Trading in the Jamaican foreign exchange market ended Tuesday with dealers buying the equivalent of US$39,102,745 and selling US$45,483,303, in contrast with US$64,626,781 purchased and US$55,140,235 sold on Monday.
In US dollars trading, dealers bought US$36,005,606 compared to US$60,897,375 on Monday with the buying rate for the US dollar slipping by 9 cents to $120.80. A total of US$43,512,355 was sold versus US$53,714,041 on Monday as the selling rate rose by 3 cents to $121.37. The Canadian dollar buying rate rose 54 cents to end at $83.11 with dealers buying C$1,054,742 and selling C$1,429,307, at an average rate that climbed $2.37 to $87.27. The rate for buying the British Pound jumped $1.90 to $170.69 for the purchase of £1,573,451, while £523,262 was sold, with the rate rising $1.46 to $172.53. At the end of trading, the selling rate for Euro, ended with a rise of 85 cents to close at J$132.18, from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$129.72 for a gain of 85 cents from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$148,241 being bought, while US$199,528 was sold.
Highs & Lows| Notable changes to the highest and lowest rates the currencies traded at are, a recovery of $18.34 in the lowest selling rate for the US dollar that ended at $117.50 and the highest buying rate for the British Pound climbing $1.50 to $174.30 and lowest selling rate gaining $2.05 to end at $166.50.
Strong FX inflows on Tuesday
Berger Q3 profits up 26%
Berger Paints continue to enjoy an outstanding year, with an increase of 61 percent in after tax profit of $153.6 million from $95.3 in 2014 for the nine months period from on sales that rose 11 percent to $1.67 billion from $1.496 billion in 2014 and 12 percent in the December quarter to reach $759.4 million up from $678.5 million.
For the last and best quarter for revenues and profit, growth in profit after tax slowed to just 26 percent to hit $79.6 million, up from $63 million in 2014. Petroleum constitutes a major item of material into paint production and with the decline in oil prices on the world market, Berger should see a cut in cost that will help the profit margin.
The company generated operating cash flow of $193 million for the nine months compared to $147 million in 2014. Earnings per share for the quarter, is 37 cents and 51 cents for the nine months and is projected for the full year to be in the order of 65 cents.
One of the great attraction for the stock which is undervalued, is the high dividend payment that investors can expect, especially with strong gains in profit. The stock closed at $4 in trading in Tuesday, on the Jamaica Stock Exchange.
4 new junior highs on Tuesday
The junior market closed on Tuesday with 17 securities trading, 8 of which advanced, 5 declined but the market index slipped 5.86 points to end at 2,217.64. The market ended with 4 stocks closing at a new 52 weeks’ highs.
The volume of 2,288,351 units changed hands, valued at $8,386,950. At the close, 1 security ended with no bid to buy and 8 securities had no stocks being offered for sale but 3 stocks closed with bids that were higher than their last selling prices and 1 ended with a lower offer.
In trading, AMG Packaging gained 50 cents with 13,116 units changing hands at $15.50 for a new 52 weeks high, CAC 2000 closed with 12,000 units changing hands with a gain of 18 cents to close at a 52 weeks’ high of $6.71, C2W Music closed with 4,620 units changing hands to close at 49 cents. Caribbean Cream ended with a loss of 10 cents as the stock remains under selling pressure, as 35,984 shares changed hands to close at $4.65. Caribbean Flavours traded 1,896 units to end with a loss of 45 cents at $8.50, Caribbean Producers traded 13,317 units but fell 50 cents to close at $5.50 after trading as low as $5.10, Consolidated Bakeries traded 815,024 shares at $1.40. Derrimon Trading closed with gain of 29 cents at 52 weeks’ high of $4.50 with 57,000 units changing hands, General Accident gained 5 cents while trading 49,450 shares to close at $2.10, Honey Bun ended at a 52 weeks’ high of $9.25 with 5,650 units trading with a gain of 10 cents. Jamaican Teas gained 10 cents with 94,640 shares trading to close at a $5.10, KLE Group closed with 89,800 units changing hands at $2.75, after rising 25 cents, Lasco Distributors closed with 44,649 units trading and ended with a gain of 10 cents at $7.35. Lasco Financial fell 2 cents to close at $4.12 with 9,309 shares changing hands, Lasco Manufacturing ended trading with 1,035,846 shares to close at $5, Medical Disposables closed at $3.57 with 4,000 shares trading but lost 1 cent and tTech closed at $4.75 with 2,050 shares trading.
Low activity on TTSE – Tuesday
The Trinidad & Tobago stock market closed with only 7 securities being active on Tuesday with 2 stocks gaining, 1 declining with the prices of 4 remaining unchanged as the stock prices of 3 companies hit 52 weeks’ lows. A total of 373,731 shares changed hands valued at $2,381,341.
The Composite Index fell 0.54 points to 1,162.13, the All T&T Index lost 1.55 points to 1,928.46 and the Cross Listed Index advanced by 0.06 points to 52.22.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator has turned negative with only 4 stocks with bids higher than the last selling price and 8 stocks with offers that were lower.
Gains| Grace Kennedy had 1,000 units changing hands at a new 52 weeks’ high of $4.22, for a 7 cents gain. The price in Trinidad equates to J$79.50, a few dollars form the $82 price in Jamaica and Prestige Holdings with 44,322 units with a value of $454,300 changing hands ended at $10.25 to record a gain of 2 cents.
