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FX: Tuesday, 21 May 2013

May 22, 2013 by IC Insider.com

Buying exceeds selling | Trading in the foreign exchange market saw the equivalent of US$33.2 million being purchased and US$30.05 million were sold.

USD | The selling rate for the US dollar, however, slipped from Monday’s close to end at J$99.036 as US$28.5 million were sold and US$30.4 million were bought at J$98.4952, slightly lower than Monday’s buying rate of J$98.428. The highest selling rate for the US dollar remains over J$104 while the lowest is at $81.16 and the highest buying rates ended at J$99.17 and the lowest JS$81.33.

GBP | Sale to authorized dealers of pound sterling amounted £1.34 million at an average of J$148.51 (Monday was J$147.63) while dealers sold £0.64 million at an average of J$150.74 compared to Monday when it was sold at J$151.36. The Pound was sold at a high of $156.92 and a low of $146.45, the highest buying price was J$151 and the lowest buying was at J$121.72.

CAD $ | Can$0.673 million were bought at an average of J$94.54 lower that the J$94 it averaged out on Monday. The amount sold was Can$0.337 million at an average rate of J$97.07 lower than Monday’s rate of J$96.3. The Canadian dollar was bought at a high of J$96.80 and a low of $77.44 and was sold at a high of J$99.83 and a low of J$92.40.

Consolidated Bakeries’ Q1 Profits Up

May 22, 2013 by IC Insider.com

Consolidated Bakeries, producers of the well-known Purity brand of baked products, reported profit before tax for the March quarter of $14.2 million, 58 percent more than the corresponding period last year. Profit after tax jumped by 216 percent but the company is unlikely to be paying any taxes for the next five years under the junior market tax incentive. Revenues grew to $172 million, an increase of $32 million or 23 percent over the same period last year.

Management indicated, in a release with the quarterly results, that all key product lines grew during the quarter. Whilst revenues climbed 23 percent gross profit of 38 percent in 2012 fell to 37 percent in the quarter, and the growth in gross profit, was up 18 percent year over year. Operating expenses grew by just under 12 percent. Going forward, the company says they will accelerate operational improvements to combat increased input costs.

These developments sound great. The concerns that investors must be having is that last year’s results for the first half looked good and then, what seemed like a sudden shock, the company announced earnings of a mere $3.7 million, well below the amount reported for the 2012 first half and lower as well than the full 2011 earnings of $12.8 million. Will the market get another surprise? That is difficult to say. Management did indicate that they took a deliberate decision last year to slow production whilst attempting to get their processes right.

The company was listed on the Junior Market of the Jamaica Stock Exchange in December 2012 with the stock price trading as high as $2.05 but declined to 90 cents after the poor 2012 results were released in March.

The company completed the conversion of the tracking of routes to a computerized hand-held system which facilitates better tracking, monitoring and management of the company’s distribution process, thereby reducing costs and improving sales. Their efforts to improve operations continued with additional adjustments to the processes and plant organization, including the appointment of both an experienced warehouse and loading manager. As a consequence, the first quarter saw significant improvements in quality and products.

The company continued exports to three overseas markets, and gained additional listings and space with independent retailers, and significantly, a major retail chain in the North America.

Current assets increased to $202 million from $96.8 million over the same period last year, primarily due to the growth in receivables of $32 million and investments and other cash equivalents by $64 million. Current liabilities increased from $69 million to $89 million at a slower pace than current assets due to the capital injection from the IPO in December last year. Consolidated has equity of $485 million, well in excess of loan funding of $48.5 million.

Management stated, “In the coming months we will build on and continue the internal changes of the first quarter, starting with additional branding and our route to market programs. We will be adjusting and or replacing equipment to our production line of single serve and bread products, at the same time increasing exposure and awareness of our brand.”

Filed Under: Company News, Company Results Tagged With: Consolidated Bakeries, JSE Company

TTSE: Tuesday, 21st May 2013

May 22, 2013 by IC Insider.com

Trading on the T&T Stock Exchange continues with a number of stocks recording moderate activity and price changes as has been the case for a number of trading days from last week. At the end of trading, 12 securities changed hands of which 3 advanced, 4 declined and 5 traded firm on a day when the volume of trading was low at 364,642 units.

