Trading ended with a big decline in the Jamaica Stock Exchange main market on Monday, while the Junior Market slipped mildly but USD based stocks enjoyed a modest rally as trading levels more than doubled Friday’s levels.
The market closed with the JSE Combined Index falling 4,674.85 points to 395,544.89, while the All Jamaican Composite Index dropped a hefty 6,345.40 points to 436,529.89, the JSE Main Index fell 4,898.50 points to close at 381,428.82, the Junior Market index slipped 10.56 points to 4,326.47 and the JSE USD market index rose 1.05 points to 215.14.
There was an exchange of 23,054,505 shares in all markets, with the value traded in the Main and Junior Markets ending at $194.66 million and in the JSE USD market, US$11,473.
The market’s PE ratio ended at 23.4 based on 2021-22 earnings and 12.9 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate 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 decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks 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 remove emotions from investment decisions 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 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 the 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.
Archives for July 2022
Trading falls sharply for Jamaican stocks
Trading drops on TTSE
Trading dropped sharply on the Trinidad and Tobago Stock Exchange on Monday, with the volume of stocks traded declining 94 percent after an exchange of 91 percent lower value than on Friday.
Fifteen securities were traded, down from 21 on Friday, with two stocks rising, five declining and eight remaining unchanged. The Composite Index declined 3.47 points to end at 1,385.14, the All T&T Index shed 2.14 points to close at 2,041.91 and the Cross-Listed Index fell 0.68 points to settle at 95.53.
A total of 113,367 shares traded for $1,141,354 versus 2,007,601 units at $12,573,616 on Friday. An average of 7,558 units traded at $76,090 compared to 95,600 shares at $598,744 on Friday, with trading month to date averaging 58,916 units at $380,963. The average trade for June amounts to 55,705 units at $392,249.
Investor’s Choice bid-offer indicator shows two securities ending with bids higher than their last selling prices and one with a lower offer.
At the close of trading, Agostini’s traded 50 shares at $46, Angostura Holdings increased 1 cent to a 52 weeks’ high of $24.99 after trading 1,202 units, Calypso Macro Investment Fund ended at $22 after exchanging 35 stocks. Clico Investment Fund ended unchanged at $28.80 with 3,439 stock units changing hands, First Citizens Group popped 4 cents in closing at $50.04 with the swapping of 1,870 shares, 
GraceKennedy fell 18 cents to end at $5.32 in trading 41,748 units. Guardian Holdings remained at $27.31 after an exchange of 5,473 stock units, JMMB Group shed 11 cents to close at $2.30, with 14,157 stocks changing hands, Massy Holdings lost 1 cent ending at $5.15 in exchanging 22,403 units. National Enterprises declined 4 cents to close at $3.20 after 3,848 stocks passed through the market, Prestige Holdings ended unchanged at $6.75, with 3,927 shares crossing the exchange, Scotiabank finished at $77.50 with the trading of 1,399 stock units. Trinidad & Tobago NGL finished at $20.62 in switching ownership of 5,455 shares, Unilever Caribbean dropped 84 cents to end at 52 weeks’ low of $13.05 with 6,271 stock units crossing the market and West Indian Tobacco remained at $22.50 with 2,090
Has Jamaican economy fully recovered?
The Jamaican economy grew 6.4 percent in the first quarter of this year over a similar period in 2020, according to the Statistical Institute of Jamaica, overall GDP was still less than for the first quarter in 2020 but not far behind and with the faster pick up in visitor arrivals in the June quarter and its linkages to the rest of the economy GDP could be back to 2019 levels.
Image courtesy of arztsamui/FreeDigitalPhotos.net
The economic rebound is happening much faster than official reports suggested. Most likely, except for mining, the overall economy could exceed that of 2019, early data from the tourism sector for the June quarter suggests. The hotel and restaurant sector that grew 107 percent in the March quarter over 2022, with the tourist arrivals at just 72 percent of 2019 outturn. Data of visitor arrivals in the June quarter show the sector looks like it may come in around 97 percent of 2019 and will help push the industry to near full recovery compared to a 78 percent the hotel and restaurant sector represents in the 2022 first quarter versus 2019. The only other sectors that are down significantly are mining at a mere 28 percent of 2019 and Other Services at 85 percent of that in 2019.
Agriculture is the best performing sector
Statin puts output for the economy in real terms at $189.9 billion at the end of March, just shy of the $191 billion for the first quarter of 2020 but 3 percent off the $195.7 billion in the 2019 first quarter. The economy would need to grow 7.3 percent in 2022 in the second quarter to equal the 2019 outturn of 197 billion.
