Trading on the Trinidad stock market closed the week moderately, with 11 securities changing hands, of which 1 advanced, 4 declined and 6 traded firm with 198,565 stocks changing hands, with a value of $3,016,022.
The Composite Index lost 2.48 points to close at 1,162.35, the All T&T Index fell by just 2.87 points to close at 2,006.58 and the Cross Listed Index fell by a mere 0.27 points to end at 41.65.
Gains| The sole stock gaining on Friday is First Citizens Bank, closing at $35.52, up a cent, while trading 4,597 shares.
Declines| The stocks declining at the end of trading are Clico Investment Fund with 23,398 shares valued at $506,599 as the price fell 36 cents, to end at $21.65, Massy Group with 200 shares, lost a cent to end at $69.41, National Enterprises 53,051 shares, traded for $955,073, closed with loss of 23 cents at $18 and National Commercial Bank fresh from reporting strong nine month results, fell 4 cents to $1.05 as 25,002 shares with a value of $26,347 traded.
Firm Trades| Stocks closing with prices unchanged at the end of trading, are Agostini’s that had 1,000 shares changing hands to close at $17.45, Ansa Mcal 8,680 units closed at $66.30, Grace Kennedy with 3,471 shares ended at $3.45, Prestige Holdings with 68,666 shares changing hands, for a value of $645,460, closed at $9.40 followed by Point Lisas Industrial Port Development that added 10,000 shares to the volume, with value of $41,500 to close at $4.15 and West Indian Tobacco with 500 shares closed at $118.
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 1 stock with the offer that is lower.
TTTSE closes week with moderate trading
Dealers sold US$5M than they bought
In Thursday’s forex trading, funds bought by dealers were US$5 million less than the amount they sold to customers. On Thursday, dealers bought the equivalent of $29,237,131 versus US$34,161,145 on Wednesday and sold the equivalent of US$34,773,160 compared to US$29,959,926 on Wednesday.
In US dollar trading, dealers bought US$24,787,518 compared to US$29,717,816 on Wednesday as the buying rate for the US dollar, rose 10 cents to $112.31 and sold US$29,503,394 versus US$27,907,850 on Wednesday, as the rate gained 12 cents to $112.83.
The Canadian dollar buying rate fell 12 cents, to $103.47 with dealers buying C$1,388,388 and selling C$3,310,920 as the rate climbed $1.14, to $106.16.
The Pound closed at $189.91, for the purchase of £1,780,267 as the rate dropped 54 cents while £1,163,718 was sold, as the rate dipped 72 cents, to $191.49. Other currencies bought, amounted to the equivalent of US$160,249 while selling was the equivalent of US$179,742.
Highs & Lows| The highest rate for buying the US dollar, closed with a fall of 10 cents at $113.10, the lowest buying and the highest selling rates remained unchanged at $91.85 and $117.70 respectively, whilst the lowest selling rate dropped $18.15 to $91.85.
The highest buying rate for the Canadian dollar and the lowest buying rate were unchanged at $105.20 and $83.21 respectively. The highest selling rate inched up by 24 cents to $107.27 and the lowest selling rate fell $1.25 to $100.25. The highest buying rate for the British Pound, fell 80 cents to $192, the lowest buying rate dropped $7.33 to $153.97, the highest selling rate was unchanged at $198.48 and lowest selling rate dived $29.01 to $156.49, the same level as on Tuesday.
NCB Profit grows set for $4.80 EPS for year
National Commercial Bank reported impressive results for the nine months ended June 2014 compared with the nine months ended June last year. Net profit reported is $8.8 billion, an increase of 29 percent, or $2 billion for the nine months. For the latest quarter, net profit of $2.9 billion was made, an increase of 29 percent, from $2.27 billion in June 2013.
Earnings per stock unit amounted $3.56 and is set to get to $4.80 per share for the full year. Gross revenues of $42 billion increased 17 percent, or $6 billion from $36 billion generated in 2013.
As impressive as the results may appear two things have to be borne in mind, one is that in 2013 a large charge was incurred flowing from government of Jamaica debt swap, and the segment accounts show a mixed picture with just four out of the seven segments contributed to the improvement, as the others, recorded declines for the nine months. On the plus, was a $550 million reduction in loan loss provision, from $1.78 billion to $1.24 billion, with this year’s June quarter being $357 million or roughly half of what it was in 2013.
