Trinidad’s West Indian Tobacco (Witco) raised prices on cigarettes approximately 15 percent, effective October. The increase should push revenues to over $1.3 billion dollars in 2015, from TT$1.185 billion in 2013.
An increase of that level on top of one in 2013 will most likely reduce the volume of sales on the Trinidad market, where the increase was effected. The price adjustment should help boost next year’s profit and by our calculation that should hit $700 million after tax or around $6.80 per share. That would put the PE ratio of the stocks at just over 17 times next year’s earnings and should help move the stock back into the $20 region which should be helped with an expected increase in dividends in the region of the EPS.
Witco’s profit jumped 23.5 percent in the June quarter, this year to hit $127 million as revenues climbed by a smaller 15 percent, to $324 million. For the six months to June, profit is up to $224 million from $188 million, a 19 percent spurt, from revenues of $590 million versus $556 million in 2013. Earnings per share came in at $1.50 for the quarter and $2.65 for the half year. Earnings for the full year to December should reach $5.70 per share.
Price increase to push Witco 2015 profit
Trading picked up in the Junior Market
Lasco”s new I Cool drinks
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower. The junior market continues to exhibit weakness with 11 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Stocks trading are, Consolidated Bakeries with 66,667 shares rose by 5 cents to 85 cents followed by General Accident with 2,059 shares and was up 1 cent, to end $1.51, Lasco Distributors traded 1,293,130 units, closed 10 cents lower at $1.20, AMG Packaging traded 2,300 shares at $2.25, Lasco Manufacturing had 1,662,000 units trading to close at 95 cents, Medical Disposables 2,500 shares traded down by 4 cents to $1.96 and Paramount Trading had 106,615 units changing hands at $2.70.
Lasco Distributors up 13 cents pushes index
The Junior Market closed trading with 80,653 units valued at $113,420. The JSE Junior Market Index rose 15.22 points to close at 667.99. Only 4 securities traded, 2 advanced, 1 declined and 1 traded firm.
At the close of the market there were 4 stocks with bids higher than the last selling prices and 4 stocks with offers that were lower. The junior market continues to exhibit weakness with 11 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
Caribbean Producers with 23,972 shares lost 3 cents to end at $2.35, Lasco Distributors traded 1,681 units, closed 13 cents higher at $1.30, just ahead of the release of the September results, Lasco Financial Services with 53,000 units, closed at $1 and Lasco Manufacturing had 2,000 units trading to close at 95 cents after gaining 4 cents.
Jamaican$ loses value again on Thursday
The Jamaican dollar lost value on Thursday, against the US and Canadian dollars, but gained against the British Pound, as authorized dealers purchased the equivalent of US$30,974,409 versus US$40,832,885, on Wednesday. The equivalent of US$30,021,063 was sold, compared with US$39,334,085 on Wednesday.
In US dollar trading, dealers bought US$27,235,385 compared to US$33,287,323 on Wednesday. The buying rate for the US dollar was up 10 cents to $112.23 and US$27,684,459 was sold versus US$34,157,406 on Wednesday, the selling rate rose 2 cents to $112.66. The Canadian dollar buying rate, fell $1.06 to $98.46 with dealers buying C$1,412,993 and selling C$1,022,966, at an average selling rate that rose 36 cents, to $100.68. The rate for buying the British Pound dropped $1.26 to $178.75, for the purchase of £1,466,307, while £836,955 was sold, at $180.56, a decline of $1.06. Other currencies bought, amounted to the equivalent of US$163,936, while the equivalent of US$81,055, was sold.
Highs & Lows| The highest buying rate for the US dollar, climbed $1.23, to $113.95, the lowest buying and the highest selling and the lowest selling rates, were unchanged at $91.85, $117.70 and $93.66 respectively. The highest buying rate for the Canadian dollar fell 20 cents to $100.50, the lowest buying rate climbed 25 cents to $79.68 and highest selling rate was unchanged at $102.80. The lowest selling rate was up $1.60 to $97.30. The highest buying rate for the British Pound, dropped $1.65 to $180.60, the lowest buying rate declined 95 cents to $144.63, the highest selling rate was up $1.91 to $186.45 and the lowest selling rate rose 90 cents to $176.30.
JSE market rises 8 stocks gained
Thursday’s activity on the Jamaica Stock Exchange, resulted in the prices of 8 stocks rising and 5 declining as 20 securities changed hands, ending in 4,909,570 units trading, valued at $42,492,455, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 7 stocks with bids higher than their last selling prices and 7 stocks with offers that were lower.
