Trading on the Jamaica Stock Exchange, continue to see gains in the market indices. The main market gained over 750 points measured by the all Jamaican Composite index and the junior market rose by nearly 20 points on relatively low volume.
AMG Packaging traded 26,361 shares and climbed $1.99 to $16.99, General Accident Insurance had 253,080 shares trading at $2.10 and Lasco Distributors traded 185,161 units at $7 from the junior market. Cable & Wireless had 106,261 units changing hands at 99 cents Jamaica Stock Exchange traded 125,285 units at $27.40, Proven Investments traded cents and JMMB Group 7.50% preference share traded 130,000 units at $1.10.
At 11:45 am 32 securities traded, resulting in a volume of 1,552,704 shares changing hands carrying a value of $9,196,894, compared to 697,409 shares with a value of $5,991,867 on Wednesday at 10.45 am. The average number of shares traded amounts to 48,522 units compared to 24,049 units on Wednesday. Market activity resulted in 9 stocks falling while the prices of 11 securities rose.
The all Jamaica Composite Index jumped 786.26 points to 182,041.40 the Jamaica Stock Exchange Market Index climbed 703.06 points to 163,819.16, the Jamaica Stock Exchange combined index jumped 862.33 points to close at 175,771.86 and the junior market index fell 20.47 points to 2,321.39.
More gains for JSE stocks – Thursday
JSE stocks in sharp 3 day jump
Stocks had a bullish day on Wednesday on the Jamaica Stock Exchange, as advancing stocks had a near 2 to 1 advantage over declining ones. The market indices climbed sharply as the all Jamaican Composite Index jumping nearly 2,000 points, but trading resulted in much less volumes passing through the market compared with Tuesday.
At the close of the market prices of 21 securities gained out of a total of 46 trading, while 12 declined in the overall market, including 6 stocks rising and 5 falling, in the junior market.
At the close, 4,442,113 units valued at $19,544,716, changed hands, compared to the 7,614,266 units valued at $192,616,632 changing hands on Tuesday. The junior market accounted for 635,440 units valued at $2,690,732 of the total traded on Wednesday.
The market index ended with good gains, with the JSE Market Index climbing 1,733.79 points to end at 163,116.10. The all Jamaica Composite Index jumped 1,938.97 points to close at 181,255.14 and the JSE combined index surged 1,432.39 points, to end at 174,909.53.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 12 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, Barita Investments traded 47,767 shares and gained 50 cents to close at $4, Berger Paint lost 35 cents to close at $4.70 with 11,300 units, Cable & Wireless continues to garner more support and rose 1 cent to close at 95 cents, with 22,766 units changing hands. Caribbean Cement jumped $1.54, to close at $27.54 with 126,265 units changing hands, Carreras fell 50 cents and closed at $65 with 17,705 units trading, Grace Kennedy rose 31 cents, with 3,196 shares changing hands at $42.80, Jamaica Broilers had 107,149 shares changing hands and gained 6 cents to end at $15.06. Jamaica Producers ended with a gain of 20 cents to close at $8.50 with 22,250 units trading, Jamaica Stock Exchange fell 40 cents to end at $27 while trading 11,327 shares, JMMB Group traded 359,924 units and rose 26 cents to $10.25. Kingston Wharves traded 7,500 shares to close at $17.10, after rising 10 cents, National Commercial Bank traded 3,182 shares and closed with a gain of $1 at $42,
Pan Jamaican Investments gained 5 cents and closed at $24 after trading 11,100 shares. Radio Jamaica ended with 72,000 units trading at $1.42, Sagicor Group traded 6,400 shares to close at $23.02. Sagicor Real Estate Fund traded 1,044 shares to close with at $10.35 with a 15 cents rise, Scotia Group gained 1 cent to close at $30.51 with 29,975 shares changing hands, Scotia Investments had 8,090 units changing hands at $26, for a loss of 10 cents. Seprod closed at $21 with 3,764 shares trading, Sterling Investments fell 75 cents to close at a new high of $14.25 with 16,963 units changing hands. Jamaica Money Market Brokers 7.25% preference share traded 20,000 units at $2.40, JMMB Group 7.50% preference share traded 2,341,500 units at $1.10 and Jamaica Money Market Brokers 7.50% preference share traded 549,576 units at $2.10.
