Blog Page — Page 1443

TTSE: Low trading for T&T market

August 23, 2013 by IC Insider.com

Friday, 23 August, 2013 | The Trinidad Stock market has been dominated by trading in Clico Investment Fund with volume of 56,776 shares valued at $1,209,329 trading to close firm at $21.30. Trading in the main market continues to be very subdued with only 100,546 shares crossing the floor of the Exchange valued at $197,401 as overall trading took place in 6 securities of which 3 advanced, 2 declined and 1 traded firm. Overall trading accounted for 157,322 shares valued at $1.4 million.

The main trades were, Jamaica Money Market Brokers 36,100 shares valued at $19,885 as the stock lost 2 cents and closed at 55 cents, National Flour Mills 30,400 shares worth $20,880 and closed at 68 cents down 2 cents. Trinidad Cement 20,000 shares with a value of $41,000 as the stock gained 5 cents to close at another 52 weeks high of $2.05 and seems poised to move higher as it has a bid for 111,187 units at $2.05, while the offer is at $2.30 for only 472 units. Of course much could change when trading starts on Monday. Sagicor Financial Corporation added 11,500 shares valued at $74,900 the stock gained 17 cents to close at $6.53. National Enterprises traded 2,546 units in gaining 24 cents to end the day at $16.00.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 3 stocks were higher with 5 stocks having offers lower than their last selling price.

Radio Jamaica’s sharp turn

August 23, 2013 by IC Insider.com

Radio Jamaica made a sharp about turn in profitability in the June quarter reversing a loss of $25 million in 2012 to a small profit of $1.6 million. The change came about as revenues increased by 7.3 percent to $440 million. The company says the change in revenue is due to increased advertising income, flowing from the website’s continuous growth in visitors and increased portfolio of local production in television which contributed favourably to higher income and improvement in response to the sales and marketing.

Also helping the changed bottom line was a doubling of other income from $17.7 million to $34.65 million but it is cost cutting that really did the trick. Selling expenses was cut to $70 million from $76.4 million in 2012, administrative expenses was reduced from $103.7 million down to $98.5 million and other operating expenses which came in at $73.4 million was down from $87 million. RJR negotiated a number of contracts but bringing the cable channel under the same roof as the main studios help cut costs as well. Interest cost was one expense that climbed as loans were taken on to help fund the acquisition the FIFA franchise for matches between 2013 and 2022. This amount climbed from $1.2 million to $5.4 million.

RJR would have suffered revenue decline from the closure of Claro mobile network resulting in less completion in the market as well as the general economic downturn, which started in late 2008. Data to date indicate that the economy is still declining at least up to the first six months of this year. Forecast going forward does not reflect any signs of much economic growth.

The turnaround in profits is welcomed news for investors who have seen profits decline from 2010 when it peaked at $222 million ending with a big loss for the year ended March 2013. Even with the return to profits, the company is not fully out of the woods as the economy is still fragile and things could get more difficult before they get better. In such an environment, the strength of the finances take on even more import.

IC Insider forecast is for the 2013/14 year to show profits of $63 million after tax or earnings per share of 18 cents which would be a big improvement over the $36 million loss reported last fiscal year ending March 2013.

Loan funding is now at $193 million and cash funds at $252 million and receivables is $439 million versus payables of $224 million.

Related posts | RJR’s $106M 4th quarter loss

Filed Under: Company News, Company Results Tagged With: JSE Company, RJR

FX: Rates down as IMF sign off test

August 22, 2013 by IC Insider.com

Thursday, 22 August 2013 | Only the US dollar buying rate moved up in today’s Forex market as all others declined. Traders bought US$24.6 at $101.33 up 2 cents and sold $22.1 million at $102.01 down 3 cents from Wednesday’s rate. C$663,000 was bought for $1.40 less at the end of trading than at the end of Wednesday as the buying rate slipped to $95.54 and selling amounted to CS$552,000 at $1.40 less at $967.25. The Pound was bought for $2.10 less at $156.40 for £902,000 while selling took place at $159.71 for £1.16 million at 38 cents less than on Wednesday. Overall, the equivalent of $26.88 million was purchased and US$24.66 million sold.