Main Market| The JSE Market Index gained 145.50 points to 71,551.67, the JSE All Jamaican Composite index rose 162.69 points to close at 78,716.00 and the Combined Index closed at 73,521.95 after rising 279.05 points.
Gains| Stocks gaining at the last traded prices, at the end of trading in the main market are, Cable & Wireless with 2,296,328 shares trading, rose 1 cent to 29 cents, Kingston Wharves had 250 shares changing hands 40 cents higher at $5.50, National Commercial Bank saw trading in 12,330 shares, the price ended at $17.99, after rising 9 cents, Sagicor Group had 23,373 shares changing hands 4 cents higher to $9.55, Scotia Group with 14,700 shares, closed 39 cents higher at $19.50 and Seprod closed with 56,250 shares changing hands, 5 cents higher at $10.95.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints with 91,230 shares, traded at $1.60, Jamaica Money Market Brokers with 31,523 ordinary shares trading, ended at $7, Jamaica Producers 88,984 shares changing hands, closed at $15.50, Radio Jamaica closed at $1.15, after trading 5,882 shares and Sagicor Real Estate Fund traded 12,220 units at $6.60.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Carreras with 1,037,041 shares, lost 65 cents to end at $34.34, Grace Kennedy traded 10,300 shares, closed with a loss of $1.39 in ending at $56.61, Jamaica Broilers exchanged 58,000 shares at $4 while losing 5 cents and Mayberry Investments traded 744,406 shares, after slipping 19 cents to close at $1.36, a new 52 weeks’ low.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 346,100 units and closed at $2.98.
Profit up in Q3 at Carib Cement
Caribbean Cement reported profit of $78 million for the September 2014 quarter, losses of $89 million in the second quarter, helped pull the results down to just $25 million, for the nine months to September this year.
A profit of $32 million was reported in the nine months to September last year. The 2013 profit performance includes exceptional income of $591 million arising from the reversal of charges previously accrued from the debt restructuring with the parent company, Trinidad Cement, but the results for that year also had some exceptional charges, that have not recurred in 2014, including foreign currency losses amounting to $689 million.
Sales Volume| Both domestic and export cement sales volume grew over the nine month period, 2 percent in the local market and 7 percent for exports, while clinker sales grew from 6,700 tonnes to 80,400 tonnes to satisfy the contract to supply clinker to Venezuela. Overall, the plant sold a total of 650,000 tonnes of cement and 80,000 tonnes of clinker, well below the rated capacity of the plant. Sales revenue amounted to $3.5 billion in the September quarter and $10.75 for the year to September, up from $3.2 billion for the September 2013 quarter, and $8.9 billion for the nine months. While the volume of local sales rose, export of cement fell but clinker is up in the quarter.
Outlook| “The recent trend in the domestic market is expected to continue as well as improvement in the export earnings. In addition, we have entered into a new agreement to supply 240,000 tonnes of clinker to Venezuela, starting shipments in October 2014. We therefore remain cautiously optimistic that these favourable results can be sustained.” New chairman Christopher Dehring stated.
The 2015 year, could well experience further growth in domestic sales, as the local economy slowly improve as interest rates should continue to recede, thus lending some life to the construction industry.
But the company continues to be saddled with high debt and the cost of servicing it, which for the nine months is $250 million. With profit after depreciation, but before interest being $270 million, the risk of falling into a loss is great, unless volumes increase at a faster pace that is has so far this year.
The company has accumulated a pile of losses and will require several years of profitable trading to wipe it off and commence the payment of dividends, until then investors will have to look to growth in profits and movement in the stock price for compensation.
Treasury-bill rates fall again
Government of Jamaica Treasury bill sample
The Treasury bill for the period Friday, October 24 to mature on Friday, January 23 next year, attracted an average yield of 7.336 percent, down from 7.46952 percent, at the September auction. At the August auction the average rate out turn was 7.46767 percent. The yield for July was an average of 7.63643 percent, for the June issue 7.65893 percent and 8.2 percent in May, for the Treasury bill of same duration.
The offer of 182 days duration, maturing on April 24 next year, generates an average interest rate yield of 7.73187 percent, a decline from 7.99887 percent, at the September auction, 8.11578 percent, in August, 8.21982 percent at the July’s auction and 8.36502 percent for the June issue, of the same duration. At the May Treasury bill auction, the rate came out at 8.932 percent.
