The Jamaica Stock Exchange closed on Monday at a record high of 140,194.65 points after adding 2,684.37 points with 22 stocks rising, 7 declining as 37 securities, totalling 9,954,429 units valued at $35,061,223 changed hands, in all market segments. A total of 6 stocks ended at 52 weeks’ closing highs.
Today’s gain pushed the market well over the old record of 138,917.59 set on 24th of January 2005 and ends the longest period in the market’s history, that it failed to exceed a previous high. The all Jamaica Composite Index is the last of the JSE indices to hit new highs in October.
The JSE Market Index shot up 2,402.00 points to 126,381.42, a new closing high. JSE combined index climbed 2,317.79, points to end at a new closing high of 131,076.47.
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 11 stocks with bids higher than their last selling prices and none with offers that were lower.
In trading, Berger Paints traded 295,658 shares and gained 25 cents to close at $3, Cable and Wireless closed with a gain of 20 cents as with 307,231 shares changed hands to end at 52 weeks’ high of $1.02. Trading in the stock was suspended for an hour as the as the trade was executed at 97 cents, a price in excess of 15 per cent from the closing price on Friday as investors continue to respond to the news that Liberty Global planned on making a bid to acquire Cable and Wireless’ parent company. The stock closed with over 4.33 million shares on the bid at $1.02 with 2.8 million units at $1 and five offers amounting to only 47,649 shares between $1.13 and $1.70 and at 3.3 million units at $30. Caribbean Cement gained $2.70 to end at $17.50 for a new 52 weeks’ closing high, with 170,368 shares changing hands. Investors were responding to the company’s reported earnings of 72 cents for the September quarter and $1.75 for the nine months. Cement closed with only two lots being offered, amounting to 13,000 shares at $19 and $24. Ciboney Group traded 5,358,999 shares to end at 8 cents after shedding 1 cent. Desnoes & Geddes had 413,169 units changing hands to close at $30, Grace Kennedy exchanged 1,621 shares at $65.10 and gained 35 cents, Jamaica Broilers lost 49 cents in trading 55,596 shares to close at $8.01. JMMB Group gained 30 cents in trading 101,850 shares to close at $10.20, Mayberry Investments traded 8,050 shares and gained 50 cents to end at $3.50, National Commercial Bank fell 62 cents to end with 7,356 shares trading to end at $31.38.Pan Jamaican price jumped $5 in trading 5,720 shares to end at a 52 weeks’ high of $80, Pulse Investments traded 200,000 and close at 61 by gaining 6 cents, Sagicor Group with 21,192 shares closed at $14.50. Sagicor Real Estate Fund traded 1,104 units but the price gained $1.05 to close at $9.20 and closed with a bid to buy 99,296 units at $9.20 and with only three offers posted with two at $10 to sell 25,000 units and 19,000 at $11, Scotia Group ended with 11,554 shares trading closed at $26 after rising $1.24. Seprod traded 20,700 shares at $14.96, Supreme Ventures ended at $4 with 308,224 units changing hands and gained 10 cents and Proven Investments ordinary traded 6,875 shares and fell 1.5 cents to end at 23 US cents.
All Jamaica at new record high
The JSE all Jamaica Composite index is at a new all-time high of 139,537.61 at 11.13am on Monday morning after gaining 2,027.33 points, breaking the old record close of 138,917.59 set on 24th of January 2005.
The rise in the price of Cable & Wireless shares by 20 cents or 24.4 percent for the day would be the main contributor to the rise. Others to contribute would be Caribbean Cement up $1.72 to $16.72, Mayberry Investments up 50 cents to $3.50 and Sagicor Real Estate X Fund up $1.05 to $9.20.
C&W at $1.02 in morning session
Cable and Wireless traded at 97 cents up 18 percent from Friday’s close of 82 cents with 29.092 shares trading leading to a 1 hour halt in trading. On resumption of trading the stock had the bid up to $1.02. The stock is on offer at $1.20 to sell 20,000 units. Subsequent to 10.45am, Cable & Wireless traded at $1.02.
The Jamaica stock market after 75 minutes of trading, recorded another morning of increases in the indices. Trading resulted in 15 securities changing hands with a volume of 1,243,459 units as 8 stocks gained and 3 declined.
The All Jamaican Composite index jumped 880.02 points to 138,390.30 JSE Market Index rose 787.45 points to 124,766.87 the JSE combined index rose 839.35 points to be at 129,598.03 and the junior market index rose 10.74 points to 1,321.39.
Jamaican Teas traded 118,989 shares at $3.45, Lasco Distributors had 608,300 shares changing hands at $3, Lasco Manufacturing 183,474 shares between $3.25 and $3.50.
22% percent increased cement sales in Q3
For the nine months to September 2015, the company ended with a profit after tax of $1.486 billion. In 2014 a profit of only $25 million was realised for the nine months last year. The 2015 results translate to earnings per share of $1.75 at September. For the quarter to September, profit after tax amounted to 72 cents per share or $617 million compared with just $78 million in the 2014 quarter. If the sales trend continues, earnings per share should hit $2.50 for 2015 which includes an exceptional income of $168 million or about 15 cents per share. The company’s stock traded at $15 on Friday and now carries a PE of 6.5 times this year earnings, and seems set to move up in price with these results with the valuation of the most valued stocks on the market being at 10.
