Blog Page — Page 1469

More tertiary education cost to be borne by students

June 13, 2013 by IC Insider.com

The Minister of Education, The Honourable Reverend Ronald Thwaites, in a speech yesterday, indicated that Jamaica has been grossly under spending on early childhood education.

He indicated that for this financial year, the Ministry of Education has allocated 14.6% or just over $11 billion of the education’s Ministry recurrent budget to early childhood and special education. The Minister says that, “It is an investment we cannot put off due to the importance of the early years to the child’s educational development”. He says “It will mean other areas will have to ensure that the majority of that dollar is spent on delivering an effective education product”, Minister Thwaites stressed.

Reverend Thwaites indicated that the move will require sacrifices, “admittedly difficult, from parents and teachers”. It will mean that the cost of tertiary education will be more and more borne by the recipients of it rather than by the State.”

Source: MoneyMasters Ltd press release

Filed Under: Economy Tagged With: GOJ

JSE: NDX impact overcome as market climbs

June 13, 2013 by IC Insider.com

Thursday, 13th June 2013 | Mayberry bought 2,475 million shares of Jamaica Money Market Brokers (JMMB) for clients and Scotia Investment bought 1 million units for in house purposes today as 3.7 million units of JMMB changed hands valuing $31.8 million. The selling broker was JMMB mostly on behalf of clients. Carreras recorded a big trade worth $11.58 million as the stock traded 199,246 units and closed down at $59. NCB jumped to $22 at the close, up $2.50 with 242,000 shares trading at a value of $5.18 million. Grace Kennedy fell $0.75 to close at $58.25.

Index Climbs | The all Jamaica Index closed up 1,277.32 points and ended at 91,209.76 points, this means that the market is at its highest since the first week of January this year and has recovered all of the negative impact that the NDX did to the market index in February. The main market index closed up 725.54 points and closed at 88,639.94.

The Investor’s Choice bid-offer market sentiment indicator, points to more market gains ahead and this is backed up by technical indicators which suggest that the main market seems to be on track heading to 103,000 on the all Jamaica Index. The market seems to have broken out decisively from the 85,000 level. The 103,000 mark is the next major point of resistance followed thereafter by 115,000.

Juniors Down| Buy before results and sell after has been a pattern of the junior market from inception and it seems to be following that role again as prices of some stocks seem to have stalled or fallen back a bit as some profit taking takes place. The Junior Market index fell nearly 17 points to close at 732.81.

In today’s trading NCB, which climbed $2.50, would have had a telling impact on the index movement. However, this impact was tempered by a fall in Scotia Investments, off $1.

Advances positive | The advance decline ratio remains positive with 14 stocks advancing and 7 declining, on a day when 8 million shares changed hands with a value of $55 million. At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 11 stocks were higher with 4 stocks having offers that were lower than their last selling price.

Palace’s $22m 3rd Qtr hit

June 13, 2013 by IC Insider.com

While many local companies suffered from the negative effects of reduced profit due to costs associated with the write off of unrealised capital gains on government bonds, Palace had a totally different experience. Net results for the March quarter fell sharply to a loss of $22 million from a profit of $2.65 million in 2012. Nevertheless, thanks to a strong first half, the company reported a $8.2 million loss compared to a profit of $5.3 million earned for the nine months of the previous year.

Operating cost fell by $16 million or 10 percent for the quarter while administrative cost was up 11 percent to $34 million but it was the slide in income that was noticeable and probably worrying. Admittedly, the March quarter is usually the worse quarter the company faces. But it is the sharpness of the drop that is surprising. In the 2012 quarter, Palace generated income of $193.5 million, this fell 21 percent or a whopping $41 million to $152.3 million.

Interestingly, the 2013 revenue performance is only 8 percent better than the 2011 quarterly income even as inflation would have affected cost and the price for goods and services sold by Palace would have gone up since 2011. The fall off in 2013 comes against the background of the company introducing a new product, the showing of live operas on screen and an encore season of opera’s best in the summer. Without them, revenues would have been lower. Year to March, the company recorded revenues of $584.7 million that is lower than the $599.5 million generated up to March 2012.

Data on the individual cinemas indicates that the sharp fall in revenues was across all locations except Palace Cineplex. Carib revenues fell $13 million, Cineplex was up $1 million, Palace Multiplex in Montego Bay dropped $13 million and Odeon in Mandeville fell by $4 million. The falloff in the two rural cinemas was far worse than for Carib, in relation to the income for the 2012 March quarter.

