Thursday is the second consecutive day, of painfully low participation and very low level of trading activity, on the Jamaica Stock Exchange. At the close of the market, the prices of 5 stocks rose and 7 declined, as 17 securities changed hands, culminating in only 554,449 units trading, valued at a mere $5,499,290, 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 was negative, showing 6 stocks with bids higher than their last selling prices and 10 stocks with offers that were lower.
Main Market| The JSE Market Index declined 892.06 points to 71,976.11 and the JSE All Jamaican Composite index fell 997.48 points to close at 79,190.56.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Carreras with 3,210 shares, increasing 8 cents to $34.63, Jamaica Money Market Brokers ordinary trading 11,168 units at an increase of 5 cents to end at $7 and Scotia Group with 35,420 shares gained 3 cents to $19.05.
Firm| The stocks in the main market to close without a change in the last traded prices are, Desnoes & Geddes with 42,950 units, closed a$4.77, Mayberry Investments 420 shares closed at $1.50, Proven Investments with 9,000 units, ended at 18 US cents and Sagicor Group put through 271,779 shares at $9.65.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Cable & Wireless with 113,885 units changing hands, for the loss of a cent at 29 cents,
Jamaica Producers 333 shares changing hands 25 cents lower at $15.50, Kingston Wharves 750 shares traded 80 cents lower at $5.50, National Commercial Bank with 14,694 units, ended losing 14 cents to $17.80 and Pan Jamaican Investment with 25,000 shares traded 10 cents down, at $49.
Preference| Proven Investments 8% preference share traded 14,290 units 7 cents off at $5.
Low market activity on JSE
Only 4 junior stocks trade, 2 up none down
The Junior Market saw trading in only 9,650 units with only 4 securities being active. JSE Junior Market Index increased 14.27 points to close at 669.02 as only stocks traded with 2 advancing and none declining.
Gains| Stocks recording gains at the end of trading in the junior market are, Caribbean Flavours with an 11 cents rise to $2.80, while trading only 1,000 shares and Lasco Manufacturing with 9,700 units, closing up 14 cents to $1.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before are, Lasco Distributors trading a mere 100 shares at $1.15 and Lasco Financial with only 750 units being active to end at $1.
At the close, there were 9 stocks with no bids to buy and 9 stocks with no stock on offer to sell, 2 stocks had bids higher than their last selling prices and 6 stocks had offers that were lower.
Main Caribbean stock markets struggling
Wednesday was a case of low trading activity on the Jamaican stock market, with only 13 securities trading or about 19 percent of the listings. Thursday, it’s the turn of trading on the Trinidad Stock Exchange, with only 6 securities changing hands out of 36 listings, around 17 percent participation. The two markets reflect what is happening within the wider Caribbean region, with the vast number of territories mired in economic pressures, with low or no growth. Trinidad with its petro industry, has not been spared, with the stock market marking time for several months.
In Thursday’s trading 2 advanced, 1 declined and 3 traded firm with 184,481 units changing hands, with a value of $2,910,205. The Composite Index lost 0.42 points to close at 1,144.14, the All T&T Index fell by 1.01 points to close at and the Cross Listed Index fell / increased by 0.03 points to end at 41.13.
Gains| Stocks increasing in price at the close are, First Citizens Bank contributed 4,831 shares with a value of $176,097 to end a cent higher at $36.46, while Sagicor Financial Corporation added 2,430 shares, gained 4 cents to close at $6.25.
Declines| The stock declining at the end of trading is National Enterprises with only 56 units falling 8 cents, to $17.65.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund with 35,525 shares valued at $781,561 declined by 1 cent to end at $22, Massy Holdings with 26,589 shares being traded for $1,821,346 to close at $68.50 and National Commercial Bank with 115,050 shares changing hands for a value of $115,050, ended at $1.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator was reflecting 2 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower.
GOJ tax revenue continues to lag
Government of Jamaica’s tax revenues for August, fell below target, resulting in a shortfall of $2.56 billion at the end of July, climbing to $5.9 billion at the end of August. Payments were also less than planned, with underspending of $7.69 billion at the end of July, climbing to $10.26 billion to August.
