Profit up for Jamaica Stock Exchange

Fee income climbed 23 percent from $273 million in the 2020 June quarter to $336 million and rose marginally for the year to date to $646 million from $635 in 2020, but income from other sources was mainly flat to declining in both periods for the leading stock exchange in the Caribbean operated by the Jamaica Stock Exchange.
Revenues climbed 16.7 percent in the latest quarter to $442 million from $378 million in 2020 and for the six months, revenues fell from $887 million to $852 million as trading activity on the market remains subdued, with the main market still trading well below the highs of 2020 and financial stocks that dominate the market capitalization, mostly out of favour. Segment results show a $200 million decline in revenues as a result of lower trading activity on the stock market. Investment income was essentially flat at $10 for the quarter but fell from $32.6 million in 2020 for the half year to $24.6 million in 2021.
While revenues fell year to date, expenses for the half year rose 2.6 percent to $590 million from $575 million even as fees payable to the Financial Services Commission slipped from $27 million to $20 million. For the June Quarter, expenses rose by 10 percent, from $259 million to $285, with staff cost climbing 23 percent to $136 million from $110 million in 2020. Taxation gobbled up $51 million for the June quarter and $91 million for the half year.
The operations generated gross cash flow of $315 million, after an increase in working capital, the amount was reduced to $266 million and after acquiring investments, purchasing fixed assets and paying $112 million in dividends, the company reduced the cash funds of $140 million at the end of 2020 by $19 million. Net current assets ended the period at $540 million, with current assets of $892 million. Current liabilities at the end of the half year amount to $352 million. Trade and other receivables amount to $286 million, cash and bank balance $121 million and investments $434 million. At the end of June, shareholders’ equity stood at $1.8 billion, with no borrowings used in funding its operation.
Looking forward, the last half of the year tends to be more bullish than the first half. As the local economy continues to recover from the 2020 depression, greater activity in the wider economy is likely and should result in improved profitability of listed stocks, resulting in increased demand for them. Additionally, there will continue to be more listings that will generate fixed fees for the exchange and fee income based on trading in the stocks of the additional listings going forward. The exchange could also improve its results if it took a critical look at its fee structure, with a move to generating more fixed fee income and reduced reliance on varying fee income, which is the way it was in years gone by until some fixed fees were frozen for many years and have not changed much since. Short term, the stock may be considered overpriced, longer term, but it offers good growth potential with a decent dividend yield.
Earnings per share ended the June quarter at 17 cents and the six months at 27 cents and could end the year around 70-80 cents, depending a great deal on trading activities in the second half of the year.  The stock last traded at $17.79 on the Main Market of the Jamaica Stock Exchange with a PE ratio of 24 times 2021 earnings, in contrast to an average of 16.4 for the Main Market.  Net asset value was $2.57 at the end of the quarter, with the stock selling at 6.9 times book value.

Profit jumps 33% at Carreras but..

Sale revenues for the June quarter this year jumped 27 percent to $3.4 billion at Carreras, from a depressed $2.7 billion in 2020, with profit after corporate taxes surging 33 percent to $863 million from $651 million in 2020.

Carreras is one of Jamaica’s best dividend payers

The latest results, while looking impressive, have resulted mainly from a 27 percent fall in revenues in the 2020 June quarter from revenues of $3.458 billion in 2019. The 2021 profit is lower than the $923 million aftertax profit earned in 2019.
Cost of goods sold rose faster than revenues with a 30 percent increase from $1.37billion to $1.78 billion percent. Other operating and administrative expenses, including finance costs, rose four percent from $514 million in the 2020 quarter to $536 million.
The operations generated gross cash flows of $820 million, but after paying dividends of $1.2 million, resulting in a reduction of $786 million in cash on hand at the end of March. At the end of the quarter, shareholders’ equity stood at $1.75 billion, with lease financing at $251 million. Current assets ended at $3.47 billion, including cash and equivalent of $1.4 billion and Receivables of $1.56 billion. Current liabilities ended at $2 billion.
Earnings per share came out at 17.8 cents for the quarter, with ICInsider.com forecasting 80 cents per share for the year to March 2022, with a PE of 11.5 times earnings at the last traded price of $9.19 for the stock on the Main Market of the Jamaica Stock Exchange. The stock is now mostly regarded as a good dividend payer with a high yield of 8 percent, with profit hardly growing as the product it sells is not expected to enjoy much growth.

