The Jamaican foreign exchange market remained buoyant on Tuesday, with more $43 million entering the market, but the rate of the Jamaican dollar slipped moderately against the US dollar and the British pound, with the latest selling rate for the US rising to $120.10. The local currency made gains on the Canadian dollar.
Funds purchased by dealers were below the amounts sold by $3.6 million. The equivalent of US$43,508,060 was purchased and the equivalent of US$47,115,930 sold, compared with US$54,650,382 they purchased and US$55,741,013 sold on Monday.
Demand for the US dollar , exceeded the amounts purchased by dealers by US$4.8 million with dealers buying US$39,170,370 compared to US$51,011,470 on Monday. The buying rate for the US dollar fell 11 cents to $119.48. A total of US$44,984,754 was sold versus US$53,616,142 on Monday, the selling rate moved up by 7 cents to $120.10. 
The Canadian dollar buying rate rose 2 cents to end at $85.89 with dealers buying C$1,425,785 and selling C$747,774, at an average rate that declined by 73 cents to $87.45. The rate for buying the British Pound climbed by 83 cents to $177.66 for the purchase of £2,007,951, while £671,544 was sold, with the rate gaining 53 cents to $179.01. At the end of trading, it took J$130.27 to purchase the Euro, a fall of 43 cents from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.84 for a decline of 32 cents from Monday’s rate. The US dollar equivalent of other currencies traded, amounts to US$327,015 being bought, while US$585,694 was sold.
Highs & Lows| The highest buying rate for the US dollar, 
rose by 10 cents to $120.40, the lowest buying rate put on 4 cents to $98.70, the highest selling rate gained 5 cents to $126.47 and lowest selling rate jumped $1.94 to $100.60. The highest buying rate for the Canadian dollar dropped $1.15 to end at $88.35, the lowest buying rate ended 41 cents lower at $70.97, the highest selling rate fell 64 cents to $91.38 and the lowest selling rate jumped $10.66 to $83.50. The highest buying rate for the British Pound, fell $1.20 to end at $180.30. The lowest buying rate fell 25 cents to $145, while the highest selling rate lost 32 cents to end at $186.93 and the lowest selling rate declined by $2.15 to $171.85.
Jamaican$ lost ground to US – Tuesday
6 stocks rose on TTSE – Tuesday
NCB closed at a new high of TT$2.11 on Tuesday on the TTSE
At the close, the Composite Index ended with a rise 1.74 points to 1,164.11 the All T&T Index fell 1.44 points to 1,956.55 and the Cross Listed Index gained 0.68 points to 48.90.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bids higher than the last selling price and 5 stocks with offers that were lower.
Gains| Guardian Holdings gained 3 cents to end at $13.03 with 500 units changing hands, JMMB Group closed with 280,876 shares changing hands at 50 cents, after rising 3 cents, National Commercial Bank rose by 11 cents while trading 200,000 shares carrying a value of $422,000 at $2.11, for a 52 weeks’ high. Scotiabank ended with 18,025 shares with a value of $1,125,890 changing hands at $62.50 after climbing 50 cents, Sagicor Financial ended with 39,287 units changing hands, 1 cent up at $6.15 and Unilever closed with a rise of 2 cents with 300 shares changing hands at $68.20 for a 52 weeks’ high.
Declines| Agostini’s traded 1,000 shares at $17.25 with a fall of 74 cents to close at a 52 weeks’ low. Grace Kennedy dropped 14 cents while trading 14,201 units with a value of $512,143 at $3.61,
Massy Holdings traded 555 shares and lost 27 cents in closing at $61.65 to a new 52 weeks’ low and Trinidad Cement traded 11,540 units and closed at $4.55 after losing 13 cents.Firm Trades| Clico Investment Fund posted 537 shares and closed at $22.75, First Citizens Bank traded 516 shares to close at $35, National Enterprises closed with 1,830 shares changing hands at $16.39. National Flour closed with 2,800 shares changing hands at $2.75 and Trinidad and Tobago NGL traded 179,025 shares valued at $3,849,037, to close at $21.50.
