Unemployment jumps to 15.4%

Jamaica’s unemployment rate, which has been on the increase since 2008, jumped to 15.4% for July 2013 compared to 13.1% in July 2012 as more workers came into the workforce. For the same period, the unemployment rate for males was 11.7% compared to 19.9% for females. The Employed Labour Force for July 2013 was 1,108,100, which was 3,100 less than the 1,111,200 recorded in July 2012 but was slightly above the numbers recorded in March this year. For males, it decreased marginally by 600 (0.1%) to 632,100 and for females by 2,500 (0.5%) to 476,000 for the period.

In March this year, the number of employed persons was 1,107,400 compared to 1,098,700 recorded in March 2012 and 1,093,200 in December last year.

The number of unemployed persons in July 2013 was 201,600. This was an increase of 34,200 (20.4%) when compared with 167,400 in July 2012. The number of unemployed males increased by 13,900 (19.9%) and the number of females by 20,300 (20.8%) for the same period.

The July 2013 Labour Force Survey, was conducted by the Statistical Institute of Jamaica (STATIN) and covered the week of June 23-29.

Labour Force | In July 2013, the number of persons in the Labour Force was 1,309,700, which was 31,200 (2.4%) higher than the 1,278,500 recorded in July 2012. The male labour force increased by 13,400 (1.9%) from 702,300 in July 2012 to 715,700 in July 2013, and the female labour force increased by 17,800 (3.1%) moving from 576,200 to 594,000 in the same period.

The Employment Rate for July 2013 was 84.6%, which was a 2.3 percentage point decline from the 86.9% in July 2012. The Employment Rate declined for both males and females over the period. For males, it declined by 1.8 percentage points, moving from 90.1% to 88.3%, and for females it declined by 2.9 percentage points, from 83% to 80.1% over the same period.

Outsiders | The number of persons who were classified as Outside the Labour Force in July 2013 was 768,000. This represents a decrease of 25,500 (3.2%) when compared to 793,500 in July 2012. In the same period, the number of males Outside the Labour Force declined by 10,400 (3.3%) moving from 314,400 to 304,000 and the females by 15,100 (3.2%) moving from 479,100 to 464,000 over the period.

Where they work | The Occupation group ‘Clerks’ had an  increase in employment of 5,600 (5.8%) persons, moving from 96,300 in July 2012 to 101,900 in July 2013. The group ‘Craft and Related Trade Workers’ had the largest decline for the period, moving from 149,600 to 141,800 in July 2013 resulting in a decline of 7,800 (5.2%) persons.

The largest increase in employment occurred in the industry group ‘Real Estate, Renting and Business Activities’ where the number of persons employed increased by 11,300 (19.3%). Similar increases were experienced in the group ‘Health and Social Work’ where it increased by 4,300 (14.3%) persons. During the same period, the industry group ‘Manufacturing’ declined by 8,700 (11.3%) persons followed by ‘Wholesale & Retail, Repair of Motor Vehicle & Equipment’ which declined by 5,200 (2.4%) persons.

Unemployment rates among youths aged 14-24 years was 38.3% for July 2013. This was an increase of 6.6 percentage points when compared with 31.7% in July 2012. The male unemployment rate for youths was 29.5% compared to 50.3% for females.

KLE continued losses push Matalon

The loss making KLE Group Limited advised that Joseph M. Matalon has resigned as Director and Chairman of the Board of Directors of the Company with effect on December 15, 2013 and Audrey Marks will assume Chairmanship of the Board of Directors effective the same day.

Joseph M. Matalon has also resigned as Chairman of the Audit Committee with effect from December 15, 2013. Matalon’s resignation from the Audit Committee was in no way related to any disagreement in respect of accounting principles, financial statement disclosure or any other material issue impacting the Audit Committee or its function, the company stated.

The resignation comes against the back drop of the company reporting another quarter of losses, which is worse than the same quarter last year despite the rise in revenues from $82 million in the 2012 quarter to $102 million in 2013. For the September quarter, losses climbed to $12.4 million up from a loss of $1 million in 2012 and for the nine months period the loss is $48 million versus $10.5 million in 2012. For the nine months, revenues climbed from $215 million to $249 million. Compounding the matter is that interest cost climbed to $9.75 million in the latest quarter from $6.58 million last year and $23 million year to date versus nearly $20 million last year.

Matalon, being a board member of Scotia Group, would have most likely paid a major role in the decision to exit the loss making company that in all probability will be struggling to turn things around.

Related posts | Bolt won but he could still lose | KLE Group — to buy or not?