Junior Market rallies to close out July

The market closed on Friday, with the volume of stocks traded declining by 33 percent and the value slipping 29 percent from Thursday outcome, after 34 securities traded, similar to Thursday, with prices of 12  rising, 10 falling and 12 closing unchanged leading the Market Index to spike 14.49 points to close at 3,322.77 on the Jamaica Stock Exchange Junior Market.
The market that closed at 3,370.59 points in June, tried to build on it during July, moving up to 3,421.90  points in Mid-month, failed to hang on to the gains and end up closing below the June close. The PE Ratio, a measure used to compute appropriate stock values, averages 13.2 based on ICInsider.com’s 2021-22 earnings forecast.
Trading ended with 2,153,858 shares changing hands for $7,010,164 compared to 3,204,788 units at $9,817,160 on Thursday.
Future Energy Source led trading with 26.2 percent of total volume, after an exchange of 563,890 shares, Jamaican Teas followed with 21.5 percent, for 462,064 units and Tropical Battery 11.2 percent with an exchange of 240,306 units.

Trading averaged 63,349 units at $206,181 in contrast to 94,258 at $288,740 on Thursday. Month to date, trading averages 163,918 units at $481,755, versus 168,538 units at $494,416 on Thursday. June closed with an average of 225,705 units at $644,459.
 Investor’s Choice bid-offer indicator shows eight stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Access Financial jumped 85 cents to $21.49 with an exchange of 548 shares, AMG Packaging advanced 15 cents to $1.65 with 4,855 stocks changing hands, Blue Power fell 32 cents to $3.26 with 10,603 stock units traded. Caribbean Flavours gained 9 cents to close at $2.07, with 2,512 units passing through the market, Elite Diagnostic slipped 5 cents to $3.10 with a transfer of 482 shares, Future Energy Source lost 12 cents to finish at $1.38 with an exchange of 563,890 stocks. GWest Corporation declined by 5 cents to 94 cents with 10,000 units changing hands, Lasco Distributors dropped 16 cents to $4.04 with 1,222 stock units traded, Lumber Depot fell 10 cents to $3.30, with 15,040 shares passing through the market. Main Event climbed 43 cents to $4.79 with a transfer of 13,551 units, Medical Disposable  jumped 46 cents to $4.99 with investors switching ownership of 13,999 stocks and Stationery and Office Supplies shed $1.49 to close at $5.76 with 13,525 shares crossing the exchange.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Junior Market ekes out gains on Thursday

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Trading closed with the Junior Market advancing, with a modest rise in the market index on Thursday as the volume of stocks traded plunged 75 percent and the value dipped 76 percent from Wednesday and leaving declining stocks muscling out those rising.
A total of 34 securities traded on Thursday, up from 33 on Wednesday and ended with the prices of 11 stocks rising, 13 declining and 10 closing unchanged.
At the close, the Junior Market Index squeezed out a gain of 5.52 points to finish at 3,308.28. The PE Ratio, a measure used to compute appropriate stock values, averages 12.9 based on ICInsider.com’s 2021-22 earnings forecast.
Trading ended with 3,204,788 shares changing hands for $9,817,160 down from 13,080,154 units at $40,382,215 on Wednesday. Future Energy Source was the volume leader with 36.2 percent after trading 1.16 million shares, Lumber Depot followed, 11.9 percent, with 382,752 units and Fontana 10.6 percent, with 340,798 units.
Trading averaged 94,258 units at $288,740 in contrast to 396,368 at $1,223,703 on Wednesday. Month to date trading averages 168,538 units at $494,416, versus 172,116 units at $504,321 on Wednesday. June closed with an average of 225,705 units at $644,459.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Access Financial dropped 85 cents to $20.64 with an exchange of 2,738 shares, AMG Packaging slipped 5 cents to $1.50 with 200,000 stocks changing hands, Blue Power lost 5 cents to end at $3.58 with a transfer of 9,020 units. Caribbean Cream dipped by 7 cents to $5.88 with 46,990 stock units traded, Caribbean Flavours fell 9 cents to $1.98, with 157,522 shares passing through the market, Elite Diagnostic rose 5 cents to $3.15 in exchanging 1,710 units. Express Catering shed 59 cents to finish at $5.40 with 11,054 stock units changing hands, Honey Bun rallied 23 cents to $6.75 with a transfer of 99,760 shares, iCreate popped 6 cents to 86 cents with 21,745 units traded. Indies Pharma rose 10 cents to $3.60 with investors switching ownership of 7,036 stocks, Jamaican Teas added 6 cents to settle at $4.02, with an exchange of 218,068 stock units.Knutsford Express spiked 49 cents to $7.69 with 240 shares changing hands. Lasco Distributors spiked 39 cents to $4.20 with a transfer of 180,263 units, as investors responded positively to the company’s first quarter results that saw profit rising by 58 percent. Lasco Manufacturing gained 5 cents to close at $5.25 with 79,177 stocks traded, Lumber Depot rose 5 cents to $3.40 with investors switching ownership of 382,752 stock units, Main Event dropped 94 cents to $4.36, with 3,170 units changing hands and Stationery and Office Supplies advanced 10 cents to $7.25 with 13,696 shares crossing the exchange.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

