The junior market rose 32.86 to just 3 points away from the 1,600 point mark at 1,597.17 points on Tuesday as 16 securities were active with 10 stocks advancing and one declined. A total of 1,088,460 units, valued at $4,588,567 changed hands. The market ended with 7 stocks closing at new 52 weeks’ high.
Only 2 securities ended with no bids to buy and 10 had no stocks being offered for sale, an indication of chronic supply shortage of junior market stocks. A total of 7 stocks closed with bids higher than the last traded prices and 3 closed with lower offers.
In trading, Blue Power gained 80 cents in closing at $13.80, with 4,200 units trading. Caribbean Cream ended with 20,000 shares changing hands, at a new 52 weeks’ high of $4.60, to gain 10 cents, Caribbean Flavours traded 87,075 units to end at a new 52 weeks’ high of $4.85, after rising 5 cents, Caribbean Producers traded 79,902 units at $3.05. Consolidated Bakeries rose 10 cents to end at $1.90, with 40,742 units changing hands. Derrimon Trading gained 20 cents, to end with 5,000 shares changing hands at a 52 weeks’ high of $3.20, Dolphin Cove had 26,300 shares changing hands at $13.50, for a rise of 50 cents at a 52 weeks’ high. General Accident Insurance traded only 200 units at $2. The stock ended with an offer at $1.97, to sell 20,000 shares, Honey Bun closed with a mere 454 shares changing hands, to end 8 cents higher at a 52 weeks’ high $5.28, Jamaican Teas rose 5 cents with 33,810 shares trading, to close at $3.90.
KLE Group ended with 1,515 units trading at 45 cents, Lasco Distributors closed with 367,050 shares changing hands with a loss of 43 cents to $4.07, Lasco Financial closed with an increase of 20 cents at a new 52 weeks’ closing high of $3.20 with a total of 219,943 shares changing hands after trading as high as $3.40, Lasco Manufacturing rose 6 cents to end at $3.96 with 196,769 shares changing hands at a new 52 weeks’ high and Derrimon Trading preference share ended with 400 shares changing hands at $2.20.
All Jamaica index breaks 150,000 mark
The Jamaica stock market is off to a flying start on Tuesday morning with the All Jamaican Composite index jumping 1,334.74 points to cross over the 150,000 point level for the first time and sits at 151,265.98 the JSE Market Index gained 1,194.34 points to 136,288.15 the JSE combined 
index climbed 1,329.92 points to be at 142,847.27 and the junior market index rose 22.65 points to its highest level of 1,586.96.
The number of securities trading climbed sharply to 34 securities changing hands with a volume of 9,183,062 units as 19 stocks gained and 3 declined after 90 minutes of trading.
Notable trades took place in Cable and Wireless, the stock traded 6,553,797 units up to $1.40 but last traded at $1.35, Carreras ended with 768,164 units trading at $55.18, Lasco Distributors has traded 367,050 units currently at $4.07, Lasco Financial Services traded at a new record high of $3.40 with 219,943 units but now trades at $3.20, Lasco Manufacturing has so far traded 100,000 shares at $3.95, Proven Investments traded 434,000 shares at 22.97 US cents.
5 stocks closed higher on TTSE
JMMB Group Shares rose on TTSE to 50c.
At the close, the Composite Index ending with a gain of 0.55 points at 1,148.77 the All T&T Index rose 0.09 points to 1,950.06 and the Cross Listed Index added 0.13 at 45.59.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.
Gains| Clico Investment Fund closed with a gain of 1 cent, a total of 1,825 shares changed hands, to end at $22.53, JMMB Group with 200,000 units changing hands ended at 50 cents to record a gain of 3 cents, National Flour Mills gained 1 cent in trading 500 shares at $1.98.
Trinidad Cement ended at a 52 weeks’ closing high $3.81 with 5,000 shares changing hands with a rise of 1 cent and West Indian Tobacco traded with a gain of 1 cent to end at $126.02 with 404 shares trading at a 52 weeks’ high.Declines| Republic Bank traded 5,840 shares valued at $654,023 to close at $112, with a fall of 1 cent.
Firm Trades| Angostura Holdings traded at $14 with 500 shares, First Citizens Bank traded 4,837 shares and closed at $35, Scotiabank closed with 27,646 shares for a value of $1,727,875 changing hands at $62.50 and Trinidad and Tobago NGL closed at $21.50 with 50,259 shares being traded for $1,080,569 trading.
