The junior market keeps on hitting new records, almost daily since the beginning of last week, with sharp rise in prices of Caribbean Cream, Lasco Distributors and Lasco Manufacturing. In trading in Monday morning session, the index for the juniors jumped just shy of the 1,200 points level with Lasco Distributors trading at $2.80, a new all-time high and with Lasco Manufacturing hitting a new record high of $3.50 as 191,888 shares traded between $3.06 and $3.50 but traded recently at $3.25.
Desnoes and Geddes jumped $1.96 to trade at $15.03 with 19,100 shares trading for a new 52 weeks’ high, the bid for the stock is $20. Scotia Bank traded at $24.01 compared to the last trade on Friday of $25.64 and National Commercial Bank lost $2.79 to $30.20 and shot the main market index.
In what is a light trading session only 14 securities have traded at 11 am with a volume of a mere 647,095 units, 9 stocks gained 3 declined.
Trading activity resulted in the JSE Market Index fell 604.36 points to 106,055.16. The JSE All Jamaican Composite index dropped 675.40 points to 117,478.90, the JSE combined index lost 323.25 points to be at 110,761.77 and the junior market is up 2.38 percent or 27.70 points to 1,190.41 for a new record.
Juniors keep on hitting new records
Major gains in Jamaica’s current account
Petroleum imports help cut trade deficit to June
For the March 2015 quarter, the Current Account enjoyed a surplus of US$39.4 million, an improvement of US$149.5 million over the similar period in 2014 as a result the current account for the year to June is negative US$45 million versus a deficit of US$398 million in the first half year in 2014.
The outturn for the June quarter reflected improvements on all sub-accounts except the Income sub-account which was almost unchanged. Net private and official capital inflows were, however, insufficient to finance the deficits on the current and capital accounts. As a result, there was a drawdown of US$177 million in the Net International Reserves of the Bank of Jamaica (BOJ).
There was a reduction of US$80 million in the deficit on the merchandise trade largely associated with a decline of US$133 million in imports and a reduction of US$53 million in exports. “The reduction in payments for imports mainly reflected lower expenditure for fuel and raw materials. Consumer and capital goods imports rose. The decline in exports mainly reflected lower earnings from non-traditional exports and sugar. Notwithstanding the overall fall in exports, there were higher earnings from alumina exports for the quarter” the BOJ report states.
Hilton Rose Hall -Sagicor X Fund recent acquisition
JSE set for new record high
Friday’s 7,697.11 points jump in the all Jamaican Composite index taking it to 118,154.30 points, puts the market within 20,763.29 points of the high of 138,917.59 reached on 24th of January 2005.
The 2005 record is nearly 11 years old but seems destined to be taken out soon with the planned offer by Heineken to buy Desnoes and Geddes shares at near $31 speeding. This should push the index by another 10,000 points, leaving other stocks to contribute just over 10,000 points to put the index over the old record.
The market has now broken through the 115,000 mark that was a resistance point, but faces the 130,000 points resistance level and then 150,000 which is 17 percent away from the 128,000 points that D&G alone could push it to. But making the final leap to the 150,000 or beyond by the end of this year will be a tall order, with the likes of Scotia Group not generating increased profits to contribute much to lift the index. National Commercial Bank could provide some punch but must break through the $34 barrier that is a major resistance area for the stock. Grace Kennedy should help now that supply for the stock is drying up. Cable & Wireless looks also seem set to rise that that is a heavy-duty index mover with 16 billion shares in issue, while Sagicor Group another big capitalisation stock should add some to the index when results are released for the September quarter. Of course Treasury bill rates have been falling and further declines could lift the entire market.
Friday’s 7,697 points gain highest on record
The 7,697.11 points jump in the all Jamaican Composite index on the Jamaica Stock Exchange on Friday October 9 is the largest by far in the history of the JSE, beating the 5,788.68 gain on the 5th of April 2004.
Friday’s move pushed the all Jamaican Composite index to 118,154.30 points the highest level in just under 11 years, still more than 20,700 points from the all-time high of 138,917.59 reached on 24th of January 2005. The slump after the 2005 high is the longest, since the ten years decline between May 1972 and June 1981 when the market failed to exceed the then highest level reached in 1972.
While the jump on Friday is by far the largest daily gain, it pales in comparison to the drop on 13th of April 2004 of 9,295.39 points that pulled the index down to 94,329.90.
The highest daily gains and losses in the all-Jamaica Composite index of the JSE are indicated in the table.
Oh so close but not there yet
The Jamaica dollar continues it relentless ride to the 120 mark with it being less than 60 cents Jamaica away, on Friday with trading ending with big rise in the amounts changing hands. The equivalent of US$46,945,905 was bought by dealers, compared with US$26,599,436 on Thursday, while they sold the equivalent of US$41,528,759 versus US$24,162,219 previously.