FX: Ja$ appreciate vs USD

Thursday, 14th November 2013 | The forex market was characterised by much more selling of foreign currency than buying as the equivalent of US$23,812,260 was bought by dealers and US$31,913,379 was sold as dealers, who racked up two days of surplus purchases, reduced their holdings ahead of the weekend.

Trading in individual currencies saw US$19,427,265 being purchased by dealers for a 35 cents reduction at $104.89 and selling of $27,808,566 at 7 cents less at $105.58 as the local currency enjoyed a rare day of appreciation. There was buying of C$983,106 for $98.59 down by $1.12 and selling of C$658,563at 9 cents off at $101.17; the British Pound traded at $168.59, which was $1.01 more than on Wednesday as £1,705,708 was purchased by dealers and £1,680,007 was sold for $170.79 up 97 cents.

FX_TRADE+Currency+Nov14Highs & Lows | The highest buying rate for the US dollar fell 20 cents to $106.65 while the lowest was unchanged at $85.50 as was the highest selling rate of $109.57; the lowest selling rate increased by $16.89 to $102.40.

The highest buying rate for the Canadian dollar was up 40 cents to $102.00 and the lowest rate was unchanged at $79.93; the highest selling rate increased 60 cents to $103.50 and the lowest fell 6 cents to $96.30.

FX_TRADE+HighLow+Nov14The highest buying rate for the British Pound moved up $1.75 to $172.00 as the lowest gained $14.13 to $134.13; the highest selling rate gained $2.20 to hit $173.71 and the lowest was up 75 cents to $162.35.

JSE: Heavy trading in Carreras JBG & Scotia

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Thursday, 14th November 2013 | There was heavy trading on the Jamaica Stock Exchange in Carreras, Jamaica Broilers and Scotia with Carreras accounting for another day of large trades following Wednesday’s 9.8 million units.

Carreras saw trading in 2,831,971 units of the stock valued at $99,144,875 but closed firm at $35 as the company reported earnings of $1 per share for the September quarter in line with the June results, but revenues was down less than in the June quarter. The company’s sales are still to recover from the impact of a price increase earlier in the year and the resulting stock piling of inventory by the trade. Jamaica Broilers had 1,500,000 units being crossed early in trading valued at $6,765,000 as the price inched up 1 cent at $4.51 and Scotia Group put in 3,786,432 units valued at $68,217,133 as the price ended at $18, down 37 cents.

The total shares traded numbered 8,853,281 units at a value of $176,300,455 as 3 stocks advanced and 6 declined in price on a day when only 17 companies stocks traded. The indices were down once more with the Main Market index down 274.58 to 78,133.27, the all Jamaica index shed 483.12 to close at 77,642.31and the Junior was down marginally to close at 728.56.

Mayberry Investments put in 289,772 to close unchanged at $1.91; Pan Jamaican Investment had 10,464to close at $48.05; Scotia Investments exchanged 27,123 to close at $26.01 down $1.99; Seprod 2,236 units helped in pulling the price down to $12, down $1 following poor third quarter numbers showing profit off from $196 million in 2012 to $80 million in the 2013 quarter. Supreme Ventures also reported lower results in the third quarter of $32.6 million versus $125.6 million in 2012.

JSEIndicesNov14Jamaica Money Market Brokers 8.75% preference traded 32,200 units and closed firm at $3.

Junior Market | Trading in the junior market has seen little interest as only 4 stocks traded with Dolphin Cove changing 5,600 units at $8.02; Lasco Distributors 11,000 closing at $1.45 and Lasco Financial Services exchanged 108,171 units, unchanged at $1.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 4 stocks higher and 6 stocks with offers lower than their last selling price, reflecting a market that more weak than strong currently.

TTSE: Neal & Massy dominant with $14.6m

Thursday, 14th November 2013 | Neal & Massy Holdings was the dominant trade on Trinidad Market with volume of 251,640 shares changing hands for a value of $14,595,120 with price remained unchanged at the end at $58. Trading occurred in 15 securities of which 2 advanced, 2 declined and 11 traded firm as 480,595 units valued at $16,120,133 changed hands.

First Citizens traded 15,920 to close unchanged at $36; Grace Kennedy suffered a loss of 5 cents to close at $4.04; Jamaica Money Market Brokers traded 46,000 shares with a value of $27,600.00 and closed firm at 60; National Commercial Bank, which is expected to announce both full year’s results and a dividend later today, had a volume of 94,892 shares valued at $109,126 as the price closed up a cent to $1.15; Point Lisas Industrial Port added 32,533 shares valued at $123,777 as the price inched up a cent to $3.80; Republic Bank traded 4,447 units at $115.01; Trinidad Cement traded 19,583 units unchanged at $2.20.

