed.
The junior market started off with a most unique company, Access Financial in 2010. That it was a financial entity was not unique, but lending to the lower end of the market was seen by many as a sure way to give away capital and making good Profit was unique at least to stock market investors. The IPO was greeted by howls of outcry of the rape that the promoters were inflicting on the investing public. History has proven the naysayers wrong and that first listing set the stage for one of the most successful ventures that the local stock exchange has pursued.
Jetcon, a used car dealer, caused the eyes of many to pop in bewilderment as they never conceived that such a venture could interest investors much less prosper. Main Event can be considered unique but the next listing lined up, is so different from the others, that it is bound to cause investors to wonder and ponder about it for a long time.

Gary Peart of Mayberry, the lead man for the IPOs Mayberry handles.

Gary Peart of Mayberry, the lead man for the IPOs Mayberry handles.

UCC Online is the online segment of University College of the Caribbean which will be hived off into a separate company to be listed on the junior market. IC Insider’s sources indicate that the IPO could be in January, subject to a few matters being ironed out for the issue. The income for the year is said to be in the order of $50 million with very high profit margin, with growth in income said to be in double digits.
Since 2010, UCC has extended the opportunities for students in Jamaica and the Caribbean to experience a higher education through its online accredited degree programmes.
The prospectus is at an advanced stage with a few matters to be sorted out IC Insider source stated.

Five for one stock split for AMG

AMG Packaging to split stock by 5.

AMG Packaging to split stock by 5.

AMG Packaging directors agreed a stock split, for each ordinary share of the company to be subdivided into five units. The matter is to be decided at the upcoming annual general meeting of in January.
The move by AMG continues a trend that has been seen since Lasco companies split their stocks 10 units for each one issued in 2013, continuing with Jamaican Teas early in 2016 and a string of others since, which have all helped in increasing the value of the shares. Investors are betting that the same will happen here as they responded to the announcement on Thursday, driving the price up by $3 in exchanging 7,999 shares at $21.50. The announcement confirms an earlier report by IC Insiders’ that the company was set to split the stock.
For investors to benefit fully from a rising stock price, the company will need to improve on its 2016 results of $83 million or 81 cents per share, with the start-up of the tissue operation, dragging profits down by $41 million as a result of start-up and operating cost and sales of tissue paper of only $2.3 million.
If approved at the Annual General Meeting, the issued capital of the company will move from 102,378,857 shares to 511,894,285 with the authorised capital jumping from 140,000,000 shares to 700,000,000. The split is to allow for greater liquidity in the shares as the stock has been trading infrequently.
The 2016 results saw a major improvement in cost of sales which fell from $483 million to $451 million and includes cost of inventories expensed of $320 million and $380 million in 2015. The cost of inventories recognized as an expense includes $33 million and in 2015, $54 million in respect of write -downs of inventories to net realisable value.

Jamaican stocks just short of 202,000

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Mayberry closed at a 52 weeks' high of $5.65.

Mayberry closed at a 52 weeks’ high of $5.65.