In US dollar trading , dealers bought US$44,372,877 compared to US$24,360,712 on Thursday. The buying rate for the US dollar climbed 30 cents to $118.98 and US$40,477,427 was sold versus US$23,208,561 on Thursday, the selling rate rose 7 cents to $119.42. The Canadian dollar buying rate climbed 75 cents to end at $89.24, with dealers buying C$923,513 and selling C$530,477, at an average rate that rose 43 cents to $91.09. 
The rate for buying the British Pound gained 53 cents to $178.92 for the purchase of £1,034,546, while £268,867 was sold, at an average rate that eased 33 cents to $180.20. At the end of trading, it took J$134.59 to purchase the Euro, with a rise of 51 cents from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$131.83, for a gain of 55 cents from Thursday’s rate. The US dollar equivalent of other currencies traded, amounts to US$324,565 being bought, while US$240,989 was sold.
Highs & Lows| The highest buying rate for the US dollar gained 10 cents on Friday to end at $119.75, the lowest buying rate ended 13 cents higher at $97.95, the highest selling added 5 cents to close at $125.51 and the lowest selling rate dipped 40 cents to end at $116.
The highest buying rate for the Canadian dollar slipped 19 cents to $93.66, the lowest buying rate rose 83 cents to be at $72.63, the highest selling rate fell 79 cents to end at $94.06 and the lowest selling rate was unchanged $87.50. The highest buying rate for the British Pound, fell 10 cents to end at $182.70. The lowest buying rate eased 4 cents to $146.91, the highest selling rate rose 1 cent to $186.90 and the lowest selling rate climbed $2.60 to close at $176.50.
2 stocks rise 5 fall on TTSE
Trading on the Trinidad & Tobago Stock Exchange on Friday ended with 15 securities trading, 2 closing higher, 4 declined and 9 remained unchanged as a total of 167,198 units traded, valued at $2,414,835.
At the close the Composite Index ending with a modest rise 0.04 at 1,147.33, the All T&T Index fell 0.10 to 1,948.45 and the Cross Listed Index gained 0.03 to close at 45.43.
Gain| Clico Investment Fund closed 1 cent higher with 3,827 shares changing hands at $22.51 and National Commercial Bank gained 1 cent to land at $1.68 with 20,573 shares changing hands.
Losses| JMMB Group ended with 61,448 shares changing hands at 42 cents, with a loss of 1 cent, National Flour with 1,000 shares trading, shaved 2 cents off the old price to land at $1.96. L.J. Williams B share, closed with a 2 cents loss of 2 cents down to 97 cents, with 1,986 shares trading and West Indian Tobacco closed at $126 with 2,480 shares trading, valued at $312,496 and lost 1 cent.
Firm Trades| ANSA McAL contributed 7,997 shares valued at $536,039 in 
closing at $67.03, First Citizens Bank traded 4,021 shares and closed at $35, Grace Kennedy had 30 units changing hands at $3.60. Guardian Holdings with 20,577 shares valued at $269,970 changing hands, closed at $13.12, Massy Holdings ended with 4,000 shares changing hands at $62.48. One Caribbean Media traded 19,852 shares valued at $436,744 to end at $22, Point Lisas traded 73 shares to close at $3.96, Scotiabank closed with 4,334 shares changing hands unchanged at $62.50 and valued at $270,875 and Trinidad Cement closed at $3.15 with 15,000 shares changing hands
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
Big surge in juniors on Friday
Lasco’s hot “I Cool” drink – 2 Lasco companies closed at new all-time highs on Friday.
A total of 6 stocks advanced, none declined as 10 securities traded while three new all-time highs were recorded at the close. The market ended with 2,486,913 units, valued at $4,312,241 changing hands.
At the close 5 securities ended with no bids to buy, while 6 had no stocks being offered for sale. A total of 4 stocks closed with bids higher than the last traded prices and none closed with a lower offer.
In trading, Caribbean Cream traded at a new all-time closing high by gaining 20 cents of $3.50 with 251,200 shares changing hands, Caribbean Flavours traded 30,000 units trading at $3.08 for a 52 weeks’ high, Consolidated Bakeries ended with 1,649,784 units changing hands at $1.15, with a gain of 1 cent.
Jamaican Teas had 2,282 shares trading to close at $3.20, with a gain of 10 cents, Knutsford Express traded 17,383 shares at $6. Lasco Distributors closed at a new record high of $2.50 with 283,976 units trading for a gain of 25 cents, Lasco Financial traded 70,688 shares changing hands to end at $1.95, Lasco Manufacturing traded 187,500 shares to end at $2.95 after gaining 15 cents for a new all-time high, Medical Disposables traded 3,100 shares to close unchanged at $2.45 and Paramount Trading had 1,000 units changing hands at $6.50.
Huge jump in Jamaican stocks on Friday
The JSE Combined index jumped 6.80 percent or 7,069.02 points, at the close of trading on the Jamaica Stock Exchange on Friday. The strong move was aided by a $5.07 jump in the price of Desnoes and Geddes shares and gains in National Commercial Bank which ended at $32.99. The market climbed sharply for the third day as advancing stocks outpaced declining ones by a wide margin once more.