The main market saw a volume of just 332,774 shares trading, valued at $10,791,913. Prestige Holdings had 147,500 shares changing hands for a value of $1,379,125, followed by ANSA Mcal with 111,500 shares traded for $7,495,030. Angostura Holdings contributed 23,100 shares with a value of $207,900, while 17,000 shares for National Flour Mills traded valued at $13,700. Clico Investment Fund traded 31,868 shares valued at $670,276 as the price advanced $0.02 to end at $21.03.

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

JSE | Tuesday, 21 May 2013

May 22, 2013 by IC Insider.com

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Pan Jamaica Investment Trust stock jumped $4.08 today to close at $57.60 back to the level it traded at prior to the NDX debt exchange of Government of Jamaica bonds in February this year. Pan Jamaican traded 75,651 units valued at $44.1 million. Grace Kennedy followed up with a gain of $1.75 with the stock getting back to its recent high of $60 while trading just 5,861 shares.

The Jamaican stock market put in a splendid performance today with 27 stocks trading valued $112,141,197 as 21.8 million shares changed hands. Sagicor Investments, accounted for 5.378 million units with a value of $83.55 million, all of the shares were sold and bought within Pan Caribbean brokerage house. Consolidated Bakeries traded over 12.3 million units worth $11.94 million. NCB Capital markets bought 12.11 million units at 90 cents for clients. Mayberry Investments traded 2.068 million units valued at $4.18 million on a day when the number of advancing stocks were in excess of declining ones, almost 3 to 1 as 15 advanced versus 6 declining.

At the end of trading, 8 stocks closed the day with bids higher than the last selling price. There were none with offers lower than the last sale price. One stock made 52-week high as Caribbean Cream, the new listing on the junior market, gained 14 cents to close at $1.15 up 15 percent on the IPO price with 60,000 units trading today. At the end of trading, there were more than 400,000 units on the bid between 94 cents and $1.06 and 265,000 on offer at $1.15 to $1.20.

Other stocks that had noticeable price movements were, Access Financial down 50 cents to $7.50, Blue Power off 55 cents to $6.05, Carreras down 38 cents to $57.52. JMMB climbed 45 cents to $7.50, NCBJ up 35 cents to close at $18.89 as 130,191 shares traded having traded as high as $19. Seprod shed 48 cents and closed at $14.52 on very small volume of 1,500 units.

At the end of trade, the main market index put on 297.88 points closing at 85,693.25 and the All Jamaica Composite closed over the 85,000 mark the first time since early February when it closed at 85,325, today it closed at 85,125. The main market index closed at the highest point today, since it closed at 85,693 on March 6^th this year.

The positive advance decline ratio coupled with the number of stocks with bids above last selling price are two factors that say this market is heading higher.

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

JPS to raise capital in Jamaica

May 22, 2013 by IC Insider.com

Jamaica Public Service Company is to raise more long term capital on the local market. The proposal is to increase the share capital by the addition thereto of 3,500,000 Class “F” and 1,500,000 Class “G” Preference Shares. It is proposed to list the shares on the Jamaica Stock Exchange. Accordingly, a resolution to this effect is also to be considered by directors.

The company has called an extraordinary meeting to approve the issue of two new preference shares and for shareholders to give authority to the directors or a committee of the directors to determine the terms that the shares are to be issued at. The meeting will be held at the Head Offices of Limited, 6 Knutsford Boulevard, Kingston on June 5, 2013, at 10 am.

The resolutions to be considered by the meeting are as follows:

1. RESOLVED as an ordinary resolution that the authorized share capital of the Company comprised of:

– 30,315,733,190 ordinary stock units; and – 567,000 7% Cumulative Preference Shares “B” ; and – 66,500 5% Cumulative Preference Shares “C” ; and – 1,049,000 5% Cumulative Preference Shares “D” ; and – 514,000 6% Cumulative Preference shares “E” be and hereby is increased by the addition thereto of 3,500,000 Class “F” Preference Shares and 1,500,000 Class “G” Preference Shares so that the share capital of the Company will be comprised as follows:

– 514,000 6% Cumulative Preference shares “E” ; and – 3,500,000 Cumulative Non-redeemable preference Shares “F” – 1,500,000 Cumulative Redeemable Preference Shares “G”