 

Mixed trading for JSE Main Market

On the penultimate trading day of July, market activity ended with mixed on Thursday, just one stock separating stocks rising and declining after an exchange of 18 percent fewer shares, with 41 percent higher value than on Wednesday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index added just 48.11 points to end at 460,076.56, the JSE Main Index shed 405.69 points to finish at 420,886.99 and the JSE Financial Index slipped 0.23 points to 103.72.
Similar to Wednesday, 49 securities traded, with 20 rising, 19 declining and 10 remaining unchanged. The PE Ratio, a measure that determines appropriate stock values, averages 16.5 based on ICInsider.com’s forecast of 2021-22 earnings.
A total of 11,830,600 shares traded for $136,776,530 versus 14,440,911 units at $97,082,889 on Wednesday. Transjamaican Highway led trading with 38.8 percent after 4.59 million shares changed hands, followed by Radio Jamaica 13.2 percent, with 1.56 million units and QWI Investments 9.1 percent after an exchange of 1.08 million units.
Trading averaged 241,441 units at $2,791,358, compared to 294,712 shares at $1,981,283 on Wednesday. Trading month to date averages 321,606 units at $15,666,712, in contrast to 325,554 units at $16,300,774 on Wednesday. June ended with an average of 249,610 units at $3,877,606.
Investor’s Choice bid-offer indicator reading has nine stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments rose $1.20 to end at $84.70 after exchanging 8,897 shares, Eppley popped $5.77 to $41.87 in trading 1,017 stocks, GraceKennedy lost 30 cents to finish at $99.70 in switching ownership of 117,507 stock units, Guardian Holdings shed $9 to $640 with the swapping of 3,932 units. Jamaica Broilers popped 49 cents to $36.49 in exchanging 6,875 shares, Jamaica Producers rallied $1.50 to $23.50 after transferring 1,500 units, Jamaica Stock Exchange rose 53 cents to $17.83 in trading 3,054 stocks. JMMB Group fell 48 cents to $37.40 with a transfer of 252,605 stock units, Kingston Properties gained 36 cents to end at $9.90 in switching ownership of 5,437 units. Mayberry Investments fell 20 cents to $5.70 in exchanging 11,932 stocks, NCB Financial declined $3 to $139 after 23,985 shares cleared the market. Palace Amusement popped $30 to close at $1,050 in switching ownership of 75 units, Pulse Investments lost 25 cents in closing at $3.76 with the swapping of 414,730 shares, Sagicor Group declined $1 to $55 with 57,606 stock units crossing the market, Scotia Group spiked 50 cents to $41.50 with 446 units clearing the market and Supreme Ventures shed 50 cents at $20 in switching ownership of 10,621 stocks.
In the preference segment, JMMB Group 7% rose 24 cents to $1.84 in trading 541 units.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

JSE US Market crawls back on Thursday

Trading on the USD market closed on Thursday with an exchange of 59 percent fewer shares at 94 percent less value than on Wednesday, resulting in an even number of stocks rising and falling.
Trading ended with five securities changing hands, up from four on Wednesday, with the prices of two rising,  two declining and one remaining unchanged. The JSE USD Equity Index added 1.24 points to end at 186.73.
The PE Ratio, a measure that computes appropriate values of stocks, averaged 11.6 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 340,689 shares traded for US$8,870, down from 826,816 units at US$151,135 on Wednesday.
Trading averaged 68,138 units at US$1,774, compared to 206,704 shares at US$37,784 on Wednesday. For the month to date trading averages 182,914 units for at US$18,161 in contrast to 188,277 units at US$18,927 on Wednesday. June ended with an average of 87,444 units for US$6,162.
Investor’s Choice bid-offer indicator shows one stock ending, with the bid higher than the last selling price and three, with lower offers.
At the close, First Rock Capital dropped 0.6 of a cent to end at 7.2 US cents with an exchange of 26,683 shares, Proven Investments rose 2.47 cents to 25.48 US cents with 8,293 stocks traded, Sygnus Credit Investments lost 1 cent to end at 12 US cents with a transfer of 20,463 units and Transjamaican Highway ended at 0.75 US cents with 285,000 stock units crossing the exchange.
In the preference segment, JMMB Group 6% gained 6 US cents to US$1.09 with 250 shares changing hands.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

