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TTSE: First Citizens in high demand closes at $29.09

September 17, 2013 by IC Insider.com

Tuesday, 17th September 2013 | There was only trading in 20 units of the newly listed First Citizens Bank (FCB) but that was all that was needed to push the price to an all time high of $29.09. The price movement triggered the circuit breaker again, as it did on Monday, the first day of trading for the stock.

The price movement helped the all Trinidad & Tobago Index to climb 1 percent or 20 points to 1,863.55. At the end of trading there were 2,224,089 FCB shares on the bid to buy at $29.09 and there were no shares on offer as happened on Monday. The stock can trade as high as $33.45 on Wednesday. IC Insider’s initial forecast that it will hit $35 in this run up seems much closer now than before the start of this week. At the current price, the PE is 19.4 times this year’s earnings. Scotia Bank is at 22.50 times earnings presently, which means that if the FCB PE gets to that level, the price would be $34, a nice 54 percent gain in a few days from the issue price of $22. Meanwhile, another stock with appreciation potential, Trinidad Cement, claimed back the $2 level as the price rose today by 5 cents to close at $2 with 10,000 shares.

Trading took place in 13 securities as 3 advanced, 2 declined and 5 traded firm as 732,197 units traded at a value of $2,920,110. Jamaica Money Market Brokers had 618,901 shares changing hands for a value of $310,611 with the price closing firm at 50 cents. Jamaica’s National Commercial Bank traded a volume of 40,644 shares for $46,741 firm at $1.15. Neal & Massy Holdings contributed 24,578 shares with a value of $1,376,496, the price lost 10 cent to close at $56. Republic Bank traded 4,033 units at $110.04 up 2 cents. First Caribbean International Bank fell $1.00 to close at $6.75, a new 52 weeks low with just 1,029 units trading.

Clico Investment Fund share price remained unchanged to close at $21.56, with a volume of 31,084 shares valued at $670,094.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator continues to show signs of a fluid market with bids for 3 stocks being higher and 3 stocks having offers lower than their last selling price.

FX: Strong inflows and outflows

September 16, 2013 by IC Insider.com

Monday, 16th September 2013 | The buying price for the US dollar fell slightly by a cent as authorised dealers bought US$37,622,636 at $101.837 and sold US$37,803,396 at 8 cents more than on Friday at $102.53. The Canadian was bought for $97.6266, down a cent as C$1,314,269 was purchased but they sold the currency for 16 cents less than on Friday at $99.30 with C$889,856 purchased. Purchasing of the Pound amounted to £1,322,607 at an average of $160.0845, which was 50 cents less than Friday’s rate and selling amounted to £952,876.91 at 34 cents more at $163.57.

Overall the equivalent of $41.2 million was purchased and US$40.46 was sold.

There was no change in the lowest buying rate and the highest selling rate for the United States dollar, which stood at $84.34 and $108.07 respectively but the highest buying rate moved up 40 cents to $103.50 and the lowest selling rate was down $15.63 to $84.17.

Changes in the Canadian currency was moderate with a 15 cents fall in the highest buying rate that ended at $99.65 and 13 cents off the lowest buying rate which closed at $80.05. The highest selling rate remained unchanged at $103.36 and 20 cents was put on the lowest at $96.35.

The British Pound was bought for 5 cents more at the highest level of $163.50 with no change to the lowest buying rate at $131.56, but the highest selling rate jumped $4.54 to $169.13 and the lowest was up $2.40 to $158.

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

JSE: Proven preference dominant in slow trading

September 16, 2013 by IC Insider.com

Monday, 17th September 2013 | In another slow day of trading on the Jamaica Stock Exchange, 10,033,867 shares changed hands valued at $41,529,935. Proven Preference 8 percent shares accounted for 4,555,000 valued at $23,184,950 as the price closed firm at $5.09. There were 8 stocks that closed with increased in prices versus 6 that fell. The junior market index climbed 5.62 to close at 787.49 but the two main market indices fell quite a bit with the all Jamaica index going down 819.45 points to 85,064.08 and the main market index falling 465.72 to 84,893.83.

Carreras 22,532 units resulted in the stock closing at $47.60 down by 10 cents; Gleaner Company 178,398 units traded at $1.17 and was off by 3 cents at the close; Jamaica Broilers Group 23,082 units traded at $5 but slipped 10 cents; Jamaica Money Market Brokers traded 171,892 units firm at $8; Jamaica Producers Group 12,890 units traded firm at $18.25; National Commercial Bank 107,550 units closed trading at $18.65 up 4 cents; Pan Jam traded 44,294 units firm at $51; Sagicor Life Jamaica 21,500 units closed firm at $9 and Scotia Group Jamaica contributed 216,865 units as it traded at $21.30 up 10 cents.

