Trading activity fell on the Jamaica Stock Exchange US dollar market on Wednesday, with a 28 percent fall in the volume of stocks changing hands after a 31 percent decline in the value compared with Tuesday, resulting in trading in just four securities, down from seven on Tuesday with prices of two rising, one declining and one ending unchanged.
The market closed with an exchange of 233,494 shares for US$6,425 compared to 325,197 units at US$9,274 on Tuesday.
Trading for the day averaged 58,374 shares at US$1,606 compared to 46,457 shares at US$1,325 on Tuesday, with a month to date average of 38,241 shares at US$2,602 compared with 36,527 units at US$2,687 on the previous day and March that ended with an average of 49,394 units for US$3,593.
The US Denominated Equities Index gained 4.38 points to conclude trading at 242.35.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.3. The PE ratio is computed based on the last traded price divided by projected earnings done by ICInsider.com for companies with their financial year ending and or around August 2024.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, First Rock Real Estate USD share rose 0.05 of a cent to finish at 4.07 US cents, with 5,559 shares passing through the exchange, Sygnus Credit Investments lost 0.9 of one cent and ended at 7.1 US cents after a transfer of 24,793 units, Sygnus Real Estate Finance USD share ended at 9 US cents as investors exchanged 100 stocks and Transjamaican Highway climbed 0.23 of one cent to end at 2.23 US cents after 203,042 stock units passed through the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading drops on JSE USD Market
Tourism traffic slows in March
Tourism traffic into Jamaica slowed in March compared with the earlier months of 2024, data for tourist arrivals and departures for Sangster and Norman Manley International airports show.
The data while not the exact outcome of stopover tourist arrivals to the country, provides a good indication of tourist traffic flows into the country.
Traffic through the Montego Bay Airport for March 2024, was up 6.4 percent, with 522,900 passengers passing through up from 491,300 handled in March 2023 data from Grupo Aeroportuario del Pacifico operators of both airports show.
For the first quarter of 2024, Sangster International Montego Bay Airport processed 1,457,300 passengers, a solid 7.9 percent more than the 1,351,000 passengers in the first quarter of 2023.
But Norman Manley Airport suffered a 4.6 percent decline in passenger traffic in March 2024, to 129,700 passengers from 136,000 passengers in March 2023.
For the first three months of 2024, Kingston Airport saw total passengers handled, decrease by 0.6 percent, to 392,000 in 2024 falling from 394,300 in the 2023 first quarter.
The data was taken from Tourism Analytics.com.
Profit rise at Sagicor Financial
Sagicor Financial, the Toronto Stock Exchange listed parent of Sagicor Group Jamaica announced results for the fourth quarter and full year ended December 2023 with rising revenues and profit.
Net profit attributable to shareholders amounts to $532 million for 2023 and includes a $448.3 million gain on the acquisition of the ivari operations up from a loss of $164 in 2022. All figures are in US dollars unless otherwise stated.
Net income to shareholders, excluding the one time gain and transaction costs of the above acquisition, amounts to $99 million for 2023
New business CSM brough in $137 million for 2023, down from $187 million in 2022. Contractual service margin (“CSM”): CSM represents an estimate of unearned future profits. For new business issued under IFRS 4, the estimated profit or loss over the term of the contract is recognized in income at the date of issue. Expected future profits on new business under IFRS 17 are deferred and recorded in the CSM and amortized into income as insurance services are provided over the contract term. Under IFRS 17, expected losses on new business are recognized at the date of issue.
Andre Mousseau, President and Chief Executive Officer, in commenting on the results, stated: “2023 was a monumental year for Sagicor. Our team worked tirelessly to complete the conversion to IFRS 17, bring ivari into our corporate structure, and regain our investment grade status while driving forward on other initiatives that will drive value in the years to come.”
Mousseau continued, “We are pleased to set forth our more precise guidance for 2024 of $90 million to $105 million of core net income to shareholders”.
The group comprises four major subsidiaries. Sagicor Canada this segment came into being during the December quarter and delivered revenues of $1.13 billion in the quarter and for the year, with net income to shareholders of $122 million. Sagicor Life USA generated revenues of $253 million in the quarter and $578 for the year, with a loss of $23 million in the quarter and a profit of $41 million for the year versus $15 million in the December 2022 quarter and a loss of $122 million for the year.
