Many Jamaicans may be feeling the negative effect of the economic pressures the country is undergoing. One area in which it is seen, is the official data on inflation as the overall measure of consumer price movements, went virtually nowhere, in June.
Inflation in Jamaica is set to hit the lowest level, in years if the trend for the first six months of the year continues. According to data put out by the Statistical Institute of Jamaica, the inflation rate for June is 0.1 percent, when compared to the index for May 2014. This is 0.9 percentage points lower, than the 1.0 percent recorded for May this year. The lower movement was mainly due, to a decline in the cost of electricity which resulted in the index for the group ‘Electricity, Gas and Other Fuels’ moving down by 4.2 percent. This fall was tempered by an increase of 3.6 percent, due to an increase in the cost of water. Food and Non-Alcoholic Beverages rose by 0.6 percent. Upward movement in the prices of ‘Meat, ‘Milk, Cheese and Eggs’ and ‘Bread and Cereals’ were the chief contributors.
The movement in the index for June 2014 resulted in a calendar year- to-date inflation rate of 2.5 percent.
Mean quarterly inflation rate for the second quarter of 2014 was 1.1 percent, 0.3 percentage points lower than the first quarter which had an inflation rate of 1.4 percent.
Phillips & Wynter kill inflation in Jamaica
Scotiabank stock continues slide on TTSE
Trading levels on the Trinidad stock market Scotiabank stock fell to a new 52 weeks low but seems headed lower based on the offer that is lower than the last selling price and the lack of meaningful bids.
At the end of trading 13 securities changed hands of which 2 advanced, 2 declined and 9 traded firm, with a volume of 425,677 stocks changing hands, with a value of $1,513,718.
The Composite Index lost 0.10 points to close at 1,165.10, the All T&T Index rose fell by just 0.19 points to close at 2,011.21 and the Cross Listed Index remained at 41.76.
Gains| Clico Investment Fund with 31,000 shares changing hands valued at $671,691 but the price was up 2 cents at $21.67 and Trinidad Cement with 166,955 shares changing hands valued at $325,562 close 5 cents higher at $1.95.
Declines| The stocks declining at the end of trading, are Grace Kennedy in trading 13,209 shares, the price lost a cent to close at $3.44 and Scotiabank declined by 8 cents, to end the day at $68.65, for a new 52 weeks low, while trading only 71 shares.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Ansa Mcal with 1,150 shares traded, closed at $66.30, to be followed by First Citizens Bank with 2,737 units, to close at $35.02, Jamaica Money Market Brokers contributed 81,000 shares with a value of $36,450 to close at 45 cents, while Massy Group traded just 256 shares to close at $69.50, National Enterprises had 322 shares changing hands, to end at $18.24, National Flour Mills added 21,043 shares valued at $21,043, to close at $1, One Caribbean Media 282 units to close at $25, Praetorian Property Fund 19,898 units to end at $3.55 and Scotia Investments closed at $1.54 with a volume of 87,754 shares traded valued at $135,141.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bids higher than their last selling prices and 3 stocks with offers that were lower.
Investment special issue coming shortly
Many investors may not be aware of it, but the local stock market is poised for a huge rally, interest rates are poised to fall and stability return to the forex market. No one really knows exactly when the local stock market will start the powerful run, but it could well be in the second half of this year.
There are big investors out in the market trying to get blocks of shares. Many others pocketed some at attractive prices earlier and stocks are scares as we write. The Investor’s Choice special issue covers, investment opportunities, in real estate, stocks in Trinidad and Jamaica, unit trusts investments and the best performing ones, money market the economy and more and will be off the press in days. Investors Choice is the publication that can best be used as a tool to help investors identify some of the best investments opportunities out there now. To purchase a copy call 926-2204.
PE ratios computation & their usefulllness
The use of standards is vital in the assessment of stock values as investors constantly compare one investment with another. The price earnings ratio is the most popular measure investors use to compare and determine stocks values.
It is computed by dividing the price of a stock by the earnings per share. It allows investors to compare the value of one company with others in order to decide which ones are to be bought sold or held on to. Pass developments also inform seasoned investors as markets tend to have familiar recurring patterns over time. When the market moves markedly away from the norm it is usually time for investors to move. Nowhere is this truer than PE ratios. Investors should therefore keep track of historical price earnings ratios and compare them with the current ones. Ratios that have been high in the past and are now low, may indicate a potential increase in value for the stock or vice versa.