Staff cost a bit item, is up a bit, year over year, but part of that was due to the general insurance company coming into the group, for a part of the year. A more telling picture is seen form the quarter over quarter figures of $2.86 billion versus $2.7 billion for June 2013 quarter, which was marginally up.
Loans| Loans and advances, totaling $152 billion net of provision for credit losses at June 2014, grew by 12 percent, or $16.8 billion, compared to the loan portfolio as at June 30, 2013. Non-performing loans totaled $7.8 billion as at June 2014 ($6.6 billion at June 2013) and represented 5 percent of the gross loans compared to 4.8 percent as at June last year.
Deposits| Customer deposits were $205 billion, up 19 percent or $33 billion over the prior year. The increase was driven by growth in fixed deposits and savings portfolios, which increased by 65 percent and 10 percent respectively, over the prior year.
Capital| The Group’s stockholders’ equity stood at $78 billion, up 12 percent over the prior year.
The stock traded last at $18 and puts the PE ratio, at just 3.7 times the current year’s results. NCB declared another dividend of 35 cents per share, bringing the total in the last twelve months to $1.18. NCB remains a strong IC Insider buy rated stock.
Sweet River Abattoir & Supplies is not that sweet
Sweet River Abattoir & Supplies Company Limited is a company the majority of Jamaican are unlikely to know. Well their profile will get a lift, with the release of a prospectus offering up to 46,633,000 Ordinary Shares to the public, at the invitation price of $3.86 each.
The subscription will open on Tuesday 12th August and is scheduled to close on Tuesday 26th August 2014 .The Company is seeking to raise $180 million from the IPO, to be used in reduction of bank loans, construction completion of the new factory facility in Westmoreland, installation of a solar energy generation system, working capital; and payment of the expenses of the Invitation. The minimum amount to be raised to facilitate listing on the junior market of the Jamaica Stock Exchange, is $50 million
Up to 20,763,000 Reserved Shares in the Invitation are for priority applicants. Brokers and advisor for the deal are, MoneyMasters Limited and VM Wealth Management Limited.
The prospectus states that the majority of the shareholders of the Company are pig farmers, some with capacity to substantially increase through-put.
Sweet River in 2012, took a strategic decision to modernize the plant. The Company acquired lands in the Sweet River area of Westmoreland to establish a state of the art abattoir with expanded capacity along with administrative offices and warehousing facilities.
Sweet River planned factory facilities nearing completion in Westmoreland
The company indicates that they are the third largest supplier of pork within the market with approximately twenty-four percent (24%) market share. The Company’s main customers include Grace Food Processors Limited, Caribbean Producers Jamaica Limited, and Hamilton’s Smoke House (a subsidiary of Jamaica Broilers Group).
A pig has the capacity to provide between twelve and eighteen cuts. Currently Sweet River produces twelve cuts from each pig. The Company sources approximately 60 percent of its pigs from ten contract farmers with the remaining coming from some 395 small farmers across ten parishes in Jamaica.
Profit & revenues|In the first year of operations as at March 2010, Sweet River generated revenues of $239 million. For the financial year ending March 2011, revenues fell to $181 million, which is attributed to a shortage of pigs which affected the company’s ability to supply the market. By March 2012, the company enjoyed revenues of $207 million. Revenues rose to $311 million for the financial year to March, 2014.
Profit before taxes increased from $564,000 for the year ending March 2010 to $21 million at March 2014 and was flat with the $22.6 million generated in 2013.
With 51 million shares in issue currently earnings per share works out at 40 cents, placing a valuation of 9.4 times historical earnings. This is well above the junior market valuation. Value based on a book value works out at 3 times book, again a very high valuation. There are other weaknesses. The unknown company and the vast majority of the directors, a one man auditor that is unknown to the investing public and the absence of audited accounts for the March 2014. Serious investors are unlikely to be drawn to this issue for sometime.
Lasco companies dominant in JSE trades
In Thursday’s trading on the Jamaica Stock Exchange the three Lasco companies dominated trading accounting 9,346,942 or 86 percent of the volume traded and nearly 37 percent of the value.
Elsewhere the prices of 6 stocks rose and 11 declined as 27 securities changed hands, resulting in 10,814,964 shares trading, valued at $25,066,008. Three stocks closed at new 52 weeks low, at the end of trading.
Main Market| The JSE Market Index rose by 165.72 points to 70,113.79 and the JSE All Jamaican Composite index moved up 185.31 points to close at 77,108.16.
