SHARE prices for the NCB Financial Group Limited (NCBFG) rallied 8 per cent Thursday as investors’ interest in the stock returned ahead of expectation that dividend payments will resume, after a two-year hiatus, when the financial conglomerate’s board meets in two weeks.

Investors traded nearly 1.8 million NCBFG shares Thursday valued at $127.6 million. The trading pushed the price of the stock past $70 for the first time in over a month after news surrounding the leadership changes of the Jamaican financial conglomerate emerged. In fact, Thursday was the third-straight day the stock has gained after Monday’s announcement that the company’s two most senior executive have been sent on leave, pending separation. The stock is up 9.05 per cent so far this week and 7.55 per cent for the month. It is however down 11.11 per cent since the start of the year.

NCBFG’s stock price has been on a downward trajectory since July 2019, which was amplified over the last two years as the conglomerate did not declare dividends amidst its plan to bolster its capital base. This has culminated with the stock price exiting the $100 region last July, hitting a 52-week low of $64 on July 12.

However, the market has responded positively to the news of Chairman Michael Lee-Chin’s early return from his leave of absence on Monday and assumption of certain executive responsibilities. In addition, Chief Executive Officer (CEO) Patrick Hylton and Deputy CEO Dennis Cohen went on three weeks’ vacation leave on Tuesday. These developments have signalled to many investors a possible resumption of dividends, which used to be a stable source of quarterly income. NCBFG’s board of directors will be meeting on August 3.

The message appears to have been received as investors on the Jamaica Stock Exchange (JSE) piled into NCBFG’s stock, which peaked at $72.90 on Thursday before settling at $71.04, reflecting a $5.11 price increase or $12.61 billion in additional market capitalisation. As a result, NCBFG was third best-performing stock on Thursday with a market capitalisation of $175.24 billion.

NCBFG hasn’t closed above $70 since May 30 and hasn’t traded at these prices since April 2017. NCBFG peaked at $249 in July 2019.

Since Tuesday, $209.85 million has been spent on NCBFG over 682 trades compared to the average of 50 trades in the previous days worth about $17.95 million.

This positive improvement pushed up the portfolios of many managed funds and even listed companies such as Sagicor Select Funds — Financial and Mayberry Jamaican Equities Limited (MJE). MJE has spent $438.39 million on NCBFG in the first six months of 2023 with NCBFG now making up 1.6 per cent of its $25.70 billion portfolio.

There has been no trading on the Trinidad & Tobago Stock Exchange since July 18 with the stock price there at TT$3.10 (J$70.62) which is slightly below NCBFG’s book value of $71.45. NCBFG last paid a dividend in May 2021 of $0.50.

The return of Lee-Chin also coincides with the Jamaican-Canadian billionaire’s asset sales over the last year. Lee-Chin sold CVM Television, Medical Associates, a US$300-million yacht, Reggae Beach, and other personal assets. Different entities under the Portland Holdings umbrella have different debt facilities maturing during the year. Several of these facilities are backed by NCBFG shares as collateral, but there have been no dividend payments going towards them. The latest asset sale at the moment is by AIC (Jamaica) Limited, which is related to the 363,639-square-foot NCB Towers and its existing leases for $6.5 billion, which has a capitalisation rate of 8.7 per cent.