Sagicor Jamaica produced revenues in the final quarter of $283 million and a profit of $17 million versus $31 million in 2022 and revenues of $958 million for the year and profit of $50 million compared with $29 million in 2022. Sagicor Life generated revenues in the December quarter of $202 million and $751 million for the year, compared with $162 million for the final quarter of 2022 and $655 for the full year. In the December 2023 quarter, the Eastern Caribbean subsidiary reported a loss of $31 million compared with a profit of $47 million in 2022 and for the full year, a loss of $13 million for 2023 and a profit of $37 million in 2022.
The profit results for 2023 along with the gains from the acquisition of ivari pushed Shareholders’ equity to $971 million, up 119 percent over the $443 million at the end of 2022, with a book value per share of US$6.88 or C$9.10.
3 up 3 down for JSE USD market
Winners and losers shared the spoils in trading on the Jamaica Stock Exchange US dollar market ended on Tuesday, resulting from trading in seven securities, down from nine on Monday with prices of three rising, three declining and one ending firm, following a 149 percent rise in the number of stocks that were exchanged valued moderately more than on Monday.
The market closed with an exchange of 325,197 shares for US$9,274 up from 130,853 units at US$9,068 on Monday.
Trading averaged 46,457 units at US$1,325 versus 14,539 shares at US$1,008 on Monday, with a month to date average of 36,527 shares at US$2,687 compared with 34,790 units at US$2,925 on the previous day and March with an average of 49,394 units for US$3,593.
The US Denominated Equities Index fell 7.02 points to 237.97.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.3. The PE ratio is computed based on the last traded price divided by projected earnings done by ICInsider.com for companies with their financial year ending and or around August 2025.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, MPC Caribbean Clean Energy gained 8 cents in closing at 62 US cents with 15 shares crossing the exchange, Productive Business Solutions skidded 11 cents to US$1.59 with investors trading 214 stocks, Proven Investments fell 0.11 of a cent to close at 14.76 US cents after a transfer of 324 shares. Sterling Investments ended at 1.6 US cents in switching ownership of 3,466 stocks and Transjamaican Highway dipped 0.17 of a cent to 2 US cents after exchanging 320,975 shares.
In the preference segment, Productive Business Solutions 9.25% preference share popped 25 cents to end at US$12.35 with investors swapping 95 stock units and Sygnus Credit Investments E8.5% increased 10 cents in closing at US$10.80 with 108 units changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Gains for Trinidad Exchange
Declining and rising stocks shared the spotlight at the end of trading on the Trinidad and Tobago Stock Exchange on Tuesday, with 22 securities trading compared with 20 on Monday, ending with prices of six stocks rising, six declining and 10 closing unchanged and resulted in gains in market indices following a 20 percent fall in the volume of stocks traded valued 48 percent less than on Monday.
The market closed trading of 161,785 shares for $2,265,487 compared with 201,014 units at $4,371,462 on Monday.
An average of 7,354 shares were traded at $102,738 compared to 10,051 units at $218,573 on Monday, with trading month to date averaging 16,669 shares at $179,628 compared with 18,679 units at $196,215 on the previous day and an average for March of 28,236 shares at $236,496
The Composite Index advanced 7.22 points to end the day at 1,219.85, the All T&T Index popped 12.83 points to lock up trading at 1,836.03, the SME Index remained unchanged at 77.71 and the Cross-Listed Index gained 0.17 points to settle at 78.44.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Agostini’s remained at $69 with a transfer of 15 shares, Angostura Holdings increased 21 cents to $22.95 after investors traded 2,518 units, Ansa McAl ended at $57 after an exchange of 500 shares. Ansa Merchant Bank ended at $45.30 with 396 stocks clearing the market, Calypso Macro Investment Fund climbed 40 cents to end at $23 with investors swapping 40 shares, First Citizens Group dipped 1 cent to end trading at $48.10 after an exchange of 2,446 stock units. FirstCaribbean International Bank sank 3 cents in to $7.01 with investors trading 4,562 units, GraceKennedy ended at $4.07 after an exchange of 1,109 stocks, Guardian Holdings rose 95 cents to end at $19 with 4,896 shares crossing the market. Guardian Media remained at $2 with traders dealing in 400 stock units, JMMB Group ended at $1.50 in switching ownership of 3,519 units, Massy Holdings slipped 1 cent to finish at $4.36 with investors trading 77,673 stocks. National Enterprises lost 1 cent to end at $3.88 after 