The picture up to the December results suggested that 2012/13 would have been by far the company’s best year, but the poor third quarter results have changed the outlook for full year’s profits completely, as it will be nigh impossible to overcome the negative impact of the loss made in the latest quarter. ICInsider understands that the fall in revenues is due primarily to a shift in a particular brand of film which would normally be shown in the March quarter but will be shown in the June quarter.

In spite of the quarterly loss, Palace had cash funds of $60 million at the end of March, while current assets exceed current liabilities by $36 million. Loans amount to $42 million with equity of $271 million.

Photo via: www.PalaceAmusement.com

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

New president at Scotia International

June 13, 2013 by IC Insider.com

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Rick Waugh announces his retirement from Scotiabank effective January 31, 2014. Brian Porter, former chairman of Scotiabank Jamaica, to take on role of President and CEO effective November 1, 2013.

(TORONTO) May 31, 2013 – Scotiabank Chief Executive Officer Rick Waugh today announced his intention to retire as CEO effective November 1, 2013 after 10 years in the role and 43 years with the Bank. He will remain a Director of the Board and assume the role of Deputy Chairman of the Bank until January 31, 2014.

The Board of Directors has appointed Brian Porter to the role of President and Chief Executive Officer effective November 1, 2013. Brian was appointed to the role of President on November 1, 2012, and just prior to that was Group Head, International Banking, overseeing all of the Bank’s personal, small business and commercial banking operations in more than 55 countries outside of Canada. Brian was also Scotiabank’s Group Head of Global Risk Management and Treasury. He joined Scotiabank in 1981, and has held a variety of other management positions, including Deputy Chairman of Global Banking and Markets.

“Rick Waugh has guided Scotiabank through a period of tremendous growth, generating exceptional returns for shareholders and employees during some very turbulent times. His focus on customers, diversification, emerging markets and risk management along with his strong values, has shaped the growth and direction of the Bank over the last ten years,” said John Mayberry, Chairman of the Board.

The Board expressed its confidence in Brian Porter appointing him President in November 2012. Mayberry added, “We are pleased to take the next step in succession today by confirming him in the role of President and CEO effective November 1, 2013. Brian has a tremendous range of experience across the Bank, including the critical role of Chief Risk Officer. The Board is confident in Brian’s ability to continue to produce strong results and build on the straightforward and proven business model that has worked so well for customers, shareholders and employees.”

“I want to congratulate Brian Porter on his appointment to President and Chief Executive Officer,” said Rick Waugh, CEO, Scotiabank. “He has had an exceptional career at Scotiabank. Brian and the management team bring the right experience, values and culture to ensure our Bank’s continued success.”

“It is a distinct privilege to have been entrusted with the role of President and Chief Executive Officer, and I would like to thank the Board of Directors and Rick Waugh for their confidence in my ability to continue to deliver superior, consistent and predictable results for all of our stakeholders,” said Brian Porter, President, Scotiabank.

Scotiabank is a leading multinational financial services provider and Canada’s most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $754 billion (as at April 30, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

Filed Under: Company News, General Business News Tagged With: Scotia

TTSE: WITCO another all time high

June 13, 2013 by IC Insider.com

Thursday, 13th June 2013 | The West Indian Tobacco Company enjoyed the day’s largest gain, increasing $0.49 to end the day at $112.50, yet another all time high as the stock trades at a high PE ratio of 26 times earnings. The stock is still attractive from an income point of view with a yield of 3.4 percent compared with Treasury Bill rates in Trinidad of less than a percent. All indications are that this stock is still going higher. Scotiabank fell 29 cents to end the day at $69.71 as only 820 shares traded.

Main Market | The main market at the Trinidad & Tobago Stock exchange had a volume of 281,761 shares crossing the floor with a value of $1,652,262. Trinidad Cement saw 154,500 shares changing hands for a value of $147,975. Angostura Holdings traded a volume of 78,009 shares for $702,081. Sagicor Financial Corporation contributed 26,245 shares valued at $165,868. An infrequent trader, the Barbados headquartered First Caribbean International Bank accounted for 9,247 shares valued at $73,051.

Clico Investment Fund posted a volume of 105,940 shares valued at $2,289,349.44 with the price advancing by $0.20 to end at $21.61

Advances positive | The advance decline ratio remains positive with 5 stocks advancing and 1 declining, on a day 14 stocks traded. At the end of trading, the Investor’s Choice bid-offer sentiment indicator shows that bids for 4 stocks were higher with 2 stocks that had offers that were lower than their last selling price which is just mildly bullish.