GraceKennedy blast profits higher

GraceKennedy earned a 12 percent rise in revenue to $63.4 billion, up from $54.4 billion in the 2020 corresponding period. Revenues for the June quarter rose 15.8 percent from $26.6 billion to $30.8 billion.
Profit before tax for the half year was up 20.4 percent to $5.4 billion, reflecting an improvement over the $2.5 billion in 2020 and climbed 15.6 percent to $2.9 billion for the quarter from $2.5 billion in 2020.
Profit after tax attributable to stockholders for the half year bolted 30.6 percent to $3.6 billion from $2.75 billion over 2020 and rose 35 percent from $1.42 billion to $1.9 billion in the June quarter. Earnings per share for the period was $3.62, compared to $2.77 in 2020, while the second quarter recorded earnings of $1.94, up from $1.44 in 2020. In its report on the six-month performance, the company stated, “GK’s Jamaican food distribution business (GK Foods – Domestic) performed well in the first six months of 2021, recording an increase in PBT and revenue over the prior year. GK’s Manufacturing Division recorded strong gains in the first half of 2021, with growth in revenue and PBT compared to the first half of 2020. This performance was primarily driven by significant demand in the Jamaican and international markets for our Jamaican manufactured products, including Tastee Cheese, Tropical Rhythms, canned vegetables, frankfurters and vienna sausages. GK’s International Foods business exceeded both its revenue and PBT half year targets, with all business units surpassing PBT over the prior year. GraceKennedy Financial Group reported strong growth in both revenue and pre-tax profit for the first half of 2021. GK’s Insurance segment also continues to yield positive results, with GK General Insurance recording double digit growth in revenues in the second quarter compared to the same period in 2020. GraceKennedy Money Services exceeded its revenue and pre-tax profits when compared with the corresponding period of 2020.”
The shares that are listed on the Jamaica Stock Exchange, traded with a 30 cents loss on Thursday ahead of the results to end at $99.70 but is up 55 percent for the year to date.

Huge blast at Carib Cement

Caribbean Cement is reporting another quarter of blow profits with revenues of $6.3 billion, up 32.6 percent over the $4.78 billion in the 2020 June quarter. Revenues blasted 32 percent to $12.3 billion for the half year compared to $9.3 billion.

The second quarter revenues growth beats the 31 percent rise in the first quarter as well as exceeding by 6.4 percent the $5.97 billion in the first quarter.
Profit after tax surged 200 percent higher to $1.56 billion in the second quarter from $521 million in 2020. And more than tripled the 2020 half year results of $1 billion to $3.09 billion.
Similar to 2020, gross profit was 47 percent in the second quarter to $3 billion versus $2.25 billion in 2020, while year to date it rose to 48 percent to $5.88 billion.
The company generated earnings per share of $1.84 for the latest quarter versus just 61 cents in 2020 and made $3.63 per share for the half year, up from $1.18 in 2020 and is well on the way the reach ICInsider.com forecast of $8.50 for the year, with the company stating “we expect continued buoyancy in the construction sector driven by both government-initiated infrastructure projects and many private developments.”
Foreign exchange losses are down to $50 million in the June quarter versus $376 million in 2020 and, for the six months, $258 million compared to $657 million.
Cash flows from operations amounted to $1.7 billion for the quarter and $4 billion year to date. $3.9 billion was repaid in loans for the six months period and will result in reduced interest cost in the second half of the year. The repayment of loans reduced borrowed funds to $3 billion. Shareholders’ equity stands at $14.7 billion, with accumulated profit at $5 billion.

