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TTSE: Clico dominates

June 27, 2013 by IC Insider.com

Wednesday, 26th 2013 | Ten stocks traded on the exchange on Wednesday with only one stock recording a price movement as Clico Investment Fund dominated trading with 1,341,576 shares valued at $30,856,248. One stock fell in price on the day as the conglomerate ANSA McAL declined by 2 cents to end the day at $67.20 while trading a mere 486 shares. The main market registered a volume of 189,797 shares valued at $378,214.

Jamaica Money Market Brokers had 107,880 shares changing hands for a value of $53,940. Trinidad Cement saw a volume of 61,153 shares trading for $58,006. Angostura Holdings contributed 10,000 shares with a value of $90,000 and Sagicor Financial Corporation accounted for 8,510 shares valued at $53,358.

IC bid-offer Indicator | At the end of trading, the IC bid-offer sentiment indicator shows that bids for 3 stocks were higher, with 3 stocks that had an offer that was lower than their last selling price.

At the close it appears that Witco with a PE of 26 and Unilever with a PE of 21 are poised for more gains ahead. So too is Scotia Investments, which had a bid of 117,000 shares at $1.78 on Tuesday saw the bid moving to $1.80 for 1,200 shares, the offer is for 21,878 share at $1.85. Others are showing signs of possible price gains are National Enterprises with a PE of 16, One Caribbean Media with a PE of 12.5, National Flour mills with a PE of 6.

Unilever stock not supported by profits

June 27, 2013 by IC Insider.com

When stock prices rise much faster than the growth in profits, we need to take time to take note of what is happening. Investors in such stocks should be fully conversant with the factors at play to ensure that their investment can be properly protected if, and when, the factors change.

Unilever Caribbean stock price is up 13 percent so far this year on top of a 45 percent increase in 2012, 44 percent in 2011 and 35 percent in 2010 after a 16 percent fall in 2009. The company a subsidiary of Unilever PLC, a United Kingdom company, is based in Trinidad and manufactures a range of homecare, personal care and food products for the Caribbean region, including Jamaica, and has been having a reasonable profit performance for a number of years. In fact they have been able to improve sales and margins in a market that has been in recession since 2009. The growth in the stock price is well in excess of the rise in profits for the past four and half years.

Some of the company’s brands include Mistolin, Radiante, Breeze, Vaseline, Lux, Lipton, Becel and Blue Band. The product range also includes dishwashing liquids as well as fabric conditioners.

For the three months to March this year, revenues climbed to $133 .6 million up from $127.5 million for the same period in 2012 while profits were up to $13 million after tax compared to $11.9 million in 2012. The December quarter is the biggest period for earnings with more than a third being generated in the period. For 2012 full year to December the company reported after tax profit of $59.5 million an increase of 2.8 percent over that earned in 2011. Profit for 2011 was up 11 percent over 2010 and 2010 profit was up 26 percent over the previous year. Lower interest rates in Trinidad have helped to push the PE ratio to 21 times earnings at a current stock price of $53.25, up from 14 times in 2011 and 11.5 for 2010.

Unilever reported areas of success reflected in good growth in some of its products but also expressed concerns about rising input cost of some of the products it manufactures as well as competition from cheaper products. From all indications, management seems to have managed to steer the operations well resulting in improved margins, which moved from 61.8 percent in 2012 first quarter to 63.8 percent in 2013, a continuation of the marked improvement seen for 2012 when the margins for the full year came out at 63.7 percent vs the 59.2 percent enjoyed in 2011.

While cost increase seems to be under control in 2013 for the first quarter, that was not the case in 2012 when selling cost rose by $17 million or 17 percent and administrative cost rose 22 percent, well above the growth in revenues. For the quarter, selling cost rose by 4.8 percent and administrative cost rose 2.7 percent while revenues are up 4.75 percent.

The company boast equity capital of $176 million, has no interest bearing debt and a high current asset ratio with liabilities almost covered twice over.

The stock seems poised to rise further as demand exceeds the supply of the stock on the Trinidad market.

