Market activity ended on Tuesday, with the volume of shares trading climbing 48 percent and the value of stocks traded marginally higher than on Monday on the Jamaica Stock Exchange Main Market as rising stocks just edged out those declining.
The All Jamaican Composite Index shed 3,613.87 points to settle at 434,722.20, the JSE Main Index declined 1,925.82 points to end at 385,639.89 and the JSE Financial Index slipped 0.83 points to 92.83.
Trading ended with 60 securities compared to 55 on Monday, with 22 rising, 21 declining and 17 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.8. The PE ratio for the JSE Main and USD Market closing quotes is based on ICInsider.com earnings forecasts for companies with financial years ending in August 2022.
Overall, 20,758,716 shares were exchanged for $260,240,162, up from 14,043,689 units at $254,824,567 on Monday. Transjamaican Highway led trading with 6.65 million shares for 32 percent of total volume, followed by JMMB Group 7.35% – 2028, with 2.83 million units for 13.6 percent of the day’s trade. Wigton Windfarm traded 2.04 million units for 9.8 percent market share, Pulse Investments ended with 1.85 million units for 8.9 percent market share and JMMB Group closed with 1.31 million units for 6.3 percent market share.
Trading on Tuesday averages 345,979 units at $4,337,336, versus 255,340 shares at $4,633,174 on Monday and month to date an average of 612,243 units at $7,121,049, compared to 627,343 units at $7,278,916 on the previous trading day. February closed with an average of 392,520 units at $3,199,976.
Investor’s Choice bid-offer indicator shows 14 stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments rose 50 cents in closing at $93 while exchanging 213,440 shares, Berger Paints advanced 40 cents to close at $12 after 5,948 units crossed the exchange, Eppley climbed 70 cents to end at $42 in switching ownership of 326 stock units. First Rock Capital rallied 75 cents in ending at $12.25 after exchanging 11,005 stocks, Jamaica Producers fell $1.45 to $22.55 trading 16,428 stock units, Jamaica Stock Exchange shed $1.45 to close at $17.50 after trading 142,389 units. JMMB Group gained 30 cents to close at $43.30 with 1,307,470 stocks crossing the market, Kingston Properties dropped 50 cents in ending at $9, with 969 shares changing hands, Kingston Wharves popped $1 in closing at $40 in trading 2,121 units. MPC Caribbean Clean Energy increased $1.73 to end at $100 after exchanging six stocks, Palace Amusement climbed $45 to $1045 with just one share clearing the market, PanJam Investment lost $1.55 to end at $64.50 with the swapping of 969,825 stock units. Portland JSX rallied $2.40 to close at $11.50, trading 5,000 shares, Proven Investments declined $2.50 and ended at $33 in an exchange of 16,907 stocks and Sagicor Group shed 70 cents to $57.30 in exchanging 203,858 stock units.
In the preference segment, Eppley 5% preference share lost $3 in closing at $19 with an exchange of 500 units, Eppley 7.75% preference share dropped 30 cents to $20.10, with 2,762 stocks crossing the market and Productive Business Solutions 9.75% Preference share declined $7 to close at $100 after exchanging 10,000 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Archives for March 2022
Junior Market hits record high as Main Market drops
The Jamaica Stock Exchange ended trading with the Junior Market closing at a new record high of 4,255.28 after it opened trading at a record high of 4,292.32 but drifted down from there to the record close.
The Main Market lost ground on Tuesday, after rising for two days and ended, with the Combined Index dropping 1,359.74 points to close at 398,829.03, the All Jamaican Composite Index dived 3,613.87 points to 434,722.20 and the JSE Main Index declined 1,925.82 points to end at 385,639.89.
The market’s PE ratio ended at 21.8 based on 2021-22 earnings and 12.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should make use of the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Rising stocks beat decliners on TTSE
Trading picked up on Tuesday with a 68 percent increase in the number of shares, changing hands with a 10 percent higher value than on Monday, at the close of the Trinidad and Tobago Stock Exchange as market activity resulted in more stocks rising than falling at the close.
A total of 18 securities traded up from 15 on Monday, with nine rising, seven declining and two ending unchanged, but three stocks ended at 52 weeks’ low. The Composite Index gained 2.18 points to settle at 1,449.96, the All T&T Index slipped 0.98 points to 2,089.29 and the Cross-Listed Index rose 0.78 points to 107.24.