The data for GDP going back to the early 21 century reveal that the country’s GDP growth has been anaemic as the 2019 GDP of $197 billion is just above the 2008 first quarter of $194 billion.
Big price rise in ICTOP10
The markets closed with contrasting styles on Friday, with Junior Market listed Caribbean Cream dropping 27 percent to $4.01 and the main market listed Radio Jamaica rising 21 percent to $2.90, with the stock triggering the circuit breaker as investors exchanged 2.9 million units of the company’s shares on Friday.
It is unclear why RJR, a stock that was previously under selling pressure, surprisingly, surged at the week’s close. Caribbean Cream came under pressure after the company reported a loss for the year to February. Investors will have to await the first quarter results in a few days to determine whether the new year will see a return to brighter days.
Five Junior Market ICTOP10 stocks fell and four rose, while in the TOP10 Main Market, six stocks gained and two fell with none exceeding 4 percent, but for RJR.
Elsewhere in the Junior Market, C2000 climbed 11 percent to $10.30. In comparison, Access Financial and Elite Diagnostic gained 5 percent each to close the week at $21.01 and $3.50, respectively. In contrast, Caribbean Assurance Brokers lost 6 percent as Jetcon Corporation and Lasco Financial all fell 5 percent.
The week ended with one new listing in the TOP10 as mild gains by General Accident and a fall in the price of Dolphin Cove resulted in them swapping places.
VM Investments moved out in the TOP10 Main Market and Key Insurance moved into the TOP 10.
It is pretty clear that many investors are investing in the dark with the hope that some overvalued stocks will continue to deliver above average gains into the future, but not many people know that yesterday’s winners may not have tomorrow’s significant gains. They ignore the long established feature of the market going back almost 40 years of the IC 80/20 rule and rule of 72. The IC 80/20 rule is that only two out of ten stocks on average in one year end up in the top 10 the following year. The essence of this is that it is not prudent to invest in the vast majority of last year’s top 10 stocks, especially those that did exceptionally well and are unlikely to repeat.
Rule of 72 is simple. Divide 72 by the rate of return easily shows how quickly money can double. How does this apply to stocks? Last year the Junior Market rose 30 percent and for 2022, so far, by 27 percent. These growth rates indicate that an investment in all 45 stocks in this market would double every two and a half years based on the 2021 increase and roughly one year and four months using the year to date growth. What all of this is saying, investors don’t need to be chasing popular stocks to make good money in the market, choose those that are undervalued, with profit set to grow sufficiently to give a boost to the stock price.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers and Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 15, while the Junior Market Top 10 PE is six versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 242 percent to May 2023 and the Main Market 229 percent.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
More gains for Main Market
Stocks rose on the Jamaica Stock Exchange Main Market on Friday, with the volume of stocks trading declining 64 percent, with 97 percent lower value than on Thursday as rising stocks exceeded those declining, but the market closed with the IC bid-offer Indicator flashing short term negative signals.
The All Jamaican Composite Index gained 2,638.98 points to settle at 442,875.20, the JSE Main Index climbed 2,141.50 to 386,327.32 and the JSE Financial Index added 0.11 points to settle at 91.51.
Trading ended with 53 securities compared to 55 on Thursday, with 24 rising, 17 declining and 12 ending unchanged.
The PE Ratio, a formula to ascertain appropriate stock values, averages 15 for the Main Market. The JSE Main and USD Market PE ratios are computed based on ICInsider.com’s forecasted earnings for companies with financial years, ending up to the close of August 2023.
Overall, 13,174,872 shares were exchanged for $66,091,370 versus 36,352,680 units at $2,054,073,702 on Thursday. Trading averages 248,582 units at $1,247,007, compared to 660,958 shares at $37,346,795 on Thursday. June closed with an average of 281,913 units at $5,309,050.
Ciboney Group led trading with 2.89 million shares for 22 percent of total volume, followed by Radio Jamaica with 2.70 million units for 20.5 percent of the day’s trade and Sagicor Select Financial Fund with 2.59 million units for 19.7 percent market share.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and 11 stocks with lower offers.