Strong rebound for Main Market on Wednesday

Market activity ended on Wednesday with the indices rebounding strongly after advancing stocks outnumbered declining ones, with the volume of shares traded up 5 percent, but the value dropped 44 percent lower than on Tuesday at the close of the Jamaica Stock Exchange Main Market.
At the close at trading, the All Jamaican Composite Index bolted 4,368.07 points to 460,028.45, the JSE Main Index climbed 3,966.51 points to end at 421,292.68 and the JSE Financial Index rose 1.49 points to 103.95.
Trading ended with 49 securities compared to 50 on Tuesday, with 21 stocks rising, 14 declining and 14 remaining unchanged. The PE Ratio, a measure that determines an appropriate relative value of each stock, averaged 16.5 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 14,440,911 shares trading for $97,082,889 versus 13,712,829 units at $174,075,107 on Tuesday. Transjamaican Highway led trading with 27.2 percent for an exchange of 3.93 million shares, followed by JMMB Group 7.5% preference share 24.3 percent, with 3.51 million units and Wigton Windfarm with 12.4 percent exchanging 1.79 million units.
Trading averaged 294,712 units at $1,981,283 compared to 274,257 shares at $3,481,502 on Tuesday. Trading month to date averages 325,554 units at $16,300,774, compared to 327,152 units at $17,042,482 on Tuesday. June ended with an average of 249,610 units at $3,877,606.
Investor’s Choice bid-offer indicator reading has 16 stocks ending with bids higher than their last selling prices and five with lower offers.
At the close, Barita Investments fell $1.20 to $83.50 with the swapping of 3,683 shares, Berger Paints rose 64 cents to $13.74 with 29 stocks crossing the market, Caribbean Cement rallied 50 cents to $93.50 in trading 61,824 stock units. Caribbean Producers popped 30 cents to $4.85 with 41,147 shares changing hands, Eppley Caribbean Property Fund shed $1 to settle at $42 in transferring 545 units, GraceKennedy rose $1 to $100 in an exchange of 149,602 stocks. Guardian Holdings bolted $8 to $649 with the swapping of 11,460 stock units, Jamaica Producers gained 29 cents in closing at $22 after exchanging 5,000 shares, Jamaica Stock Exchange slipped 53 cents to $17.30, with the swapping of 3,117 units. JMMB Group lost 37 cents to settle at $37.88, with 59,540 stocks clearing the market, Kingston Wharves shed 34 cents to end at $47.66 with 5,080 stock units crossing the market, Mayberry Jamaican Equities popped 33 cents to $9 in exchanging 34,122 shares. NCB Financial Group rose 50 cents to $142 with 8,605 stocks clearing the market, Palace Amusement shed $1 to end at $1,020 in transferring 67 units, Scotia Group popped $2.01 to $41 after 325,790 stock units crossed the exchange and Supreme Ventures advanced $1.25 to $20.50, with 708,931 shares changing hands.
Guardian Holdings 2025 6.5% corporate bond traded 5 million units and rose 29 cents to $103.32.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Junior Market slippage continues on Wednesday

The Junior Market Index dropped a further 22.00 points for a third consecutive day of decline on Wednesday to settle at 3,302.76 as trading closed, with the volume of stocks exchanged climbing 45 percent over Tuesday’s level, with the value up by 24 percent.  
Market activity led to 33 securities trading compared to 34 on Tuesday and ended with the prices of just eight stocks rising, 14 declining and 11, closing unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 12.8 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 13,080,154 shares traded for $40,382,215 compared to 9,034,942 units at $32,570,639 on Tuesday.
Lumber Depot led trading with 78.7 percent of total volume in trading 10.29 million shares followed by Future Energy Source 11.1 percent with 1.46 million units and Tropical Battery 1.4 percent with 178,671 units.
Trading averages 396,368 units at $1,223,703 in contrast to 265,734 at $957,960 on Tuesday. Trading month to date averages, 172,116 units at $504,321, compared to 161,120 units at $469,047 on Tuesday. June trading averaged 225,705 units at $644,459.
Investor’s Choice bid-offer indicator shows four stocks ending with bids higher than their last selling prices and five with lower offers.
At the close, AMG Packaging rose 5 cents to $1.55, with 24,120 shares traded, Everything Fresh popped 6 cents to $1.05 with an exchange of 2,573 units, Express Catering jumped 49 cents to $5.99 with a transfer of 37,700 stock units. Future Energy Source dropped 16 cents to $1.50, with 1,457,121 stocks changing hands, General Accident rallied 47 cents to $5.47 with a transfer of 6,000 shares, Indies Pharma fell 25 cents to $3.50, with 70,689 units passing through the market. Jetcon Corporation slipped 8 cents to $1.31, with 110,000 stocks traded, Knutsford Express shed 49 cents to settle at $7.20, with an exchange of 3,067 shares, Lasco Distributors slipped 5 cents to $3.81 with a transfer of 27,161 units. Lasco Financial rose 5 cents to $3.15 with investors switching ownership of 900 stocks, Lumber Depot fell 10 cents to $3.35, with 10,289,932 shares traded, Main Event climbed 50 cents to $5.30 with a transfer of 1,928 stocks and Medical Disposables slipped 5 cents to $4.55 with 7,560 units crossing the exchange.
In the preference segmentCAC 2000 9.5% dropped 40 cents to close at a 52 weeks’ low of 80 cents, with 38,147 shares changing hands as the yield on the stock climbed to 11%.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.