TTSENov14Praetorian Property Mutual Fund traded a volume of 6,000 shares valued at $21,600 and closed firm at $3.60.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 2 stocks higher and 3 stocks with offers lower than their last selling price.

Jamaican Teas raises over $100m

Jamaican Teas went to the bond market in October to raise $200 million in an 8.5 percent bond issue. The offer, which closed on November 7, received over 80 applicants for just over J$100 million. The company plans to be employ the proceeds for capital projects. The note is a four year instrument fixed at 8.5 percent per annum for the first two years and variable thereafter.

“I want to congratulate the Stocks & Securities team on another successful offer. This one is significant because we were able to raise the funds needed by the client at a rate of 0.10% below the last GOJ Treasury auction. Jamaican Teas Limited is a strong company and we are happy for the opportunity to work with the organization and bring value to all who participated,” said Lamar Harris, Manager Investment Banking & Attorney-at-law.

JamaicanTeasGInger150x150

Image courtesy of Praiseaeng/FreeDigitalPhotos.net

“I am happy that we were successful in raising over $100 Million in our corporate bond offer. This was achieved in an environment of extreme economic uncertainty when most investors tend to prefer investing for the short term. I feel that an important reason for our success was the decision to list the security on the Junior Stock Exchange so the investors had the confidence of being able to trade the securities if they needed to. I congratulate SSL for their hard work in making this a success.” John Mahfood, CEO.

Jamaican Teas Ltd distributes the renowned Tetley black tea as well as a Premium Blend of black tea, together with Earl Grey black tea, Green Tea, and Peppermint and Chamomile herbal teas. They are also proprietors of the Caribbean Dreams line of products which consists of herbal teas sourced by the company from Jamaica and other sources, as well as drinking cocoa, powdered natural coconut milk and a range of spring water.

Related posts | Capital market developments | Exports push Jamaican Teas’ profit

Image courtesy of Praiseaeng/FreeDigitalPhotos.net

FX: Buying well in excess of sales

Wednesday 13th November 2013 | Trading in the forex market was buoyant on Wednesday with buying by authorised dealers of the equivalent of US$43,040,918 at an increase in the rate by 17 cents to end at $105.24 as dealers sold US$31,097,145 at $105.64 up 9 cents.

Trading resulted in C$1,397,900 being bought by dealers at $99.71 up 82 cents and selling totalled C$1,214,294 at a closing rate of $101.26 up 69 cents.

The pound traded at $167.5861 up 47 cents as dealers bought £1,258,802 and the sold £1,288,680 at $169.82 up 58 cents.

FX_TRADE+Currency+Nov13The total amount of foreign currencies bought amounted to US$46,538,943 while the equivalent of US$34,477,540 was sold.

Highs & Lows | The highest buying rate for the US dollar was $106.85 down 15 cents while the lowest remained unchanged at $85.50 as did the highest selling rate which closed at $109.57 while the lowest sales rate increased by 13 cents to $85.51.

The lowest buying rate for the Canadian dollar remained unchanged at $79.93 but the highest rose 10 cents to $101.60. The highest selling rate closed down 30 cents at $102.90 and the lowest fell 9 cents to $96.36.

FX_TRADE+HighLow+Nov13The Pound went for as high as $170.25 or 55 cents more when bought by dealers and as low as $120.00 down $14.71 and was sold as high as $171.51 down by $2.15 and as low as $161.60, down 70 cents.

JSE: Carreras crash party

Wednesday, 13th November 2013 | Wednesday was another light day on the Jamaica Stock Market as Carreras, suffering ever since the announced ban on cigarettes smoking in public spaces, dropped $4 to a new 52 weeks low of $35. Carreras had a good volume passed through the market amounting to 9,284,752 carrying a value of $325 million.

Caribbean Cement had only 3,400 units trading to close at $2.70 down 8 cents; Gleaner 19,486 units took place at $1.10; Jamaica Broilers had only 3,500 changing hands to close at $4.50 up 20 cents; Jamaica Money Market Brokers had a decent 211,872 units but dipped cents to close at $8.01; Sagicor Life Jamaica had 16,600 as the price closed at $7.60; Scotia Group put in 69,244 units to close at $18.37, down 73.

In the preference sector, Jamaica Money Market Brokers 7.50% exchanged 155,000 firm at $2 while their 8.75% traded 210,664 units at $3.

JSEIndicesNov13Junior Market | The Junior market had only 3 securities trading as Consolidated Bakeries accounted for 239,400 units at a closing price of $1.30 for a gain of 5 cents and Lasco Financial Services had 472,550 units to close at $1.