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

UDC sells hotel shares for US$11.2m

June 13, 2013 by IC Insider.com

The Urban Development Corporation (UDC) has concluded the sale of its 50% stake in Bloody Bay Hotel Development Limited (BBHDL) to Village Resorts Limited (VRL), which owned the other 50% of the company. VRL, in response to the UDC’s offer, had expressed its desire to exercise its pre-emptive right to acquire the UDC’s shares in BBHDL in June 2011. Cabinet approved the sale of the shares to VRL in January 2013 and the sale transaction was finalized in March with the signing of an agreement on 27 March 2013.

The gross transaction proceeds realized by the UDC was US$11.2M, which included US$9.5M for the real estate and related fixed assets, and US$1.7M representing UDC’s share of cash and other liquid assets of BBHDL at the date of the sale agreement.

BBHDL’s principal asset was Breezes Grand Resort & Spa, Negril, (formerly Grand Lido Negril) a 210 suite all-inclusive property located in Negril, Hanover.

VRL secured an agreement to sell the hotel’s real property and other assets owned by BBHDL to BBNH Resorts Limited, which will further develop and expand the hotel utilizing lands acquired through the sale transaction. BBNH is an affiliate of Blue Diamond Hotels & Resorts Inc. The expansion will be in accordance with the UDC’s overall plans for the development of the area.

Blue Diamond’s portfolio of hotels also includes, in addition to Breezes Negril, the former 350-room Breezes Trelawny/Starfish Beach Hotel purchased in June 2012, which will re-open as Royalton White Sands in October 2013. With the acquisition of Breezes Negril now complete, Blue Diamond has rebranded the property as the Grand Lido Negril Resort & Spa. The same name was used by former owner SuperClubs when the company opened the resort in 1989 before rebranding it as a Breezes property in 2009.

“The Grand Lido brand has long been synonymous with top-quality accommodations, service, cuisine and beach settings. This is the first resort to be relaunched under our Grand Lido brand,” said Jordi Pelfort, managing director of Blue Diamond.

Blue Diamond is a division of the Toronto-based Sunwing Travel Group.

Filed Under: Company News, General Business News Tagged With: GOJ, UDC

FX: Lowest US selling rate hiked $15.33

June 13, 2013 by IC Insider.com

Wednesday 12th June 2013 | The lowest selling rate for the US dollar jumped $15.33 to $97 in today’s trading. The highest buying rate also climbed but by a smaller $1.05. the highest rate for the pound climbed by 90 cents today and the lowest buying rates moved up $1.12 for the pound while the British currency was sold at the highest rate of $1.08 more than yesterdays $159.12 but the currency was sold at it lowest of $2 less than on Tuesday.

Once again, the amount of funds purchased exceeded the amounts sold as a total of $29.69 million US equivalent was purchased while selling amounted to US$28.3 million as all the rates moved up with the buying rates climbing the most for the Pound Sterling and Canadian Dollar by $1.02 and $1.58 respectively.

The selling rate for the US dollar inched up another 16 cents the same as yesterday and the Canadian 15 cents and the Pound 60 cents.

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

Mixed views from Eastern Carib States

June 13, 2013 by IC Insider.com

Business expectations in the Eastern Caribbean states are mixed. That should not be too surprising as the region is in recession with negative inflation for the first three months of the year. In a business survey carried out by the EC Central Bank, 37.4 per cent of the businesses surveyed indicated that they anticipate that general economic conditions would improve in the first half of 2013, while 23.6 per cent expect economic conditions to deteriorate. Of the total, 39.0 per cent expect conditions to remain the same. This resulted in an overall net percentage indicator (NPI) of 13.74 for the region, reflecting the overall positive business sentiment for the first half of 2013. Respondents also expressed optimism when they were asked about the economic climate within their sector.

Survey respondents in five of the ECCU member countries are optimistic about their prospects for the first half of 2013 with positive NPIs being recorded for Grenada (60.0), Montserrat (48.0), Antigua and Barbuda (47.62), St Kitts and Nevis (20.0), and St Vincent and the Grenadines (12.50); while businesses in Saint Lucia (-66.67), Dominica (-36.0), and Anguilla (-18.75), were generally pessimistic about their prospects.