Junior market | Caribbean Cream traded 48,093 firm at $1.03; Caribbean Producers exchanged 150,000 shares to close at $2.15 up 5 cents; while Lasco Distributors put in a good volume of 191,670 at $1.45, down 5 cents for a value of $1,726,670; Lasco Financial Services contributed 2,618,867 firm at $1.25 and valued at $3,273,584 and Lasco Manufacturing just exchanged 126,264 units as it closed firm at $1.60.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 8 stocks being higher and 2 stocks having offers lower than their last selling price.

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

TTSE: First Citizens triggers breaker

September 16, 2013 by IC Insider.com

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Monday, 16th September 2013 | First Citizens Bank stock hits $25.30, up 15 percent in early trading on the Trinidad & Tobago Stock Exchange as just 1,000 units traded. At the end of trading there were bids for 3,187,700 units at $25.30 and there were no stocks on offer, a clear sign of higher price in the days ahead.

The company that had a successful initial public offer of shares (IPO) between July and August when it was twice oversubscribed saw the stock price hitting the maximum it could trade a for the day based on the circuit breaker rule. At the current price, the PE of the stock is 17 times earnings based on the level of oversubscription and the value of other bank stocks IC Insider sees the prospects for the stock to reach $35 in this run up.

Other significant trading saw Jamaica Money Market Brokers exchanging 410,000 units firm at 50 cents for a value of $205,000 after the company announced that it has been cleared to acquire the remaining 50 percent of Intercommercial Bank to bring their shareholding to full 100% ownership.

Trinidad Cement traded 69,000 shares for $134,550 as the stock traded firm at $1.95; National Commercial Bank of Jamaica contributed 10,000 shares with a value of $11,500, while Republic Bank added 5,000 shares valued at $550,100.

Guardian Holdings closed up 48 cents at $14.50 but on only 100 units; National Flour traded 2,352 units and put on a cent to close at 76 cents, while Neal & Massy put in 3,103 units gaining 4 cents to close at $56.04. Clico Investment Fund, swapped 125,081 shares valued at $2,696,856 as the price remained at $21.56.

Trading activity on the First Tier Market registered a volume of 628,942 shares crossing the floor valued at $3,937,088 as there was trading in 14 securities of which 6 advanced, none declined and 8 traded firm.

At the end of trading, the Investor’s Choice bid-offer indicator was showing signs of a fluid market continuing with bids for 2 stocks being higher and 4 stocks having offers lower than their last selling price.

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

JMMB grows assets $125B to $200B

September 16, 2013 by IC Insider.com

Jamaica Money Market Brokers Limited (JMMB) has been given the green light to acquire an additional 50 percent share of the Intercommercial Banking Group Limited (IBL Group) to bring its stake in the company to full ownership. As a result JMMB, in just over a year, will almost double its assets from J$125 billion to $200 billion.

The acquired entity is a commercial bank in Trinidad & Tobago and not large by any standards as far financial institutions are concerned but it puts the Group in a position to gain market share in a country that seems to have started to grow again. By comparison, IBL Group is about the size of Mayberry Investments.

The IBL acquisition will add almost TT$1.55 billion in total assets that it held on its books at March (roughly J$14 is equal to TT$1). IBL assets enjoyed an increase of TT$336 million or 28 percent over the prior year and was mainly driven by the growth in the loan portfolio which moved from TT$488 million to TT$733 million. At the end of March, JMMB’s investment in IBL group stood at J$808 million for which they paid $331 million as indicated in the audited accounts. The data on IBL finances suggest that JMMB could have paid at least J$500 million for the added 50 percent ownership.

JMMB in a release on Friday confirmed that the Central Bank of Trinidad and Tobago has completed its assessment of JMMB`s application to acquire the additional fifty (50) percent of the shares of Intercommercial Bank Limited and Intercommercial Trust and Merchant Bank Limited, and has granted its approval to acquire the shares and become the 100 percent shareholder.

Profit | The Intercommercial Banking Group Limited (IBL Group) generated increased profit for the year ending March 2013 with a net profit after tax of TT$10.2 million, an increase of TT$5.7 million over the previous year but they reported a loss of JS$25 million in the quarter to June.