The fiscal deficit came in at $27.2 billion versus a budgeted $31.6 billion, $4.4 billion over projection. At the end of July, the deficit was $18 billion or $5 billion ahead of plan.
Revenue shortfall was experienced in Company tax collection, $2.2 billion lower than the $8.8 billion forecast and is slightly worse than the $1.9 billion shortage to July. Tax on interest which was ahead at $1.6 billion is now up by $1.9 billion. Local GCT fell short, $3.5 billion to August, worse than the $1.6 billion shortfall to July. GCT and SCT on imports fell short 900 million at the end of July and $1.2 at the end of August with SCT on target to August, up a bit from the $445 million shortfall at the end of July.
Spending on capital, budgeted at $14.8 billion has had only $9.5 billion spent so far in 2014.
Forex inflows remain strong on Wednesday
The Jamaican dollar had mixed results against the three main currencies it regularly trades with, in Wednesday’s forex trading as inflows remain buoyant. Authorized dealers purchased the equivalent of US$38,491,241, versus US$46,583,995 on Tuesday, and the equivalent of US$36,390,546 was sold compared with US$43,686,767 on Tuesday.
In US dollar trading, dealers bought US$35,575,321 compared to US$41,044,453 on Tuesday. The buying rate for the US dollar fell 1 cent to $112.38 and US$34,601,853 was sold versus US$41,573,721 on Tuesday, the selling rate inched up a cent to $112.68. The Canadian dollar buying rate, lost 32 cents to $98.73 with dealers buying C$858,653 and selling C$588,712 at an average selling rate that slipped 12 cents, to $100.89. The rate for buying the British Pound dropped $1.57 to $180.05, for the purchase of £1,221,702, while £563,057 was sold, at $182.50 for a rise of 2 cents. Other currencies bought, amounted to the equivalent of US$204,183, while selling was for the equivalent of US$349,591.
Highs & Lows| The highest buying rate for the US dollar, closed with the loss of 6 cents at $112.89, the lowest buying, the highest selling and the lowest selling rates were unchanged at $91.85, $117.70 and $91.85 respectively. The highest buying rate for the Canadian dollar rose $1.50 to $102.50, the lowest buying rate lost 21 cents to $79.80, the highest selling rate lost 74 cents to $104. The lowest selling rate fell 25 cents to $96.15. The highest buying rate for the British Pound, fell $2.39 to $187, the lowest buying rate fell 25 cents to $146.25. The highest selling rate dropped $2.91 to $186.27 and the lowest selling rate rose 20 cents to $176.20.
Number of securities traded tumble on JSE’s
Wednesday’s Jamaica Stock Exchange activity, resulted in the prices of 3 stocks rising and 3 declining as 13 securities changed hands, culminating in 1,736,129 units trading, valued at $21,538,328, 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 5 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower.
Main Market| The JSE Market Index gained 629.81 points to 72,868.17 and the JSE All Jamaican Composite index rose 704.23 points to close at 80,188.04.
Gains| Cable & Wireless is the only stock gaining in the main market with 12,971 shares trading, 1 cent up to 30 cents.
Firm| The stocks in the main market to close without a change in the last traded prices are, Jamaica Money Market Brokers with 998 ordinary units to close at $6.95, Mayberry Investments with 4,580 shares at $1.50 and Proven Investments 9,000 units traded at 18 US cents and Radio Jamaica 3,000 share closed at $1.04.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Sagicor Group with 62,921 shares, the price fell 25 cents to end at $9.65 and Scotia Group traded 952,872 units to close 23 cents lower at $19.02 .
Preference| Jamaica Money Market Brokers 8.75% preference share traded 367,113 units at $3.02.
Trading picks up a bit Junior Market
The number of stocks trading in the Junior Market, rose to 5 from only three on Tuesday, with 2 advancing and 1 declining. The junior market Index increased 0.96 points to close at 654.75. Total volume traded is 322,674 units valued at $586,079.
