Blog Page — Page 1428

Economy declined 0.1% in Q2

October 5, 2013 by IC Insider.com

The Statistical Institute of Jamaica (STATIN) is reporting that the Jamaican economy recorded a mild decline in the second quarter of this year, a big improvement over the decline suffered in the first quarter and down on the estimates put out by Bank of Jamaica and the Planning Institute of Jamaica earlier.

Total value added at constant prices for the Jamaican economy declined by 0.1 per cent in the second quarter of 2013 when compared to the similar quarter of 2012. This resulted from a 0.6 per cent decrease in output of the Goods Producing industries as the Services industries remained relatively unchanged. Total value added at constant prices for the Jamaican economy declined by 1.3 per cent in the first quarter of 2013 when compared to the similar quarter of 2012.

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Within the Goods Producing Industries, the 9.4 per cent increase in the output of Mining & Quarrying and 1.9 per cent increase in Construction output were not sufficient to offset the decline in Agriculture, Forestry & Fishery of 6.6 per cent and Manufacture of 0.1 per cent.

Within the Services industries, increased output was recorded for Hotels & Restaurants (0.6 per cent), Finance & Insurance Services (0.7 per cent) and Real Estate, Renting & Business Activities (0.2 per cent). Industries that experienced lower levels of output were: Electricity & Water Supply (-2.0 per cent); while Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment, Transport, Storage & Communication and Producers of Government Services all declined by 0.2 per cent. However, Other Services remained relatively unchanged during the period.

When compared with the first quarter of 2013 the economy improved by 1.5 per cent. Both the Goods Producing and Services industries recorded higher levels of output. The Goods Producing industries increased by 1.7 per cent while the Services industries increased by 1.5 per cent.

Image courtesy of koko-tewan/FreeDigitalPhotos.net

Filed Under: Economy Tagged With: BOJ, Economy, GOJ

U tweet, but will u buy twtr?

October 5, 2013 by IC Insider.com

People are at the heart of Twitter, the company’s SEC filing says. The company has achieved significant reach globally and continues to grow with more than 215 million monthly active users and more than 100 million daily active users tweeting 500 million times daily, spanning nearly every country worldwide. Anyway you cut it, Twitter is now a household name and a critical tool for millions of people all over the world. Presidents, heads of state and celebrities are users of this communication tool.

Growth in acceptance of Twitter has translated into strong and rapid revenue growth from 2011 to 2012 increasing by 198 percent to $316.9 million, while net loss declined by 38 percent to $79.4 million and adjusted EBITDA increased by 149 percent to $21 million. For the six months ended June this year, revenue increased by 107 percent to $253.6 million over the same period in 2012, net loss increased by 41 percent to $69.3 million and adjusted EBITDA increased by $20.7 million to $21.4 million.

Since inception, Twitter accumulated deficits of $418.6 million. Although revenue has grown rapidly, increasing from $28.3 million in 2010 to $316.9 million in 2012, Twitter says that they expect that the revenue growth rate will slow in the future as a result of a variety of factors, including the gradual slowdown in the growth rate of user base. Future revenue growth will depend on, among other factors, ability to attract new users, increased user engagement and ad engagement, increased brand awareness, to compete effectively, maximize sales efforts, demonstrate a positive return on investment for advertisers, and successfully develop new products and services to expand internationally.

According to the company, “The net proceeds from the sale of our shares of our common stock by us in this offering may be used for general corporate purposes, including working capital, operating expenses and capital expenditures.” Twitter anticipates making capital expenditures in 2013 of approximately $225 million to $275 million and they may use a portion of the net proceeds to fund anticipated capital expenditures and to acquire other businesses, products, services or technologies and other working capital needs.

Sources suggest that the IPO is set to raise at least $1 billion for the company which should take place within a few weeks when the issue price would be set.

Filed Under: Company News, Initial Public Offers, Stock Market, Stocks to watch Tagged With: Twitter

FX: Jamaican dollar climbs above $104

October 4, 2013 by IC Insider.com

Friday, 4th October 2013 | The Jamaican dollar climbed above $104 to the US dollar for the first time as dealers sold US$62 million at $104.05, an increase of 7 cents over the price on Thursday.

Dealers bought only US$24.2 in contrast but at 28 cents higher than Thursday at $103.37. It cost 24 cents for dealers to buy the Canadian dollar as they bought C$903,944 at $98.734 and sold $2.6 million at $102.31, 24 cents over Thursday rate. For the Pound, dealers bought £1.16 million at $1.14 lower at $165.25 and sold £738,119 at $168.75, 12 cents lower than on Thursday. Overall there was buying of the equivalent of US$27 million and selling of US$65.95 million.