Heavy indices losses on JSE – Monday
NCB ended at a new closing 52 weeks’ high on Monday
A total of 13 securities recorded gains and 8 declined as 5 stocks closed at a 52 weeks’ high but the JSE Market Index dropped 1,571.80 points to 140,840.88 the all Jamaica Composite Index dived 1,756.57 points to end at 156,353.92 and the JSE combined index erased 1,409.79 points to close at 147,465.66.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 9 stocks with bids higher than their last selling prices and 1 with a lower offer.
In trading, Berger Paints ended with 43,063 units trading at $3.45 after gaining 30 cents,
Cable and Wireless closed with 2,427,885 units changing hands down to $1.35 for a loss of 14 cents, Caribbean Cement closed trading at $17 having lost 1 cent with 29,527 shares changing hands. Carreras closed at $56 with 6,893 units trading. Ciboney closed at a 52 weeks’ closing high of 24 cents with 125,816 shares changing hands, Gleaner Company traded 65,126 shares at $1.40, Grace Kennedy ended with 116,251 units changing hands with a gain of 49 cents to $76, a 52 weeks’ closing high, Jamaica Broilers lost 48 cents in trading 48,100 shares, to close at $8.02. Jamaica Producers rose by 50 cents to close at $32 with 917,122 units trading, JMMB Group lost 35 cents in trading 396,832 shares, to close at $10. Kingston Wharves traded 1,000 units to end at $11.50, with a gain of 20 cents, 
Mayberry Investments ended with 61,048 shares changing hands with a gain of 30 cents to $5, National Commercial Bank ended at $39.99, having risen $2.49 and closed with 6,460 units changing hands at a 52 weeks’ closing high. Pulse Investments had 32,620 units trading at $2.50, Radio Jamaica lost 44 cents in trading 1,000 units at $4.06, Sagicor Group with 108,541 units changing hands, ended at $16.70, Sagicor Real Estate Fund ended with 22,365 shares trading, to finish at $10.25. Scotia Group had 21,181 shares changing hands at $27.50 to record a 32 cents gain, Supreme Ventures closed with 1,105,941 units changing hands, 20 cents lower at $4.70 and Jamaica Money Market Brokers 7.50% preference share rose 9 cents and ended trading 445,500 units at $1.90.
Jamaican $120.03 to US holds – Monday
More funds flowed into the Jamaican foreign exchange market on Monday than on Friday, with the rate of the Jamaican dollar holding against the US dollar, with the latest selling rate for the US remaining at $120.03. The local currency made gains on the British pound and the Canadian dollar.
Funds purchased by dealers were below the amounts sold by $1 million with the equivalent of US$54,650,382 being purchased and the equivalent of US$55,741,013 sold, compared with US$38,210,272 they purchased and US$32,468,928 sold on Friday. One week ago on Monday November 30, dealers bought $44.6 million and sold US41.4 million equivalent.
Demand for the US dollar , exceeded the amounts purchased by dealers by US$2.6 million with dealers buying US$51,011,470 compared to US$34,482,286 on Friday. The buying rate for the US dollar gained 9 cents to $119.59 and US$53,616,142 was sold versus US$30,528,147 on Friday, the selling rate remained at $120.03, 
The Canadian dollar buying rate fell $1.09 to end at $85.87 with dealers buying C$1,869,227 and selling C$1,085,803, at an average rate that declined by $1.06 to $88.18. The rate for buying the British Pound declined by 94 cents to $176.83 for the purchase of £1,264,655, while £483,586 was sold, with the rate falling 84 cents to $178.48. At the end of trading, it took J$130.70 to purchase the Euro, a climb of 49 cents from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$128.16 for a rise of 62 cents from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$426,901 being bought, while US$608,134 was sold.