There were 6 stocks declining as 4 advanced in price as 16 securities traded amounting to 10,689,368 shares valued at $329,979,469. The JSE main index closed at 78,407.85, a decline of 581.24 and the all Jamaica Index slipped 1,022.68 to close at  78,125.43. The Junior market index bucked the trend by gaining 0.38 to close at 728.66.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 7 stocks higher and 5 stocks with offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net

TTSE: Prices fairly stable

Wednesday, 13th November 2013 | A total of 14 securities traded on the Trinidad & Tobago Stock Exchange on Wednesday of which 4 advanced, 2 declined and 8 traded firm resulting in 241,079 units being exchanged for $$4,119,449.

Jamaica Money Market Brokers had 103,500 shares changing hands for a value of $62,100 and the price remained at 60 cents; First Citizens traded 3,707 units and closed up a cent at $36; Guardian Holdings traded 2,000 units at $14.96 down 3 cents; Neal & Massy Holdings had a volume of 54,020 shares trading for $3,133,160 at 58 each. Prestige Holdings had only 2,000 units trading but at a new 52 weeks high of $9.43. Scotia Investments contributed 32,500 shares with a value of $58,928 while falling 13 cents to close at $1.81; Sagicor Financial Corporation added 11,000 shares valued at $79,750 with the price remaining at $7.25; Scotiabank gained 4 cents to end the day at $71.66, another 52 weeks high as 750 units were traded. Trinidad Cement put in 10,515 units as the price held at $2.20.

TTSENov13Clico Investment Fund saw trading in 16,954 shares valued at $364,511 as the price remained unchanged at $21.50.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 4 stocks being higher and 2 stocks with offers lower than their last selling price.

Lasco Financial profit rise

Profit at Lasco Financial climbed faster in the September quarter than in the June quarter reaching $50 million, well ahead of the $31 million earned in 2012 by 64 percent and the $39 million earned in the first quarter of this fiscal year. For the year to date, profit is up to $90 million from $57 million in 2012 by 57 percent. The strong improvement in the bottom line flows from revenues that increased by 46 percent to $303 million for the six months to September over 2012, and 43 percent in the September quarter to $159 million.

The company keeps on totting up the quarterly profits as volume of business keeps on growing with some help from the slippage in value of the Jamaican dollar. Robust growth in profit was recorded in the last fiscal year to March of $164 million compared to $102 million, a 60 percent increase. The strong gain in profit achieved in 2012, up by 244 percent, was helped partially by a revaluation surplus on investment property that was booked in 2011.

LascoCambioServices_logo150x150Growth in 2013 is helped by the acquisition of cambio and money transfer business from Supreme Ventures. As the company grows in size, the growth rate has slowed but the results to date indicate are that the level seen last fiscal year should continue for the current fiscal year.

Expenses up | Expenses have grown steeply with selling and marketing ahead of revenues with a 55 percent increase for the quarter and 57 percent for the six months. Administrative costs are up, well below revenue growth with the September quarter up 19 percent and year to date 26 percent.

The company is now in the major period for earnings when remittances rise ahead of the Christmas season, which is expected to push profit well above what has been earned in any of the two quarters so far.

“The increase in income is a result of the growth in the remittance business due to additions of key partners and ongoing promotions,” management stated in their release to shareholders.

IC Insiders forecast is for earnings to be around $250 million or 20 cents per share for the full year.

Marketing | Management indicated when they released the June quarter figures “that Lasco Financial has commenced significant investments in marketing activities, which are expected to capture even more substantial market share for our remittance division; the outcome of which will also yield growth opportunities in the Currency Trading division. This is noticeable in our selling and promotion expenses which saw a 58 percent increase, up from $36.3 Million in the previous period to $57.6M. Administrative and other expenses rose in the quarter to $47.6 million up 33.7 percent over the same period of 2012.”

The company’s subsidiary Lasco Financial Services (Barbados) Limited and its agent Unicomer Barbados Limited (Courts) began trading in May 2013.  Lasco indicates that this business is now at a breakeven level.

Growth | Total assets amounted to just $47 million in 2010 but has enjoyed rapid growth and is at $661 million at the end of September this year, still a small financial company in the local market with room to grow. Loans advanced was nil at the end of 2011 and is now close to $100 million at the end of March this year and is expected to grow at about 30 percent for the year. Loans and receivables rose to $335 million at the end of June up from $237 million at the end of June last year, is down to $261 million at September. Cash also increased and is now at $282 million compared to $136 million at the same period in 2012. Equity stood at $564 million and is expected to increase as profits roll in.

Lasco Financial is an IC Insider Buy Rated stock.

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