Jamaican stocks push higher on Monday
Jamaica Broilers closed at a new 52 weeks’ high of $9.20 on Monday.
The JSE Market Index rose 905.02 points to 135,093.81, the all Jamaica Composite Index gained 1,011.41 points to end at 149,931.24 and the JSE combined index surged 1,316.29 points to end at 141,517.35.
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 12 stocks with bids higher than their last selling prices and 1 with the offer that is lower.
In trading, Barita Investments traded 20,000 units at $3.80 after gaining 14 cents, Cable and Wireless gained 20 cents, with 1,784,165 shares changing hands to close at $1.25. On offer were 779,720 shares at $1.30 with bid in at $1.27 to buy 139,365 units. Caribbean Cement lost 2 cents to end at $17.88, with 323,492 shares changing hands. Carreras had 32,125 units trading, to close with a loss of 50 cents at $55, Desnoes & Geddes traded 3,245 units at $30, Grace Kennedy closed at a new 52 weeks’ high of $70.01 after rising $1.89 with 101,720 shares changing hands. Jamaica Broilers traded 518,719 shares to close 20 cents higher at $9.20 at a 52 weeks’ high. Jamaica Producers traded 6,205 shares, gained 10 cents to end at $23.60, Jamaica Stock Exchange rose $1.15 in trading 1,000 shares for a new 52 weeks’ closing high of $12.01, JMMB Group traded 3,962 shares to close at $10.80, Kingston Wharves traded 3,300 units to close with a loss of 40 cents at $11.10. Mayberry Investments rose 28 cents to end at $4.49 while trading 84,832 share, National Commercial Bank with 73,350 shares changing hands to end at $33. Pan Jamaican climbed 85 cents in trading 28,280 shares to end at $86.01, Pulse Investments traded 44,000 shares but lost 33 cents and ended at 97 cents. 
Sagicor Group traded at a new 52 weeks’ high of $16 but close lower, at a new closing high of $15.01, only 3,238 shares were traded, Sagicor Real Estate Fund traded 1,208,533 units, the price closed at $10.05 after rising 10 cents, Scotia Group ended with 4,426 shares changing hands with a loss of $2.70, to close at $26.80. Sterling Investments fell 10 cents to close at $12.90 as 200,000 units traded, Supreme Ventures ended with 57,300 shares changing hands at 5 cents less than on Friday to close at $4.60 and Proven Investments ordinary share lost 1.98 US cents and ended at 21 US cents with 15,570 units changing hands.
Juniors at a new high of 1,564 points
Caribbean Flavours traded at a 52 weeks’ high of $4.80, being 1 of 4 JM stocks to do so.
Three (3) securities ended with no bids to buy and 10 had no stocks being offered for sale. A total of 6 stocks closed with bids higher than the last traded prices and none closed with a lower offer.
In trading, Caribbean Cream ended with 17,500 shares changing hands at a new 52 weeks’ high of $4.50 to gain 15 cents, Caribbean Flavours traded 144,722 units to end at a new 52 weeks’ high of $4.80, after rising 20 cents, Caribbean Producers traded 102,848 units at $3.05.
Consolidated Bakeries rose 15 cents to end at $1.80, with 45,000 units changing hands, Dolphin Cove had 150,150 shares changing hands at $13 after trading as high as $13.50. Jamaican Teas rose 5 cents with 74,015 shares trading, to close at $3.85, KLE Group ended with 6,250 units trading at 45 cents, Lasco Distributors closed with 88,950 shares changing hands with a gain of 50 cents to $4.50, for a new all-time closing high. Lasco Financial closed with an increase of 5 cents at a new 52 weeks’ closing high of $3 with a total of 540,380 shares changing hands and Lasco Manufacturing rose 30 cents to end at $3.90 with 625,527 shares changing hands.
Market up slightly in early trading
The Jamaica stock market is off to a slow start to the week with only in 23 securities changing hands with a volume of 3,067,073 units as 12 stocks gained and 6 declined after 90 minutes of trading.
The Jamaica stock market, recorded gains in all four the indices. The All Jamaican Composite index rose 30.57 points to 148,950.40, the JSE Market Index gained 27.35 points to 134,216.14, 
the JSE combined index climbed 529.44 points to be at 140,730.50 and the junior market index rose 56.40 points to its highest level of 1,568.99.