Buying took place as high as $102.70, a decrease of only 5 cents and selling as low as $83.92, down $15.68 for the US dollar. The lowest buying and highest selling rates remained unchanged at the end of trading. The Canadian dollar had to be bought as high as $101.20, which is $3.10 more than Wednesday but the lowest rate paid by dealers was 42 cents less at $78.85. The highest selling rate remained unchanged and 80 cents was taken off the lowest selling rate, which closed out the day at $95.

The Pound was purchased at 75 cents less at $159.80 at the highest level but the lowest buying rate stood 70 cents more than on Wednesday at $129.77. Selling was as high as $4.56 more at $167.35 and as low as $3.70 less at $151.60.

The IMF staff signed off on the country’s economic targets clearing the way for a draw-down of funds under the agreement with the fund. The amount to be paid is not large (US$30 million) and it is not due until September. However, the physiological impact on investors and the effect it could have on the forex market should not be ignored.

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

JSE: More stocks declined than advanced

August 22, 2013 by IC Insider.com

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Thursday, 22 August 2013 | Trading on the Jamaica Stock Exchange fell to the lowest levels for months as just $12 million was invested in stocks on a day when 11 stocks fell and just 6 increased in price as 3.5 million units traded with Cable & Wireless accounting for 1.5 million and closing firm at 17 cents.

The all Jamaica index declined by 259.76 to close at 84,920.04, the main market index closed at 85,066.46, a decline of 147.63. The junior market index put on a marginal increase to close at 782.13.

Main Market | Carreras lost 10 cents in trading 10,710 units to close at $49 as the stock remains under pressure. Grace Kennedy traded 10,100 shares to close at $56.75, down 24 cents, Jamaica Money Market Brokers contributed 71,009 to close at $8.03 up 3 cents. Jamaica Stock Exchange chipped in with 70,350 units and closed at $3.10 off 15 cents. National Commercial Bank exchanged 38,300 shares and gained 3 cents to close at $18.53, Sagicor Investments put in 150,500 units, lost 20 cents and closed at $16.55, Sagicor Life Jamaica traded just 11,092 units to close at $8.31, off 9 cents and Scotia Investments saw 12,000 units trading firm at $26.15, Proven Investment Preference shares traded 1,009,800 to close at $5.07, off 2 cents for a value of $5,119,882. Jamaica Producers traded a small volume but lost 75 cents to close at $17.50. Caribbean Cement traded at a new 52 weeks high of $3 during trading but closed back at $2.65, yesterday’s 52 weeks high.

Junior market | Caribbean Creams traded 279,793 and closed firm at $1.05, Honey Bun traded 16,500 firm at $3.50, Lasco Financial Services chipped in with 21,447 units firm at $1.50 and Lasco Manufacturing 183,860 trading at $1.59 down a cent.

Consolidated Bakeries did not trade but it had a bid at $1.44 versus the last sale price of $1.41 and Lasco Distributors bid was at $1.50 versus last sale of $1.45.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 6 stocks were higher with 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

IMF team passes Jamaica, BUT

August 22, 2013 by IC Insider.com

The IMF team reviewing Jamaica’s compliance with the agreement tied down earlier this year, gave the authorities glowing marks for their achievements for the first quarter to the end of June, effectively giving their seal of approval but, “These staff level understandings are subject to approval by the IMF’s Management and Executive Board. Provided that performance remains strong, Board consideration of the first review of Jamaica’s IMF-supported program under the Extended Fund Facility could take place late September. Upon approval, SDR 19.97 million (about US$30 million) would be made available to Jamaica.

“Overall policy implementation thus far under the program has been strong and structural reforms are progressing” the IMF team stated. The team went on further to state that all quantitative performance targets and indicative targets for end-June were met, including the floor on social spending. For FY 2013/14, a budget that targets a central government primary surplus of 7.5 percent of GDP has been adopted and is now being implemented. The Government continues to implement its decision to strictly limit the granting of discretionary waivers. Several legislative amendments have been adopted to bolster tax administration, and the resources of the large tax-payers office have been increased. All other structural benchmarks to date have also been met in a timely manner. A conceptual framework for a fiscal rule that will help lock in the gains from fiscal consolidation over the longer term is expected to be ready by the end of this month.

