After 90 minutes of slow trading on Monday, the Jamaica Stock Exchange had 16 
securities trading with 4 stocks rising and 4 declining. A total volume of just over only 740,392 shares have changed hands.
The all Jamaican Composite index gained 117.07 points to 108,649.62 points, JSE Combined Index rose 132.71 points to 100,454.56, JSE Index trades at 98,154.80 points after putting on 104.75 points and Junior Market Index fell to 873.19, up by 3.74 points.
The most noticeable trades so far are, Cable & Wireless trading 565,663 units at 44 cents, for a loss of 2 cents, Gleaner traded at a new 52 weeks’ high of $1.70 after trading 20,000 shares, with the stock price rising 17 cents. Pan Jamaican lost 75 cents with just 300 shares trading, Sagicor Group with 516,000 shares closed 30 cents down to $13.20.
JSE off to slow start to week
Expansion hurts Lasco Distributors
Lasco’s new I Cool drink distributed locally by Lasco Distributors
Profit slipped 11 percent in the March quarter for the company to $152 million from $171 million in 2014, from revenues that jumped a significant 26 percent to $3.16 billion from $2.5 billion. For the full year revenues grew a lesser level of 18 percent to $11.2 billion and profit fell to $547 million from $587 million after providing for the cost of share options to employees of $26 million, but this was not the only item driving down profit.
Operating cost rose with the average number of persons employed during the year climbing to three hundred and sixty nine (369) from three hundred and forty four (344) helping to push the wage bill 21 percent to $934 million. Administrative, selling and other expenses rose 18 percent to $1.53 billion during the year. Gross profit margin declined to 17.94 percent from 19.37 percent in 2014 and was the major factor for the fall in profits.
With increases in sales, inventories grew much more than growth in revenues in the final quarter at 44 percent, receivables increased 26 in line with increased sale revenues while payables grew by 38.7 percent.
The company reported that the “claim by Pfizer Limited (Pfizer) against Lasco Distributors, and others for damages for breach of a patent relating to a particular product. Final judgement as to liability was received from the Privy Council in favour of the company. The matter is now set for 18 January 2016 for assessment of damages payable to the company under the undertaking Pfizer gave to the Court.
Earnings per share ended at 16 cents, while the stock is trading at $1.69 or just over 10 times historical earnings, the focus has to be on the future especially with the strong increase reflected in the final quarter sales numbers. Investors need to bear in mind that profits become taxable at 12.5 percent starting in the second half of this fiscal year and for five more years.
Profit up 171% for National Enterprises
National Flour – one of the companies that NEL has interest in
“Your Board’s strategic decisions to pursue a diversification strategy by seeking new investments and strengthening management has also started to produce results” Kenny Lue Chee Lip, Chairman of the company stated in a release to the Trinidad & Tobago Stock Exchange recently.
Trinidad Telecom produced higher results of $85 million, up from a loss of $226 million and Trinidad Nitrogen Company $157 million versus $192 million in 2014 and $29 million. National Flour Mills in which NEL owns 51 percent also reported improved earnings, this company is listed on the Trinidad Stock Exchange.
NEL expects dividend income of $318 million compared to $305 million in 2014. NEL received the first full year earnings from its investment in a 10 percent shareholding in Powergen yielding $11.5 million in dividends, as well as dividends from the investments in First Citizens Bank and Clico Investment Fund. An investment in November, 2014 in Pan West Engineers LLC (the owner of 10 percent of Phoenix Park Gas Processors Limited) as a member of a consortium produced dividends of $9.8 million.
A final dividend of 27 cents is proposed which when added to the interim dividend of 23 cents gives a total dividend of 50 cents for the year (2014: 46 cents).
The value of each of the 600 million issued shares is $5.67 each and the stock last traded on the Trinidad and Tobago Stock Exchange at TT$17.21.
Scotiabank reports trades after 6 months
Little things sometimes mean a lot. The latest reported insider trades at Scotiabank in Trinidad may not be considered large but they are important. The posting of the trades on the Trinidad and Tobago Stock Exchange website of inside trades is not a refreshing development in the capital markets within the Caribbean.
According to the stock exchange they received notice from “Scotiabank Trinidad & Tobago (SBTT) that a senior officer of purchased 1,177 shares on January 23rd, 2015 and 899 shares on January 26th, 2015,” the notice was posted on June 29th, 2015.
Someone seems to have messed up here. The major reason for disclosure of such trades is to let investors know what insiders are doing with the shares of the company. Such actions can help determine if the fortunes of the company is changing one way or the other. To publish the information 6 months after they took place is unacceptable in what should be a modern capital market system.
The trades were important signal of financial development with the banking group that reported an 18 percent jump in profit for the April quarter and ought to have been reported much, much earlier.
