Juniors Index slips on Tuesday
The signs are pointing to prices heading mostly higher, with a tight supply of stocks being dominant in this market. 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 5 stocks closed with bids higher than the last traded prices and none closed with a lower offer.
In trading, AMG Packaging ended with 23,528 units changing hands at $6, C2W Music traded 2,500 units at 38 cents, Caribbean Cream ended with 1,000 shares changing hands at $4.40, Caribbean Flavours gained 3 cents while trading 15,000 units to end at a 52 weeks’ high at $6.78, Caribbean Producers lost 30 cents, in trading 53,102 units to end at $5.60. Consolidated Bakeries ended with a loss of 7 cents while trading 10,000 shares to settle at $1.23, Dolphin Cove had 584 units trading with a loss of 20 cents, to settle at $15.80, General Accident ended with 10,000 shares changing hands and closed at $1.99. Jamaican Teas had 3,671 shares trading to close of 5 cents with a gat $5.05, KLE Group ended with 73,026 units with a decline of 2 cents at 73 cents, Knutsford Express traded 13,000 units and gained $1 to end at a 52 weeks’ high of $10. Lasco Distributors closed with 125,457 shares changing hands, to end with a gain of 4 cents at $4.09, Lasco Financial ended at $2.92, with 38,200 shares changing hands after losing 3 cents and Lasco Manufacturing fell 38 cents to $3.30 with 450,146 shares trading.
3 stocks trade at new highs – Tuesday
At the close, the Composite Index ending with a rise of 3.03 points at 1,160.34 the All T&T Index advanced by 2.51 points to 1,957.63 and the Cross Listed Index gained 0.49 points to 47.72.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
Gains| Guardian Holdings gained 1 cent in trading 1,300 units at $12.92, National Commercial Bank gained 5 cents in trading 22,331 shares at $1.90. National Flour ended with 50,349 shares changing hands at $2.75, after rising 25 cents to a 52 weeks’ high, Trinidad Cement ended at a new 52 weeks’ high of $4.75 after gaining 42 cents and Unilever Caribbean ended with 810 shares trading 2 cents up, for a new 52 weeks’ high of $68.17.
Declines| Angostura Holdings with 5,763 shares changing hands, closed with a loss of 1 cent at $13.99, Clico Investment Fund posted 59,044 shares valued at $1,339,490 and closed with a loss of 1 cent at $22.68. Massy Holdings with 1,110 shares lost 1 cent in closing at $61.93 for a 52 weeks’ low and Trinidad and Tobago NGL slipped 20 cents in trading, to close at $21.50 with 126,068 shares valued at $2,714,920 units changing hands.
Firm Trades| First Citizens Bank traded 250 shares to close at $35, National Enterprises with 300 shares changing hands at $16.39, Prestige Holdings with 3,825 units changing hands, ended at $10.10 and Sagicor Financial Corporation closed with 980 shares changing hands at $6.06.
NCB wakes up JSE
With the news that National Commercial Bank (NCB) will be buying 30 percent of Guardian Holdings’ shares, the Jamaica Stock Exchange came to life with the 3 main market indices all climbing, as NCB traded at $37.50 with 628,375 units to gain $1.75. NCB’s bid is at $37 to buy 10,000 units and the offer at $45, to sell only 2,250 shares. Trading on the junior market has been low keyed, with very small volumes so far.
Interesting trades, with 75 minutes having elapsed, are Cable & Wireless with 913,965 units and last traded at $1.54 for a 6 cents fall from Monday’s last traded price, Caribbean Cement trading at a new 52 weeks’ high of $19.50, Sagicor Group lost 24 cents in trading 486,055 units at $16.30.
At 10.45 am, the all Jamaica Composite Index is up 907.24 points to 156,515.85, the JSE Market Index gained 811.81 points to 140,985.78, the JSE combined index rose 802.67 points to be at 147,778.60 and the junior market index rose 4.06 points to 1,642.52.
In trading, 25 securities have changed hands with a volume of 2,684,406 units as 8 stocks gained and 7 declined.
J$ makes gains on Monday
On Monday, the Jamaican dollar mostly rose against the three major currencies it normally trades against, in the foreign exchange market. Purchasing by dealers was slightly more than the funds they sold. At the close of trading, dealers bought the equivalent of US$44,621,458 and sold the equivalent of US$41,429,650, compared with US$40,251,301 they purchased and US$39,350,916 sold on Friday.