Gross cash generated by operating activities amounted to $2 billion and after repaying loans ended at $997 million in cash funds.
Revenue for the third quarter grew by $741 million or 21 percent over the same period in 2014 mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement export sales volumes. The company benefited from lower costs of fuels and energy and Interest expense that decreased by 73 percent for the quarter to only $16 million, from $59 million in 2014. For the nine months interest expenses ended at $120 million from $196 million as a result of the company’s financial restructuring initiative resulting in some prepayments of long-term debt in excess of $800 million. Depreciation and amortisation cost, however, rose from $83 million in the September 2014 quarter to $102 million in 2015 and to $296 million for the nine months from $251 million in 2014.
The vastly improved results have changed the financial structure with net working capital jumping from just $360 million surplus to $2 million at September and equity rising to $6.4 billion from $4.8 at the end of September 2014.
All Jamaica Composite Index movements
The all Jamaica Composite index is the only one of the indices of the Jamaica Stock Exchange that is yet to record a new high, but it is not very far off, and now seems set to brake the old record, on its way to 150,000 points before long. The Surge in the price of Desnoes and Geddes, from $7 to $30 in October in response to the news that Heineken will be making an offer of25.9 US cents for each of the shares it does not hold, has been a major reason for the sharp up turn in the market index.
Alphabet (Google) makes billions
Alphabet formerly Google reports total revenue was $18.7 billion up 13 percent year-over-year to September this year and 5 percent over the prior quarter. The strengthening of the U.S. dollar, resulted in negative currency on revenues amounting to $1.6 billion or $1.3 billion after the benefit of the company’s hedging program.
At constant currency to prior periods, total revenue grew 21 percent year-over-year and 7 percent quarter over quarter. On a General Accepted Account Principles (GAAP) basis, operating profit was $4.7 billion and the operating margin was 25 percent. Non-GAAP operating profit was $6.1 billion and the operating margin was 33 percent. GAAP operating income was up 26 percent versus last year and GAAP net income from continuing operations was up 36 percent year-over-year. The year-on-year increases reflect a non-cash impairment charge of $378 million in the third quarter of 2014. Non-GAAP operating income was up 15 percent year-over-year and non-GAAP net income was up 19 percent year-over-year.
Profit available to common shareholders excluding extraordinary items amounted to $3.4 billion for the June quarter and $3,515 billion in the March quarter.
GAAP earnings per diluted share were $5.73 non-GAAP earnings per diluted share were $7.35.
Treasury bill rates down again
Rates of Government of Jamaica Treasury bills which have been on the decline since March 2014 is down again in the latest issue dated October. Rates fell 13 basis points on the 182 days instruments as $1.043 billion chased the $400 million on offer to end at 6.23 percent in September the rates declined by 14 basis points.
Rates were down 7.7 basis points on the 91 days instrument compared to a fall of 14 basis point in September, the average rate is 61.3 percent for October as $579 million chased the $400 million on offer.
At the October 14th auction, the 28 days Treasury bill average rate came out at 6.195 percent compared with 6.228 percent at the September auction. Unlike August when $707 million chased $400 million on offer in October only $328.75 million went after the $400 million offered. All applicants were accepted at rates that ranged between 5.1 percent and 6.75 percent.
Jamaican $ makes gains on Friday
Trading of foreign currency in the forex market on Friday, saw the US dollar selling rate remaining unchanged against the Jamaican dollar, but the local currency made gains on the Pound and Canadian dollar. The equivalent of US$47,260,818 was bought by dealers, compared with US$62,949,698 on Thursday, while they sold the equivalent of US$40,548,955 versus US$55,331,440 previously.
In US dollar trading , dealers bought US$43,192,155 compared to US$59,788,012 on Thursday. The buying rate for the US dollar lost 7 cents to $119.27 and US$37,422,844 was sold versus US$52,478,263 on Thursday, the selling rate remained at $119.68. The Canadian dollar buying rate rose 61 cents to end at $89 with dealers buying C$1,865,483 and selling C$3,069,975, at an average rate that declined by 10 cents to $92.22. The rate for buying the British Pound rose 33 cents to $181.36 for the purchase of £1,685,610, while £386,306 was sold, at an average rate that dropped $1.95 to $182.42. At the end of trading, it took J$133.57 to purchase the Euro, a drop of $2.29 from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$131.19 for a fall of $2.07 on Thursday’s rate. The US dollar equivalent of other currencies traded, amounts to US$113,653 being bought, while US$171,724 was sold.
Highs & Lows| The Canadian highest buying rate was the only one rising on Friday as the highest buying rate for the US dollar ended with a fall of 10 cents to $119.90 with the other rates remaining unchanged, with the lowest buying rate ending at $98.28, the highest selling rate at $125.94 and lowest selling rate at $98.28. The highest buying rate for the Canadian dollar rose $1.05 to $93.50, the lowest buying rate declined by $1 to end at $72.54, the highest selling rate lost 30 cents to end at $94.50 and the lowest selling rate fell $1.20 to end at $86.10. The highest buying rate for the British Pound, dropped $1.10 to end at $183.90. The lowest buying rate fell 17 cents to $148.57, the highest selling rate dropped 21 cents to $188.85 and the lowest selling rate fell 50 cents to end at $176.50.