Rising junior stocks inch decliners – Wednesday
Jetcon ended trading at a new closing high of $4.95 on Wednesday.
The market index eased with 17.09 points, to close at 2,300.92. Market activities ended with 7 securities closing with bids higher than their last selling prices and 4 ending with lower offers.
Trading ended with 635,440 units changing hands, 30 percent less than on Tuesday, while the value traded dropped by 31 percent, with $2,690,732, compared to $3,876,442 changing hands on Tuesday.
At the close, Cargo Handlers have not traded for a few days but today the stock closed with the bid at $90.01 with 5,765 units, nearly $4 ahead of the last sale price with no units offered for sale. Key Insurance that
reported poor second quarter results has not traded with the offer at $2.37 to sell 152,290 units compared with the last sale of $2.49, there continues to be no bids on the stock at the close.Access Financial end trading with 1,889 units to end at $18.40, after falling 10 cents, Caribbean Cream gained 10 cents with 6,914 shares changing hands at $9.20, Caribbean Flavours lost just 1 cent in closing at $8 with 9,500 shares changing hands, Caribbean Producers traded just 46,370 shares to close at $3.40. Consolidated Bakeries lost 7 cents to end at $2.35 with 3,000 units changing hands. Dolphin Cove lost $1.30 and ended at $13.70 with 100 shares trading, General Accident gained 20 cents and closed trading with 91,267 units at $2.25, Honey Bun gained 39 cents in trading 54,391 units to end at $6.24, Iron Rock Insurance traded 1,250 shares to close at $3.30 with a gain of 2 cents.
Jamaican Teas had 116,983 units changing hands at $4. Jetcon Corporation rose 45 cents in trading at new record high of $4.95, with 51,980 units changing hands, KLE Group ended at $1.80 with 45,000 shares changing hands after rising by 30 cents, Knutsford Express had 2,191 units changing hands to end at $24. Lasco Distributors closed with 44,000 units trading and ended with a loss of 24 cents at $6.80, Lasco Financial had 16,585 shares changing hands to close at $3.25, Lasco Manufacturing closed at $4.80 with 60,576 shares trading, Medical Disposables traded 78,577 shares with the price remaining unchanged at $4 and tTech traded 4,867 shares at $6.
JSE’s directors not empowered to split stock
Directors of the Jamaica Stock Exchange approved a 5 for 1 stock split effective October 5, 2016 but the directors do not have the power to effect the change without the approval of shareholders at a general meeting.
According to a release today on the JSE website, the board of directors at a meeting approved the stock split of the company effective in October at the JSE’s board meeting held on September 21, the stock is expected to reflect the split in the price on the JSE on October 3, 2016. The release goes on to state that “as a result of the proposed stock split, the JSE will list an additional 561,000,000 ordinary shares, increasing the issued shares from 140,250,000 to 701,250,000”.
But there is a bit of a problem with the implementation of the decision. The directors have no power to effect the split. A change in the number of issued share capital has to be approved at a general meeting of the company. No resolution has been put to the shareholders at a meeting so to date and none is planned as such the decision will be voidable if legally challenged.
This development is strange as all of the several companies who have split their stock have had it approved by the shareholders at a general meeting. The latest is Cargo Handlers who have called an extraordinary meeting solely to approve it, admittedly, in this case the number of the authorised shares would be inadequate to facilitate it.
Best practice suggests that the directors should err on the side of caution even if they feel otherwise. Shareholders have the power to make fundamental changes to a company not the directors, the latter are just servants.
The Companies Act makes it very clear the subdivision of the shares must be approved in a general meeting. It is very clear directors can only recommend changes to the share capital, they have no power as directors to change it.
An extract of section 65 of the companies Act of Jamaica states.
(1) A company limited by shares or a company limited by guarantee and having a share capital, if so authorized by its articles, may alter the conditions of its articles as follows, that is to say, it may—
(a) increase its share capital by new shares of such amount as it thinks expedient;
(b) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
(d) subdivide its shares, or any of them, into shares of smaller amount than is fixed by the articles, so, however, that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived.