The JSE Market Index climbed 6,887.45 points to 106,659.52, the JSE All Jamaican Composite index leapt 7,697.11 points to 118,154.30 and the JSE combined index jumped 7,069.02 to end at 111,085.02 points.
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 4 with offers that were lower. At the close, there were 17 stocks rising, 2 declining, with 26 securities totalling 34,391,788 units, valued at $414,047,404 changing hands, in all market segments, and with 4 junior market and 2 main market stocks ending at new 52 weeks’ closing high, one stock ended at 52 weeks’ low.
In trading, Cable and Wireless added 5 cents, with 845,177 shares changing hands to close at 58 cents, Caribbean Cement shot up to $9 with 281,375 shares changing hands at 50 cents higher, Desnoes and Geddes jumped $5.07 to trade at $13.07 with 29,094,581 shares trading at a new 52 weeks’ high. D&G closed with a bid to buy 5000 units at $15.01, nearly $2 above the last traded price. Grace Kennedy ended with 40,000 shares trading at $64, Jamaica Broilers closed at $6.50 with 119,681 shares changing ownership, Jamaica Producers gained 50 cents in trading 196,137 shares at $18.50, Jamaica Stock Exchange lost 10 cents in closing at $7.20 with 44,620 shares changing hands. JMMB Group traded 64,500 
National Commercial Bank closed at a new 52 weeks’ high of $32.99 with a gain of $2.97 with only 14,003 shares trading as high as $33, for an intraday 52 weeks’ high, Pan Jamaican Investments traded 2,017 shares at $61.99 having gained 74 cents, Radio Jamaica traded 5,394 shares to close at $4.18, for an 18 cents rise, Scotia Group ended with 632,075 shares trading at $25.64 to gain $1.64. Sterling Investments lost 10 cents in ending at $12.90 while 6,000 shares traded at a new 52 weeks low, Proven Investments ended at 21 US cents while trading 51,000 shares to gain 1 US cent and Jamaica Money Market Brokers 7.50% with 590,580 units changing hands closed at $2.
Huge jump in JSE with D&G at $13
The prices of stocks jumped sharply in the Friday morning session as Desnoes and Geddes jumped $5.07 to trade at $13.177 with 29,094,581 shares trading. National Commercial Bank traded at a new 52 weeks’ high of $33, Caribbean Cement shot up to $9 with 281,375 shares, Cable & Wireless traded up to 55 cents and Jamaica Producers traded 196,137 shares at $18.50.
The junior market is also participating in the rise with new highs recorded for Caribbean Cream with 233,000 shares trading at $3.30, Lasco Distributors trading 141,724 at $2.50, Lasco Manufacturing trading 113,500 shares at $3.20 and new 52 weeks’ high for Caribbean Flavours. Overall 20 securities have traded at 11 am with a volume of a mere 30,367,589 units, 15 stocks gained 1 declined.
Trading activity resulted in the JSE Market Index jumping 5.62 percent or 5,611.11 points to 105,383.18. The JSE All Jamaican Composite index rose 5.68 percent or 6,270.73 points to 116,727.92, the JSE combined index leaping 5,884.19 points to be at 109,900.19 and the junior market up 6.02 percent or 66.22 points to 1,165.52 for a new record.
US$194m for minority D&G owners
Jamaican shareholders will make a windfall when Dutch based Heineken bids US$194 million for the remaining shares in the Red Stripe brewery company it now does not own.
It could result in the delisting of Desnoes & Geddes (D&G) similar to what occurred a few years earlier when Italian based Campari bought the bulk of shares in Lascelles deMercado from Trinidad based CL Group triggering a bid for the remaining shares.
Heineken earlier this week acquired nearly three-quarters of the shares in local based brewery from UK based Diageo in a deal spanning Jamaica, Malaysia and Singapore and Ghana totalling US$780.5 million.
“In accordance with the Jamaican Takeover Code, as a result of the acquisition of Diageo’s shareholding in D&G. Heineken will in due course make a mandatory offer for all shares of D&G not already owned by Heineken. If they acquire enough shares to give them 90 percent ownership, they intend to apply the mandatory offer to compulsory acquire the rest. The minority interest represents 26.7 per cent of the issued share capital of D&G, and implies a maximum total consideration of US$ 194 million. Further announcements regarding the mandatory offer will follow in due course,” stated Heineken in a release.
Desnoes and Geddes had a bid as high as $13 per share during trading today but the stock never traded and it ended with 2,744,725 units on the bid at $10.58. The stock last traded on Wednesday at $8 well below the offer price of almost J$31 for each share with the offer priced in US dollars.
Owners in Jamaica Stock Exchange will also be in on the fortunes of the deal as the exchange will end up collecting a nice payday when the local shares are transferred. Going forward the exchange will lose the annual listing fee and fees for trading the stock on the exchange.
