The shareholders revolt that effectively ousted directors and Chief Executive officer at Trinidad Cement, earlier this week, is likely to have far reaching impact at the company’s subsidiary, Caribbean Cement.
The changes in Trinidad, saw the non-appointment of Caribbean Cement chairman Brian Young, who seems unlikely to win the favours of the new board and is hardly likely to see the new board in Trinidad accommodating him in the critical chairmanship position in Jamaica. Bevan Francis and former CEO of the group Rollin Bertrand also serve of the Jamaican board and are not included in the new board composition at the group level. Christopher Dehring who is now on the TCL board, may well be the man tipped to head the local board, when the time comes for the changes locally. Such changes cannot be far off as the new management in Trinidad, try to unearth whatever facts they their mission to determine the true state of health of the group, may uncover. Judith Robinson who is a former partner of Brian Young at Price Waterhouse could well be getting the axe as well.
Major management changes likely at Carib Cement
Shareholders’ revolt oust directors at Trinidad Cement
Shareholders revolt ousted directors and Chief Executive officer at Trinidad Cement, at a special meeting on August 19th called to make changes to the directorship.
The former directors of the company decided to fight a battle that they could not win in an attempt to stave off the appointment of some new directors and removal of others. In December last year, IC Insider in an article on the debacle between some disgruntled minority shareholders and Trinidad Cement Limited (TCL) indicated, that it’s a fight that the directors were not likely to win. The effect of their intransience is a costly legal battle in which has cost the company unnecessarily.
IC Insider went on to say “in a battle with some local shareholders who want representation on the company’s board of directors and requested that the annual general meeting that should have been held on Friday July 12, 2013 to be put off pending court hearing as to whether a resolution to nominate them should be put on the agenda for consideration. The request by the minority shareholders to seek to nominate directors and have their names included as such on the notice calling the annual general meeting is reasonable, but that would have to be done ahead of the notice period which is usually 21 days ahead of the meeting. Information from the Guardian newspaper suggest that the company was formally informed of the request well ahead of the deadline date and the shareholders seem well within their right to have sought to prevent the AGM from going ahead without their names being put on. In all probability, the minority shareholders will win their initial battle with the company but it’s left to be seen if they will succeed at the general meeting of 2013 which now seems likely to be held in 2014 instead.”
At the special meeting called to change directors following a failed attempt to get the courts to block such a meeting the disgruntled shareholders who managed to garner more than 50 percent of the votes ousted to dissident directors including the CEO. The changes are likely to have repercussion of the board of Caribbean Cement as subsidiary of TCL. Bryan Young Chairs that board and it would be hard to see the new board accommodating him in the critical chairmanship position in Jamaica, Francis and Bertrand also serves of the Jamaican board.
Prior to the meeting Andy Bhajan, Rollin Bertrand, Brian Yopung, Leonard, Carlos Hee Houngand Bevon Francis resinged. At the meeting Wilfred Espinet, Alsion Lewis, Christopher Drehring, Michael Glenn Hamlel-Smith, Francisco Aguilera Calos Alberto and Nigel Edwards wefre appointe ddirectors.
The move should no pave the way for the legal battle now in the courts to be withdrawn and put the company in a psoitioon to hold the general meetings for 2013 and 2014 which were postpone pending the outcome of the court action.
Moderate trading but TCL climbs again
Trading on the Trinidad Stock Exchange on Thursday was again moderate, with 11 securities changing hands of which 3 advanced, 3 declined and 5 traded firm, with 177,879 stocks changing hands, with a value of $3,864,481.
The Composite Index rose 0.78 points to close at 1,150.53, the All T&T Index gained 1.43 points to close at 1,985.25 and the Cross Listed Index increased by a mere 0.02 points, to end at 41.35.
Gains| Stocks increasing in price at the close are, First Citizens with 1,047 shares traded to close with a cent gain, at $35.54, Sagicor Financial gained 2 cents while trading 3,443 shares at $6.47 and Trinidad Cement gained 26 cents to end the day at $2.85 while trading 5,000 shares and is now a shade away for its 52 weeks high of $2.94 reached on August 30, last year.