A total of 522,226 shares traded for $4,655,372 compared to 311,540 units at $4,246,477 on Monday. An average of 29,013 units traded at $258,632 compared to 20,769 shares at $283,098 on Monday, with trading month to date averaging 33,763 units at $428,492 versus 33,998 units at $436,868 previously. The average trade for February amounts to 47,858 units at $516,870.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Ansa McAl rallied $1.39 to $58.99 after trading 633 shares, Calypso Macro Investment Fund lost 25 cents in closing at $19, with 700 units crossing the market, Clico Investment Fund advanced 4 cents to close at $29.69 after exchanging 26,672 stocks. Endeavour Holdings shed 91 cents to end at a 52 weeks’ low of $6.59 with 800 stock units changing hands, First Citizens Group popped $1 to end at $53 with the swapping of 4,034 units, GraceKennedy increased 10 cents to $6.10 in switching ownership of 5,537 shares. Guardian Holdings gained 98 cents to close at $27.98 in an exchange of 9,898 stocks, JMMB Group rose 7 cents in closing at $2.42 after trading 51,848 stock units, Massy Holdings declined 1 cent to $5.98, with 256,270 units clearing the market. National Enterprises climbed 9 cents to end at $2.99 after trading 85,310 stock units, NCB Financial Group increased 3 cents to end at $6.09 in exchanging 30,900 shares, One Caribbean Media gained 5 cents to close at $4.20, with 10,010 stocks crossing the exchange. Prestige Holdings ended unchanged at $6.90 with 30 stock units changing hands, Republic Financial Holdings dropped 62 cents in ending at $141.13 after trading 2,682 stock units, Scotiabank finished at $81, with 102 shares changing hands. Trinidad & Tobago NGL fell 20 cents to $20 in exchanging 26,339 units, Unilever Caribbean fell 50 cents in closing at a 52 weeks’ low of $14.50 with an exchange of 595 units and West Indian Tobacco declined 50 cents to end at a 52 weeks’ low of $23.50 in exchanging 9,866 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More gains than losses for JSE USD market
Trading on Monday ended with the volume of shares changing hands rising 338 percent with 43 percent higher value than on Friday, at the close of the Jamaica Stock Exchange US dollar market, resulting in more stocks rising than falling.
A total of seven securities traded, up from eight on Friday, with two rising, one slipping and four ending unchanged, leading the JSE US Denominated Equities Index to fall 2.09 points to 203.54.
A total of 185,493 shares traded for US$11,351 compared to 42,365 units at US$7,920 on Friday.
The PE Ratio, a measure used in computing appropriate stock values, averages 14.2. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years up to August 2022.
Trading averaged 26,499 units at US$1,622, compared to 5,296 shares at US$990 on Friday, with a month to date average of 43,385 shares at US$4,330 versus 44,338 units at US$4,483 on the previous day. February ended with an average of 87,719 units for US$9,318.
Investor’s Choice bid-offer indicator shows no stock ended with a bid higher than the last selling price and three stocks with lower offers.
At the close, First Rock Capital USD share lost 0.02 of a cent in closing at 7.93 US cents after an exchange of 2,998 shares, Margaritaville remained at 16 US cents after exchanging 30 stock units, Proven Investments ended unchanged at 23.32 US cents in exchanging 16,534 units. Sterling Investments popped 0.02 cents to close at 2.29 US cents in trading 6,688 stocks, Sygnus Credit Investments USD share finished at 12.89 US cents with 42,006 units clearing the market and Transjamaican Highway finished at 0.88 of one US cents after exchanging 116,483 stocks.
In the preference segment, JMMB Group 6% preference share climbed 0.01 of a cent to close at 99.02 US cents in switching ownership of 754 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Jamaica’s stock market in a good place
The stock market cannot be looked at in isolation from what is taking place in the wider economy, John Jackson said in an address he made recently to the Kiwanis Club of Kingston on the state of the Jamaican Stock Market. There are many positives occurring that could have a good impact on stocks and the stock market but there are a few negatives taking place currently he stated.
Jackson went on to list a series of positives and negatives about the market and the economy. The economy is bouncing back from the major dislocations caused by the closure of the country’s borders in March 2020, resulting in the closure of the important tourism sector and billion dollar loss of inflows. That seems to be behind us now, although not fully based on traffic passing through the two international airports that were lagging behind 2020 and 2019 up to February this year, there are sounds that there may be big improvements in the March numbers. Remittances had record increases, well over the inflows for 2019 in both 2020 and 2021, with the latter up by $1.1 billion over 2019 flows to hit the US$3.5 billion mark.
Employment is at record levels, bettering the pre-pandemic high. The tourism industry was not at full employment when those numbers were compiled, so the situation will be even better when the next set of figures are released up to March, this year. The construction sector is enjoying record performance and absorbing quite a bit of the previously unemployed but higher interest rates could slow down the growth in the sector. There is continued expansion in the BPO sector that is employing a large number of Jamaicans and pulling US dollars into our coffers.
