Grace, Kennedy to form equity trading company

By Al Edwards, Acting Financial Editor

Chen, Wehby and Collister

LOCAL CONGLOMERATE Grace, Kennedy & Company who last month acquired a seat on the Jamaica Stock Exchange (JSE) will form an equities trading company called First Global Stockbrokers Limited.

It will be capitalised at over $20 million and be a wholly owned subsidiary of Grace Kennedy & Company. The new company will be staffed by trained personnel doing research work on companies listed on the JSE. First Global Stockbrokers Limited will be housed in another Grace financial services subsidiary George & Branday located at 1 St. Lucia Crescent, Kingston 5. George & Branday specialises in the fixed income markets and foreign exchange trade.

A newly formed board for the company will consist of Roy Collister (ex-president of the Jamaica Chamber of Commerce (JCC)), Don Wehby, (financial director, Grace, Kennedy & Company), Gordon Sharp (director of Grace, Kennedy & Company), Brian Goldson (head of Grace's remittance division). Oliver Chen of Jamaica Unit Trusts who has considerable experience in equities has been invited to join the board and is expected to do so subject to approval from the Ministry of Finance and Planning.

Speaking to Wednesday Business Mr. Wehby said: " The new company is expected to begin trading in the last week in September. It signals our intent to try to grow the equities market in Jamaica as we are envisaging many more companies listing on the JSE.

"With more liquidity in the Jamaican market we would see the P.E. at over 8 where now it stands at 7. In Trinidad the P.E. is 12. This no doubt adds to the call for a single Caribbean Stock Exchange because our respective markets are currently too small. There are a number of business observers who believe that many companies are undervalued and rather than cross list are calling for a Caribbean Stock Exchange."

Grace, Kennedy has secured the services of PricewaterhouseCoopers to locate a suitable software provider with Internet trading capabilities.

Earlier this year, local investment firm, Alliance Investment Management headed by Peter Chin struck a fee sharing strategic partnership with international investment house Credite Suisse First Boston.

The deal allows trading stations placed at Alliance Investment offices with online trading accounts. Clients can track stocks listed on the NYSE, NASDAQ and other major stock exchanges. One can now trade by phone through financial advisors or online via the Internet.

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