Does FX flows justify J$ slippage?
The Jamaican dollar has been slipping against the US dollar coinciding with the demands at the summer holidays for Jamaicans travelling overseas and yet the total inflows of currencies over the last two weeks saw US$18,226,074 more being bought than sold. the decision of the country’s central bank to hike their compulsory take from the dealers to 25 percent from 15 percent last year would have had a negative impact on the rate of exchange between the US dollar versus the Jamaican dollar.
On Friday June 26, dealers bought the equivalent of US$109,789,460 or US$23,322,004 more than the amount sold and they ended up with net purchase of US dollar currency alone amounting to US$21 million. For the week commencing Monday June 22 to Thursday 25th dealers sold US$4.7 million 
in United States currency more than they purchased.
Dealer bought a net of $6.4 million dollars in British Pound and the Canadian dollars for the week from June 22 to the 26th and for the week ending July 3, a net of US$9.2 million was taken in in British Pound and Canadian dollars, for a total net purchase of non US dollar to nearly US$16 million equivalent. A net of US$12.57 million was paid out in US dollar trades for the July 3 week, thus reducing the surplus from the previous week to just US$8.6 million.
The country is in a period of good inflows of foreign exchange but there may be less US dollar inflows than in earlier in the year. The better flows should end in August or early September.
Some big Buy Rated gains more ahead
Hardware & Lumber with its Rapid True Value retail arm gained 265% since place on BUY RATED list
Blue Power is now removed based on flat sales for the year to April and no immediate signs of a pickup. Dolphin Cove that was added in May last year and gained 48 percent is being moved to hold as revenues in the other half of the year to December is unlikely to grow to justify market out performance. The company had only a 6 percent increase in first quarter revenues down from 13 percent in 2014 and profit fell 10 percent to $133 million. Hardware and Lumber with buy out talks to acquire majority ownership with a maximum price of $18.50 and Scotia Investments are shifted to hold while JMM Group is moved from Buy Rated to Watch or accumulate based on the current price of $7.50.
As much as stocks with high gains may be view as already providing rich returns, there are much more gains left to be made. Carib Cement should report earnings in the $1 region this year with reduced cost, increased sales and the future should be even brighter as the local economy moves slowly into growth and lower interest rates will help boost building construction. Caribbean Cream has more than doubled this year in price but with lower input cost and increased sales should earn around 60 cents per share this year, at the present price of $1.60, there is room for growth.
Jamaica Stock Exchange has had a phenomenal run this year with increased revenues and profit. Profit this year could reach $1.20 which should lift the stock some more and 2016 could be an even bigger year for it. Paramount Trading at $6 is still about 50 percent undervalued based on 2015 earnings and even more based on 2016 projected earnings. Lasco Manufacturing is yet to deliver in price movement but the 78 percent jump in the March quarter profits is a development that investors should be paying attention to.Over in Trinidad, investors keep on ignoring Trinidad Cement but they should not, even with the 190 percent gain in the stock price. IC Insider sees higher profits flowing from increased sales, cost reduction including interest cost on loans. National Flour which we added in May is now up 21 percent still has more room to grow. The Trinidad market is likely to experience slow growth this year as such, many of the listings may not deliver much in the short term but investors should keep their eyes on Scotiabank that produced a nice lift in second quarter profits.
J$ losses mounts at 117.07 to US$1
Friday’s trading in foreign currencies in Jamaican closed with dealers buying the equivalent of only US$25,196,045 in contrast to US$32,635,866 on Thursday, while they sold the equivalent of US$23,105,190 versus US$34,836,179 previously as trading activity was low, ahead of the week end.
In US dollar trading, dealers bought US$20,644,351 compared to US$30,637,319 on Thursday. The buying rate for the US dollar fell 20 cents to $116.29 and US$20,389,352 was sold versus US$32,858,411 on Thursday, the selling rate rose 4 cents to $117.07. The Canadian dollar buying rate jumped $1.86 to $92.26 with dealers buying C$3,982,260 and selling C$2,624,801, at an average rate that rose 7 cents to $92.94. 
The rate for buying the British Pound gained 31 cents to $179.89 for the purchase of £848,685, while £359,179 was sold, at an average rate that declined $1.04 to $182.60. At the end of trading, it took J$129.96 to purchase the Euro, 6 cents more than on Thursday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$127.42 for 12 cents greater than Thursday’s rate. Other currencies bought, amounted to the equivalent of US$79,557, while the equivalent of US$71,867 was sold.
Highs & Lows| The price changes for the highs and lows that the Jamaican dollar traded at, were mixed on Friday, with 5 increases and 5 declines. The highest buying rate for the US dollar fell 5 cents to $117.30. The lowest buying and the highest selling rates were unchanged at $95.82 and $122.78 respectively, while the lowest selling rate dropped $24.80 to $89.90.