Notable trades took place in Cable and Wireless as the stock traded 1,490,388 units up to $1.27 but last traded at $1.20, Lasco Distributors with 60,150 units up to $4.55 for a new high, Lasco Financial Services trading at a new record high of $3.17 with 225,195 units but now trades at $2.98, Lasco Manufacturing with at 536,700 shares at $4, Pan Jamaican Investment trade 11,000 units at $90 up from $85.16 on Friday and Scotia Group that last traded at $29.50 fell to $26.80 with 4,426 units.
Grace grows Q3 profit 7%
Revenues for Grace Kennedy rose a strong 14.4 percent in the nine months to September, this year, to $59.7 billion from $52.2 billion generated in the corresponding period of 2014. Profit attributable to owners of the group for the third quarter of 2015 was 7 percent higher than for the similar period last year, reaching $754 million.
Profit declined by $338 million or 14.2 percent for the year to date, compared with the similar period of 2014, moving from $2.38 billion to $2.05 billion.
The earnings per stock unit to September amount to $6.19, down from $7.21 in 2014, for the full year should end around $3.4 billion or $10.30 per share.
“The Group’s performance was in part impacted by the costs associated with the integration of our expanded US Food operations through GraceKennedy Foods (USA), recognition of the total asset tax liability in the first quarter, lower foreign exchange gains and higher finance costs”, Group Chief Executive Officer, Don Wehby and chairman Gordon Shirley said in his report to shareholders.
Group Chief Executive Officer, Don Wehby
“The Money Services segment recorded higher revenues and profits due to higher remittance transactions and increased market share in Jamaica, higher revenues from our cambio operations in Trinidad, and cost containment initiatives implemented by the segment”, Wehby and Shirley stated.
Shareholders’ equity stands at $37.2 billion with book value per share of $112.47. The company will pay a third interim dividend of 90 cents per stock unit on 16th December.
Grace’s shares are listed on the Stock Exchanges of Jamaica and Trinidad and last traded at J$68.11 and TT$3.60 giving it a PE of 6.7 times 2015 earnings leaving room for quite some growth.
Flat profit for Republic Bank
Republic Bank reported profit attributable to shareholders of TT$1.22 billion for the year ended September 2015, representing an increase of $30 million or 2.5 percent over that reported for 2014.
For the last quarter, Republic shareholders enjoyed net profit of $326 million versus $324 million in the 2014 quarter, from net operating income of $1.06 billion up from $950 million in 2014.Earnings per share for 2015 is $7.59 and for 2014 $7.42 and diluted earnings per share of $7.57 versus $7.39 in 2014 while return on average assets ended at 1.97 percent, down from 2.10 percent in 2014. Return on average equity for 2015 is 14.09 percent compared to 14.33 percent in 2014.
“Growth was driven by a 10.6 percent increase of $235 million in net interest income, arising from a $5.9 billion or 21.8 percent growth in the loan portfolio and the recovery of $123 million after tax on a non-performing facility. This was offset by an increase in operating expenses of $212 million and impairment expenses of $109 million,” Ronald deC. Harford, Chairman of the group stated.
Harford continuing, indicated the “increase in operating expenses is attributable mainly to the consolidation of HFC Bank (Ghana) and Republic Bank (Suriname) which amounted to $89 million. Impairment expenses of $52 million (net of minority interest) was recorded by HFC to bring its loan provisions in line with Group policy and $57 million was booked by Republic Bank (Cayman) relating to loans and goodwill impairment”.
Total Group assets increased by $6.6 billion or 11.2 percent over the prior period to $66 billion at September 2015 which was aided by two acquisitions during the year by increasing their holding in HFC to 57.11 percent and in July and 100 percent shareholding in RBC Royal Bank (Suriname) N.V. These two purchases added $5.5 billion to the total assets.
A final dividend of $3.10 for the year ended September 2015 (2014: $3.00) will be paid on December 1, bringing the total dividend for the fiscal year to $4.35, a slight increase over the $4.25 paid in 2014.
Republic Bank is headquartered in Trinidad and is listed on the country’s stocks exchange and last traded at $112.
Strong Buy Rated growth more to come
Carib Cement is the IC Insider best performing selection with gains of 573%.
While Jamaican stocks have jumped sharply those in Trinidad are just marking time which a number of prices retreating as interest rates were pushed up by the central bank on a number of occasions and the country faced falling oil revenues with the fall in world oil prices.