“Key elements of the authorities’ updated program are:

The adoption of fundamental tax reform before the next fiscal year, designed to broaden the tax base, simplify the tax system, reduce tax rates, and reduce economic distortions and support growth. Tax reform is programmed to commence with an Omnibus Incentive Tax Act and a Charities Bill, to be tabled in parliament before end-September.
Steadfast implementation of the government’s strategy to increase growth by improving the business environment and pursuing strategic investments.
Further actions to make the financial sector more resilient, through enhanced supervision and monitoring, and with phased reforms of the securities dealers sector.
Strengthening the social protection framework, with enhanced efforts to move recipients from welfare to work, and the recent increase in PATH benefits.

Filed Under: Economy Tagged With: GOJ, IMF

NASDAQ 3 hour shutter

August 22, 2013 by IC Insider.com

According to reports, NASDAQ, the second largest stock exchange in the USA and World, halted trading today for 3 hours due to a glitch in its computer system. This is bad news for one of the more popular exchanges that newer companies tend to flock as opposed to the older New York Stock Exchange (NYSE).

Previously, NASDAQ was in the headlines when Facebook debuted on the exchange and trading in the stock was suspended for hours before trading could begin, creating confusion and losses for many. The exchange was slapped with a US$10 million fine and suffered additional losses by paying out compensation to investors as a result of the failure.

Many were fearing that Facebook may shift the listing from NASDAQ to the NYSE but so far this has not happened.

One would expect these failures in third world countries and not in a developed one. The problem with failures is that it reverberates around the world as other exchanges rely on the NASDAQ for prices. In this case, over 50 exchanges worldwide were affected which could result in losses for some investors. More importantly, it affects investor and public confidence in a big way.

Filed Under: Company News, General Business News Tagged With: Daily Trading, Nasdaq

IMF loan payment for St Kitts

August 22, 2013 by IC Insider.com

The Executive Board of the International Monetary Fund (IMF) completed the fifth and sixth reviews of St. Kitts and Nevis’ economic performance under a program supported by a 36-month Stand-by Arrangement (SBA) in July. The completion of the reviews allows the immediate disbursement of an amount equivalent to SDR 4.266 million (about US$6.45 million), bringing total disbursements under the arrangement to SDR 47.37 million (about US$71.58 million).

According to statement released by the fund, “The St. Kitts and Nevis authorities have continued the successful implementation of their Fund-supported program, in particular making progress toward achieving fiscal objectives and debt restructuring. Following a four-year contraction in economic activity, signs of an economic recovery are emerging. Sustained commitment to prudent macroeconomic policies and reforms will be necessary to address remaining risks and vulnerabilities and to support stronger and inclusive growth.

“The 2013 budget is aligned with the authorities’ dual objectives of redeploying resources towards growth-enhancing outlays and continuing fiscal consolidation through significant budgetary primary surpluses. To boost revenue, while steps are being taken to improve revenue administration, action will also be needed to broaden the tax base, in particular to streamline tax exemptions. Moreover, the fiscal performance of the Nevis Island Administration could usefully be bolstered and would benefit from improved communication between the twin-island federation

“The restructuring of public debt has continued, notably with establishing the legal framework for incremental debt/land swaps. To help buttress banks’ income, it is necessary to proceed with launching the land asset management company, according to best practices, and with land sales. Continued collaboration with the Eastern Caribbean Central Bank will be needed to monitor and address financial sector developments and implement reforms.

“Accelerating the pace of structural reforms is important to secure lasting gains in fiscal sustainability, neutralize pressures on current outlays, and promote stronger and inclusive growth. Priority should be given to pension and civil service reform and to streamline the social safety net. Implementing programs to upgrade education and training skills of job seekers to enhance their employment prospects will also be important.”

Filed Under: Economy Tagged With: IMF, St Kitts & Nevis

TTSE: Trading very low on Thursday

August 22, 2013 by IC Insider.com

Thursday, 22 August 2013 | In a very slow trading day when only 74,710 shares traded with a value of $1.8 million. Trinidad Cement was higher by 5 cents to close at $2.00, a new 52 weeks high. The stock traded 10,822 shares with a value of $21,693 on a day when just 1 stock gained in price and 2 declined as only 7 stocks traded.