1,113 shares passed through the market, National Flour Mills remained at $2.20 and closed with an exchange of 11,000 stock units, NCB Financial gained 5 cents to end at $3.15 with 450 units changing hands. Point Lisas dipped 1 cent in closing at $3.70, with 11,177 stock units crossing the market, Prestige Holdings popped 50 cents and ended at $13 with investors dealing in 6,373 units, Republic Financial ended at $119 in an exchange of 8,927 shares. Scotiabank fell 40 cents to $70.10, with 1,452 stock units changing hands, Trinidad & Tobago NGL ended at $8.47 after a transfer of 14,747 stocks, Unilever Caribbean advanced 29 cents to finish at $12.55 as investors exchanged 2,582 shares and West Indian Tobacco remained at $15.50 in trading 5,890 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
No rewards for Purity’s minority shareholders
After just over 11 years of listing on the Junior Market of the Jamaica Stock Exchange shareholders of Consolidated Bakeries are yet to see any meaningful returns from their $1.88 per share investment in the company, with the price now hovering at just over $2 and no dividend payment during the period, the situation is made worse with the company granting heft salary increases, with no increase in profit for 2023.
In their most recent financial report with revenues rising nearly 11 percent a gross profit jumped by $57 million to $594 million, only the majority of owners benefitted from that improvement. Management paid out the increase in gross profit to themselves and other workers in 2023. Minority shareholders received no benefit.
Management remuneration for directors climbed by nearly $6 or 27 percent to $26.6 million from $21 million. Salaries and related expenses included in direct manufacturing cost, jumped a staggering 40 percent or $42 million to $146 million from $104 million in 2022, this was the major factor that gross profit was not higher.
Salaries for selling and distribution rose by $21 million or 19 percent to $128 million from $107 million in 2022. Surprisingly, administrative salaries and related expenses remained flat at $103 million. In total, salaries rose by $70 million, some $13 million more than the increase in gross profit and just $28 million excluding the direct labour cost.
Other income contributed $4.6 million to profit, up from $2.4 million in 2022. Profit after Corporate taxes of $4.3 million for the year, slipped to $13 million from $14 million in 2022, after tax of $3.9 million.
Administrative costs rose only 2.8 percent from $266 million to $274 million but selling and distribution costs jumped a sizeable 21.2 percent to $247 million from $203 million. Depreciation and amortization costs climbed 15.7 percent to $41 million from $36 million. Finance charges rose to $20 million from $16 million in 2022, with borrowings increasing by $67 million during the year which helped in funding addition to fixed assets of $106 million, with equipment accounting for $49 million and motor vehicles $46 million.
Other areas with above average cost increases are Security with a rise of 21.5 percent to $15 million, Insurance up 18.6 percent to $19 million, and rented space jumped 110 percent to $8 million from $3.8 million. Professional fees rose 38.4 percent to $19 million from $14 million and other expenses climbed 33 percent from $17.5 million in 2022 to $23.2 million in 2023.
Not all items of cost rose. Bank charges declined from $5.7 million to just over $4 million, a drop of 28 percent. Utilities fell 11 percent from $36.7 million to $32.6 million. Repair and maintenance declined by 61 percent to $3 million from $7.6 million.
The operations generated Gross cash flow brought in $58 million but growth in inventories, additions to fixed assets offset by loan inflows and a reduction in payables resulted in a cash deficit of $27 million for the year.
Current assets ended the period at $276 million inclusive of trade and other receivables of $114 million, cash and bank balances of $66 million. Current liabilities ended the period at $242 million, with net current assets ending at just $34 million.
At the end of December, shareholders’ equity amounts to $710 million with loans totalling $253 million up from $187 million in 2022 of which long term borrowings amount to $166 million and short term at $88 million. One loan amounting to $40 million is due to be repaid in full in 2024 and the rest have full repayments dating from 2026 to 2033 with annual payments.
Earnings per share was 6 cents for the year. IC Insider.com computation projects earnings of 30 cents per share for the fiscal year ending December 2024, with a PE of 7 times the current year’s earnings based on the price of $2.19 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value ended the period at $3.13 with the stock selling at a steep 30 percent discount to book value.