The highest buying rate for the Canadian dollar rose 10 cents to $93.10, the lowest buying rate lost 37 cents at $73.62. The highest selling rate moved up 60 cents to $97 and the lowest selling rate climbed 95 cents to $90.10. The highest buying rate for the British Pound, rose $1 to $185 and the lowest buying rate declined 79 cents to $146.33, with the highest selling rate falling 74 cents to $186.64 and the lowest selling rate rising 55 cents to $177.80.
Access wanted
Access demanded on Friday at $11.50 for 100,000 shares
At the close, the junior market was showing improved sentiments with 8 stocks having bids higher than their last selling prices, 3 with lower offers, compared to 6 to 7 on Thursday and 4 securities closing with no bids to buy while 5 had no stocks being offered for sale. Access Financial Services closed with the bid above the last selling price with 131,000 units posted by three brokers on the bid to buy above the last traded price of $11.10. Offers in the market amounts to 8,360 units for sale between $15.50 and $18.50.
Stocks trading in the junior market are, Blue Power traded just 1,600 units unchanged at $9.50, Caribbean Cream traded 1,988 units on offer at $1.60, the offer at the close is at $1.60 to sell 62,805 units and the closest bid to buy, is for 126,643 units, well below, at $1.25. Lasco Distributors traded 9,365 shares at $1.65, just 5 cents lower than when it last traded, Lasco Financial Services traded only 2,128 shares and lost 8 cents to end at $1.76 and Lasco Manufacturing had 2,000 shares changing hands 16 cents lower at $1.20 and Paramount Trading ended with 16,600 shares unchanged at $6.
Sharp JSE drop but 4 new highs
Scotia pushes market down on Friday
Trading concluded with 8 stocks rising, 8 declining as 22 securities changed hands, ended in 3,083,351 units trading, valued at $32,242,560 and 4 stocks closed at 52 weeks’ high in all market segments. Overall activity resulted in JSE Market Index declining 976.49 points to 98,050.05. The JSE All Jamaican Composite index lost 1,091.46 points to close at 108,532.55 and the JSE combined index fell 1,118.74 points to end at 100,321.85.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator was showing improved reading over Thursday’s close, with 12 stocks with bids higher than their last selling prices and 6 with offers that were lower, in contrast 13 to 13 at the close on Thursday.in trading, Cable & Wireless had 424,500 units changing hands at 46 cents but closed with an offer to sell 500,000 units at 45 cents, Caribbean Cement had 96,288 units trading at $5.60 after adding 10 cents,Gleaner traded at a new 52 weeks’ high of $1.53 for a 3 cents gain, after trading 10,000 shares, with the stock rising 53 percent since mid-June. Jamaica Broilers had 48,938 shares changing hands at $5.75, National Commercial Bank in
trading 2,970 shares, closed with a fall of 80 cents at $29.10, Pulse Investments closed at a new 52 weeks’ high of 80 cents with 63,000 shares trading, to gain 10 cents. Sagicor Group ended with 682,573 shares trading, at a new closing 52 weeks’ high of $13.50, Scotia Group traded at $23.21, a fall $1.44 from Thursday’s close, with 812,616 shares and Supreme Ventures closed at $4 a new 52 weeks’ closing high, with 96,275 shares trading and Jamaica Money Market Brokers 8.75% preference share traded 798,388 units, but lost 1 cent to end at $2.99.
TCL trades big on Friday on TTSE
TCL traded 622,000 shares on Friday
At the close of the market, the Composite Index fell 0.21 points to close at 1,159.46, the All T&T Index declined by 0.40 points to 1,969.53 and the Cross Listed Index was unchanged at 46.37.
Gains | Massy Holdings trading 5,165 shares to close 4 cents higher at $64.34, National Enterprises had 2,300 shares changing hands, climbed 1 cent to end at $17.21 and Unilever Caribbean ended trading with 254 shares to close at a new 52 weeks’ high of $66.42 after adding 3 cents.Declines| West Indian Tobacco traded 2,500 shares to close at $125.35 with a loss of 65 cents.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, ANSA McAl with 1,346 shares changing hands and ended at $67.25. First Citizens Bank with 19,349 shares carrying a value of $691,727 trading, closed at $35.75, Flavorite Foods traded 192,070 units with a value of $921,936 and ended at $4.80, Prestige Holdings traded at $9.89, with 900 units changing hand, Republic Bank closed with 6,354 shares traded with a value of $730,710, to end at $115. Sagicor Financial closing with 3,000 shares to end at $6.27 and Trinidad Cement traded 622,000 shares valued at $1,803,800 and closed at $2.90.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.