(2) The powers conferred by this section must be exercised by the company in general meeting.
The company had in issue only 140 million shares with nine of the broker members holding 10 million units each leaving only a small amount to trade regularly. The stock which now sells at $27 tends to be a bit illiquid and it is expected that the split will foster greater liquidity and allow the stock to trade more freely.
Just gains on TTSE – Wednesday
Trading activity picked on the Trinidad and Tobago stock market on Wednesday with higher overall volume but with far less active securities. The market closed with marginal movements in the market indices and ended with 3 stocks gaining and 4 remaining unchanged as just 7 securities traded.
Market activity resulted in 398,013 shares valued at $4,834,677 changing hands, above the 271,952 units valued at $3,116,881 traded on Tuesday.
The Composite Index inched up 0.41 points to close at 1,154.35, the All T&T Index gained 0.45 points to close at 1,813.22 and the Cross Listed Index ended 0.05 points higher at 65.97 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 7 stocks with bids higher than their last selling prices and 4 with offers that were lower.
Gains| Prestige Holdings with 283,967 units valued at $3,123,637 changing hands, ended at $11 to record a gain of 10 cents, 
Scotiabank closed with 14,940 shares valued at $866,354 changing hands to end with a gain of 14 cents at $58 and Sagicor Financial traded 10,906 units and gained 8 cents to end at $6.70.
Losses| No stock declined at the close of the market on Wednesday.
Firm Trades| Clico Investment Fund traded 2,028 units at $22.60, Guardian Holdings ended with 2,500 shares changing hands at $12.80, Scotia Investments contributed 58,504 shares to close at $1.75 and Trinidad and Tobago NGL closed at $23.52 with 25,158 units changing hands, valued at $591,465.
JSE main market jumps sharply
Trading on the Jamaica Stock Exchange, 
saw big gains in the market indices main market with more than 1,500 points rise in the all Jamaican Composite Index as advancing stocks overpowered decliners in early trading but with limited volumes. The junior market index slipped below the 2,300 points level.
At 10:45 am 29 securities traded, resulting in a volume of 697,409 shares changing hands compared to 6,040,541 shares carrying a value of $5,991,867 on Tuesday. The average number of shares traded amounts to 24,049 units compared to 251,689 units on Tuesday. Market activity resulted in 6 stocks falling while the prices of 13 securities rose.
The all Jamaica Composite Index jumped 1,510.12 points to 180,826 the Jamaica Stock Exchange Market Index climbed 1,350.32 points to 162,732.63, the Jamaica Stock Exchange combined index jumped 1,007.40 points to close at 174,484.54 and the junior market index fell 23.85 points to 2,294.16.
The main contributors to the gain in the indices include a $1 rise in the prices of Caribbean Cement and National Commercial Bank and a jump of $1.39 in the price of Scotia Investments, while a fall in the price of Dolphin Cove from $15 to $13.70 had a negative effect on the junior market index.
Stock split who is next?
Paramount with the stock priced at $17.50 with virtually no supply seems a candidate for a stock split.
Companies on the Jamaican Stock Exchange have either announced or effected stock splits or bonuses this year, to loud applause by investors who have driven the stocks sharply upwards in response to the news.
The first to do so was Jamaican Teas with the price doubling after the announced split. Honey Bun followed with the price climbing sharply after the announcement as well as after the split. RJR did both a split and a bonus. GraceKennedy and Pan Jamaican that have seen their stock struggling for a long time at very low levels, finally getting the lift with the announcement of a stock split. Jamaica Producers effected a bonus with a similar price movement. Cargo Handlers and Jamaica Stock Exchange announced stock splits and the investors immediately responded positively to them by driving the prices up. If the trend seen with other splits holds, the prices of the stocks of the latest announcements will rise further after the split takes place.
Stock bonuses were a regular feature of the market for years until the government removed the tax incentive for them. Only the three Lasco companies split their stocks to create greater liquidity in 2014. With mostly 20 percent of junior market companies’ shares in the wider public’s hands and with some of the twenty percent closely held, supply is not always easy to come by. Splitting the stock encourages increased valuation of the companies and allows for some to be sold to the wider market, thus increasing liquidity.