In US dollar trading , dealers bought US$40,585,146 compared to US$36,593,430 on Friday. The buying rate for the US dollar fell 20 cents to $119.25 and US$39,341,893 was sold versus US$37,420,311 on Friday, the selling rate fell 4 cents to $119.93. The Canadian dollar buying rate fell 55 cents to end at $86.81 with dealers buying C$1,993,998 and selling C$752,076, at an average rate that dropped 54 cents to $88.15. The rate for buying the British Pound declined $1.90 to $177.01 for the purchase of £1,658,881, while £513,635 was sold, with the rate rising 61 cents to $179.81. At the end of trading, it took J$127.10 to purchase the Euro, a fall of 26 cents from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.66 for a rise of 25 cents from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$122,185 being bought, while US$764,928 was sold. Highs & Lows| On Monday, the highest buying rate for the US dollar rose 15 cents to $120.25 while the lowest buying and the highest selling rates were unchanged at $98.66 and $126.42 respectively and the lowest selling rate jumped $1.94 to $100.60. The highest buying rate for the Canadian dollar fell 40 cents to end at $89.60, the lowest buying rate rose 58 cents to $71.38, the highest selling rate dipped 15 cents to $92.02 and the lowest selling rate eased by 30 cents to $84.50. The highest buying rate for the British Pound, declined by 60 cents to end at $180.40. The lowest buying rate fell gained 17 cents to $144.59, the highest selling rate jumped $3.24 to $187.50 and the lowest selling rate fell $1 to $173.
Cayman could be lucrative for Grace
Grace Kennedy Money Services will be expanding operations into the Cayman Islands through GraceKennedy Money Services (Cayman) Limited (GKMS Cayman), a member of the GraceKennedy Group and authorized agent of Western Union, CEO Don Wehby announced recently.
With this new market, Grace Kennedy through its money services subsidiaries now represents Western Union in ten countries across the Caribbean, the other nine being . Jamaica, Trinidad and Tobago, Guyana, St. Vincent and the Grenadines, St. Kitts and Nevis, Antigua and Barbuda, Anguilla and Montserrat and the British Virgin Islands. The market should be quite lucrative for the Grace Kennedy group, as it is the fourth largest country from remittances into Jamaica with US$124 million entering the island from the tiny group of island, according to Bank of Jamaica data, but the market could be a challenging the going forward with concern about money laundering within the region.
Scotiabank will be partnering with Grace Kennedy and Western Union to deliver money transfer services to the residents of the Cayman Islands.
GKMS Cayman will initially have a total of four locations in Grand Cayman and one in Cayman Brac, all opening Monday to Saturday. “There is a vibrant community in the Cayman Islands and we look forward to not only welcoming our new customers into the GKMS family, but working with all stakeholders and contributing to the development of their communities,” Allen added.
Caribbean Flavour(ing) future profits
“With the price of the stock, trading at $2.55 for a PE of just over 3 and 2.3 based on IC Insider’s forecast, (is) indicative of much upside potential,” was how Caribbean Flavours was assessed back in August this year, as the stock was elevated to the BUY RATED ranking after the company released its full year results to June.
In the June posting, IC Insider stated, “The company seems poised to hit earnings of 65 cents per share, for the June 2015 financial year, making it attractive for some short-term gains, with the current price of $2.09, at a PE ratio of 3 times earnings.”
Focusing on the end results of Caribbean Flavours & Fragrances for the year to June 2015 with increased profit of 22 percent over 2014 would lead one to look elsewhere, but that would be a big error. For while the nine months to March showed profit down marginally to $39 million from $40 million, profit for the March quarter was up 20 percent over March 2014 quarter, the June quarter increased by 143 percent to $18.77 million from just $7.6 million for June 2014.
The company followed up the improved results for the March and June quarters, with another quarter of strong performance to September, with a 51.3 percent increase in net profit to $20.36 million over the $13.46 million recorded for the similar period in 2014. The improved profit flowed from sales for the quarter jumping 38.20 percent to $87.46 million, compared to the $63.29 million recorded for the same period in 2014.
“The gross profit showed an increase of 28.91 percent moving from $25.487 million to $32.856 million as per our first quarter’s performance. The Company will continue to refine and improve our purchasing strategy in order to extract the necessary efficiencies and improve our cost of sales and gross profit.
The company continues to manage its administrative and general expenses within budget and compared to the 2014 quarter, there was only a 4.4 percent increase,” the report went on to state.
The future looks much brighter than the past year, for the company that manufactures and distributes flavours mainly for the beverage, baking and confectionery industries and also sells food colouring and fragrances. In responding to questions posed at the annual general meeting held on Wednesday 25 of November, directors indicated that the strong performance enjoyed in the September quarter continues into the December quarter.
“We have hardly scratched the surface of the potential market” Derrick Cotterell indicated, “we have moved into the Dominican Republic and Canada where there is much potential for growth and with renewed efforts and products the locally Jamaican market as well”. Cotterell stated that they have increased research into new products such as fragrances and this has opened up new opportunities for them. Trinidad, Cuba and Haiti are countries with potential for growth, they indicated but Haiti is said to be a difficult market to break into but they have contacts there that should make it possible. In addition to the focus on research and developments for new products and new customers the company said they were able to source some of its raw material more cheaply than before.
According to the company’s board, in their comments on the 2015 annual results “the economic environment has allowed the company to grow its revenues and profits by securing new markets for fragrances and increasing the volume of sales of flavours to existing and new customers in foreign markets. Based on the outlook for the coming year, it is expected that the company will continue to improve its profits whilst increasing its market share in the domestic and overseas markets”.