Gains| Stocks recording gains at the end of trading in the main market, are Caribbean Cement with 10,000 shares, to close with a gain of 10 cents at $2.50, Gleaner with 3,000 units changing hands, gained 2 cents to close $1.12, Grace Kennedy with 4,575 shares, gained 5 cents to close at $56.05, Sagicor Real Estate Fund traded 7,800 units, to close 30 cents up at $6.35 and Scotia Group exchanged 99,000 shares, to close up 20 cents at $18.70.
Firm| The stocks in the main market to close without a price change, are Berger Paints 3,799 shares to close at $1.62, Jamaica Broilers 2,200 units traded, to close at $4.57, Jamaica Money Market Brokers with 112,700 shares closed at $6.95, Jamaica Producers, with 309 shares closed at $17.51 and Sagicor Group 67,700 units closed at $9.
Declines| The number of stocks that declined in the main market, are Cable & Wireless with only 6,494 units, closed at 26 cents with a 3 cents decline, Carreras lost 5 cents in trading 188,550 shares to close at $33.85, Desnoes & Geddes with 250,000 units closed with a decline of 25 cents, to end at $4, a new 52 weeks low, National Commercial Bank exchanged 45,564 shares and closed with a one cent loss at $18, Radio Jamaica traded 2,550 units in losing 6 cents, to end at $1.22, Scotia Investments traded at a new 52 weeks low of $21 as 9,310 shares were exchanged, with a 10 cents decline and Supreme Ventures traded only 680 shares in losing 2 cents off the price, to close at $1.95.
Preference| Jamaica Money Market Brokers (JMMB) 8.50% preference share traded 57,000 units and closed at $3.50 and the JMMB 8.75% preference share traded 16,695 units, to lose 2 cents and closed at $2.99.
Junior Market| The JSE Junior Market Index declined by 14.07 points to close at 649.27 as 7 stocks traded with one advancing and 4 declining.
Gains| Dolphin Cove was the sole stock, recording a gain at the end of trading in the junior market, it traded 304,625 shares and climbed 10 cents to $8.40.
Firm Trades| The actives stocks in the junior market that closed at the same price as the day before are, Caribbean Producers with 75,000 units to close at $2.50 and Lasco Financial 1,446,904 units to close at $1.
Declines| Stocks declining in the junior market at the end of trading, are Access Financial with 34,680 shares at $8.97, down a cent $1.03, General Accident 3,000 units traded with decline of 4 cents to close $1.46, Lasco Distributors had 762,355 shares changing hands and declined by a cent to $1.19 and its sister company, Lasco Manufacturing with a large volume of 7,137,683 shares, closed at a new 52 weeks low of 90 cents, after falling 10 cents.
IC bid-offer Indicator| At the end of trading 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.
NCB to pay 35 cents per share
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National Commercial Bank declared an interim dividend of 35 cents per ordinary stock unit payable on August 25, 2014 for stockholders on record as at August 12, 2014.
The bank reported profits profit of $8.8 billion, an increase of 29 percent over 2013 for the nine months to June.
Proven Investments will consider making dividend payments to both its ordinary and preference shareholders at a meeting to be held on August 11, 2014.
Clico chips in with $13.7m on TTSE
Trading on the Trinidad Stock Exchange was primarily dominated by Clico Fund, with more than 82 percent of the value and volume trading, on Thursday. There was trading in 15 securities, 4 advanced, 4 declined and 7 traded firm, with 729,054 stocks changing hands, with a value of $16,618,607.
The Composite Index lost 0.09 points to close at 1,164.83, the All T&T Index fell by 0.18 points to close at 2,009.45 and the Cross Listed Index remained unchanged at 41.92.
Gains| Stocks increasing in price at the close, are Ansa Merchant Bank with 25 units to close with a 2 cents gain at $39.09, a new 52 weeks high, Clico Investment Fund 612,990 shares valued at $13,680,616, advanced by 33 cents, to end at $22.01. First Citizens Bank traded just 2 shares to close at $35.51 as the price moved up by 9 cents, One Caribbean Media gained of 2 cents to close at $23.28 while trading 600 units.