Declines| The stocks declining at the end of trading are, Massy Holdings, contributing 27,118 shares with a value of $1,857,799 while losing 3 cents at $68.50, National Enterprises lost a cent, in trading 205 shares, to end at $17.78, Scotiabank traded only 15 shares and lost 10 cents, to close at $63.30, for another 52 weeks low. The stock remains weak at the end of trading, and seems likely to head lower, with little demand at current prices.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings with a volume of 32,541 shares traded for $414,898, to close at $12.75, Clico Investment Fund with 26,824 shares valued at $590,128 at $22, Firstcaribbean International traded 5,500 shares at $5, Guardian Holdings with 63,892 shares changing hands, for a value of $878,613 to close at $13.75, while Scotia Investments added 12,294 shares, valued at $17,217 and closed at $1.40.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and one stock with the offer that is lower.
Moderate trading on JSE with 18 securities
Trading on the Jamaica Stock Exchange on Thursday, was again moderate, as buying remains cautious while investors try to wait out sellers close to the current prices.
At the end of trading, the prices of 4 stocks rose and 6 declined as 18 securities changed hands, resulting in 1,669,785 stock units trading, valued at $16,956,484.
Main Market| The JSE Market Index moved up by 119.83 points to 71,136.68 and the JSE All Jamaican Composite index rose 134 points to close at 78,251.93.
Gains| The volume and last traded prices of stocks with gains, at the end of trading in the main market, are, Carreras with 10,588 units changing hands, gaining of 50 cents to $35, Grace Kennedy with 135,968 shares to close with a gain of $1 at $60, Kingston Wharves 14,083 shares traded for a cent gain, at $5.02 and Scotia Group had a mere 212 units trading a cent lower at $18.76.
Firm| The stocks with volume and last traded prices in the main market to close without a price change, are Berger Paints with 8,435 shares changing hands at $1.60, Cable & Wireless with only 15,928 shares trading at 34 cents, National Commercial Bank with 83,881 units to close at $18, Proven Investments ordinary stock, traded 7,100 units at 17US cents, Buy Rated, Radio Jamaica saw 55,908 trading at $1.20 and Sagicor Real Estate Fund 56,600 units, traded at $6.85.
Declines| The volume and last traded prices of stocks with losses at the at the end of trading in the main market are, Caribbean Cement with just 675 shares as the price lost 45 cents to $2.55, Jamaica Broilers had 1,057,921 shares being exchanged 3 cents lower at $4.57, Jamaica Money Market Brokers with 121,367 units slipped 5 cents to $6.95, Pan Jamaican Investment had only 662 shares trading with a 1 cent loss to end at $48.50, Sagicor Group put through 16,116 shares and slipped 15 cents to $9 and Scotia Investments 1,624 units cost 10 cents less than on Wednesday at $21.28.
Preference| There was no trading in the preference sector.
Junior Market| The JSE Junior Market Index was unchanged at 642.98 as only 2 stocks traded with none recording a change in price.
Firm| Stocks trading in the junior market with prices unchanged the end of trading are, Blue Power with 20,000 units changing hands at $9.06 and Caribbean Producers with 62,717 shares at $2.35.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 13 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower.
Watch this one – Big inside trades at Jamaica Broilers
Investors should be keenly watching development at Jamaica Broilers. The company recently, advised the Jamaica Stock Exchange that senior management and directors purchased a total of 7,854,620 shares on August 15 and a Director purchased 237,500 shares on August 14, 2014.
The total cost of these trades would be in the order of $36.5 million. More significantly, there has not been any trade of this magnitude for years by insiders.
The trades may be carrying coded messages to the wider investing public as to what may be happening to profit. On July 30, this year, a director sold 500,000 shares, and a director purchased 574,651 of the company’s shares on March 28 and back in 2013 a related party sold 1,500,000 of the company’s shares to another related party on November 14.
A check with the Jamaica Stock Exchange shows the only other year recently that there was major trading in the stock by insiders was back in 2012, when seven Senior Managers purchased a total of 8,774,697 of the group’s shares on September 14.
The other times of major buying of the stock by managers and directors, was between April 2006 and April 2008. The trades in late 2007 triggered some outcry by investors which led to the company making a public statement in connection with the trades.
At the time of major trading of the shares by insiders in 2007, the company released a report to the Jamaica Stock Exchange around October 4, which stated that “Shares in Jamaica Broilers Group were traded by some directors and senior management in September 2007 during the time window which is allowed by the Jamaica Stock Exchange providing there is no material event requiring disclosure. We wish to State unequivocally that, when these shares were traded, there were no inside knowledge of any circumstances that were no available to the general public.
When these trades took place the company was of the view that – based on a sale contract with affixed selling price – good results would have been realised for the second quarter, irrespective of the reduction in world market prices for fuel graded ethanol.”