The All Jamaica Composite Index climbed sharply to close trading on Friday at a new record close, just less than 100 points below the 202,000 mark. Market activity ended with 31 securities changing hands with the prices of 15 stocks ending with gains while 5 declined in the overall market, including 5 stocks rising and 2 falling, in the junior market.
At the close the All Jamaica Composite Index jumped 1,421.02 points to end at 201,936.88, the index recorded gains of 21 percent for the year to date. The JSE Market Index climbed 1,270.64 points to finish at a record 184,942.04. The JSE combined index climbed 919.08 points to end at a record 196,996.13, with a gain for the year to date of 24 percent.
At the close with 7,137,871 units valued at $101,431,149 changed hands, compared to 4,593,992 units valued at $80,066,072 changing hands on Thursday. Of the stocks traded, the junior market accounted for 3,219,929 units changing hands, valued at $16,494,089.
ICI JSE sum 16-12-16 The average trade for the day in the main market ended at 178,088 shares compared to an average of 140,477 units traded on Thursday. The average for the month to date ends at 150,187 shares compared to an average of 122,285 units for the month up to Thursday. November ended with an average of 208,466 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 15 stocks with bids higher than their last selling prices and 7 with lower offers.
In market activity, Barita Investments traded 50,000 shares and gained 30 cents to end at $5.80, Cable & Wireless had 220,000 units trading as the price gained 5 cents to end at 90 cents, Carreras exchanged 19,885 shares at $66, Investors traded 72,831 shares of 1834 Investments to close at $1.2. Grace Kennedy recovered the $3.99 it lost on Thursday, while trading 9,484 shares to close at $40.99, Jamaica Broilers ended trading with 151,149 units with a rise of 80 cents at $15. Jamaica Stock Exchange traded 60,819 shares, to end at $5.60, JMMB Group traded 500,000 shares and shed 30 cents to close at $13.55. Margaritaville Turks traded 32,220 shares to close at 24.90 US cents after rising by 0.03 cent, Mayberry Investments ended trading 97,155 shares, to close with a rise of 70 cents at at 52 weeks’ high of $5.65, National Commercial Bank ended at $49 with 438,733 shares changing hands. ICI JSE fnqts 16-12-16138 Student Living lost 50 cents in trading 607,162 shares at $4.50, PANJAM Investment gained 98 cents, while trading 183,299 shares to close at $26.98, Sagicor Group closed with 185,900 shares changing hands to end 25 cents lower at $27.05. Sagicor Real Estate Fund traded 5,620 units at $10.90, Scotia Group with 126,594 shares changing hands closed at $34, Scotia Investments rose 50 cents with 1,100,891 units changing hands to close at $30.50, Supreme Ventures rose 5 cents to end at $4.85, with 2,000 units changing hands and Proven Investments ordinary share traded 45,900 units at 20.99 US cents, up from 20.5 US cents.

Juniors back off from record – Friday

Caribbean Flavours hit a new high of $11.95 on Friday

Caribbean Flavours hit a new high of $11.95 on Friday

Prices on the junior market mostly rose on Friday, but the market index dipped 25.22 points to end at 2,480.61, on increased trading activity from Thursday’s levels, to be up a strong 39 percent for the year to date.
At the close, the prices of 5 stocks rose, 2 declined with just 9 securities trading, compared to 19 trading on Thursday. The volume of stocks traded jumped on Friday by 163 percent, from Thursday’s level, ending with 3,219,929 units changing hands, valued at $16,494,089, up 186 percent from $5,774,823 on Thursday.
Market activities ended with 10 securitiesICI Jm sum 16-12-16 closing with bids higher than their last selling prices and just 4 ending with lower offers.
An average of 357,770 units with an average value of $1,832,677 units traded, compared to 64,345 units with an average value of $303,938 on the preceding trading day. The average for December to date is 122,044 units, at an average of $576,756. The average for December to Thursday is 100,614 units, at an average of $462,581. November ended with an average of 109,679 units with an average value of $607,092.
Caribbean Flavours traded 20,512 units to end at a 52 weeks’ high of $11 with a gain of 1 cent and traded as high as $11.95 during the trading session, Caribbean Producers closed with 444 shares changing hands with a gain of 5 cents, at $3.25,ICI Jm trd Sht 16-12-16 C2W Music with 10,393 units changing hands, closed unchanged at 35 cents. Derrimon Trading exchanged 675 shares and closed at $3.55 after falling by 35 cents. Jetcon Corporation closed trading with 60,000 units, the price rose 1 cent to end at $5.89, Lasco Distributors had 212,610 shares trading with a fall of 40 cents to close at $6.40. Lasco Manufacturing ended at $5.05 with a rise of 5 cents after 2,898,885 shares changed hands, Medical Disposables traded 15,410 shares with a rise of 60 cents to close at $4.80 and Eppley 9.5% preference share traded 1,000 units at $6.18.

