Undervalued JMMB Group
Total comprehensive income for period, amounted to $1.14 billion versus $894 million in 2015 and is a factor worth paying attention to as it gives a better indication of the performance of the group than the regular profit out turn.
The JMMB Group reported net operating revenue of J$3.42 billion for the first three months of the new fiscal year, reflecting a 9.9 percent increase compared to the corresponding period in 2015 and was due mainly to positive growth in net interest income, fee and commission income and foreign exchange margins from cambio trading. The Group’s net interest income grew year-over-year from J$1.44 billion to J$1.55 billion, an increase of J$109 million or 7.6 percent, due larger investment and loan portfolios coupled with reduced cost of funds across the territories. Fee and commission income increased by 56.3 percent or J$107 million to J$298 million, from growth in managed funds. Additionally, loan fees increased given the material growth in the loan portfolio. Foreign exchange margins from cambio trading grew by 72.3 percent or J$186 million to J$443 million, driven largely by increased volume and taking advantage of one-off market opportunity. Gains on securities trading, net was down 8 percent at J$1.13 billion. The prior period’s results included one-off gains of J$501 million, if these gains were excluded, core gains on securities trading would reflect growth of 56 percent, the company reported.
Operating revenue grew in all the territories with 26 percent of operating revenue generated outside of Jamaica. Nevertheless, the Jamaican entities continued to post positive performance. In Trinidad and Tobago, the Group’s operations continued to move in a positive trajectory, reporting a 32 percent or J$150.2 million growth in operating revenue at J$614.6 million. The operations in the Dominican Republic also posted growth in operating revenue; up 22 percent or J$49 million to J$275 million.
Operating expenses rose 14 percent to $2.58 billion a bit faster than a 10 percent rise in overall revenues net of interest cost, but if one off gains are adjusted for, revenues would have grown by 31 percent, much faster than operating cost.
JMMB Group’s asset base totalled J$245 billion, up J$22 billion or 10 percent relative to a year ago. The growth was due primarily to larger investment and loan portfolios. The investment portfolio increased by J$20 billion or 13 percent to J$171 billion. In addition, loans and advances, net of provision for credit losses was J$40 billion, up 21 percent or J$7 billion. Growth in the asset base was funded by customer deposits and repurchase agreements. Customer deposits increased by J$6 billion or 15 percent to J$46 billion, while repurchase agreements were 7 percent higher at J$156 billion.
Price increases slowed in July
With more than half of the calendar year gone, overall price movements in Jamaica remained slightly negative at minus 0.1 percent, but inflation for the last twelve months amounts to 2.1 percent, while inflation since April is up 1.2 percent.
The rise in the Inflation Rate since April 2016, emanated mainly from 0.5 percent rise in prices in July 2016, according to the latest figures released by the Statistical Institute of Jamaica and a 0.9 percent movement in June.
July’s prices were mainly impacted by Electricity, Gas and Other Fuels rising 4.6 percent and Water Supply and Miscellaneous Services Related to the dwelling climbing 2.8 percent.
Food and Non-Alcoholic Beverages increased by a mere 0.3 percent due mainly to increased prices for vegetables and starchy foods. Price movements elsewhere for July were mild.
The decline in the price of oil on the world market in recent weeks should have a moderating effect on prices overall in August and September. Regardless, if inflation were to remain at the 0.5 percent per month as occurred in July the country is likely to enjoy one of the lowest year of inflation for some time and Jamaica seems set to report an inflation rate that is below 2 percent for 2016.
Juniors claw higher on Monday
Trading ended with 7 stocks that rose while 7 declined, while the market index gained 7.24 points, to close at 2,257.52. At the end of trading 5 stocks closed with bids higher than their last selling prices and 1 ended with a lower offer.
At the close, Access Financial Services traded 7,357 shares to end at $16, AMG Packaging lost 12 cents and closed at $13 with 16,104 units changing hands, CAC 2000 closed with 1,797 units changing hands but fell 1 cent to $6, Cargo Handlers had 4,000 shares changing hands, to close at $75.04 with the loss of a cent. Caribbean Flavours traded 589,637 units to end at $6.85 with a loss of 15 cents, Caribbean Producers gained 1 cent in trading 6,162 units at $3.26, Consolidated Bakeries fell 10 cents in trading 18,620 units to end at $2.35, General Accident gained 8 cents, in trading 2,046 units to close at $2.29. Honey Bun had 98,613 shares changing hands, to close with a gain of 5 cents at $5.55, Iron Rock Insurance traded 1,303 units and gained 2 cents to close at $3.30. Jetcon Corporation traded 127,964 shares and fell 20 cents to close at a new high of $3, Key Insurance with 1,653 shares changing hands rose 15 cents to end at $2.65, Lasco Distributors ended with 1,782,910 shares changing hands but gained 5 cents to land at $7.05. Lasco Financial traded just 400 units to close at $3.40 and Lasco Manufacturing closed at $4.89 with 6,366 shares trading, after falling 7 cents.
3 TTSE stocks gain 3 fall- Monday
The Composite Index gained 0.95 points to close at 1,154.92, the All T&T Index rose 2.48 points to close at 1,819.91 and the Cross Listed Index slipped 0.08 points to at 65.21.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 5 stocks with bids higher than their last selling prices and 5 with offers that were lower.
Gains| Clico Investment Fund declined 5 cents and ended at $22.65 with 31,471 shares valued at $712,981 trading, Guardian Holdings gained 23 cents with 14,500 shares changing hands and ended at $13.80 and Scotiabank gained 40 cents to close with 300 shares changing hands at $56.50.