3 sevens clash again on JSE
Wednesday’s activity on the Jamaica Stock Exchange, resulted in the prices of 7 stocks rising and 7 declining as 21 securities changed hands, culminating in 1,774,287 units trading, valued at $11,185,286, in all market segments.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 9 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Main Market| The JSE Market Index lost 478.38 points to 71,406.17 and the JSE All Jamaican Composite index declined 534.89 points to close at 78,553.31.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Caribbean Cement with 3,000 units, increased 1 cents to $2.13, Jamaica Broilers exchanged 3,350 shares, 5 cents higher at $4.05, National Commercial Bank saw trading in 459,910 shares as the price ended 39 cents higher to $17.90, Pan Jamaican Investment with 5,000 shares closed 10 cents higher to $49.10, Proven Investments with 414 shares added 0.99 cents to 18 US cents and Scotia Group had 10,400 shares changing hands, 4 cents higher to $19.11.
Firm| The stocks in the main market to close without a change in the last traded prices are, Carreras with 17,596 shares trading to close at $34.99, Gleaner with 140,883 units closed at $1.05 and Mayberry Investments traded 1,357 shares at $1.55.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Desnoes & Geddes in trading 14,000 shares at $4.79, slipped 1 cent, Jamaica Money market Brokers with 14,420 ordinary shares, closed 50 down at $7, Jamaica Stock Exchange with 592 units, lost 5 cents to end at $1.84, Kingston Wharves traded 98,465 units with a fall of $1.40 to close at $5.10 and Salada Foods with only 6,100 shares, closed with a 5 cents loss at $7.85.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 1,067 units at $2.98 and Proven Investments 8% preference share traded 12,200 units at $5.
5 stocks up only 1 falls on TTSE
With power outage disrupting trading on Wednesday, 11 securities changed hands on the Trinidad Stock Exchange, 5 of which advanced, 1 declined and 5 traded firm, with a total of 237,325 units, valued at $7,058,629.
At the close of the market, the Composite Index closed unchanged at 1,148.44, the All T&T Index fell by just 0.01 point to close at 1,965.83 and the Cross Listed Index remained at 43.39.
Gains| Stocks increasing in price at the close are, Clico Investment Fund with 50,000 shares valued at $1,104,462 to advance 4 cents to $22.10, First Citizens Bank traded 2,655 shares at $36.76, to close with a gain of 2 cents, Point Lisas that traded 81 shares to close with a gain of 1 cent at $4.01, Trinidad Cement with 116,152 shares changing hands, for a value of $232,304, increased 6 cents to end at $2 and West Indian Tobacco ended trading at $118.32 up 6 cents with 1,925 shares traded.
Declines| Massy Holdings traded 150 shares to close with a 1 cent loss at $68.55.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, ANSA McAL with 5,000 shares at $66.15 valued at $330,750, Guardian Holdings contributed 9,193 shares with a value of $124,105 to close at $13.50, while Jamaica Money Market Brokers had 5,000 units changing hands at 45 cents, Republic Bank with 40,039 shares traded for $4,854,613 at $121.25 and Sagicor Financial Corporation added 6,630 shares at $6.20.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 4 stocks with offers that were lower.
Jamaican$ loses value on Wednesday
The Jamaican dollar lost value on Wednesday, against all three main currencies it usually trades against, as authorized dealers purchased the equivalent of US$40,832,885 versus US$52,672,492, on Tuesday. The equivalent of US$39,334,085 was sold, compared with US$42,825,714 on Tuesday.
In US dollar trading, dealers bought US$33,287,323 compared to US$48,572,214 on Tuesday. The buying rate for the US dollar declined 9 cents to $112.13 and US$34,157,406 was sold versus US$40,081,642 on Tuesday, the selling rate rose 4 cents to $112.64. The Canadian dollar buying rate, rose $1.81 to $99.53 with dealers buying C$3,597,830 and selling C$2,871,473, at an average selling rate that rose 17 cents, to $100.32. The rate for buying the British Pound climbed $1.73 to $180.01, for the purchase of £2,614,045, while £1,527,787 was sold, at $181.61, an increase of 38 cents. Other currencies bought, amounted to the equivalent of US$155,493, while the equivalent of US$155,892, was sold.
Highs & Lows| The highest buying rate for the US dollar, declined 3 cents, to $112.72, the lowest buying and the highest selling rates, were unchanged at $91.85 and $117.70 respectively, and the lowest selling rate ended up $1.81 at $93.66. The highest buying rate for the Canadian dollar rose 25 cents to $100.70, the lowest buying rate climbed 58 cents to $79.43 and highest selling rate climbed 30 cents to $102.80. The lowest selling rate was up 70 cents at $95.70. The highest buying rate for the British Pound, rose 90 cents to $182.25, the lowest buying rate rose $1.16 to $145.58, the highest selling rate fell $1.64 to $184.54 and the lowest selling rate rose $1.40 to $175.40.