2. FURTHER RESOLVED as an ordinary resolution that the Company be authorized to issue and/or allot Cumulative Non-redeemable Preference Shares “F” and/or Cumulative Redeemable Preference Shares “G” with rights/restrictions as to Voting, Dividends and Winding up and/or otherwise as may be determined by the Directors of the Company or a Committee of the Directors appointed for such purpose, subject always to the Articles of Incorporation of the Company, and that the Directors of the Company or such Committee be and are hereby authorised to determine all such rights and restrictions and the Directors be and are hereby authorized to allot such Cumulative Non-redeemable Preference Shares “F” Cumulative Redeemable Preference Shares “G” at such subscription price per Preference Share “F” and Preference Share “G” as the Directors of the Company or such Committee may deem fit, the same to investors accepting an invitation to subscribe for such Preference Shares “F” by way of private placement(s) of such Preference Shares “F” and/or Preference Shares “G”, or otherwise and on terms and conditions determined by the Directors of the Company, subject always to the Articles of Incorporation of the Company.

Filed Under: Company News, General Business News Tagged With: Extraordinary Meeting, JPS, Preference Shares

T&T Govt bond heavily oversubscribed

May 21, 2013 by IC Insider.com

The auction of the Government of Trinidad and Tobago $1.0 billion 7-year 2.60% bond due 2020 was heavily oversubscribed with total bids received amounting to $2,754.903 million. The bonds are to be dated May 21, 2013.

The bond was allotted at a premium with a clearing price of $104.23 per $100.00 face value, offering investors a yield to maturity of 1.95 per cent. Bids at $104.23 were pro-rated to allocate approximately 47 per cent of the amount applied for at this price, while competitive bids submitted at a price lower than this ($104.23) were rejected. Successful competitive bidders, as well as non-competitive bidders, will be required to pay the clearing price for the bond.

The high level of oversubscription and the low interest rate being received by investors indicates that there is still a bit of excess liquidity in that market.

Filed Under: Economy Tagged With: Economy, GoT&T, TBills, Trading Activity

FX: Monday, 20th May 2013

May 20, 2013 by IC Insider.com

Robust FX trading | The foreign exchange market enjoyed high levels of trade on Monday with the equivalent of US$39.9 million being purchased and US$31.7 million sold. This contrast with last week’s Monday’s trade in which US$47.3 million were purchased and US$50.4 million were sold.

USD | The selling rate for the US dollar slipped from Friday’s close to end at J$99.9592 (Friday J$98.9885) as US$29.64 were sold and US$37.1 million were bought at J$98.428, slightly higher than Friday’s buying rate of J$98.4244.

GBP | £1.24 million were sold to authorized dealers by the public, at an average of J$147.63 while dealers sold £0.71 million, at an average of J$151.3622. On Friday last, the selling rate was J$150.29, $1.06 less.

CAD | Can$0.84 million were bought at an average of J$94, $1.34 less decline from Friday’s rate of J$95.34. Can$0.46 million were sold on Monday at an average rate of J$96.3, slightly lower than Friday’s trades which took place at J$97.15.

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

Profits up 19% at Jamaican Teas

May 20, 2013 by IC Insider.com

Jamaican Teas recorded a profit of $51.2 million for the 6 months of its fiscal year ending March. Last year for the same period, the group made $43.2 million, an increase of 18.6%. Profit in the March quarter this year amounted to $25.7 million versus $22.2 million in the comparative period in 2012, an increase of 15.9%. Return on equity rose to 20 percent. The improved results came from growth in sales by 44% to $528.2 million, versus $365.9 million in the prior year to march. This was due to healthy increases in both export and retail supermarket sales including a supermarket in Savannah La Mar which contributed $36 million for the second quarter, compared to $12.6 million in 2012. However, during 2012 period investments sold contributed more to profits than for this year. As a result the core business contributed more profits than the reported figures suggest. According to management’s report, sale of investments in the March quarter resulted in a loss of $3 million.

Sales at the Kingston supermarket were up on the similar quarter in 2012 and the store in Savannah La Mar enjoyed steady sales during the period. It recorded its first profit in March. Management is hopeful to build on the second quarter performance, effectively wiping out, or reducing the losses experienced in the first half.

Despite tightness in the local and regional economies, the company was able to generate improved sales in the manufacturing business and more importantly in domestic manufacturing sales that contribute proportionately more to profits than either export or retail sales.

The jointly-owned supermarket in Montego Bay continues to show improvement but has not shown profit to date. Sales in the six months rose 16 percent above the similar period of 2012. As per management, “We enjoyed an encouraging improvement in sales since the start of the quarter, pushing us closer to a break”. The group’s share of the loss is $1.6 million in the latest quarter.