The banking group is operating in an economy of high levels of local currency liquidity, low interest rates and lackluster economic activity which have negatively impacted the demand for credit. Against these economic realities, IBL Group intensified its loan growth campaign which started in November 2011, and has been able to achieve an increase in net interest margin of 18.73 percent or TT$7.99 million to TT$50.66 million. Net interest income accounts for 61 percent of the total operating income of the Group. Interest income on loans and advances increased by TT$11 million or 26 percent while investment income fell by TT$2 million as a result of the low interest rate environment, as well as portfolio rebalancing into more liquid assets.

The Group’s operating expenses for the year was reported at TT$63.5 million, up TT$6.7 million or 12 percent over the previous financial year. IBL’s growth and expansion strategy over the past 17 months has contributed to this increase, the main drivers of which were staff related expenses and advertising and marketing expenditures.

Staff costs, the largest component of operating expenses, totaled TT$35 million to March, representing an increase of TT$4.6 million or 15 percent. In addition to the opening of the Tunapuna branch and the resultant incremental staff count, several key management positions that were vacant in previous financial year were filled in the 2012/13 financial year.

Client Deposits | In their annual report to shareholders, JMMB stated, “The total client deposit portfolio grew by 28.2 percent in the financial year which is consistent with the increase experienced in the loan portfolio. This represented a TT$66.2 million growth in savings and a TT$284.3 million growth in time deposits. The Group continued to focus on diversifying its deposit portfolio by expanding its core deposit (savings and demand accounts). While these efforts had some success in the year, we expect that more positive results will be seen in the coming months when several key initiatives in channel distribution are rolled out across the branch network.”

JMMB is an IC Insider Buy Rated stock. In 2011, JMMB placed third in the Investor’s Choice’s Champion Company award that recognizes management excellence.

Filed Under: Company News, General Business News Tagged With: JMMB, JSE Company

CWC to launch 4G LTE in Cayman

September 14, 2013 by IC Insider.com

Cable & Wireless (C&W) will launch Long Term Evolution (LTE) mobile data services in the Cayman Islands, where it trades as LIME. C&W will launch LTE services in the 2013/14 financial year initially on the isle of Grand Cayman.

The upgrade is the latest part of a programme of network upgrades across C&W’s pan-America business, providing customers with better access to mobile data. Mobile data usage is the fastest growing service across Cable & Wireless Communications’ (CWC) businesses, with Group mobile data revenue increasing by 34% in the 2012/13 year, a release from CWC said.

LTE is a ‘fourth generation’ (4G) mobile service which will enable C&W to provide mobile data services at speeds about four times faster than currently available in the Cayman Islands. This will enable customers to access services on their smartphones such as video calling, streaming of HD video clips and ultra-fast web browsing.

CWC was awarded the mobile spectrum over which it will broadcast LTE services having won a competitive tender process. It was awarded two blocks of spectrum in the 700 megahertz (Mhz) spectrum band, which will help to ensure that customers receive a good signal even when indoors.

“Just over two years after launching 4G mobile services across all three of the Cayman Islands, C&W has acquired an LTE license and additional frequencies which will enable us to provide super-fast mobile data services on the next generation of technology” the release from C&W said.

What is 4G? | Mobile phones have been through several generations of development.

The introduction of basic data services (predominantly text messaging) was called second generation (2G). EDGE networks provide faster connectivity to enable easier usage of mobile internet. EDGE networks are often marketed as 2.5G.

The 3G standard was given to networks utilising High Speed Packet Access (HSPA) technology, which enabled even faster download speeds and the use of multimedia services such as video calling and streamed video clips. 3G networks also enabled operators to launch mobile broadband services.

The International Telecoms Union has designated that a further generational leap has taken place in mobile technology. The 4G standard is awarded to a range of network technologies including HSPA+, WiMax and LTE.

Filed Under: Company News, General Business News Tagged With: C&WJ, Lime

TTSE: PE ratio not much change

September 14, 2013 by IC Insider.com

Friday, 13th September | There’s not much change to the PE Ratios for stocks on the Trinidad Stock Market as prices changes have remained muted for much of the past week. There are signs that with the allocation of the First Citizens Bank shares, funds may have been freed up for trading in other stocks.

On Monday, First Citizens is expected to commence trading and that is likely to make an immediate difference to the PE for that stock. There are others that appear ready to move in the days ahead. Trinidad Cement with the big pull back should attract some buying interest again.

We have removed National Enterprises from Finance and Banks to Conglomerates as the company is a holding company for a number of industrial enterprises in Trinidad.