Declines| The stocks declining at the end of trading are, Flavorite Foods with just 2 shares losing a cent to close at $5.74, Guardian Holdings traded 1,000 units to close with a 5 cents loss at $14.35, Massy Group traded 35,443 shares for a value of $2,459,609 as the price slipped 3 cents to end at $69.42 and National Enterprises traded only 2 units, but lost a cent, in closing at $18.23,
Firm Trades| Stocks closing with prices unchanged at the end of trading, are Angostura Holdings contributing 13,570 shares with a value of $173,018, to close at $12.75, National Flour Mills with 61,000 shares changing hands for a value of $61,000 closed at $1, while Point Lisas Port development traded 7 units at $4.15, Republic Bank traded 80 units at $122, Sagicor Financial Corporation added 2,748 shares to end at $6.68, Scotia Investment had a mere 2 units trading at $1.55 and West Indian Tobacco contributed 1,583 shares to close at $118.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had one stock with the bid higher than the last selling price and one with the offer lower.
Lasco Financial profit up 20%
Lasco Financial Services is reporting improved profit of 20 percent for the June quarter this year, compared with the year ago period. The improvements emanate primarily from a 23 percent growth in revenues.
Profit for the latest quarter ended at $47.3 million up from $39.3 million in 2013, with revenues coming out at $177.57 versus $145 million. Expenses grew by 23.6 percent, due mainly to a 32.6 percent increase in selling and promotional expenses that ended at $76.4 million, in the quarter. For the last fiscal year to April, Lasco reported $176.7 million in profit, from revenues of $629 million. Profit for the current year should end up around $250 million or 20 cents per share, with increased revenues and reduced marketing cost.
Last fiscal year the company increased its marketing spend considerably over the previous year, the added cost contained the level of profits that would normally have been made. “Advertising cost this year is expected to decline from the high of last year, since we will not require as significant an investment to drive growth for this period” Jacinth Hall-Tracey, Managing Director stated in a release with the result.
The company has assets of $880 million, up from $690 million at the end of June last year and $812 million at the end of April this year.
The stock remains Buy Rated. With the present price around a $1 per share and the earnings above should put a potential price of $1.60 within reach.
Jamaican dollar slips versus US
In Wednesday’s forex trading, funds bought by dealers were more than US$4 million compared with the amount they sold, but trading levels were more than on Tuesday.
On Wednesday, dealers bought the equivalent of $34,161,145 versus US$25,710,419 on Tuesday and sold the equivalent of US$29,959,926 compared to US$24,985,551 on Tuesday.
In US dollar trading, dealers bought US$29,717,816 compared to US$23,198,261 on Tuesday as the buying rate for the US dollar, rose 14 cents to $112.21 and sold US$27,907,850 versus US$22,007,235 on Tuesday, as the rate gained 8 cents to $112.71.
The Canadian dollar buying rate rose 67 cents, to $103.59 with dealers buying C$1,175,625 and selling C$885,711 as the rate fell 19 cents, to $105.02.
The Pound closed at $190.45, for the purchase of £1,893,333 as the rate climbed $1.17, while only £617,633 was sold, with the rate dipped 47 cents, to $192.21. Other currencies bought, amounted to the equivalent of US$144,605 while selling was the equivalent of US$173,592.
Highs & Lows| The highest rate for buying the US dollar, closed with a gain of 10 cents at $113.20, the lowest buying rate and the highest selling rate remained unchanged at $91.85 and $117.70 respectively, whilst the lowest selling rate jumped $18.15 to $110.
The highest buying rate for the Canadian dollar increased by 15 cents, to $105.20 and the lowest buying rate was unchanged at $83.21. The highest selling rate declined by 18 cents to $107.03 and the lowest selling rate climbed $1.25 to $101.50. The highest buying rate for the British Pound, fell 50 cents to $192.80, the lowest buying rate jumped $7.42 to $161.30, the highest selling rate was up $2.82 to $198.48 and lowest selling rate was up 10 cents to $185.50.
Treasury bill rates edge down
The Government of Jamaica Treasury bill offer for the period Friday, July 25 maturing on Friday, October 24 this year for duration of 91 days, attracted bids of $732,981,900 for the $400,000,000 available.
The yield cane out at an average of 7.63643 percent. The result represents a small reduction from the 7.65893 percent yield, emanating out of the previous issue of a similar duration in June. In May, the rate was 8.2 percent for the Treasury bill of same duration. $832,672,600 went after the 400,000,000 Treasury bill instrument on offer. The offer which is of 182 days duration, matures on January 23 next year and will generate an average interest rate yield of 8.21982 percent versus the 8.36502 percent for the June issue of the same duration. At the May Treasury bill auction, the rate came out was 8.932 percent.