Apartment complex | An apartment complex developed by the group on Kingsway will be completed by the end of May or very early in June. Sale of the units attracted solid buying interest with more than 90 percent having written commitments. The sale of the units is expected to be booked before the end of the financial year in September when ownership would be transferred to the new owners. The group has plans for more developments now that the first was successfully executed.

Financial strength | The group continues to maintain a healthy financial position with working capital and investments of $388 million and this position should improve when the apartments are fully sold. Equity was $550 million and will continue to rise.

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Borrowings are up to $145 million from $75 million in March 2012, most of the increase relates to loans to partially fund the building of the apartment complex and is expected to be repaid from the sale proceeds. In addition, the group acquired the supermarket building in Kingston and is carrying a medium term loan on it, which was booked last year after the March quarter. The proceeds from the sale of the apartments is more than adequate to cover the total loans on the books. The group is acquiring a property to house Jamaican Teas operations which will result in discontinuation of rent but there will be interest cost relating to loan-funding for the acquisition.

Outlook | Management says they will continue to see buoyancy in sales after the end of the quarter at all locations. “The equity portion of the investment portfolio has fluctuated with recent market volatility but in recent weeks we have seen some improvement in the prices of some of our investments. There are signs that the local stock market is picking up life and if that continues, the valuation of the investment portfolio should rise in the months ahead, thus improving the equity base of the group.”

Management concluded their report by stating that with the performance for the first 6 months, the pending sale of the apartment complex, as well as sales performance subsequent to the March quarter, suggest that results for the 2013 fiscal year should exceed the 2012 fiscal year barring unforeseen developments. At the annual general meeting, the range for profit given by the company was $125-140 million for the year to September, which works out at earnings per share of 80-83 cents.

Filed Under: Company News, Company Results Tagged With: Jamaican Teas, JSE Company

JSE: Monday, 20th May 2013

May 20, 2013 by IC Insider.com

Advancing stocks out-do declining ones again | Trading picked up today as 4,114,189 units valued at over $67,585,621 were traded. National Commercial Bank 1,037,700 units valued at $19.6 million, Pan Jam traded 400,000 units at a value of $421.4 million, Carreras traded 220,989 units valued at $12.667 million, Dolphin Cove with 816,710 units amounting to $6.6 million, Lasco Financial Services chipped in with 376,000 units valued at $3 million and General Accident Insurance Company with 505,500 units with value of $900,000. The movement and demand for the Lasco Financial shares comes against the background of earnings that are expected to be much higher than last year and should be released late this week or early next.

Major price movements were Grace falling $1.75 to $58.25, Kingston Wharves up 35 cents to close at a 52 weeks high of $7, Lasco Financial up 30 cents to $8.10 a 52 weeks high, NCB losing 44 cents to $18.55 and Scotia Investments down 50 cents to $23.50.

There was a positive advance/decline ratio of 12 to 5 thus maintaining the mildly bullish trend seen in the last 2 weeks. Supply of stocks at current price levels for the more attractive stocks are proving harder to come by suggesting that buyers will need to up their bid prices if they are to get the quantities they want. The number of stocks with bids above their last sale continue to show up in the market, an indication that sellers not prepared to sell as low as the last selling prices.

The JSE indices moved up moderately with two reflecting no change as no stocks associated with them traded.

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

TTSE: Monday, 20 May 2013

May 20, 2013 by IC Insider.com

Lackluster trading | And so it was on a day when a mere 8 securities changed hands with 1 advancing, 2 declined and 5 traded firm accounting for just 140,368 units at a value of TT$3.4 million. The market continues to reflect a scenario of stocks in demand but there are no visible sellers and on the other hand there are some stocks that investors want sold but the buyers are not in any haste to buy them at the prices they were last sold at.

Scotia Investments Jamaica was the volume leader with 11,250 shares changing hands for a value of $19,125. Conglomerate ANSA Mcal chipped in with 8,300 shares worth $557,926. Sagicor Financial Corporation contributed 1,980 shares with a value of $13,622, while West Indian Tobacco Company saw 1,972 shares changing hands for a value of $217,019.

Clico Investment Fund suffered the day’s greatest loss, falling $0.06 to close at $21.01 as it traded 123,661 shares valued at $2,597,636.