Use of the PEs| There is a tendency to look at the earnings per share of companies and apply a price earnings ratio to them to arrive at the value of a stock. This is one approach, but we should go further, with companies having hidden values the purist approach will miss the underlying value that could surface at any time. Astute investors will take into account the difference in treatment of accounting policies could have on earnings in assessing company value. It usually takes a longer time for such concepts to gain investor acceptance, but once widely accepted, the patient investor is usually rewarded.
In looking at good buying opportunities the crude measure is to buy those stocks with low PEs compared to the market or to stocks in the same sector.
Little price changes on TTSE Monday
Trading on the Trinidad stock market on Monday, accounted for 15 securities changing hands of which 2 advanced, 3 declined and 10 traded firm, with 299,354 stocks changing hands, with a value of $5,664,767.
The Composite Index lost 0.03 points to close at 1,165.20, the All T&T Index was unchanged at 2,011.40 points and the Cross Listed Index fell a mere 0.01 points, to end at 41.76.
Gains| Stocks increasing in price at the close are Guardian Holdings which contributed 27,157 shares valued at $388,617 to close 1 cent up, at $14.31 and Trinidad Cement enjoyed a gain of 3 cents to end the day at $1.93 while trading 1,730 shares.
Declines| The stocks declining at the end of trading are, Clico Investment Fund that traded 136,940 shares valued at $2,967,914, but the price close with a loss of a cent at $21.65, National Enterprises traded 1,078 units to close with a 1 cent loss at $18.24 and Scotia Investments with 1,000 shares changing hands lost a cent and closed at $1.54.
Firm Trades| Stocks closing with prices unchanged at the end of trading, are Firstcaribbean International Bank 8,713 units to close at $5, First Citizens Bank with 7,847 units, to close at $35.02, Grace Kennedy with 43,430 shares changing hands, for a value of $149,699, to close at $3.45, followed by Jamaica Money Market Brokers with 18,500 shares, to close at 45 cents, Massy Group with 35 units to close at $69.50, National Commercial Bank with 31,000 shares changed hands for $33,790, to close at $1.09, Prestige Holdings closed at $9.41 with 150 units, National Flour Mills closed at $1 while trading 7,000 shares, Republic Bank saw 4,774 units changing hands to close at $122.05 and West Indian Tobacco 10,000 units to close at $118.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.
Insiders buy into D&G & Sagicor Group
While many investors have shunned the local stock market a few persons close to some of the listed companies are doing the opposite and are buying stocks at severely undervalued prices.
The latest such purchases are for shares in Desnoes and Geddes (D&G) and Sagicor Group. Interestingly, there are close connections between the two, with the chairman of D&G being Richard Byles, the president of Sagicor.
The companies recently reported the trades to the Jamaica Stock Exchange. In the case of D&G’s a director purchased 655,199 shares on June 20, 2014 and July 1, 2014 and an executive purchased 2,274,593 Sagicor Group shares. on July 1, 2014, under the group’s Executive Long Term Incentive Scheme.
J$ gains as BOJ intervention still impacts market
Bank of Jamaica’s intervention in the forex market last Thursday, continued to affect forex trading on Monday, leaving dealers with US$14 million surplus between Thursday and Monday.
In the three days period they bought US$23 million more of all currencies, than the sold. In today’s trading the Jamaican currency appreciated against all three major currencies that trading takes place in. On Monday, dealers bought the equivalent of $42,467,751 versus US$34,345,235 on Friday and sold the equivalent of US$33,244,982 compared to US$27,608,212 sold on Friday.
In US dollar trading, dealers bought US$37,691,477 compared to US$26,461,541 on Friday as the buying rate for the US dollar, fell 3 cents to $112.03 and sold US$31,281,273 versus US$22,353,327 on Friday, with the rate falling 6 cents to $112.62.
The Canadian dollar buying rate dropped $2.34 cents, to $102.24 with dealers buying C$1,153,328 and selling just C$666,699 as the rate declined 51 cents, to $104.82.
The Pound closed at $189.67, for the purchase of £1,763,030, the rate fell $1.61, while £559,580 was sold, with the rate declining by 52 cents, to $192.13. Other currencies bought, amounted to the equivalent of US$738,897 while selling was the equivalent of just US$388,590.
Highs & Lows| The highest rate for buying the US dollar, rose 10 cents to $113.10, the lowest buying rate was unchanged at $92.02 but the highest selling rate rose $4.09, to close at $122 and the lowest selling rate dropped $18.35 to $91.85.
The highest buying rate for the Canadian dollar fell by 85 cents, to $105.10 and the lowest buying rate fell 21 cents, to $83.62, the highest selling rate rose by 54 cents to $108.61 and the lowest settled at 25 cents lower at $100.75.
The highest buying rate for the British Pound, was up 75 cents to $193.75, while the lowest buying rate eased by 4 cents to $154.71 and the highest selling rate rose by $3.16 to $199.45, the lowest selling rate was down by 5 cents at $186.40.
More stocks rise than fall on JSE
In Monday’s trading on the Jamaica Stock Exchange, the prices of 5 stocks rose and 4 declined. Only 18 securities changed hands, resulting in 4,848,981 shares trading, valued at $15,622,653.
Main Market| The JSE Market Index declined by 353.60 points, to 70,264.33 and the JSE All Jamaican Composite index moved down by 395.39 points, to close at 77,276.48.
Gains| Stocks recording gains at the end of trading in the main market are Gleaner with 11,000 units closed with a cent up, at $1.11 and Pan Jamaican Investment traded 56,790 shares to close with a gain of 48 cents, at $48.50.
Firm| There were only stocks in the main market to close without a change in price with shares closing, are Cable & Wireless traded 156,117 shares to close at 29 cents, Caribbean Cement with 500 traded closed at $2.20, Jamaica Broilers traded 154,589 shares but the price closed unchanged at $4.57, and Scotia Group with 68,506 shares closed at $18.40.
Preference| Jamaica Money Market Brokers 8.75% preference share 16,475 units to close at $3.03 and Proven Investments 8% preference share traded 2,700 units to close at $5.07.
Declines| The stocks that declined in the main market are Carreras had 80,000 units changing hands to close down 25 cents at $34.75, Jamaica Money Market Brokers with 628,736 shares, declined by 10 cents to close at $6.90, National Commercial Bank with 1,000 close at 50 cents lower at $17.50, Sagicor Group 8,172 close with a 10 cent loss at $8.99.
Junior Market| The JSE Junior Market Index declined by 17.39 points to close at 692.40 as 6 stocks traded with 3 advancing and none declining.
Gains| Stocks recording gains at the end of trading in the junior market are Consolidated Bakeries traded 558,953 shares to close with a gain of 10 cents to close at 80 cents, Lasco Distributors traded 1,000,000 units and gained 10 cents to end at $1.30 and Lasco Manufacturing had 25,000 units changing hands to close 10 cents higher at $1.10.
Firm Trades| The junior market stocks that traded to close at the same price as the day before, are Access Financial Services 10,759 units to close at $10, Blue Power with 27,000 units to close at $9.05, with Caribbean Cream traded 2042684 units at 70 cents each as investors responded well to the 79 percent jump in profits for the first quarter ended May.
Declines| No junior market stocks decline at the end of trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bids higher than their last selling prices and 2stocks with offers that were lower.
Ghana Stock market down for week
Ghana Stock Exchange at the end of the week ending Jul 11, could be regarded as exhibiting mixed personalities, with the indices being down, but at the end of the week a few more stocks were up in price that those that fell.
The overall market took a breather from its recent gains by week end, as the main index having started at the week at 2,392.68 points, ended at 2,365.72 points. The Financial index closed at 2,144.52, down from 2,163.13 at the end of the previous week. For the week, 8 stocks recorded gains versus 7 that declined. A total of 1,314,746 units traded during the week.
Of the 38 listings, 18 had bids and 22 offers, as the market continues to reflect lack of interest in a large portion of the market.
Stocks with the major prices changes during the week are, Benso Oil Palm Plantation up 8 percent, Mega African Capital up 6 percent and Produce Buying Company up 6 percent but Camelot Ghana fell 7 percent followed by Guinness Ghana Breweries down 6 percent and HFC Bank down 6 percent.
Jamaican Teas Orchid unit to open soon
Residents of Yallahs, St Thomas and surrounding areas, will shortly be able to view a model of a new real estate development that has gone on sale in the area. Orchid Estate, Jamaican Teas second real estate development, located in Yallahs, St Thomas, will shortly be opening its model unit for public viewing. The accompanying pictures show units being readied for sale.
According to information gleaned by IC Insider, the model unit will be on display this week end. The units which are priced at $7.9 million comprise 2 bedrooms each. When completed the scheme will encompass 71 units.
Jamaican Teas is a company listed on the junior market of the Jamaican Stock Exchange, that is primarily involved in the processing of teas and other beverages for the Jamaican and export markets, operates of supermarkets and real estate development. It successfully completed its first residential real estate development in 2013, when it built and handed over 19 super studio units to purchasers of its Carmen Court Apartment complex in Kingston.