At the close, Berger Paints added 70 cents in ending at $12.20, with 337 shares crossing the market, Caribbean Cement lost $2.50 to end at $64.50, with 20,215 stocks changing hands, Eppley fell 50 cents in closing at $44.50 after trading 175 stock units. First Rock Capital declined $1.55 to close at $11.75 while exchanging 5,681 units, Guardian Holdings rallied $16.99 to $519.99, with 1,654 shares crossing the exchange, Jamaica Producers advanced 45 cents to $22.45 trading 2,595 units. JMMB Group climbed $1.90 to close at $43.65 closed at 59,098 stock units, Key Insurance dropped 52 cents to end at $3.38 with the swapping of 2,005 stocks, Massy Holdings gained $1.30 after ending at $93 in exchanging 55,872 stocks. Mayberry Jamaican Equities popped 85 cents in closing at $13.85 with an exchange of 602 shares, Palace Amusement rose $45 to $945 with 23 stock units clearing the market, PanJam Investment climbed 98 cents in closing at $65.98 in an exchange of 138,936 units. Proven Investments rose $1.27 to close at $37.29 after exchanging 22,727 units, Radio Jamaica rallied 50 cents in ending at $2.90 after 2,700,500 stock units were exchanged, Scotia Group rose 45 cents to $36.50 in switching ownership of 1,039 shares. 
Seprod shed 70 cents in closing at $71.25, with 4,408 stocks crossing the exchange, Supreme Ventures increased 75 cents to close at $31.45 after exchanging 327,481 units and Sygnus Real Estate Finance recovered from the sharp fall on Thursday by gaining $1.26 to end at $12.51 in switching ownership of 501 shares.
In the preference segment, Eppley 7.25% preference share popped $1.94 to $21.99 after trading 2 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Winners & losers split JSE USD market
Trading pulled back on Friday, from Thursday levels with the volume of stocks traded declining 66 percent less and the value 70 percent lower at the close of the Jamaica Stock Exchange US dollar market, resulting in an even number of stocks rising than declining.
A total of 10 securities traded, up from six on Thursday with four rising, four declining and two ending unchanged.
Overall, 85,406 shares traded, for US$14,539 versus 252,463 units at US$48,827 on Thursday. Trading averaged 8,541 units at US$1,454, down from 42,077 shares at US$8,138 on Thursday. June ended with an average of 71,901 units for US$8,793.
The JSE US Denominated Equities Index gained 2.44 points to end at 214.09.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.3. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending, up to August 2023.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than the last selling prices and one with a lower offer.
At the close, First Rock Capital USD share rallied 0.79 of a cent to 7.84 US cents in trading 210 shares, MPC Caribbean Clean Energy remained at US$1.38, with 21 stock units crossing the market, Productive Business Solutions increased 1 cent to US$1.15 after just one stock crossed the exchange. 
Proven Investments shed 0.22 of a cent to close at 24.75 US cents in exchanging 58,539 units, Sterling Investments declined 0.02 of a cent to close at 2.1 US cents with 8,471 stock units clearing the market, Sygnus Credit Investments USD share fell 0.5 of a cent in closing at 12 US cents with an exchange of 3,614 units. Sygnus Real Estate Finance USD share ended at 12 US cents and 72 shares changed hands and Transjamaican Highway lost 0.04 of a cent to close at 0.96 of one US cent and closed, with 14,424 stocks trading.In the preference segment, JMMB Group 5.75% advanced 5 cents to end at US$2.30 trading one unit and JMMB Group 6% rallied 5 cents to US$1.10 in an exchange of 53 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market falters at July’s open
Trading closed on the Jamaica Stock Exchange Junior Market Friday, with the declining stocks being the highlight of the day as the volume of stocks trading fell 50 percent and the value down 52 percent on Thursday 43 securities trading versus 44 on Thursday with just 12 rising, 21 declining and ten closing unchanged.
At the close, the Junior Market Index dipped 12.41 points to settle at 4,337.03.
The PE Ratio, a measure of computing appropriate stock values, averages 12.9. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year ends that fall between November this year and August 2023.
A total of 8,527,780 shares traded for $29,915,284 versus 17,139,568 units at $62,526,703 on the Thursday. Trading averaged 198,320 shares at $695,704 in contrast to 389,536 shares at $1,421,061 on Thursday. June closed with an average of 429,016 units at $1,630,104.
SSL Venture led trading with 1.95 million shares for 22.8 percent of total volume, followed by iCreate with 1.06 million units for 12.4 percent of the day’s trade and Dolla Financial with 897,135 units for 10.5 percent market share.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and two stocks with lower offers.