Palace Amusement with a price tag of $170 and virtually no supply should be a prime candidate for a split.
There are more stock splits to come, so who are the likely candidates. One would expect that Eppley, with a $735 price tag and very limited trading activity, would be a good candidate and so would Palace, with a price of $170. Based on what has happened in the past don’t count on these two to take such action anytime soon, but the directors of these companies are going to be pressured into making a move. Management who are conscious of the valuation the market places on the stock would do the things that would boost investors’ confidence in the stock. With limited liquidity, the companies are losing out on one of the most important benefits of listing which is the constant publicity garnered from having the company’s name repeated publicly daily.
Other candidates ripe for a split include Paramount Trading, a stock that has limited supply, the company is yet to announce its annual general meeting and that seems a very good time for it to be approved. Blue Power now priced at $21 with very little supply is a prime stock for such action. Others that could well do it are Access Financial Services,
AMG Packaging with a new chairman who is stock market friendly could deliver a split sooner than later.
AMG Packaging with a change in chairmanship who is a stock market follower should land a split sooner than later and Knutsford Express in the junior market.
There appear to be few main market stocks that need to consider one but National Commercial Bank with the price struggling around $40 with good results could well do one to increase investors’ interest and so could Scotia Group and of course Montego Ice.
If stock splits are so popular in Jamaica, why is it not being used in Trinidad that only has limited trading taking place daily. Management is depriving their company of maximum exposure for the cost of listing and preventing their shareholders from enjoying a more liquid market in which to trade.
JSE stocks make strong gains – Tuesday
$85 million of NCB’s shares traded on Tuesday
At the close of the market, prices of 16 securities gained out of a total of 40 trading, while 13 declined in the overall market, including 5 stocks rising and 6 falling, in the junior market.
At the close, 7,614,266 units valued at $192,616,632, changed hands, compared to the 12,416,676 units valued at $159,207,495 changing hands on Monday. The junior market accounted for 907,063 units valued at $3,876,442 of the total traded on Tuesday. Carreras accounted for $66,047,705 and National Commercial Bank $85,057,375 of the value of stocks traded amounting to 78 percent of all trades.
The market index ended with good gains, with the JSE Market Index climbing 1,241.23 points to end at 161,382.31.
The all Jamaica Composite Index jumped 1,388.13 points to close at 179,316.17 and the JSE combined index surged 1,067.23 points, to end at 173,477.14.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 15 stocks with bids higher than their last selling prices and 7 with lower offers.
In market activity, Barita Investments gained 25 cents to close at $3.50 on Monday and seems set to rise further with the bid at $3.75 to buy 40,00 units, the stock is on offer at $4 to sell 47,767 shares at the close. Cable & Wireless continues to garner support in the mid 90 cents region and seems to be heading back over $1, but it shed 1 cent and closed at 94 cents, with 381,613 units changing hands, Caribbean Cement lost 60 cents, to close at $26 with 456,774 units changing hands. Carreras closed at $65.50 with 1,016,110 units trading, slightly less than the 1,137,767 shares traded on Monday, Grace Kennedy lost 1 cent, with 104,303 shares changing hands at $42.49, Jamaica Broilers had 88,541 shares changing hands and gained 45 cents to end at $15. Jamaica Producers ended with a loss of 20 cents to close at $8.30 with 175,143 units trading, Jamaica Stock Exchange fell 10 cents to end at $27.40 while trading 5,623 shares, JMMB Group traded 3,579 units and rose 18 cents to $9.99. Kingston Wharves traded 10,455 shares to close at $17, after falling 50 cents,
National Commercial Bank traded 2,083,020 shares and closed at $41. The price of 138 Student Living remained unchanged at $4.70, after 158,000 units changed hands, Pan Jamaican Investments gained 45 cents and closed at $23.95 after trading 7,185 shares.Portland JSX ended with 12,000 units trading at $11.39, Sagicor Group traded 103,169 shares and gained 21 cents to close at $23.02, Sagicor Real Estate Fund traded 21,100 shares to close with at $10.20. Scotia Group gained 49 cents to close at $30.50 with 7,349 shares changing hands, Scotia Investments had 133,013 units changing hands at $26.10, for a gain of 1 cent, Seprod fell by 50 cents to close at $21 with 2,724 shares trading, Sterling Investments gained 88 cents to close at a new high of $15 with 5,098 units changing hands, Supreme Ventures rose 20 cents to close at $4.90 with 1,874,873 units changing hands and Proven Investments closed at 19.99 US cents with 49,700 units trading.