Filed Under: Company News, Company Results Tagged With: TTSE, Unilever

Remittance inflows dip

June 26, 2013 by IC Insider.com

Total remittance inflows for the March 2013 quarter were US$492.5 million, a decrease of US$12.3 million or 2.4 per cent compared to the corresponding quarter of the previous year. The inflows for the quarter were above the average for the previous five corresponding periods with the flows for January 2013 being the highest since 2010 with US$154 million, February inflows at $160 million was slightly under the US$167 received in 2012 and March was the worse month relative to 2012 as inflows fell by US$9.5 million to reach $178.4 million.

For the first quarter of 2013, net remittances were US$431.5 million, a decline of US$5.1 million or 1.2 per cent relative to the corresponding quarter of the previous year. The outturn for the quarter reflects the decrease in gross inflows, which was partially offset by a decline in outflows.

The decrease in total remittance inflows reflected a US$14.2 million or 3.3 per cent deterioration in inflows through Remittance Companies. The decrease in inflows was partly offset by a US$1.9 million or 2.6 per cent increase in flows via Other Remittances sub-category.

Last year Jamaica received the highest amount of remittances in its history with $2,037 billion up from $2,019 billion in 2011. Prior to this period remittances peaked in 2008 at US$2,021 billion just after the global recent started to take hold.

The fall in remittances in the first quarter of this year may be linked to the fall in the value for the Jamaican dollar and the scarcity of foreign exchange during the period. Examination of past behaviour show a strong co-relationship between inflows and exchange instability. When there is instability in the foreign exchange market some of the funds that would normally flow into the formal financial system are diverted to end users and therefore never get reported.

Filed Under: Economy Tagged With: Economy, FX Market

FX: Big trade Tuesday

June 26, 2013 by IC Insider.com

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Tuesday, 25 June 2013 | Today was a big trading day in the foreign exchange market as buying amounted to the equivalent of US$39.8 million, a little less than the amount US$40.65 million purchased on Monday. Selling was the equivalent of US$39.5 million up from yesterday’s $32.7 million sold.

The average rates for the US dollar inched up 4 cents on the buy side and one cent for sales with the selling rate closing at $101.29. The Canadian dollar climbed $1.28 for the buying rate and was off 23 cents for the selling rate, taking the average sell rate to $96.65. The rate for the Pound rose $1.68 for the buying rate to close at $154.55 and was up 48 cents on the selling rate to end at $155.61.

The highest buying and selling rates fell for the US dollar while the buying rates for the Canadian climbed moderately, but the highest and lowest were down by $1 and $1.55 respectively. The highest buy rate for the pound dropped $2.10. There was no change for the lowest buying rate but the selling rates were up moderately.

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

JSE: 2 new highs as prices retreat

June 25, 2013 by IC Insider.com

Tuesday, 25th June 2013 | Stock prices continued to retreat today with 11 stocks declining and 8 gaining, the third day in a row that this has been so. The junior market index fell marginally but the major indices fell with the all Jamaica declining by 889.68 points to close at 88,742.30 and the main market slipping 505.36 points to 87,263.84 at the close.

Trading picked up with more than twice the number of shares traded today than yesterday as 5.8 million units changed hands with a value of $58.9 million, compared to 2,507,546 on Monday at a value of $23.7 million.

Juniors up | Eleven stocks traded in the junior market as the index closed at 788.83 down 3.5 points with 4 increasing in price and 3 falling. Blue Power closed at an all-time closing high of $10.50 up 50 cents on the day as just under 22,000 shares traded. Consolidated Bakeries closed up 25 cents at $1.60 having recovered most of the amount lost after the company reported poor 2012 final results. Jamaican Teas lost 38 cents to close at $4.01 with 10,938 shares changing hands. Paramount traded a mere 1,000 shares and fell 25 cents to close at $3.30. Lasco Manufacturing traded 1.23 million shares between $15.55 and $16 but closed at $15.55. Lasco Distributors traded 1.04 million shares between $15.50 and $15.55, gaining 1 cent to close at $15.51, an all-time closing high after the stock traded at $16.50. Caribbean Producers traded 422,635 shares and General Accident traded 210,139 units to close at $2.