Highs & Lows| The highest buying rate for the US dollar, 
the lowest buying and the highest selling rates were unchanged at $120.30, $98.66 and $126.42 respectively but the lowest selling rate dropped sharply by $18.34 to $98.66. The highest buying rate for the Canadian dollar dropped 30 cents to end at $89.50, the lowest buying rate ended unchanged at $71.38, the highest selling rate fell 98 cents to $92.02 and the lowest selling rate dived $12.16 to $72.84. The highest buying rate for the British Pound, rose 50 cents to end at $181.50. The lowest buying rate gained 41 cents to $145.25, while the highest selling rate climbed by $2.26 to $187.25 and the lowest selling rate rose by 50 cents to $174.
Juniors eke out moderate gain – Monday
Derrimon traded over 5.88m units on Monday.
At the close there was 1 security ending with no bid to buy and 7 securities had no stocks being offered for sale. A total of 2 stocks closed with bids higher than the last traded prices and 1 closed with lower offer. Two stocks closed at 52 weeks’ high.
In trading, AMG Packaging ended with 5,000 shares trading at $6.05, Caribbean Cream lost 4 cents while trading 60,000 units to end at $4.01, Caribbean Flavours traded 154,800 units at a new 52 weeks’ high of $7.10 by adding 25 cents,
Caribbean Producers traded 16,954 units to end at $5.60. Consolidated Bakeries ended with 142,771 shares changing hands to settle at $1.30 for a 7 cents rise, Dolphin Cove had 7,500 units trading and closed at $16, after shedding 3 cents, Honey Bun traded at a 52 weeks’ high of $5.81 with 5,000 shares to close with a gain of 6 cents. Lasco Distributors gained 2 cents and closed with 170,466 shares changing hands at $4.12, Lasco Financial ended at $3 with 77,400 shares changing hands, Lasco Manufacturing added 18 cents and closed at $3.40 with 174,648 shares trading and Eppley preference share ended with 16,600 units changing hands $6.02.
2 up 3 down again on TTSE – Monday
Scotiabank drops 48 cents on TTSE on Monday
At the close, the Composite Index ended with a rise 0.05 points to 1,162.37 the All T&T Index inched up by 0.01 points to 1,957.99 and the Cross Listed Index gained 0.01 points to 48.22.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bids higher than the last selling price and 7 stocks with offers that were lower.
Gains| Clico Investment Fund posted 13,420 shares, gained 3 cents and closed at $22.75 and Guardian Holdings gained 8 cents to end at $13 as 1,817 units changed hands.
Declines| Massy Holdings traded 100 shares and lost 1 cent in closing at $61.92 to a new 52 weeks’ low, Scotiabank ended with 2,825 shares changing hands at $62 after dropping 48 cents and Scotia Investments closed with a loss of 9 cents with 11,700 shares changing hands at $1.50.
Firm Trades| Firstcaribbean International Bank led with 74,837 shares changing hands for a value of $376,392 to close at $5. First Citizens Bank traded 1,388 shares to close at $35, Grace Kennedy traded 50 units at $3.75, Prestige Holdings ended with 150 shares at $10.10, Sagicor Financial ended with 2,526 units changing hands at $6.15, Trinidad and Tobago NGL traded 36,777 shares valued at $790,892, to close at $21.50 and West Indian tobacco traded 805 units and closed at $126.25.
JSE loses ground Monday morning
Trading on the Jamaica Stock Market started off slowly on Monday morning as was the case on Friday, with the first trade taking place well after opening. By 10:30 the main indices fell with 
20 securities changing hands after 60 minutes of trading with a volume of 5,744,495 units as 6 stocks gained and 3 declined.
At 11 am, the all Jamaica Composite Index is dropped 595.63 points to 157,514.86, the JSE Market Index fell 532.98 points to 141,879.70 the JSE combined index erased 531.76 points to be at 148,343.69 and the junior market index lost 3.20 points to 1,611.28.