Trading picks up on TTSE – Tuesday
Republic Financial Holdings jumped sharply in Friday’s trading
Market activity resulted in 271,952 shares valued at $3,116,881 changing hands, well above the 28,668 units valued at $302,443 that traded on Monday.
The Composite Index inched up 0.02 points to close at 1,153.94, the All T&T Index fell 0.09 points to close at 1,812.77 and the Cross Listed Index ended 0.02 points higher at 65.92 points.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 6 stocks with bids higher than their last selling prices and 2 with offers that were lower.
Gains| Ansa Merchant Bank traded 11,256 units to end at $40.02, with gain of 1 cent, Point Lisas closed with 5,000 shares trading and rose 9 cents to $3.60. Prestige Holdings with 5,077 units changing hands, ended at $10.90 to record a gain of 7 cents and Scotia Investments contributed 137,000 shares and rose 2 cents to close at $1.75,
Losses| Republic Financial Holdings dropped $4 to close at $110 with 181 shares changing hands.
Firm Trades| Ansa McAl traded 20,000 units to close at $62.70, Clico Investment Fund traded 1,500 units at $22.60, First Citizens Bank traded 2,639 shares to end at $35, Guardian Holdings ended with 5,233 shares changing hands at $12.80, JMMB Group ended with 62,308 shares changing hands at 61 cents. National Enterprises closed with 11,968 shares changing hands at $10, Scotiabank closed with 2,000 shares changing hands to end at $57.86, Trinidad and Tobago NGL closed at $23.52 with 3,630 units changing hands and West Indian Tobacco traded 4,160 shares to close at $126.75.
Mild losses for juniors – Tuesday
Jetcon ended at a new closing high of $4.50 on Tuesday, with gains of 100% since listing in March.
Trading ended with 907,063 units changing hands, 9 percent more than on Monday, while the value traded dropped just 5 percent, with $3,876,442, compared to $4,086,204 changing hands on Monday.
At the close, Cargo Handlers have not traded for a few days but today the stock closed with the bid at $89.01 with 100 units, nearly $3 ahead of the last sale price with 1,000 units offered for sale at $1,000.
As was the case on Monday, Key Insurance did not trade but seems set to trade at a new low when next it does with the offer at $2.37 to sell 152,290 units compared with the last sale of $2.49, there were no bids on the stock at the close.Caribbean Cream gained 10 cents with 20,000 shares changing hands at of $9.10, Caribbean Flavours gained just 1 cent in closing at $8.01 with 4,749 shares changing hands, Caribbean Producers traded just 20,130 shares and lost 20 cents to close at $3.40. Consolidated Bakeries lost 1 cent to end at $2.42 with 26,559 units changing hands. General Accident closed trading with 348,954 units at $2.05, with a 15 cents loss, Honey Bun traded 800 units to end at $5.85, Jamaican Teas had 1,100 units changing hands at $4. Jetcon Corporation rose 35 cents in trading at new record high of $4.80, with 34,983 units changing hands but ended at new closing high of $4.50, to gain 100 percent, since listing in late March.
Knutsford Express lost 50 cents with 1,559 units changing hands to end at $24, Lasco Distributors closed with 76,469 units trading and ended with a gain of 14 cents at $7.04. Lasco Financial gained 15 cents with 1,165 shares changing hands to close at $3.25. Lasco Manufacturing lost 10 cents to close at $4.80 with 146,842 shares trading, tTech traded 46,953 shares and closed at $6, Derrimon Trading preference share gained 5 cents and ended with 500 units changing hands to close at $2.20 and Eppley 9.5% preference share, fell 20 cents in trading 176,300 shares, to end at $6.30.