Gains| Stocks recording gains at the end of trading in the junior market are, Lasco Financial 4,515 shares changing hands gained 13 cents to $1 and General Accident with 194,088 shares closed 4 cents higher at $1.59
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before are, Dolphin Cove with 5,000 shares at $8 and Medical Disposables 114,336 shares ended at $2.
Declines| Lasco Distributors is the sole stock declining in the junior market at the end of trading with 4,735 shares closing with a 3 cents loss at $1.15.
At the close of trading 3 junior market stocks ended with bids to buy above the last traded prices and 3 with offers that were lower.
Jamaica’s business confidence drops
Perception of present and future conditions is down in the business sector, according to data of a survey, released by Bank of Jamaica. The survey which was done in August showed a deterioration compared to June.
In the recent survey, there was a marked moderation in both the perception of present and future business conditions among respondents relative to the previous survey. The indices showed current business conditions at 110.2 versus June’s 121.1 and 102.5 in May. The perception of future business conditions as measured by the index declined to 119.4, from 129.9 in June. The level is still ahead of the May 2014 outturn, of 117.9.
The perceptions of present and future business conditions, continue to show a general upward trend since the low of 47.5 percent in April 2013 survey, for current business condition and 93.4 for future business conditions. The indices peaked at 157.9 in December 2011 for current business conditions and 148.8 in March 2013 for future business conditions.
October greeted with light trading on TTSE
Trading on the Trinidad Stock Exchange for Wednesday was moderate, with only 10 securities changing hands, 2 advanced, 3 declined and 4 traded firm, with 248,274 units valued at $3,315,301.
The Composite Index lost 0.56 points to close at 1,144.56, the All T&T Index fell 1.13 points to close at 1,975.17 and the Cross Listed Index remained at 41.10 points.
Gains| Stocks increasing in price at the close are, First Citizens Bank trading 3,740 shares at $36.45, up by a cent and Scotiabank traded 1,800 shares and climbed 4 cents to end the day at $59.99.
Declines| The stocks declining at the end of trading are, ANSA McAL with 8,680 shares, closed down a cent at $69.19, Massy Holdings contributed 28,019 shares with a value of $1,920,218, but fell 39 cents to close at $68.50 and Trinidad Cement with 53,141 shares traded for $118,204, closed 1 cent down at $2.23
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings traded only 7 units at$12.75, Clico Investment Fund with 75,100 shares valued at $1,652,586 remained at $22, Grace Kennedy 295 shares ended trading at $3.76, National Commercial Bank with 125,051 shares changing hands for a value of $124,851, ended at $1 and One Caribbean Media added 12,541 shares valued at $315,092, to end at $25.33.
IC Bid-Offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator showed 3 stocks with the bids higher than their last selling prices and 4 stocks with offers that were lower.
Insiders pick up 5m Sagicor shares
Two Executives of Sagicor Group purchased a total of 4,979,956 shares, under the company’s Executive Long Term Incentive Scheme, on September 29, 2014, the company advised the Jamaica Stock Exchange. The purchase brings to 8,414,404 units acquired mostly by executives since June. Executives sold a total of 3,075,556 units during the same period.
The Group offers stock grants and stock options to senior executives as part of its long-term incentive plan. The Group has set aside 150,000,000 of its authorised but un-issued shares of $0.10 each for the stock grants and stock options. The lowest price option is dated March 2009 and would expire in March 2016 with an exercise price of $7.66 for 5,069,770 shares. All the rest that are vested, have an exercise price that are above the current stock price of $9.65. The exercise prices for the rest range between $10.45 for the 2010 vested amount of 4,039,454 with an expiry date of March 2017 and $14.10 for the 2012 vested amount of 1,813,036 shares, with an expiry date of 2019.
The Group also has in place a share purchase plan which enables its administrative and sales staff to purchase a pool of Sagicor Group shares at a predetermined discount rate of the closing bid price on December 31 each year. During 2013, the Staff Share Purchase Plan Trust purchased 3,417,136 shares over the Stock Exchange for a total value of $28,380,000.