Trading activity remains low on TTSE

stocks Trading on the Trinidad & Tobago Stock Exchange on Friday resulted in 6 securities changing hands compared to 10 on Thursday. Market activity ended with only 1 stock that advanced, 3 declined and 2 held firm with 90,693 units being traded at a value of $416,211 compared to Thursday’s 32,776 shares valued at $570,141.
The Composite Index gained 0.48 points to 1,205.76, the All T & T Index advanced 0.96 point to 1,833.80 with its year to date loss at 5.89 percent. The Cross Listed Index remained at 77.20 points with year to date gains of 55.93 percent.
IC bid-offer Indicator |The Investor’s Choice bid-offer ended with 6 stocks with bids higher than last selling prices and 7 with lower offers.
Gains| Trinidad Cement advanced 15 cents to $4.25 with 19,065 shares changing hands just 25 cents short of the price offered by a Cemex’s subsidiary, to acquire majority shares in the company.
TTSE sum 16-12-16 Losses| First Citizens Bank closed at $34.90, falling 1 cent with 1,250 shares changing owners, L.J. Williams was down 4 cents, closing trading at 52 weeks’ low of 67 cents with an exchange of 18,500 and Trinidad & Tobago NGL lost 6 cents to close at $21.45 with 773 shares changing ownership.
Firm Trades | JMMB Group was unchanged at 89 cents with an exchange of 41,105 shares and Clico Investments with 10,000 shares being traded, closed at $22.60.

Jamaican$ slips vs US – Friday

US$ bungle The Jamaican dollar selling rate slipped against the US and Canadian dollar and made gains versus the British pound and the euro in foreign exchange trading on Friday. At the close of the market, dealers bought the equivalent of US$44,831,673 of all currencies and sold US$39,459,521, compared to US$41,707,136 purchased and US$29,836,153 sold on Thursday.
In US dollar trading, dealers bought US$39,652,245 compared to US$37,328,635 on Thursday. The buying rate for the US dollar rose 7 cents to $127.98. A total of US$32,675,259 was sold versus US$26,728,474 on Thursday, with the selling rate rising 5 cents to end at $128.69. The Canadian dollar buying rate rose 43 cents to $94.86, with dealers buying C$3,763,209 and selling C$6,662,780 at an average rate that increased by 76 cents to finish at $97.50. FX sum 16-12-16The average rate for buying the British Pound dropped $2.04 to $157.80 for the purchase of £1,779,653 while £1,159,661 was sold with a fall of $1.53 to end at $159.67.
At the end of trading on Friday, dealers sold €269,095 with the selling rate for the Euro, closing with a fall of 46 cents to $136.06, according to data from Bank of Jamaica. Dealers purchased €180,841 of the European common currency at $130.74 after falling $4.24. The US dollar equivalent of other currencies traded, amounts to US$11,048 being bought and selling of US$12,976.
Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded foreign currencies on Friday, include a drop of $19.67 in the lowest selling rate of the US dollar to $103.33. FX h&l  16-12-16The highest buying rate for the Canadian dollar fell $3.10 to end at $96.90, the lowest buying rate declined $1.95 to $77.19, while the highest selling rate dipped $2.54 to $100.44 and the lowest selling rate rose $1.30 to $92.30. The highest buying rate for the British Pound jumped $2.35 to $165, The lowest buying rate fell $2.07 to $129.90, while the highest selling rate dipped $2.70 to end at $169.02 and the lowest selling rate fell by $1 to $153. The highest buying rate for the Euro dropped $5.70 to $133.50, the lowest buying rate dropped $2.57 to $107.90, while the lowest selling rate dropped $2.50 to $128.

Main Event IPO within 2 weeks

Main Ev SignWith revenues posited to be in the range of $1 billion to $1.5 billion for 2015, Main Event Entertainment should be coming to the public within two weeks subject to Financial Securities Commission effectively signing off on the prospectus.
The company is expected to raise between $100 million to $200 million at a price between $1.50 and $3.50, stockbroker for the deal, Gary Peart of Mayberry Investments told investors at a briefing today. IC Insider gathers that the amount to be raised, is likely to be $150 million, putting the PE ratio in the 10-12 range.
According to Peart, the valuation for the company is in the range of $500 million – $700 million. Between 20 to 40 percent of the shares will be offered in the IPO. Proceeds of the issue will be used to expand services particularly to Montego Bay where Solomon Sharp, Chief Executive says has a big market for his products and services. Funds will also be put into new equipment to meet increasing demand. According to Sharp, demand is such that they have had to turn away business. The additional equipment will allow for more business to be undertaken simultaneously.
Main Event Entertainment Group, a unique company that is in the business of management of event as well as producing their own production. The company provides event management, production, audio, video, lighting, staging, roofing, power supply, digital signage and management, concept development, creative development, infrastructural build-outs.