Other stocks that were active in Thursday’s trading included Republic Bank, which had a volume of 2,537 shares valued at $279,095, West Indian Tobacco 1,277 shares with a value of $149,472.85, Scotiabank Trinidad 1,245 shares valued at $87,133. National Enterprises declined by 24 cents to close at $15.76 but with only 344 units trading. Clico Investment Fund, posted a volume of 57,448 shares valued at $1,223,642.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 6 stocks were higher with 3 stocks having offers lower than their last selling price. This is slightly better than Wednesday’s close when it was 4 to 2.

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

T-bill rates mixed at auction

August 22, 2013 by IC Insider.com

Interest on Treasury bills rose again in the latest auction held on 21 August 2013. On offer were two instruments seeking to raise $400,000 each for 91 Days and the other of 185 Days duration. Both instruments were oversubscribed.

The average rates came out at 7.34, down from 7.995 percent for the 91 day at the July auction and is back at the level in June. This is a pretty sharp decline, as $771.75 million chased $400 million on offer. But investors who placed bids as high as 7.75 percent were able to get some of their bids filled. Full allotment took place at 7.74923 percent.

The 185 Days instrument came out at an average rate of 8.1255 percent, slightly up from the 182 days instrument issued in late July at 7.88 percent. Investors, however, got rates ranging from 6.729 to 8.50 percent in full and partial allotment as high as 8.657 98 percent. A total of $400 million were on offer and bids amounting $768 million were tendered.

Related posts | T-bill rates move up again

Filed Under: Economy Tagged With: BOJ, TBills, Trading Activity

JSE: Market down but not out

August 21, 2013 by IC Insider.com

Wednesday, 21 August 2013 | Prices on both the main & junior markets took a dive today as declining stocks barely outnumbered advancers once more, with 7 advancing and 8 declining. In the process, the market took back more than it gained on Monday and Tuesday. The number of stocks trading amounted to 5.2 million valued at just $15.4 million as General Accident, Cable and Wireless and Jamaican Teas traded relatively large volumes.

The All Jamaican index fell by 814.28 to close at 85,179.80, the main market index was down by 462.79 points to 85,214.09 and the junior market down 12.12 point to close at 781.99.

Trading was moderate in the main market with Cable & Wireless trading 1.4 million units as it closed at 18 cents up 3 cents from the last price on Tuesday. Caribbean Cement scored another 52 weeks high as the stock hit $2.65 at the end of trading, a gain of 43 cents as 147,400 units traded. Carreras is holding around the $49 region as 23,931 units traded firm at $49.10, Grace Kennedy traded 40,255 units at $56.99, up 4 cents. National Commercial Bank traded 53 311 units at the closing price of $18.5, off a cent, Sagicor Life Jamaica had 93,000 units trading while losing 60 cents in closing at $8.40, Scotia Group 16,500 firm at $21.01. Scotia Investments traded 8,000 units and gained 14 cents to close at $26.15. However, the stock traded in Trinidad at the equivalent of $32.70, a huge differential. JMMB, which did not trade, is selling in Trinidad at $9 equivalent compared with $8 in Jamaica.

Junior market | General Accident with 1.87 million shares valued at $3.47 million was the big mover in the junior market as the stock traded firm at $1.85. The market was characterised by selling as 6 junior market stocks fell in price with none advancing. Blue Power Group traded 3,300 units at $9.20, slipping a cent from the last traded price on Tuesday. Caribbean Cream traded 99,207 units at $1.05, down 2 cents, Caribbean Producers traded firm at $2.03 with 162,100 shares, Jamaican Teas lost 40 cents on trading 977,993 units valued at $3.9 million, Lasco Distributors traded at $1.45 at the close down a cent with 92,000 shares, Lasco Financial Services closed at $1.50 off 2 cents while trading 28,272 units and Lasco Manufacturing closed at $1.60 with 57,000 units as the stock closed off a cent.

Eppley closed with a bid of $400 for 423 shares but has not traded since listing on July 29.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 6 stocks were higher with 1 stocks having offers lower than their last selling price.

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