IC Insider projects profits for 2016 at $99 million or $1.10 per share with increased sales and improving profit margins and $1.50 for the 2017 fiscal year. Company is free of interest bearing debt and has net current assets of $221 million including cashfunds of $103 million.
Bulls retreat again from JSE – Monday
The Jamaica Stock Exchange main market suffered another day of losses in the indices on Monday. The market closed with a volume of 6,907,239 units valued at only $20,441,816 changing hands, in all market segments. Activity took place in 37 securities, leading to 11 rising and 12 declining with 3 stocks ending at 52 weeks’ closing high but with just 1 from the main market.
The JSE Market Index lost 451.99 points to 140,173.97, the all Jamaica Composite Index fell 505.12 points to end at 155,608.61 and the JSE combined index declined 315.54 points to end at 146,975.93.
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 10 stocks with bids higher than their last selling prices and 3 with lower offers.
In trading, Berger Paints had 61,778 units trading at $3.60 for a gain of 45 cents, Cable and Wireless closed with 1,748,946 units changing hands at $1.60 after the price gained 8 cents, Caribbean Cement slipped 20 cents to end at $19, with 68,922 shares changing hands. It closed with a bid at $19.05 to buy 25,450 units, with bids at $19 to buy 26,411 units and 10,000 shares at $16.55, on offer are 4,000 at $19.99, beyond this, are 11,500 units at $20 and 150,000 units at $20.44. Carreras rose 90 cents to close at $56 with 17,739 units trading. Ciboney gained 5 cents to close at a new 52 weeks’ high of 21 cents with 35,200 shares. Desnoes & Geddes ended with 14,723 shares trading at $30, Gleaner fell by 2 cents in trading 20,427 units at $1.93, Grace Kennedy traded with a loss of 44 cents to close at $75.06 with 36,734 shares, Jamaica Broilers lost 60 cents as it traded 189,334 shares to close at $8. Jamaica Stock Exchange traded 94,365 units to end at $13.45 with a gain of 30 cents, JMMB Group gained 7 cents while trading 11,071 shares to close at $10.18,Mayberry ended with 9,600 shares changing hands at $4.85 after rising 35 cents. National Commercial Bank closed with a loss of 25 cents as 62,323 shares changed hands to end at $35.75. After the market closed news broke that the banking group is to acquire nearly 30 percent of Guardian Holdings shares, from a group of shareholders, subject to regulatory approval. Radio Jamaica declined by 39 cents to end at $5.11 with 11,100 units changing hands. Sagicor Group fell 11 cents in trading 12,143 units to end at $16.54. Scotia Group had 6,023 shares changing hands and closed at $27, Supreme Ventures had 58,975 units changing hands at $4.80 and Jamaica Money Market Brokers 7.50% preference share traded 25,000 units with the price ending at $1.81.
Junior index up Monday but…
The signs are pointing to prices heading mostly higher, with a tight supply of stocks being dominant in this market. At the close, there was only 1 security ending with no bid to buy and 11 securities had no stocks being offered for sale. A total of 5 stocks closed with bids higher than the last traded prices and one closed with a lower offer.
In trading, C2W Music ended with 1,600 units changing hands at 38 cents, Caribbean Flavours gained 28 cents while trading 16,512 units to end at a 52 weeks’ high at $6.75, Caribbean Producers gained 10 cents, in trading 44,922 units to end at $5.80 for a 52 weeks’ closing high, Consolidated Bakeries ended trading with 30,192 shares at $1.30. General Accident ended with 504,997 shares changing hands and closed at $1.99 after declining by 1 cent, KLE Group ended with 24,467 units with a gain of 5 cents at 75 cents, Knutsford Express traded 500 units at $9. Lasco Distributors closed with 622,630 shares changing hands, to end at $4.05, Lasco Financial ended at $2.95, with 76,650 shares changing hands after losing 5 cents. Lasco Manufacturing fell 3 cents to $3.68 with 163,003 shares trading and Derrimon Trading preference share ended with 400,000 units changing hands with a loss of 10 cents at $2.10.
Big jump in TCL bid price – Monday
At the close, the Composite Index ending with a fall of 1.35 points at 1,157.31 the
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
Gains| Clico Investment Fund posted 42,154 shares valued at $956,066 and closed with a gain of 1 cents at $22.69, National Flour ended with 37,040 shares changing hands at $2.50, after rising 22 cents to a 52 weeks’ high and Sagicor Financial Corporation closed with 25,100 shares changing hands at $6.06 with a gain of 1 cent.
Declines| Agostini’s traded 1,010 shares as the price slid 20 cents to end at $18, a 52 weeks’ low, National Commercial Bank lost 10 cents in trading 35,000 shares at $1.85 and Trinidad and Tobago NGL slipped 30 cents in trading, to close at $21.70 with 38,821 units valued at $ $844,535 changing hands.
Firm Trades|, Berger Paints had 50 shares changing hands and ended at $3.67, First Citizens Bank traded 3,617 shares to close at $35, Grace Kennedy closed with 25,000 shares changing hands at $3.75, JMMB Group had just 400 shares changing hands at 50 cents and One Caribbean Media ended with 5,623 shares changing hands to close at $22.