IC Insider projects that profits for the current year should hit a record $1.25 per share or $1.5 billion up from 79 cents per share or $950 million for the year to April 2013. The next set of results are due around the 8 of September and will be for the first quarter to July.
Buying up selling down vs Tuesday
In Wednesday’s forex trading, authorized dealers bought the equivalent of US$32,241,775 versus US$30,559,230 on Tuesday, and sold the equivalent of US$35,433,717 compared to US$38,823,613 on Tuesday.
In US dollar trading, dealers bought US$26,752,066 compared to US$24,842,382 on Tuesday. The buying rate for the US dollar rose 11 cents to $112.30 and US$32,372,395 was sold versus US$33,898,255 on Tuesday, the selling rate gained 1 cents to $112.79.The Canadian dollar buying rate fell $1.11 to $101.13 with dealers buying C$708,997 and selling C$542,678, the selling rate rose 33 cents to $103.29. The rate for the Pound climbed 50 cents to $186.36, for the purchase of £2,378,979 while £1,163,950 was sold, as the rate fell 78 cents to $187.51. Other currencies bought, amounted to the equivalent of US$903,355 while selling was the equivalent of US$629,226.
Highs & Lows| The highest buying rates for the US dollar dropped 95 cents to $113.10, the lowest buying rate and the highest selling rate remained unchanged $91.85 and $117.70 respectively, and the lowest selling rate gave back the $18.15 it gained on Tuesday to end at $91.85. The highest buying rate for the Canadian dollar, fell $1.55 to $102.95 and the lowest buying rate was unchanged at $81.88. The highest selling rate declined 9 cents to $105.50 and the lowest selling rate declined by 50 cents to $98. The highest buying rate for the British Pound declined 62 cents to $187.78, the lowest buying rate fell 42 cents to $150.06. The highest selling rate dropped $1.99 to $192 and lowest selling rate declined by 50 cents to $180.80.
Advancing & declining socks even at 7 each
In Wednesday’s trading on the Jamaica Stock Exchange, the prices of 7 stocks rose and 7 declined as 17 securities changed hands, resulting in 1,042,499 shares trading, valued at $12,322,391.
Main Market| The JSE Market Index dropped 134.22 points to 71,016.85.and the JSE All Jamaican Composite index fell 150.09 points to close at 78,117.93.
Gains| The volume and last traded prices of stocks with gains, at the end of trading in the main market, are Carreras with 2,570 units changing hands to close with 45 cents gain at $34.50, Jamaica Money Market Brokers trading of 122,122 shares to close with a gain of 5 cents at $7, Sagicor Group with 128,902 shares, gained 15 cents to close at $9.15, Scotia Group with 144,112 shares, closed with a gain of 4 cents to end at $18.75 and Supreme Ventures with 55,350 units ended with a 20 cents gain to $2.
Firm| The stocks with volume and last traded prices in the main market to close without a change in price, are Kingston Wharves with 10,000 shares at $5.01 and Pan Jamaican Investment with 2,625 units at $48.51.
Declines| The volume and last traded prices of stocks with losses at the at the end of trading in the main market, are Berger Paints with 10,749 shares, after losing 5 cents, it ended at $1.60, Cable & Wireless with 62,250 shares, ended with a loss of 3 cents at 34 cents, Grace Kennedy had 100,900 units changing hands for a loss of 50 cents at $59, Jamaica Broilers traded just 19,595 units with a loss of 20 cents to end at $4.60 and National Commercial Bank 22,791 shares traded 15 cents lower at $18.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 33,031 units with a 2 cents gain at $3.
Junior Market| The JSE Junior Market Index declined by 0.40 points to close at 642.98 as only 4 stocks traded with 1 advancing and 2 declining.
Gains| The only stock recording an increase at the end of trading in the junior market, is Caribbean Producers with 216,700 units, to close with a 4 cents gain at $2.35.
Firm Trades| The only stock in the junior market that traded to close at the same price as the day before is Blue Power that traded just 2,400 units at $9.06.
Declines| Stocks declining in the junior market at the end of trading, are Dolphin Cove trading 3,772 shares and lost 15 cents to end at $7.60 and Lasco Manufacturing with 104,630 units closing with a 5 cents loss at 95 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 10 stocks with bids higher than their last selling prices and 8 stocks with offers that were lower.
Trading picks up & TCL up 33c on TTSE
Trading on the Trinidad Stock Exchange picked up somewhat on Wednesday with 17 securities changing hands, of which 5 advanced, 5 declined and 7 traded firm, with 326,210 units changing hands, with a value of $5,424,483.