Mixed sentiments | While general economic conditions are expected to improve, the sentiments expressed for the key indicators within sectors are mixed. In general, during the January to June 2013 period, businesses expect their sales performance to improve but their profits to deteriorate further relative to the first half of 2012. With respect to overall exports, businesses in six member countries expect an improvement in performance. St Vincent and the Grenadines, Anguilla, Grenada, Montserrat, St Kitts and Nevis and Saint Lucia are optimistic about their exporting prospects during the outlook period while businesses in Dominica expect exports to deteriorate. In Antigua and Barbuda businesses expect their exporting prospects to remain unchanged for the review period. Respondents indicated that they expect the cost of doing business in the ECCU to continue on an upward trajectory. With respect to construction activity performance, sentiments in Anguilla, Grenada, Montserrat and Saint Lucia are optimistic about the outlook period while businesses in Antigua and Barbuda and Dominica expect activity to remain unchanged for the review period. Businesses in St Vincent and the Grenadines expect construction activity to decline.

TRENDS IN BUSINESS SENTIMENTS & CREDIT | An analysis of business sentiments from January 2007 to June 2013 indicates that general business sentiments declined during the period 2007 to 2009, but have fluctuated thereafter. Positive sentiments were expressed for the January to June 2013 outlook period — the first time since January to June 2007.

The trend in sentiments expressed by respondents during the period from January to June 2007 to January to June 2013 reflects one of overall tightening in the terms and conditions for lending over the period with improvements seen in some periods. Sentiments were the lowest during the period July to December with an NPI -82.1 and although still negative, subsequently improved for three consecutive periods. Although the sentiments expressed are still one of overall tightening, an improvement has been seen for the last three survey periods i.e. January to June 2012 to January to June 2013.

The data was adopted from the ECCB.

Filed Under: Economy Tagged With: ECCU, Economy

JSE: Juniors pick up

June 13, 2013 by IC Insider.com

Wednesday, 12th June 2013 | While there were only 5 stocks traded on the junior market yesterday, today’s activity resulted in 11 stocks traded. With the exception of Blue Power that traded at an all time high of $8.65, up 64 cents for the day, as 52,315 units traded, price movement in the junior market was generally moderate. The overall stock market seems to have lost some of the recent sparkle as investors seem to have priced in a fair bit of the improved results of companies or adjusted for the undervaluation of others. The market may just be consolidating for awhile before moving in a major way again. This is worth watching.

Dolphin Cove traded 800,000 units to be the largest trade in the junior market and second largest trade for the day for the overall stock exchange. The stock closed at $8.45, a 52 weeks high. Sagicor Life traded 2,011,745 units as the stock closed at $9.01, having traded between $8.80 and $9.01.

Grace Kennedy traded up $1 to at $59 while trading 23,167 units. Lasco Distributors closed at $13.50 up 50 cents with a volume of 19,297 units trading. Lasco Financial Services lost 29 cents to close at $9.70 on small volume. Carib Cement traded as high as $1 in early trading but closed at $0.90. Consolidated Bakeries traded 58,750 shares at $1.15, in continuation of recovery from the sharp sell off when the company released poor full year results earlier this year. Lasco Manufacturing traded firm at $14.10 with 101,610 units changing hands.

The various market indices inched up a bit except the cross listed and US dollar indices where there was no traded stock. The advance decline ratio remains positive with 11 stocks advancing and 6 declining, on a day when 4.1 million shares changed hands with a value of $34.7 million.

At the end of trading, bids for 8 stocks were higher and no stock had an offer that was lower than their last selling price.

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

TTSE: Jamaican stocks dominate

June 13, 2013 by IC Insider.com

Wednesday, 12th June 2013 | Three of the Jamaican companies that are listed on the Trinidad & Tobago Stock Exchange were the dominant ones that traded today with all three being the market leaders in terms of the volume traded. In the main market where 243,011 shares traded, the three Jamaican companies accounted for more than 134,000 of them. Grace Kennedy also chipped in with 12,105 units.

Trading in the main market amounted to $2,609,669. Jamaica Money Market Brokers traded 50,000 shares for a value of $25,050 and lost 5 cents but there was a bid to buy 265,000 at a bid of 50 cents each, followed by National Commercial Bank Jamaica with a volume of 48,500 shares valued at $58,200. Scotia Investments Jamaica contributed 36,174 shares with a value of $64,390, there was a bid of 52,000 units at $1.78 while Guardian Holdings added 25,907 shares valued at $426,170 but the stock price fell $0.50 to close at $16.45 and the bid was at $16 for 4,765 shares while 22,229 was on offer at $16.85.

Clico Investment Fund traded 84,035 shares valued at $1,799,063 while gaining $0.16 to close at $21.41.

Overall 14 securities traded of which 4 advanced, 2 declined and 8 traded firm as three indices fell marginally.

At the end of the day, bids for 2 stocks were higher and 3 stocks had offers that were lower than their last selling price.