Access Financial lost $2.49 to $21.01 in an exchange of a mere three shares, Cargo Handlers rallied $1.53 to close at $12.65, trading just six stocks, Caribbean Cream fell 44 cents in closing at a 52 weeks’ low of $4.01, with 5,889 units clearing the market. Dolphin Cove declined 59 cents to end at $16.91 with an exchange of 50,551 stock units, EduFocal gained 11 cents to end at $2.76 after trading 470,904 shares, Express Catering climbed 20 cents in closing at $5.70 while exchanging 5,878 stocks. Fosrich increased 10 cents to $32.60 in switching ownership of 54,317 units, iCreate dropped 49 cents to close at $4 after trading 1,056,092 stock units, Indies Pharma popped 15 cents to end at $3.30, with 42,077 units crossing the market. Lasco Manufacturing shed 15 cents to end at $4.60 with the swapping of 87,373 stock units, Lumber Depot lost 11 cents in closing at $3.09 with 468,686 shares changing hands, Mailpac Group fell 11 cents to end at $2.85 after 533,854 stocks crossed the exchange. 
Medical Disposables shed 30 cents to close at $7.11, with 100 stocks changing hands, Paramount Trading advanced 28 cents to $1.98 after exchanging 20 stock units, Spur Tree Spices declined 15 cents after ending at $4 in trading 120,119 shares. Stationery and Office Supplies dipped 14 cents in, ending at $13 after exchanging 15,230 units and tTech shed 51 cents to $3.23, with 321,665 stocks crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading falls sharply for Jamaican stocks
Trading ended mixed on the Jamaica Stock Exchange on Friday, with main market stocks gaining and Junior Market stocks mostly falling as trading levels fell from Thursday’s levels.
The market closed with the JSE Combined Index climbing 1,890.52 points to 400,219.74 while the All Jamaican Composite Index added 2,638.98 points to end at 442875.20, the JSE Main Index gained 2,141.50 points to 386,327.32, the Junior Market index slipped 12.41 points to 4,337.03 and the JSE USD market index rose 2.44 points to close at 214.09.
Investors exchanged 21,788,058 shares in all markets, with the value traded in the Main and Junior Markets ending at just $96 million and in the JSE USD market, US$14,539.
The market’s PE ratio ended at 24 based on 2021-22 earnings and 13.2 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate 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 decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks 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 remove emotions from investment decisions 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 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 the 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.
TTSE stocks open in July with gains
Trading remained elevated on the close of the Trinidad and Tobago Stock Exchange on Friday, with the volume and value of stocks traded declining marginally lower than on Thursday, flowing from 21 securities traded compared to 19 on Thursday, with three rising, eight declining and 10 remaining unchanged, and leading the major indices to rise at the close as Angostura Holdings jumped $2.09 to a 52 weeks’ high.
A total of 2,007,601 shares were traded for $12,573,616, down from 2,330,498 units at $13,044,397 on Thursday. An average of 95,600 units traded at $598,744 versus 122,658 shares at $686,547 on Thursday. The average trade for June amounts to 55,705 units at $392,249.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Agostini’s ended at $46 after trading 616 shares, Angostura Holdings increased by $2.09 to $24.98 in switching ownership of 16 stocks, Ansa McAl remained at $56.05, following the trading of 1,030 units. Ansa Merchant Bank lost 50 cents in closing at $42.50 with 10 stock units crossing the market, Clico Investment Fund rose 20 cents to $28.80 after 20,164 stock units changed hands, First Citizens Group shed 1 cent to $50 with the swapping of 200 units. FirstCaribbean International Bank ended unchanged at $5, with an exchange of 1,322,830 stocks, GraceKennedy dropped 29 cents to $5.50 after exchanging 553,344 shares, JMMB Group popped 11 cents to end at $2.41 while trading 100 stock units. 
L.J. Williams B share fell 13 cents to close at $1.95 in trading 1,000 stocks, Massy Holdings remained at $5.16, with 1,336 units crossing the market, National Enterprises declined 1 cent in closing at $3.24 after exchanging 10,000 shares. National Flour Mills ended unchanged at $1.75, with 362 stock units changing hands, NCB Financial Group finished at $5.50 after exchanging 3,000 units, Point Lisas ended at $3.40, with 520 stocks clearing the market. Prestige Holdings fell 20 cents to $6.75 in trading 70,199 shares, Republic Financial Holdings remained at $141 with an exchange of 9,731 shares, Scotiabank finished at $77.50 with an exchange of 2,500 stocks. