Blog Page — Page 1399

TTSE: Neal & Massy climbs $1.31

January 23, 2014 by IC Insider.com

Thursday, 23th January 2014 | Conglomerate Neal & Massy traded up by $1.31 to reach a new 52 weeks high in Thursday’s trading to close at $65.01 on the Trinidad Stock Market on a day when 10 securities traded of which 4 advanced, 2 declined and 4 traded firm with a volume of 368,901 shares changing hands valued at $13,322,055.

The Composite Index inched up by 0.53 points to 1,197.06, the All T&T Index advanced by 1.41 points to close at 2,022.86 and the Cross Listed Index declined by 0.04 points to end at 48.81.

Gainers | Clico Investment Fund traded 123,159 shares valued at $2,771,227 as the price advanced by 2 cents to end at $22; Neal & Massy had 122,126 shares changing hands for a value of $7,823,662 to close at $65.01; National Enterprises put on 9 cents to close at $18.10 with a volume of 33,000 shares valued at $597,300; Republic Bank traded 6,417 shares at $116.23 up by 4 cents.

Decliners | First Citizens Bank fell 45 cents to close at $42.49 with 27,815 shares valued at $1,191,764; Jamaica Money Market Brokers traded 1,200 shares at 49 cents down by a cent.

Firm Stocks | Agostini’s traded 2,865 shares at $17.80; Grace Kennedy contributed 31,000 shares with a value of $114,810 to close at $3.70; Scotia Investments traded 12,300 shares at $1.40; National Flour Mills had 9,019 shares at 96 cents.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had only 3 stocks with bids higher than the last selling prices and 5 stocks with offers that were lower.

2013 inflation 9.7%, worse than 2012

January 23, 2014 by IC Insider.com

The Statistical Institute of Jamaica (STATIN) has reported Jamaica’s inflation rate for December 2013 as 0.6 percent, which brings the 2013 calendar year inflation to 9.7 percent and 1.7 percentage points above the 8.0 percent recorded for 2012. Inflation is measured by the All Jamaica ‘All Divisions’ Consumer Price Index. The movement of the local currency, which suffered from a devaluation, played a role in the increase.

The division recording the highest movement for the calendar year 2013 was ‘Transport’ which increased by 20.4 percent due to increased bus fares in September. The ‘Communication’ division recorded the only decline, moving down by 4.2 percent as telecommunication rates fell during the year.

All divisions recorded increased movements for December. ‘Food and Non-Alcoholic Beverages’ moved up by 0.5 percent due mainly to increased prices in eggs and sugar; ‘Transport’ which moved up by a similar 0.5 percent due to the higher cost of petroleum and its related products and air fares; and ‘Housing, Water, Electricity, Gas and Other Fuels’ moving up by 0.7 percent, due to the higher cost for electricity. The movement from April was 6.8 percent as at December 2013.

All other divisions that make up the All Jamaica index recorded increases for December 2013. ‘Miscellaneous Goods and Services’ went up by 0.8 percent. ‘Furnishings Household Equipment and Routine Household Maintenance’ and ‘Restaurants and Accommodation Services’ each increased by 0.7 percent. ‘Clothing and Footwear’ rose by 0.5 percent, ‘Alcoholic Beverages and Tobacco’ 0.4 percent, ‘Recreation and Culture’ 0.3 percent and ‘Health’, 0.2 percent. There was no movement recorded for ‘Education’ and ‘Communication’.

The Index advanced in all three regions: Greater Kingston Metropolitan Area (GKMA), 0.7 percent, Other Urban Centres (OUC) and Rural Areas, 0.5 percent.

Filed Under: Economy Tagged With: Economy, GOJ, Inflation, Statin

Is Jamaica’s business tax the highest?

January 23, 2014 by IC Insider.com

“T&T ranks the best among Caribbean counties for business taxes. Jamaica not so good, since GCT (sales tax) is included” is the story heading of a Facebook post from a Caibjournal.com article compiled from a World Bank report.

The problem is that one has to be careful in making definitive statements as the comparisons may not be correct. First off, one would need to look at the overall tax situation in each country to get a better picture. In Jamaica, a large part of the tourism sector is free from corporate taxes or because of large capital allowances, pays less. Most of the agricultural sector pays no corporation taxes at all. Data in Jamaica also shows that approximately 70-80 percent of taxes are paid mostly by the Jamaica Stock Exchange listed companies. Hence, it is difficult to come to the conclusion that Jamaican companies pay as much taxes as the article suggests.

The reality is that after corporate taxes of 33⅓ percent on profits after capital allowances, payroll taxes are next in size. Other taxes are very small and would make no meaningful impact on the total tax collected apart from financial entities and a few others who can’t recover the full impact of GCT.

Since GCT is not direct a tax on the majority of corporations, this leaves payroll taxes that corporations are required to make a contribution. Even then, only the portion that the company absorbs is the true cost since payroll taxes are deducted from income before corporate taxes. It is difficult to see how the nominal tax rate of 33⅓ percent could hit 44.3% in Jamaica. Additionally, since 2013, some corporations pay 25 percent and some 30 percent.

The CaribJournal.com stated that “The World Bank defines the total tax rate as the “amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld, such as personal income tax, or taxes collected and remitted to tax authorities like VAT or sales tax, were excluded in the data”.

Jamaica may end being the country with the highest effective tax rate for some corporations but more details are needed to make this conclusion.

If the data on the various countries is close to reality, then there is a huge difference between Jamaica and Trinidad of 50 percent. If true, it explains why Jamaica finds it difficult to compete with Trinidad.

Image courtesy of cooldesign/FreeDigitalPhotos.net

Filed Under: Economy Tagged With: Economy, GOJ

FX: Still J$107 for one US$

January 22, 2014 by IC Insider.com

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Wednesday, 22nd January 2014 | The selling rate for the US dollar that crossed J$107 yesterday, inched up further today to hit $107.20, even as the amount sold was less than the amount bought by $6 million.

Authorised dealers bought a total US$45,461,292 over $2 million less than on Tuesday for all currencies and sold the equivalent of US$41,433,607 almost $10 million less than yesterday.

Authorised dealers bought US$42,535,467 in United States currency at $106.87 for an increase of 57 cents but only sold US$36,602,246 at an average rate of $107.20, an increase 10 cents. Dealers bought C$747,162, the rate fell by $1.06 to $95.75 and C$515,646 was sold as the rate decreased by 46 cents to $97.79. The British Pound was bought at an average rate of $175.97, an increase of $2.31 as £1,256,499 was purchased, and sold £2,544,655 for more at $178.02. Other currencies bought amounted to US$187,535 with US$135,244 sold.

Highs & Lows | The highest buying rate for the US dollar increased by 5 cents to end at $108.35, the lowest buying rate was unchanged at $87.26. The highest selling rate closed at $110.94 for a $1.21 increase and the low moved down to $87.26 by $1.12.

The highest buying rate for the Canadian dollar fell 45 cents to end at $98.20 and the lowest buying rate ended up declined by 45 cents $77.90. The highest selling rate and fell $3 to $100 and the low declined by 55 cents to $93.85.

The highest buying rate for the British Pound climbed by $2.10 to $179.60 and the lowest buying rate jumped $3.41 to $145.01. The highest selling rate of $180.55, up $1.42, the lowest selling rate of moved 30 cents to $170.90.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

JSE: Lots of stocks, few trades

January 22, 2014 by IC Insider.com

Wednesday, 22nd January 2014 | The Jamaica Stock Market closed with 62,029,329 shares trading with a value of $450,979,958 but that obscures the level of investors participating as only 19 securities traded.

Stockbroker Victoria Mutual Wealth Management crossed 58,101,405 JMMB shares with a value of $535,179,523 in three lots. The next big trade was National Commercial Bank 524,960 units which closed at $18 with a value of $9,442,945, NCB Capital Market conducted one of the trades of 40,000 units both for the buyer and seller.

Main Market | Other stocks to trade in meaningful volume include Cable & Wireless 2,609,072 to close at 19 cents; Caribbean Cement 202,500 units as the price drifted up 20 cents to close at $4; Grace Kennedy 47,932 shares closing unchanged at $56; Mayberry Investments 22,234 units to close at $2; Scotia Group 22,364 units with the price closing at $21, up 94 cents for the day and Proven Investments 43,900 ordinary shares at 13.3 US cents.

Junior Market | Only 3 stocks traded. General Accident Insurance with 17,134 shares to close at $1.88; Lasco Financial Services 1,500 units at $1.35 and Medical Disposables 422,867 units at $2.20.

Market Indices | The JSE Market Index advanced by 281.68 points to close at 80,173.72, but was negatively affected by the big capitalisation First Caribbean stock that fell $1. The JSE All Jamaican Composite advanced by 862.88 points to close at 82,023.81 and the JSE Junior Market Index inched up 0.78 points to 786.03.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had only 4 stocks with bids higher than the last selling prices and 5 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

TTSE: Neal & Massy marches on to $63.70

January 22, 2014 by IC Insider.com

Wednesday, 22nd January 2014 | Prices were mostly down on the Trinidad stock market as 12 securities traded with only 5 advancing, 4 declining and 3 trading firm.

The Composite Index inched by 0.23 0.07 points to close at 1,196.53, the all T&T Index eased up by 2.59 points to close at 2,021.45 and the Cross Listed Index declined by 0.27 points to 48.85. Trading resulted in 347,587 shares changing hands for value of $3,725,475.

Gainers | Clico Investment Fund traded a volume of 116,171 shares valued at $2,611,758, the price gained 21 cents to end at $22.48; Guardian Holdings traded 33,523 units with a value of $469,221 to close at $14 up 24 cents; Guardian Media traded just 100 shares at $19.75, gaining 25 cents at the close; Neal & Massy traded 2,000 shares and gained 67 cents to end the day at $63.70, a new 52 weeks high; One Caribbean Media traded 769 shares to close up 4 cents at $18.57 a new 52 weeks high.

Decliners | First Citizens Bank added 12,246 shares valued at $526,396 but the price slipped 3 cents to close at $42.94; National Commercial Bank traded 65,000 shares for a value of $65,030 as the price lost 4 cents to close at $1; Point Lisas Industrial Port Development lost 5 cents to close at $3.45; Sagicor Financial traded 1,800 to remain at $7.30; Scotia Investments traded 21,000 shares for $29,610 to close 2 cents down at $1.41.

Stocks trading firm | Grace Kennedy had 59,040 shares changing hands for a value of $218,448, the price remained unchanged at $3.70; Jamaica Money Market Brokers added 32,092 shares valued at $16,047 with the price remaining at 51 cents; Trinidad Cement traded 27,387 units at $2.30; LJ Williams A shares traded 81,658 units firm at 29 cents.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had only 4 stocks with bids higher than the last selling prices and 4 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

FX: J$107 for one US$

January 21, 2014 by IC Insider.com

Tuesday, 21st January 2014 | The selling rate for the US dollar crossed J$107 today as a large pool of funds were sold. Buying of US dollars was less than the overall selling by more than US$3 million as dealers bought a total US$47,869,380 for all currencies and sold the equivalent of US$51,121,520.

Authorised dealers bought US$41,544,688 in United States currency at $106.30 for an increase of 36 cents and sold US$46,226,015 at an average rate of $107.10, a 20 cents increase. Dealers bought C$2,243,825 for a $1.11 increase to $96.81 and sold C$2,148,416 for an 84 cents increase to $98.25. The British Pound was bought at an average rate of $173.66, 19 cents down as £2,487,829 was purchased, and sold £1,667,592 for 28 more at $176.81. Other currencies bought amounted to US$217,091 with US$171,510 sold.

Highs & Lows | The highest buying rate for the US dollar increased by 40 cents to end at $108.30, the lowest buying rate was unchanged at $87.26. The highest selling rate closed at $109.73 for a $2.09 decrease and the low moved up to $88.38 by $1.12.

The highest buying rate for the Canadian dollar gained 35 cents to end at $98.65 and the lowest buying rate ended up increasing by 46 cents $78.31. The highest selling rate and was up $2 to 103 and the low rose by 30 cents to $94.40.

The highest buying rate for the British Pound slipped by 15 cents to $177.50. There were no change for lowest buying rate of $141.60, the highest selling rate of $179.13 or the lowest selling rate of $170.60.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

JSE: Trading subdued, Indices mostly up

January 21, 2014 by IC Insider.com

Tuesday, 21st January 2014 | The Jamaica Stock Exchange activity continues to be moderate on the second trading day of the week as the price of 9 stocks fell and 9 increased resulting from trades of 7,051,839 units with a value of $13,542,059.

The Junior Market index fell but the others increased with the JSE Market Index advancing 272.66 points to 79,892.04, the JSE All Jamaican Composite gained 413.61 points to close at 81,160.93. The JSE Junior Market Index declined by 10.81 points to close at 785.25.

Main Market | Activity in the main market has been on the light side as the focus seems to be in the junior listings for the time being. In trading, Cable & Wireless exchanged 4,000,000 units at 19 cents; Caribbean Cement 74,149 units closing up 10 cents at $3.80; Carreras 74,152 units, closing firm at $36; Desnoes & Geddes 10,200 shares at $5; Gleaner 210,000 units to close unchanged at $1.10; National Commercial Bank with only 2,940 units as the price gained 79 cents to close at $18; Sagicor Group 12,000 shares closing at $8.49; Sagicor Real Estate X Fund 10,430 shares to close unchanged at $6.50; Salada Foods 5,100 shares, the price gained 70 cents to close at a new 52 weeks high of $10 and Scotia Group 36,117 shares at $20.06, down 44 cents.

Junior market | The junior market had 14 securities trading, including Eppley 9.5% preference share for only the second time, with 54,000 units at $6; Access Financial 14,000 shares down $1 to $10; Blue Power 341,000 units as the price put on 30 cents to end at $9.80; Caribbean Producers 1,002,000 shares as it fell 5 cents to $2.70; Consolidated Bakeries 46,057 units at $1.19; General Accident Insurance 500,000 at $1.88; KLE Group 56,860 shares at $1; Lasco Distributors 148,134 units at $1.45; Lasco Financial 396,051 units at $1.35 and Medical Disposables, 20,000 units up 7 cents and closed at $2.05.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had only 4 stocks with bids higher than the last selling prices and 7 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

TTSE: Prices mostly down

January 21, 2014 by IC Insider.com

Tuesday, 21st January 2014 | Prices were mostly down on the Trinidad stock market as 12 securities traded with only 1 advancing, 4 declining and 7 trading firm.

The Composite Index declined by 0.07 points to close at 1,196.30, the all T&T Index eased down by 0.01 points to close at 2,018.86 and the Cross Listed Index declined by 0.02 points to 49.12. Trading resulted in 368,276 shares changing hands for value of $7,605,670.

Gainers | Republic Bank was the sole stock with a price increase, climbing by a cent to end the day at $116.19 but only 15 units traded.

Decliners | Clico Investment Fund had a volume of 251,793 shares valued at $5,608,658, the price declined by 23 cents to end at $22.27; First Citizens Bank added 12,246 shares valued at $526,396 but the price lost 3 cents to close at $42.97, Scotia Investments traded 21,000 shares for $29,610 to close 2 cents down at $1.41. Scotiabank contributed 16,604 shares with a value of $1,213,881, its price fell 2 cents to $73.10.

Stocks trading firm | Guardian Holdings traded 3,000 units to close at $13.76 and Grace Kennedy had 40,300 shares changing hands for a value of $148,986, the price remained unchanged at $3.70, Trinidad Cement traded 10,000 units at $2.30.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had only 4 stocks with bids that were higher than the last selling prices and 3 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

Berger keeps profit gains

January 21, 2014 by IC Insider.com

Berger Paints reported continued gains in profit for the current year which ends in March with a 30.7 percent increase for the December quarter and 33.7 percent for the nine months period.

The growth for the period is down on the performance to September last year when profit was up 80 percent for the six months and revenues grew by 12 percent after a 17.8 percent jump in the September quarter. Revenues gained only 6 percent for the December quarter and 9.3 percent year to date. Cost reduction would have facilitated to robust increase in net profit out turn. Profits after tax amounted to $51 million from the quarter versus $39 million in 2012 and $64 million year to date compared to $48 million in 2012 on revenues of $622 million for the quarter and $1.409 billion for the nine months. The information was disclosed in an abridged version of the interim report that provided no details of expenses.

Berger has current assets of $792 million at the end of December and current liabilities of only $149 million with equity capital of $522 million.

After paying a dividend of $27.86 million in July, the company had cash on hand in December amounting to $58 million that is down from $163 million at the end of December 2012 and $130 million at the end of the March 2013, but the cash position is an improvement over the $33 million on hand at the end of September.

A lot of Berger’s fortunes are tied to the buoyancy of the construction sector. The sector had not been performing well since 2008 and that has weighed down on the company’s fortunes. The moderate increase in the monetary value of sales is a reflection of the challenges they face. What has been the major attraction for the stock is the tendency for a high dividend payout that enhances the rate of return on investment for outside investors.