Highs & Lows | The US Dollar was bought as high as $104.90, a reduction of 15 cents and the sold US dollar at a low of $101.30 or 80 cents more for the day. The lowest buying rate remained static at $84.75 as did the highest selling rate at $108.61.

The Canadian was 20 cents higher for the highest buying rate which ended at $101.70. The British Pound increased by 20 cents for the highest buying rate that ended at $170, while the lowest buy rate fell 37 cents to $134.92. The highest selling rate for the Pound fell $3.12 to $171.50 but the lowest selling rate climbed 60 cents to $162.55.

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

JSE: Declining stocks hits advancing

October 4, 2013 by IC Insider.com

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Friday, 4th October 2013 | The Jamaica stock market closed down on the last day of the week as 11 stocks fell with 6 advancing resulting the market indices falling sharply. The JSE main index closed at 84,399.82, a decline of 640.92; the all Jamaica Index fell to 84,194.89 off by 1,127.68 and the junior market was down by 3.40 to 769.73. Trading volume climbed to 12,147,981 units but most were low priced Cable & Wireless and Gleaner Company stocks resulting in only $13,968,037 of trading.

Cable & Wireless landed 4,020,000 units as the price closed down a cent at 18 cents; Carreras exchanged 23,390 units to close down 90 cents at $45.10; Caribbean Cement chipped in with 167,905 units as it gained cents to close at $2.20; Gleaner Company 6,900,078 units to close at $1.17; Jamaica Stock Exchange traded 20,000 units to close at the IPO price of $2.85; Mayberry Investments 10,738 $2.60; Sagicor Investments traded 15,000 units to close firm at $16.55; Sagicor Life 20,843 units at $9; Scotia Group 70,032 at $21; Jamaica Money Market Brokers 7.50% 100,000 units at $2; Jamaica Money Market Brokers 8.75% 70,000 $3 and Proven Investments 8% 39,650 $5.09.

Junior market | Dolphin Cove traded 27,141 units to close down 20 cents at $8; General Accident 35,000 units to close at $1.90, down 9 cents; Lasco Distributors gained a cent as 36,866 units changed hands to close at $1.49 and Lasco Financial Services traded firm as 436,543 units traded to close at $1.25.

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

TTSE PE: Changes in ranking

October 4, 2013 by IC Insider.com

Friday, 4th October 2013 | The PE Ratio chart continues to show good potential for a number of stocks to provide decent gains in the months ahead on the Trinidad & Tobago Exchange.

There are some stocks that appear to be fully priced with a limited likelihood of growth and there are those that are riskier than stocks with very low PEs relative to their peers.

Trinidad Cement still sits atop the heap with potential for 500 percent gains followed by Guardian Holdings, Berger Paints that has not been trading and National Flour that climbed to 87 cents at the end of the week.

National Enterprises is now up to $17.02 which reduces the potential gains to 35 percent and Angostura Holdings gains is now down to 26 percent.

Filed Under: Company News, Stock Market, TTSE Market Tagged With: PE Ratios, TTSE

TTSE: Returns to low trading

October 4, 2013 by IC Insider.com

Friday, 4th October 2013 | Activity on the Trinidad Stocks Exchange on Friday was moderate with trading in just 7 securities of which 3 advanced, 3 declined and 1 traded firm. The low level of trading is reflected in only 223,296 units changing hands valued $2,933,256 but with two stocks reaching new 52 weeks high.

Jamaica Money Market Brokers traded 134,333 shares for a value of $73,883 as the price remained firm at 55 cents. First Citizens Bank traded only 45,585 shares valued at $1,595,712 as it closed a cent up to $35.01. National Enterprises contributed 5,500 shares with a value of $93,605 while the price moved up to $17.02, up by 20 cents for a new 52 weeks high. Republic Bank added 3,927 shares valued at $432,088 and lost a cent in the process to close at $110.03. Trinidad Cement fell 5 cents to close at $2.15 trading 724 shares and Unilever closed up a cent at $55.53 with 827 units trading, a new 52 weeks high.

Clico Investment Fund declined by $0.20 to end at $21.31 with 32,400 shares valued at $690,488.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator showed the market consolidating with bids for 2 stocks being higher and 3 stocks with offers lower than their last selling price.