Interesting trades, with 60 minutes having elapsed, are Derrimon Trading with 5,375,692 units changing hands at $3.50 and Jamaica Producers with 43,347 units trading as the price gained 50 cents to $32.
70c for Goodyear Ja shareholders?
Goodyear Shareholders could get another 70 cents from the liquidation of the company according to information gleaned by IC insider. Shareholders in Good Year Jamaica expected the liquidation of the company to have been completed long ago. The liquidators made two payments and then there was dead silence since, with no one indicating what was happening.
The liquidators sold off inventories and fixed assets but Income Tax refund of $17 million and General Consumption Tax (GCT) refund $9 million was outstanding up to 2008 with recovery having been protracted and unlikely to be fully collected due the absence of withholding tax certificates on interest income. Of $21 million claimed for withholding tax between 2000 and 2008 only $14 million is accounted for leaving $6.9 million primarily for 2003 and 2006 to 2008. Seems strange that the staff of the company have left shareholders to suck up such losses and they will end up getting all the surplus on the pension fund.
Refunds totaling $12 million up to and including 2012 were agreed with the tax authorities and the amount for GCT seems to be collectible and should amount to $16 including interest.
The liquidators indicate that they accepted the liquidation for a fixed fee of $1.5 million on the basis that the company was solvent and the winding up process would be resolved within a reasonable time. They are now requesting $18.7 million which is well above the original figure and collected $4.3 million to 2014. But looking at the details it is noted that sitting in a bank current account is $5.7 million in 2013 and $5.4 million in 2014. At the start of 2013 the current account balance was $6.8 million. The big question is why were the funds left in the current account and not placed on an interest earning account to generate interest income? It is difficult to see how the liquidators want more funds when they have fowled here and one wonders how much interest income has been lost due to poor handling of the funds.
Assuming no more funds are collected than those agreed to, the amount that is available should be in excess of $55 million before the liquidator’s fees are finalized.
tTech is BUY RATED for strong growth
tTech is going to the capital market this month to raise approximately $50 million by the issuing for subscription 25,652,000 shares to the general public and special interest group with the general public being asked to pay $2.50 each for 16.4 million being made available to them.
IC Insider assessed the company’s record and forecast increased earnings for 2016 and 2016 and accorded it the BUY RATED honour.
Edward Alexander, Chief Executive Officer, in an interview with IC Insider stated that the staff of the company indicates that they will all be taking up their full allotment, if so there will be few of these shares available for the public to acquire at the IPO stage.
The Company was incorporated in Jamaica on December 1st, 2006, and is a managed information technology (“IT”) service provider, or what industry insiders refer to as a “Managed Services Provider”. That is, for the most part, the Company’s main service offering is the management of other businesses’ IT infrastructure remotely and on a pre-paid basis.
The company is growing at an attractive rate with revenues that are up 28 percent for the half year to June to $81.4 million versus expenses increasing 18 percent and only 14 percent when technical fees, services and products that are part of direct expenses are excluded.
From Left: Mr. Hugh Allen, Resolution Manager and Executive Director; Mrs. Natalya Petrekin, Service Desk
Manager; Mr. Norman Chen, Technical Services Director; Mr. John Gibson, Senior IT Security Officer; Mr.
Edward Alexander, CEO; Mrs. Hortense Gregory-Nelson, Finance and Administrative Manager; Mr. G.
Christopher Reckord, Sales and Marketing Director. Mr. Omar Bell.
IC Insiders’ forecast, based on continuation of good revenue growth, is for profit before tax for 2015 to end at $36 million or 45 cents per share and $27 million or 35 cents per share after tax and $64 million or 60 cents per share for 2016. This gives it a PE based on 2015 earnings before tax of 5.5 and for 2016 of 4 and compares with junior market stocks with PE of 8, with half of the market selling above the average, suggesting that the stock should enjoy a nice bounce over the next twelve months or less. The company has $51 million in cash and no borrowed funds with current liability of just $27 million, so why do they need to raise the funds? “Expansion into security services will require added equipment, software working capital for continued expansion” Alexander stated, in addition listing allows the staff to be part owners and benefit from future growth.