Inflation has risen sharply worldwide and Jamaica has not been spared the impact, resulting in the Bank of Jamaica hiking interest rates sharply from an artificial low up to August last year.
On the positive side, central government has reduced debt to GDP below 100 percent and that is freeing up resources to spend on badly needed capital improvement as well as in social areas that were neglected for decades, with a target of 60 percent of GDP by 2026.
Against the above economic developments and the hope that the Ukraine war and inflation will not derail positive economic benefits for Jamaica, the future of the stock market is good, as economic policy favours low interest rates and growth in GDP that will be positive for profits and stock prices. It should be noted that the number of investors has swollen from just fifty thousand to over 200,000 over the past four years. That growth is creating a broader and more liquid market for investors.
The Junior Market is at record levels surpassing the record high of 3,665 points in August 2019, since then, the market closed at over 4,200 points but the Main Market continues to lag and is still below the March 2020 level just before the collapse of stock prices.
In the past, investors were pulled into the market only to see it fall out of bed. This time will be different for some time to come due to cutting of the fiscal deficit, with more to come and a vast improvement in the balance of payments. These will allow for more consistency in policies and less volatility in the market. The market is also more diversified with a wider array of choices than in years gone by.
Investors should remember that the two critical factors driving stocks are interest rates and profits. Rising profits and stable interest rates will ultimately drive stock prices higher. The reverse is true. The key is to buy companies with consistent profit growth, as that demonstrates good management.
Profits for most companies released recently have been good with many of the stocks undervalued. Investors need good information to assist them in buying stocks.
Investors who want to buy stocks should favour undervalued stocks and stay away from ones selling well ahead of the average of the market, using the PE ratio as a guide. They should focus on companies that have a good record of consistent growth to make for a successful investment. Use the market data put out by ICInsider.com on earnings, PE ratios, net asset value and dividend payments as a guide in selecting stocks, these are proven to work that is why our Top10 stock selection delivered a 64 percent growth for Junior Market stocks in 2021.
Junior Market record slips Main Market climbs
The Jamaica Stock Exchange ended with the Junior Market trading at a new record in the early morning session at 4,236.63 but failed to hold on to close at another record high after slipping 0.42 points to end at 4,205.36.
The Main Market continue to recover from last week’s loss, with, the Combined Index rose 1,215.01 points to close at 400,188.77, the All Jamaican Composite Index rallied 2,588.02 points to 438,336.07 and the JSE Main Index rose 1,301.75 to end at 387,565.71.
The market’s PE ratio ended at 21.9 based on 2021-22 earnings and 12.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should make use of the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Mixed trading on TTSE to start the week
Market activity ended on Monday on the Trinidad and Tobago Stock Exchange following a decline of 40 percent fewer shares, with 8 percent lower value than on Friday, resulting in more stocks declining than rising at the close of the market.
The number of securities traded on Monday dropped to 15 from 18 on Friday, with three rising, seven declining and five remaining unchanged. The Composite Index rose 3.20 points to 1,447.78, the All T&T Index slipped 0.04 points to 2,090.27 and the Cross-Listed Index rallied 0.93 points to end at 106.46.
A total of 311,540 shares traded for $4,246,477 down from 518,209 units at $4,614,570 on Friday. An average of 20,769 units traded at $283,098 compared to 28,789 shares at $256,365 on Friday, with trading month to date averaging 33,998 units at $436,868 versus 34,564 units at $443,458 previously. The average trade for February amounts to 47,858 units at $516,870.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Calypso Macro Investment Fund fell $2.75 to close at $19.25 while exchanging 200 shares, Clico Investment Fund declined 23 cents to $29.65, with 6,184 stock units changing hands, First Citizens Group climbed 50 cents to $52 after 788 stocks crossed the exchange. GraceKennedy finished at $6 in exchanging 50 units, JMMB Group rallied 5 cents to end at $2.35 and finishing trading with just one stock, Massy Holdings shed 1 cent in ending at $5.99, with 250,370 shares crossing the market. National Enterprises ended at $2.90, with 243 units clearing the market, National Flour Mills lost 1 cent to close at $1.83 in an exchange of 15 stock units, Point Lisas remained at $3.50 after 20 stocks passed through the market. Prestige Holdings dropped 20 cents to end at $6.90 in switching ownership of 200 shares, Republic Financial Holdings rose 75 cents to $141.75 in trading 13,340 units, Scotiabank shed 10 cents to close at $81 with the swapping of 1,372 stock units. Trinidad & Tobago NGL slipped 20 cents in closing at $20.20 with an exchange of 7,977 units, Trinidad Cement remained at $3.50 in exchanging 18,250 shares and West Indian Tobacco ended unchanged at $24 in trading 12,530 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.