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

Sagicor cuts dividends

October 4, 2013 by IC Insider.com

Both Sagicor Life and Sagicor Investments have cut dividends from the amounts paid in 2012.

Sagicor Life | The Board of Directors of Sagicor Life Jamaica Limited declared a dividend of 21 cents per share payable on October 31, 2013 to shareholders on record as at October 16, 2013. The ex-dividend date is October 14, 2013. This latest dividend brings the total for 2013 to 40 cents per share as a dividend of 19 cents per share was paid on March 28, 2013.

In 2012 the company paid two dividends of 28 cents each for a total of 52 cents per share.

The decline in dividend payout comes against the back drop of losses picked up from the government bond exchange (NDX) earlier this year, which resulted in realized capital losses of $1.2 billion and a 16 percent drop in net profit attributable to stockholders for the six months to June of $2.18 billion versus $2.60 billion in 2012.

Sagicor Investments | Sagicor Investments Jamaica declared an interim dividend in the amount of 12 cents per stock unit payable on October 31, 2013 to stockholders on record as at October 17, 2013 with an ex-dividend date of October 15, 2013. The company paid an interim dividend in the amount of 48 cents per stock unit on March 27, 2013.

In 2012 the company paid a dividend of 57 cents per stock unit on October 29, 2012 to stockholders and 74.3 cents per stock unit on April 27, 2012. The 2013 dividend is a 50% decrease from the prior year.

Sagicor Jamaica is an IC Insider Buy Rated Stock

Filed Under: Company News, Dividends Tagged With: Dividends, JSE Company, Sagicor

Non-Traditional exports up

October 4, 2013 by IC Insider.com

Jamaica’s Non-Traditional Exports earnings continue to record growth for the first six months this year over the similar period in 2012. Earnings from the segment rose by US$28 million or 7.8 percent to US$387 million. “Other” non-traditional domestic exports rose by 17.4 per cent to earn US$283.9 million. This was due to the significant increase in “Chemicals (incl. Ethanol)” of US$65.8 million, which recorded a value of US$96.5 million. “Food” increased by 0.8 percent to earn US$71.8 million.

Jamaica imported US$129.6 million less goods for the first six months of 2013 than for the similar period last year, while exports remained fairly flat resulting in an improvement in the large trade deficit the country has had for several years. During the 2013 period the merchandise trade deficit fell to US$2,257 million from US$2,386 million in the 2012, a decline of 5.4 percent. The movement is in the right direction but will need to undergo further substantial change during the life of the IMF agreement.

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Exports | Total exports during the six months to June 2013 were US$852 million, virtually the same amount as in 2012. Earnings from total traditional exports accounted for US$429 million, down from US$459 million in the comparable period of 2012, a US$30 million decrease or 6.6 percent. The decline is due to a fall in the “Manufacture” group. Earnings from this group accounted for US$80.9 million or 18.9 percent of total traditional exports during the first six months of 2013, a fall of US$43 million or 34.8 percent. Despite the overall decline in the exports of major traditional domestic exports, the “Agriculture” group increased earning by US$14.5 million, when compared to the US$11.2 million in the 2012 period. This was due largely to higher exports of ‘Coffee’ which rose from US$8.2 million to US$10.9 million in the 2013. ‘Citrus’ moved from US$1.5 million in the 2012 period to US$3 million in the current 2013 review period. “Mining and Quarrying” earned US$333 million during the first half of 2013, up from US$324 million in the 2012 period.

Imports | Imports during the first six months was US$3,109 million, down from US$3,239 million in the comparable 2012 review period. The Jamaica Free Zone accounted for US$237 million of imports in 2013. The major commodities imported were “Mineral Fuels, etcetera”, “Food”, and “Chemicals”, “Machinery & Transport Equipment”, “Manufactured Goods” and “Miscellaneous Manufactured Articles”. “Mineral Fuels, etcetera” accounted for 35.9 percent of imports as spending on this commodity fell by US$218 million or 16.3 percent. Expenditure on “Machinery and Transport Equipment” decreased by US$3.4 million to US$439.5 million for this period. “Manufactured Goods” declined to US$285 million, a fall of US$26 million. Lower imports of ‘manufactures of metal’, ‘non-metallic mineral manufactures’ and ‘paper, paperboards & articles of paper pulp’ were the reasons for this decline.