Losses| JMMB Group ended with loss of 1 cent as 108,633 shares changed hands to close at 63 cents, Massy Holdings lost 1 cent and ended with 10,000 shares with a value of $549,421changing hands at $54.95 and Sagicor Financial Corporation fell 3 cents with 50,000 shares changing hands at $6.90, for a value of $345,000.
Firm Trades|, First Citizens traded 840 units at $35, Republic Financial Holdings closed at $109.98 with 10,000 shares valued at $1,099,800 changing hands, Tobago Trinidad and NGL with 532 shares changing hands, closed at $23.76 and Trinidad Cement traded 840 shares to close unchanged at $3.05.
JSE down sharply in early session – Monday
In early morning trading on the Jamaica Stock Exchange, the main market dropped sharply with 2,649.37 points being cut from the all Jamaican Composite Index.
Scotia Group dropped to $29.09 from $31.70 and is one of the the main contributor to the loss, while Grace Kennedy traded 77,140 units and lost $2 to trade at $43. JMMB Group traded 1,788,648 units at $9.50, dwon from $9.84 that it closed at on friday, Jamaica Money Market Brokers 7.50% preference share traded 926,000 units at $2.10 and Lasco Distributors traded 1,782,310 at $7.01, being the leading trades.
At 10:45 am 32 securities traded, resulting in a volume of 4,736,763 shares changing hands. The average number of shares traded amounts to 148,024 units compared to 2,248,744 units on Friday. The number of stocks falling is now at 13 while the prices of 16 securities rose.
The all Jamaica Composite Index dropped 2,649.37 points to 177,785.43 the Jamaica Stock Exchange Market Index slipped 2,369.01 points to 160,013.56, the Jamaica Stock Exchange combined index dived 2,089.00 points to close at 171,620.89 and the junior market index rose 10.57 points to 2,260.85.
FX stock pile now US$189M – Friday
Authorized dealers added another $6 million to their stockpile of foreign exchange on Friday moving the net purchases since the end of June, to US$189 million by Jamaica’s foreign exchange dealers as the selling rate for the United States dollar rose again.
In Friday’s trading, dealers bought US$44,787,776 and sold US$38,925,904 compared to US$43,395,032 purchased and US$37,474,064 sold on Thursday, of all currencies.
In US dollar trading, dealers bought US$42,010,057 compared to US$39,678,921 on Thursday. The buying rate for the US dollar fell 1 cent to $126.65. A total of US$36,526,935 was sold versus US$35,507,077 on Thursday, with the selling rate rising 5 cents to end at $127.20. The Canadian dollar buying rate fell 54 cents to end at $95.62, with dealers buying C$1,077,564 and selling C$1,486,362 at an average rate that jumped $1.14 to $99.28. The average rate for buying the British Pound climbed $1.01 to $163.53 for the purchase of £1,409,548, while £854,904 was sold with the rate jumping by $1.15 to end at $166.07.
At the end of trading, the selling rate for the Euro, dropped $2.33 to close at J$142.59 from Thursday’s rate, according to data from Bank of Jamaica, The US dollar equivalent of other currencies traded amounts to US$457,288 being bought, while US$411,932 was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates, for the Jamaican dollar in the foreign exchange market on Friday, include a drop of $18.80 in the lowest selling rate for the US dollar to $104.20, a rise of 97 cents in the highest selling rate of Canadian Dollar to close at $103.68, a jumped of $5 in the lowest selling rate to end at $95. Trading in the British Pound resulted in a rise of $3.64 in the highest buying rate to $170.74, a rise of $1.91 in the lowest buying rate to $134.88, a rise of $2.48 in the lowest buying rate to end at $175.50 while the lowest selling rate climbed $2 to close of $160.
TTSE closes week with gains – Friday
Trading activity on the Trinidad and Tobago stock market continued with relatively low volumes when it closed Friday with 14 securities changing hands resulting in slightly more volume than traded on Thursday, but with far less value, as 182,250 shares valued at just $1,527,151 traded on the last day of the week.
At the close, 3 stocks rose, 1 declined and 10 remained unchanged, leading to increases in all the market’s indices.
The Composite Index gained 2.17 points to close at 1,153.97, the All T&T Index climbed 3.97 points to close at 1,817.43 and the Cross Listed Index rose 0.05 points to at 65.29.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator ended with 5 stocks with bids higher than their last selling prices and 5 with offers that were lower.
Gains| Ansa McAl traded 6,150 units and gained $1 to end at $63, Republic Financial Holdings rose 3 cents and closed at $109.98 with 10,100 shares valued at $1,110,521 changing hands and Scotiabank gained 40 cents to close with 1,000 shares changing hands at $56.10.
Losses| Massy Holdings lost 2 cents and ended with 360 shares changing hands at $54.96.
Firm Trades|, First Citizens traded 100 units at $35, Clico Investment Fund ended at $22.65 with 23,719 shares valued at $537,322 trading, Grace Kennedy contributed 1,729 shares, to close at $2.20, Guardian Holdings with 100 shares changing hands, to end at $13.57.JMMB Group ended with 108,633 shares changing hands to close at 64 cents, National Commercial Bank ended with 32,301 shares changing hands to close at $2.65, National Enterprises closed with 1,000 shares changing hands at $10.50, Prestige Holdings traded 1,000 shares to close lower at $10.80. Sagicor Financial Corporation had 285 shares changing hands at $6.94, Tobago Trinidad and NGL with 3,357 shares changing hands, closed at $23.76 and Trinidad Cement traded 1,390 shares to close unchanged at $3.05.