Main Market | Although the overall market enjoyed nearly $59 million of trading only $21 million came from the main market as the two large Lasco companies accounted for $35 million of the amount traded. The market sentiment suggest that profit taking is occurring for a number of stocks hence the price pull back. Carreras again lost ground shedding 50 cents to close at $56 as 65,925 units valued at $3.7 million traded.

Companies that had noticeable price action included Carreras which lost $1.40 to close at $56.50, Desnoes & Geddes losing 20 cents to close at $4.80 after trading 144,000 units as high as $5. Grace traded 23,932 shares as the stock closed at $59.60, down 50 cents. JMMB which traded 71.1 million shares (Monday 7,874 shares) as the price moved back to $8, up 50 cents on the day. The bid for 1 million units at $7.60 is still posted providing some down side support for the stock. National Commercial bank lost 49 cents while trading just under 11,000 shares to close at $20.06. Pan Jamaican Investment lost $0.48 to close at $50.52 with moderate volume, and Scotia Group trading down 80 cents at $21.20 while trading 60,868 shares.

IC bid-offer Indicator | At the end of trading, the IC bid-offer market sentiment indicator shows that bids for 6 stocks were higher, with 3 stocks that had an offer lower than their last selling price. The main market should continue in a flux for a few more trading days as investors get accustomed to the tighter liquidity in the financial market.

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

TTSE: WITCO at it again, now $116

June 25, 2013 by IC Insider.com

Tuesday, 25th June 2013 | The West Indian Tobacco Company saw trading in 25,385 shares with a value of $2,940,376 as the stock raced to $116, an all-time high and gained $2 on a day when 167,869 shares traded in the main market valued at $7,325,249 and 5,504 mutual fund shares valued at $126,592 traded.

Trading took place in 11 securities of which 3 advanced, 1 declined and 7 traded firm. Another stock that reached a 52 weeks high was Unilver Caribbean which traded 705 shares and gained 93 cents on the day to close at $53.25.

The major trading of stocks took place for Neal & Massy Holdings, 57,303 shares for a value of $3,380,877, Angostura Holdings, 55,000 shares valued at $495,000 and Guardian Holdings, 13,848 shares valued at $221,568.

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

At the close, it would appear that both Witco and Unilver are poised for more gains ahead. Scotia Investment with a bid of 117,000 shares at $1.78, the last selling price, should move up in price as there is no stock on offer at the close today nor on Monday.

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

Low loan demand squeezes BNS TT

June 25, 2013 by IC Insider.com

Scotia Bank Trinidad & Tobago hit a new 52 weeks high recently in the price of its stock, so what is happening at the bank to warrant the move in the stock price? Last year the stock was selling at $60.86 in April and on June 24, 2013 it sold at $70.01, a 15 percent rise, yet profits have not been growing all that well. However, the bank raised its dividend from 32 cents per share quarterly last year to 40 cents this year.

Interestingly, the fortune of the Trinidad bank and that of its Jamaican counterpart are tracking similar paths. In Jamaica, profits for Scotia Group have not grown from 2009, almost the same has happened in the Trinidad bank, with no growth since 2011. It looks as if the trend will continue for the Trinidad bank this year as well.

For the six months to April this year, Scotia Trinidad profits just barely budged above the results for the same period in 2012. Net Interest income fell from $462 million in 2012 to $443 million in 2013 but other income rose from $172 million to $224.5 million. The bank was able to keep a lid on expenses which rose from by $24 million to $314 million leaving a profit before tax of $353 6 million some $10 million more than that earned in 2012.

After allowance for taxation of $83 million, net profit rose to $273 million up slightly from $268.7 million in 2012. In the latest April quarter, after tax profits grew by only $1.9 million to reach $128.9 million.