Losses| Trinidad Cement contributed a mere 1,000 shares but lost 20 cents in closing at $3.69
Firm Trades| Clico Investment Fund traded 71,040 shares valued at $1,598,402 to close at $22.50, JMMB Group had 250,000 units changing hands to close at 55 cents, Republic Financial Holdings closed at $112 with 669 shares changing hands. The stock closed with a bid at $112 to purchase 179,149 shares with the offer at $114 to sell 114 units and Trinidad and Tobago NGL traded at $19, with 5,700 shares.
$18.50 offer for H&L shares
Hardware & Lumber gets offer from the new majority shareholders Argyle Industries to buy for cash the 33,764,719 ordinary stock units not already owned by the offeror. The purchase price is J$18.50 per stock unit, the same price Grace Kennedy sold their majority holding to the company for in December last year.
On December 30 Argyle Industries Inc. announced that it had acquired approximately 58.23% of the issued stock units of H&L Shares. As a result of the Offeror acquiring over 50% of the issued ordinary stock units of the Company it became obliged under the Securities Act to make the offer to the minority.
The offer was received by the Hardware & Lumber board who advices, that a special subcommittee of the Audit Committee to comprise directors unconnected to Argyle or to any other significant shareholder of H&L will be appointed. This sub-committee will have a mandate to propose for adoption a recommendation as to acceptance or rejection of the Offer for inclusion in a directors’ circular to be issued by the Board containing all relevant information required for the benefit of H&L’s stockholders, in compliance with all regulatory requirements.
Directors of Argle are Joseph Bogdanovich Director of Downsound Records and Director of K.L.E Group, Marcus Richards Managing Partner, Greystone Equity Partners Inc. and Christopher Bovell Attorney-at-Law.
Q1 profit up at Jamaican Teas
Jamaican Teas quarterly results to December ended with profits after tax of $36.6 million or 22 cents per share, up 33 percent from $27.5 million in 2014. Profit before tax amounted to $42.5 million, is up from 54 percent from $27.5 million to $42.5 million.
The results came from revenues that grew by 22 percent to $387 million, with real estate sales accounting for $40 million and other income of $15 million which includes gain on sale of investments of $7.5 million.
Gross profit margin grew to 20.6 percent from 19.5 percent in 2014. Selling and marketing cost rose to $8.6 million from $7.3 million by 18.7 percent, administrative expenses was up $30 million from $25.5 million by 17.4 percent and finance cost grew by 76 percent to $10.9 million from $6.2 million.
Going forward interest cost should fall due to two factors. The company has a debenture that carries a variable rate tied to treasury bills, with the latter declining the company will see a reduction in the cost additionally the first phase of the real estate development will release cash to pay down bank borrowing.
There are signs that the economy is picking up and that should help in moving local sales at a faster pace than in 2015.
Based on the first quarter earnings, full year results could be in the region of 85 cents per share, but this could be affected by profit from sale of real estate units and depends on any added gains that may be realized from the sale of the $125 million investments portfolio.
At the end of the quarter borrowings were at $370 million with equity at $79s million. The stock which is quoted on the Jamaica Stock Exchange junior market last traded at $5.
FX trading jumps on Monday
Trading in the Jamaican foreign exchange market ended Monday with dealers buying the equivalent of US$64,626,781 and selling US$55,140,235, in contrast with US$55,187,652 purchased and US$45,669,815 sold on Friday.
In US dollars trading, dealers bought US$60,897,375 compared to US$51,122,324 on Friday with the buying rate for the US dollar slipping by 2 cents to $120.89. A total of US$53,714,041 was sold versus US$43,774,345 on Friday as the selling rate fell by 3 cents to $121.34. The Canadian dollar buying rate fell 64 cents to end at $82.57 with dealers buying C$1,301,740 and selling C$615,650, at an average rate that slipped 84 cents to $84.59. The rate for buying the British Pound dived $2 to $168.79 for the purchase of £1,208,967, while £455,237 was sold, with the rate declining $2.83 to $171.06. At the end of trading, the selling rate for Euro, ended with a loss of $1.42 at J$131.33, from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$128.87 for a fall of $1.59 from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$1,152,324 being bought, while US$353,692 was sold.Highs & Lows| Notable changes to the highest and lowest rates the currencies traded at are, a drop of $18.84 in the lowest selling rate for the US dollar that ended at $99.16 and the highest buying rate for the British Pound falling $1.25 to $172.80.
Barita reports improved profit
Barita Investments released the long delayed 2015 audited results to September today with profits of $242 million or 55 cents per share, up from $66 million in 2014.
In the final quarter, profit before tax amounted to $134.8 million and after taking a larger tax charge than usual, ended at $70 million but that is up from a loss of $90 million in pretax profit and a loss of $64 million after tax in the September 2014 quarter.
The results came from revenues comprising interest income of $891 million, a fall from $1 billion in 2014 but with a big final quarter with $275 million, other income amounting to $640 million of which gain on sale of investments accounted for $346 million, but fees and commission jumped 67 percent to $171 million. Net interest income fell to $265 million for the year from $395 million in 2014 but the net take ended with 29.7 percent margin compared with 30 percent in 2014 and with net interest income of $118 million in the final quarter with a margin of 43 percent. Ian McNaughton, Finance Director indicates that approximately 40 percent of the amount relates to prior quarters. that would result in the final quarters net interest income being around $70 million.
The pick up in the stock trading and growth in unit trust will result in increased fee income and capital gains from their holding of stocks with a value at $496 million at September.
Total assets amounted to $13 billion virtually the same as in 2014. The stock did not trade on Monday but last traded at $4.28 resulting in a PE of 7.8 but the first quarter results should be out by the February 5 based on when they were released last year. IC Insider is forecasting earnings around 75 cents per share for 2016 with the stock at a PE of 6 based on these forecasted earnings.