There are a number of positives for the company it is in a good growth industry with potential for regional expansion, the Grace Kennedy contract and relationship could provide them the experience to take on other large regional conglomerates. They are a service-based business with high gross profit margin which is a big positive and if growth continues at current levels would contribute to a big increase in profit. A lot of the business is recurring, providing stability to the operation. The founders’ vested interest will remain strong as they will still hold relatively large percentage of the company after the IPO.Only about 15% shares being offered to the general public the stock almost guaranteeing that it will be in relatively short supply which could drive price up quickly after listing, this is especially so being the first tech company on the JSE.
Subscription opens at 9 am on December 16th, 2015 and closes at 4:30 p.m. on the December 18th, 2015, subject to the right of the Company to shorten or extend the time for closing. All completed Application Forms must be delivered to NCB Capital Markets.
JSE stock up 887% could end higher
The Jamaica Stocks Exchange stock rocketed from $1.57 to a record $15.50 topping the market as the best performing stock over 52 weeks with gains of 887 percent. The JSE benefitted from a big jump in profits from $8 million in 2014 to $139 million in nine months to September this year, as revenues jumped from $242 million in 2014 to $521 million.
For the quarter, profit amounts to $37 million up from $11 million in 2014, from operating revenues of $157 million versus $89 million in 2014. In addition to operating revenues, the JSE earned $16 million from investment income in the latest quarter, compared to $8 million in the September 2014 quarter and $34 million in the nine months in both years.
Earlier in the year, IC Insider stated, “the stock remains IC Insider BUY RATED and is now available at $3.50 which it last traded at, but won’t remain that way forever and investors should be buying this one for big long-term gains,” since then the stock has shot up to $15.50 for a gain of 933 percent for the year.
For the September quarter, cost rose from $90 million to $109 million due mainly to staff cost jumping b $12 million. For the nine months, cost rose from $273 million to $340 million with staff cost accounting for $20 million of the increase and securities commission fees jumping to $37 million from $10 million in 2014.
The exchange has cash and investments of $448 million with a working capital ratio of 2.4:1 and equity of $624 million, there is no borrowed debt on the books.
Factors that investors should be considering looking forward which will be critical to the fortunes of the stock exchange are the levels of trading that could point them to future income and profit. Up to December 4, this year, the JSE traded $8.4 billion in normal trades compared to $3.7 billion in December 2014, in the September quarter, trading amounted to $8.68 billion up from $3.74 billion in the June 2015 quarter and $5.15 billion in September 2014. The increase in the 4th quarter stock trading activity to date, is just below the 3th quarter level, in addition there will be a full quarterly income from repo business.
In the March quarter 2015, a total of $4.9 billion was involved in trading up from $3.8 billion in March 2014. Both the December and the March quarters in 2015 have a few one off type trades, regardless the trend is pretty clear pointing to the possibility of a strong 2016. The last two quarters suggest that trading levels in dollar terms could be up around 40 percent and it could be more. That would mean a sharp increase in revenues for the exchange in addition the managing of the repo business will provide added income for the entire year compared with two months in the September quarter and 5 months for the year to December.
Back in 2004, the market traded $28 billion in regular trading activity when the Jamaican dollar was trading around $62 to the US dollar with trading in 2005 being slightly behind at $26 billion. Trading would need to get to $51-55 billion for a year to match trading levels back in 2004 and 2005.
Profit should close out the year on a high with monetary trading levels set to exceed that of the third quarter and well ahead of the fourth quarter of 2014. IC Insider is forecasting earnings of $1.40 for the 2015 not factoring the trade that could flow from the Heineken buyout of the minority shares in Desnoes and Geddes.