The bank seems to have a good grip on loan quality as provisioning bad loans is very low at just $8 million for the six months, an improvement over the $10.5 million in 2012.

Return on Equity | The bank boasts a return on equity of 17.27 percent for the six months period, down from 18.47 percent for the full twelve months for 2012 financial year, which ended in October.

Where is the growth? | For profits to really grow attractively, the bank must grow its loans and assets at a faster pace than it has been doing since 2009. Loans to customers climbed by to $10 billion up from $9.96 billion in October but is flat with April 2012. Deposits did better as these rose to $13.47 billion up from $12.77 billion in April and $12.9 billion in October last year. Loans on the books in October last year contracted compared to the previous year by $700 million or 7 percent. Assets grew by 4 percent in 2012, 5 percent in 2011 and one percent in 2010 down from 11 percent in the previous year. The bank reported of assets of $18.4 billion and equity capital of $3.2 billion.

The bank operates in an economy that is yet to recover from the recession that started in 2008. A lot of the growth a few years prior to 2008 was induced by a major boost in the construction sector, which left newly built units that took awhile to either occupy or sell. This has been a serious drag on the construction sector and by extension, slowed growth in the economy. Without economic growth, bank lending will be slow, which is the main area for growth in income. GDP performance is as follows: 2009, minus 3.3 percent, 2010, 0 percent 2011, minus 1.3 percent, 2012, a positive 1.7 percent. The construction sector fared even worse falling by 7 percent in 2009, 28 percent in 2010 and 8 percent in 2011.

Stock outlook | Against this economic background, it appears that investors cannot expect to see electrifying growth in profits for some time. They also have to be aware that interest rates on savings are at very low levels and any upturn could affect the valuation of stocks on the Trinidad stock market further down the road.

Filed Under: Company News, Company Results Tagged With: Scotia, TTSE

FX: Rates retreat again

June 24, 2013 by IC Insider.com

Monday, 24th June 2013 | All rates fell across the board on Monday in the foreign exchange market as it was on Friday as buying out numbered selling. Buying amounted to US$40.65 million US dollar equivalent and selling amounted to US$32.7 million.

The average rates for the US dollar fell 13 cents off both the buying and selling with the selling rate closing at $101.28. The Canadian dollar fell by $1.77 for the buy rate and 51 cents for the selling rate, taking the average sell rate to $96.88. The pound suffered a $2.04 decline of the buying rate to close at $152.87 and dropped 91 cents on the selling rate to end at $155.13, which increased by 38 cents to reach $154.91. The selling rate for the pound fell $1.27 to close at $156.04. The US dollar slipped marginally on both the buy and sell sides and the Canadian dollar fell 80 cents buying and $1.61 selling closing at an average of $95.60 buying and $97.39 selling.

The highest buying and selling rates also saw major changes with most declining with the minimum selling rate for the US dollars dropping back by $15.77. On Friday it had climbed by $16.35 cents to $98.60.

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

TTSE: Trading picks up

June 24, 2013 by IC Insider.com

Monday, 24th June 2013 | Trading activity on the Trinidad Stock Exchange picked up a bit today with 9 stocks trading of which 3 increased in price, 2 declined and 4 held firm. Scotia Bank recording a new 52 weeks high when it closed up 29 cents to $70.01 having traded 80,052 shares with a value of $5,604,440. Jamaica Money Market Brokers traded 340,700 shares changing hands for a value of $174,320 at a price of 50 cents. Sagicor Financial Corporation, 180,115 shares valued at $1,129,553, Trinidad Cement contributed 40,500 shares at a value of $38,475. Clico Investments with 402,842 shares at a value of $9,263,266.

The main market saw a volume of 649,936 shares trading valued at $844,178 in addition to 402,842 shares valued at $9,263,266 in the mutual fund market.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 2 stocks were higher with 3 stocks that had offers lower than their last selling price.

Bourse Brazil Latin Fund (BBLF) listed 1,112,384 units on the Stock Exchange effective Tuesday, 11th June 2013 at a price of US$10.00. There was no trading for this fund in today’s trading.