CARICOM trade imbalance | Imports from CARICOM during the first six months of this calendar year, was US$432 million representing 13.9 percent of total imports from the rest of the world. Imports decreased by US$105 million or 19.5 percent, below the US$537 million for the January to June 2012 period. Contributors to the downward movement in imports were: “Mineral Fuels, etcetera” falling by 28.5 percent or US$115 million to US$288 million. “Manufactured Goods” fell by 9.8 percent to US$11.3 million while “Chemicals” moved from US$15.4 million to US$13.9 million in the current 2013 review period. “Food” valued at US$86 million was up from US$75 million an increase of US$11 million or 13.6 percent. Other major imports namely “Beverages & Tobacco” and “Misc. Manufactured Articles” moved up and were valued at US$20 million and US$7 million respectively.

Total exports to CARICOM were valued at a mere US$33 million for the January to June 2013 period, down from US$35 million in the 2012 period. Domestic exports amounted to US$28 million, down from US$30 million in the 2012 period. “Chemicals” was valued at US$3 million, down from US$6.5 million recorded in the similar 2012 period. Earnings from “Food” increases was valued at US$16 million, up from the US$15.4 million exported in the corresponding 2012 review period. “Beverages & Tobacco” had a positive impact on the growth in exports and was valued at US$5.2 million compared to the US$4.8 million recorded in the similar 2012 review period. For the period under review, Jamaica incurred a trade deficit of US$399 million with CARICOM. When compared to the US$501 million deficit recorded for the 2012 period, the trade deficit narrowed by US$102.4 million or 20.4 percent.

Related posts | Trades deficits narrows to May

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Filed Under: Economy Tagged With: Economy, GOJ, Trading Activity

Producer prices tamed in August

October 4, 2013 by IC Insider.com

Data out from the Statistical Institute of Jamaica (STATIN) indicates that the inflationary pressures in the goods producing sector has been moderate during August this year.

According to the government body charged with responsibility to collect and collate data on the country, the Producer Price Index for the Mining & Quarrying industry increased by 0.2 percent for August. This was due to the upward movement of 0.2 percent in the index for the major group ‘Bauxite Mining & Alumina Processing’. Producer prices for the Manufacturing industry increased by 0.4 percent the result of the movement in the major groups, ‘Food, Beverages & Tobacco’ and ‘Refined Petroleum Products’ that showed increases of 0.2 percent and 3.0 percent respectively. However the index for the major groups ‘Chemicals and Chemical Products’ showed a decline of 5.0 percent.

The point to point period, August 2012 to August 2013 showed movement in the index for the Mining & Quarrying industry of 13.6 percent, a decline of 0.3 percentage point below the 13.9 percent recorded for the previous period. Additionally the point to point for Manufacturing recorded an increase of 8.2 percent. This increase resulted from advances of 8.0 percent and 9.7 percent for the two most influential major groups namely ‘Food, Beverages & Tobacco’ and ‘Refined Petroleum Products’.

For April 2013 to August 2013, the index for Mining & Quarrying industry advanced by 2.1 percent, while the Manufacturing industry increased by 1.5 percent for the corresponding period.

Related posts | BOJ: Economy likely declined in Q2

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Filed Under: Economy Tagged With: Economy, Statin

FX: Slippage continues

October 3, 2013 by IC Insider.com

Thursday, 3rd October 2013 | Trading in the Forex market picked up on today with the equivalent of US$3.7 million being purchased and US$41 million being sold with the rate for the Jamaican dollar slipping further at the end of trading.

Trading in US dollars resulted in US$23.8 million of that currency being purchased at $103.09, a 3 cent increase over Wednesday’s rate and selling amounted to US$36 million at $103.98 an increase of 20 cents over the prior rate.

The buying rate for the Canadian dollar moved up by 24 cents to $98.49 as C$1 million was purchased and CS$511,633 was sold at $100.67 or 30 cents up for the day.

The British Pound cost $1.22 more to purchase at $166.38 as dealers bought £2.967 million and sold the Pound at 69 cents cheaper at $168.86 as £2.09 million was sold.

There were mixed results for the highest and lowest buying and selling rates. The highest buying rate for the US dollar fell 75 cents to $105.05 and the lowest selling rate was down 80 cents to $100.50 but the rates for the lowest buying and the highest selling remained unchanged at $84.75 and $108.61 respectively.

The Canadian dollar’s highest buy rate moved up 40 cents to $101.50 with all others remaining unchanged at $80.51, $103.79 and $97 respectively. The highest buy rate for the Pound was 30 cents more at $169.80 with no change to the lowest at $135.29, while the highest selling rate was up 21 cents to $174.62 and the lowest declined 55 cents to $161.95.