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

FX: Rates keep on the up

September 13, 2013 by IC Insider.com

Friday, 13th September | Although authorised dealers bought the equivalent of US$34.36 million and sold US$33 million, all the selling rates moved up during forex trading today.

Buying took place for US$28,158,391 at an average rate of $101.8516 up 36 cents, C$1,706,762 was purchased for an average of $98.3431 up $1.23 and £2,793,935 for an average of $160.5862 at one cent less than on Thursday.

Dealers sold the US$28,836,956 $102.448 at 7 cents more than on Thursday and sold C$1,213,697 at an average of $99.4587, an increase of 40 cents and £1,815,192 at an average of $163.225 or 22 cents more.

Upper and lower ends | Trading at the upper end of the rate spectrum left the highest buying rate for the US dollar at $103.10 just 5 cents less than the day before with no changes for the other rates which remained at $84.34 for the lowest buying, $108.07 for the highest selling and $99.80 for the lowest selling rates.

The highest buying rate for the Canadian dollar was $99.80 for an increase of 20 cents and the lowest $80.18 or 33 cents higher while the lowest selling rate climbed 43 cents to$103.36 and the lowest increased by 15 cents to $96.15.

The highest buying rate for the British Pound was $163.45.\, a decline of just 20 cents and the lowest $131.56 or 42 cents higher, while the lowest selling rate dropped $4.47 cents to $164.59 and the lowest increased by $2.60 to $155.60.

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

JSE: Trading picks up but still light

September 13, 2013 by IC Insider.com

Friday, 13th September | Trading picked up from the highly depressed level of the previous three days resulting in stocks of 31 companies trading but the indices, with the exception of the junior market, all fell. The main market index closed at 84,893.83 declining by 465.72, the all Jamaica index fell 819.45 to close at 85,064.08 and the junior market picked up 5.62 to 787.49. A total of 3,460,048 units traded on the market valued at $25,713,143. There were 9 stocks declining to 5 that recorded price gains.

Main Market | Cable & Wireless traded 513,649 units firm at 18 cents; Caribbean Cement saw trading in 56,200 units at $2.65 as it lost 13 cents; Carreras delivered 35,803 units to new owners as the price closed at $47.70 down 80 cents; Grace Kennedy had just 16,000 units crossing the floor at $56.75 as the price lost 24 cents; Jamaica Broilers Group exchanged 30,642 at $5.10, down 10 cents; Investors moved 47,172 of Jamaica Money Market Brokers shares through for a $8 close, down 40 cents.

In the case of National Commercial Bank 95,452 units changed hands at $18.61 for a 1 cents gain; Sagicor Life Jamaica added 240,925 units to daily total at $9 at the close, the same price as yesterday’s close. Scotia Group put in a nice volume of 713,922 at $21.20, the price dropped 31 cents while Scotia Investments had only 3,600 trading but it gained 99 cents to close at $28; Supreme Ventures ventured into the market with 32,636 at $2.70 at the end of trading as it put on 15 cents for the day. Jamaica Money Market Brokers 8.75% preference shares traded 626,916 units firm at $3 and Proven Investments 8% preference traded 666,150 firm at $5.09.

Junior market | Trading in the junior market was very light with only 333,022 units changing hands. KLE Group traded 29,769 units Firm at $1.61, Lasco Distributors traded 23,970 units at $1.50 up 5 cents and Lasco Manufacturing traded 235,580 firm at $1.60.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator had bids for 9 stocks being higher and 2 stocks having offers lower than their last selling price.

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

TVJ Chairman resigns

September 13, 2013 by IC Insider.com

Radio Jamaica Limited (RJR) has advised that Milton Samuda, Attorney at law, has resigned from the Board of Directors of the company effective September 11, 2013. Samuda who was also chairman of the RJR subsidiary, Television Jamaica (TVJ) has served on the RJR board for seventeen years. As the head of the powerful Chamber of Commerce for a number of years, Samuda would have been the likely candidate to take over as Chairman for the RJR Group when the current Chairman Lester Spalding steps down.

The resignation comes in light of the controversy relating to a press interview which involved his clients, world-renown Asafa Powell and Sherone Simpson. Samuda, who reportedly sat in as part of the interview, is alleged to have taken the journalist’s tapes which were later edited.

In the release issued by the company following an investigation into the matter, “There were corporate governance issues and policy breaches which the chairman of TVJ accepts.”

Filed Under: Company News, General Business News Tagged With: JSE Company, RJR