The Composite Index gained 1.33 points to close at 1,149.75, the All T&T Index rose 1.62 points to close at 1,983.82 and the Cross Listed Index increased by a mere 0.14 points to end at 41.33.
Gains| Stocks increasing in price at the close are, First Citizens trading 1,460 shares to gain a cent at $35.53, Guardian Holdings traded 4,278 shares valued at $58,823 to close with a gain of 25 cents to $13.75, Jamaica Money Market Brokers with 68,624 shares changing hands for a value of $30,807, closed at 45 cents, Massy Holdings with 3,115 units closed with a 2 cents gain, at $68.53 and Trinidad Cement with 32,500 shares for a value of $80,575, gained 33 cents to end the day at $2.59.
Declines| The stocks declining at the end of trading are, National Enterprises with 5,060 shares as it lost a cent in ending at $17.79, Praetorian Property Mutual Fund declined by 15 cents to end at $3.40 while it traded 4,000 units, Republic Bank exchanged 3,031 shares for 5 cents lower, to end at $121.85, Sagicor Financial Corporation contributed 15,383 shares with a value of $99,220 to close at $6.45 down by 5 cents, while Scotiabank with 5,100 shares traded down 9 cent to $63.40 for a new 52 weeks low, and remains weak at the end of trading.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Agostini’s trading just 50 units at $17.37, Angostura Holdings added 7,000 shares, valued at $89,250 at $12.75, ANSA McAL with 3,110 shares closed at $66.30, Clico Investment Fund traded 172,000 shares valued at $3,787,401 to end at $22, Prestige Holdings traded 433 shares at $9.40, Scotia Investments with 1,000 shares closed at $1.40 and Unilever Caribbean closed at $63.13 while trading 66 units
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with the bid higher than the last selling price and there was no stock with an offer lower.
Jamaica’s Inflation jumps for July
The inflation rate for July 2014 jumped by 1.4 percent, the highest rate recorded since September 2013, the Statistical Institute of Jamaica (Statin) reported.
According to the report put out by the body charged by the Government of Jamaica with data collection, Statin, “contributing to the rise in inflation, were increases in the cost of some agricultural products as the drought affecting most of the island, resulting in a shortage in supply. The highest weighted division ‘Food and Non-Alcoholic Beverages’ increased by 2.0 percent with the classes ‘Vegetables and Starchy Foods’ moving up by 6.3 per cent and ‘Fruit’ by 5.8 percent.”
Since the start of the year the monthly inflation rates are Feb 0.1 percent, March 1.1 percent, April, negative 0.3 percent, May 1.0 percent, June 0.1 percent and July 1.4 percent. The movement in the index up to June this year is for an inflation rate of 2.5 percent, with the July included, the year to date is now at 3.9 percent. The impact that drought is said to have on the rate could subside in the latter months of the year thus allowing food prices to moderate and bring down the monthly rate of increase going forward.
US$8M more selling as J$ slips versus US
In Tuesday’s forex trading, authorized dealers bought the equivalent of US$30,559,230 versus US$51,429,049 on Monday, and sold the equivalent of US$38,823,613 compared to US$39,296,236 on Monday.
In US dollar trading, dealers bought US$24,842,382 compared to US$43,033,837 on Monday. The buying rate for the US dollar rose 4 cents to $112.19 and US$33,898,255 was sold versus US$32,941,586 on Monday, the selling rate gained 4 cents to $112.78.The Canadian dollar buying rate rose 42 cents to $102.24 with dealers buying C$2,505,894 and selling C$2,206,883, the selling rate declined 72 cents to $102.97. The Pound closed at $185.86, for the purchase of £1,624,951 as the rate fell $1.46 while £1,212,246 was sold, as the rate was up by 2 cents to $188.30. Other currencies bought, amounted to the equivalent of US$741,128 while selling was the equivalent of US$886,627.
Highs & Lows| The highest buying rates for the US dollar rose by 5 cents to $114.05, the lowest buying rate and the highest selling rate remained unchanged $91.85 and $117.70 respectively, and the lowest selling rate was up by $18.15 to $110. The highest buying rate for the Canadian dollar, rose by 80 cents to $104.50 and the lowest buying rate was unchanged at $81.88. The highest selling rate declined 91 cents to $105.59 and the lowest selling rate rose by $10.75 to $98.50. The highest buying rate for the British Pound declined 15c to $188.40, the lowest buying rate was unchanged at $150.48 and so were the highest selling rate at $193.99 and lowest selling rate of $181.30.