In the Jamaican market, stocks that were selling around 5 times earnings or less at the start of the year, have seen a sharp revaluation of many, with an average now around 9 times earnings based on this year’s estimated earnings. A total of 22 companies or 41 percent of the ordinary listings are selling above the average. Indications suggest that the rally in Jamaica will continue, with expectation for interest rates to decline going into 2016. A sharp 32 percent fall in interest rates from March last year to October this year, is one of the main driver of the market. Company results have been mostly strong with many enjoying large increases over the results of last year as well as over the 2013 period. A fall in the cost of energy and fuel and expanded sales in some cases are major drivers of profit gains this year as well.
It is partly against the above developments, that IC Insider BUY RATED listing of stocks should be viewed. Some of the stocks have been placed on hold based on the gains to date and much higher valuation as a result of this year’s growth.
Four junior market stocks should be held at this moment rather than buys, unless investors are looking at a two to three year’s investment period. Lasco Distributors, Lasco Financial, Lasco Manufacturer and Medical Disposables have reached rich valuations and should be held at this stage of the market. Profit growth for 2017 fiscal year for the Lasco companies should be very strong and will make them attractive buys again, the task is when should these be bought again to take advantage of the strong growth ahead? The problem now is that supply for these stocks is low, currently. Dolphin Cove growth has slowed for this year and remains a hold for now until 2016, the rest of the junior market selections are still attractive buys, with potential gains of 50 to 130 percent for a number of them.
Desnoes and Geddes should be sold now with the price at $30 rather than to await a payout from the proposed buyout proceeds. The Jamaica Stock Exchange share has gained 450 percent since we placed a BUY RATED status on it. The price has room to grow but investors will need to be cautious about buying at current price levels until the release of the September quarterly report in a few days. A hold is placed on the two Scotia shares with both now valued around 10 time 2015 earnings. Carreras is priced close to 10 times this fiscal year’s earnings but high dividend yield well in excess of current Treasury bill rate of 6.2 percent will make the stock an attractive income earner and will continue to drive the price upwards. Mayberry Investments should be a hold at this stage, with reporting earnings not in strong support of the present stock price, the company has the assets that will aid in a large increase in net asset value.In Trinidad, companies are having a tough time growing profits in a meaningful way but there are still a few stocks that are worthwhile holding, with Trinidad Cement being a very compelling buy now selling at a PE of 4 times this year’s earnings. National Flour is undervalued and has room for growth with increased profits in 2015. Most of the rest will have to await 2016 for increased profits and growth.
Jam$ makes further gains on Monday
Inflows of foreign currencies into the system on Monday was US6 million less than the amount sold. With Friday’s $12 million surplus buying over the amounts sold, the local dollar enjoyed another day of increased value against the US and Canadian dollars. At the close of trading, the equivalent of US$40,933,885 was bought by dealers, compared with US$43,633,921 on Friday, while they sold the equivalent of US$46,854,604 versus US$31,659,241 previously.
In US dollar trading , dealers bought US$37,907,963 compared to US$38,585,883 on Friday. The buying rate for the US dollar fell 20 cents to $119.15 and US$44,708,029 was sold versus US$28,087,670 on Friday, the selling rate declined 5 cents to $119.80.
The Canadian dollar buying rate lost 79 cents to $86.88 with dealers buying C$1,281,782 and selling C$753,334, at an average rate that dropped $1.40 to $88.54. The rate for buying the British Pound lost $2.04 to $178.92 for the purchase of £1,289,054, while £884,353 was sold, at an average rate that rose 61 cents to $183.11. At the end of trading, it took J$128.74 to purchase the Euro, a fall of $1.49 from Friday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$126.28 for a decline of $1.52 from Friday’s rate. The US dollar equivalent of other currencies traded, amounts to US$155,674 being bought, while US$238,053 was sold.
Highs & Lows| On Monday, the highest buying rate for the US dollar fell 10 cents to $120 and the lowest buying rate remained unchanged at $98.45. 
The highest selling rate rose $1.77 to close at $126.15 and lowest selling rate lost $1.87 to end at $98.44. The highest buying rate for the Canadian dollar jumped $2.79 to $93.09, the lowest buying rate declined $1.03 to end at $71.80, the highest selling rate dropped $1.34 to end at $93.09 and the lowest selling rate rose $1.80 to $85.80. The highest buying rate for the British Pound, declined 28 cents to end at $183.05. The lowest buying rate slipped $3.32 to $144.42, the highest selling rate dropped $1.04 to $186.75 and the lowest selling rate lost $1 to $174.