Three of the company's directors

Three of the company’s directors

The company generates revenues from Digital boards spread across 22 countries in the Caribbean some a few Central American countries mostly for screens in Digicel stores with more than 100 screens for which they generate up US$225 for month for maintaining and updating them. They also supply and service menu boards for other entities with the latest to sign on being Wendy’s on board, the company provide outdoor signage in the form of advertising billboards.
The principals include Solomon Sharpe, CEO and formerly of Desnoes and Geddes, Richard Bair, Chief Operating Officer, formerly employed at Porter Brothers and Donna Waithe, Director HR and Administration with 23 years of experience in the aviation sector at Air Jamaica. The company was established 2004 and employs between 51 and 200 full time and part time employees.
The Board of directors include Hugh Graham, Solomon Sharpe, Donna Waithe, Richard Bair, Tania Waldron-Gooden, Harriat Maragh, chairman and Dr. Ian Blair.
The company have as its clients many blue chip Jamaican companies, including Scotia Group, National Commercial Bank, Flow, Desnoes and Geddes to name a few.

JSE majors jump over 1,000 pts

Trading on the Jamaica Stock Exchange resulted in a surged in the indices on Friday for the main market, but a fall in the junior market, in the early morning session of trading.
Market activity has been moderate resulting in just 22 securities traded at 11:55 am, compared to 34 on Thursday at 10:45 am. ICI trd sht int -16-12-16rA total of 9 stocks advanced and 8 declined, resulting in a volume of 4,246,518 shares changing hands carrying a value of $53,841,841, compared 914,337 shares changing hands carrying a value of $10,866,734. The average number of shares traded, amount to 193,024 units versus mere 26,892 units on Thursday.
Lasco Manufacturing traded 2,763,818 shares at $5 and Scotia Investments 1,000,000 units at $28.01.
The all Jamaica Composite Index jumped 1,191.35 points to 201,707.21 the Jamaica Stock Exchange Market Index climbed 1,065.27 points to 184,736.67, the Jamaica Stock Exchange combined index gained 884.08 points to close at 196,961.13 and the junior market index lost 10.09 points to end at 2,495.74.

Jamaican$ holds vs US – Thursday

FX_USPound The Jamaican dollar selling rate held against the US dollar and made more gains versus the British pound and the Canadian dollar and declined against the euro in foreign exchange trading on Thursday. At the close of the market, dealers bought the equivalent of US$41,707,136 of all currencies and sold US$29,836,153, compared to US$58,868,333 purchased and US$36,828,727 sold on Wednesday.
In US dollar trading, dealers bought US$37,328,635 compared to US$50,506,344 on Wednesday. The buying rate for the US dollar dropped 31 cents to $127.91. A total of US$26,728,474 was sold versus US$30,039,107 on Wednesday, with the selling rate holding at $128.64. FX sum 15-12-16The Canadian dollar buying rate dropped $3.12 to $94.43, with dealers buying C$2,145,822 and selling C$839,400 at an average rate that declined $1.29 to finish at $96.74. The average rate for buying the British Pound slipped 13 cents to $159.84 for the purchase of £1,752,754 while £1,397,593 was sold with a fall of $1.72 to end at $161.20.
At the end of trading on Thursday, dealers sold €655,049 with the selling rate for the Euro, closing with a rise of 64 cents to $136.52, according to data from Bank of Jamaica. Dealers purchased €560,586 of the European common currency at $134.98 after rising $2.80. The US dollar equivalent of other currencies traded, amounts to US$12,367 being bought and selling of US$29,948.
FX h&l  15-12-16Highs & Lows| Notable changes to the highest and lowest rates for the regularly traded foreign currencies on Thursday, include a jump of $19.05 in the lowest selling rate of the US dollar to $123. A rise of $1.49 in the highest selling rate for the Canadian dollar to end at $102.98 and a $1 fall in the lowest selling rate to $91. The highest buying rate for the Euro jumped $4.70 to $139.20, the lowest buying rate dropped $6.57 to $110.47, while the highest selling rate gained $4.30 to end at $143.75 and the lowest selling rate dropped $1.80 to $130.50.

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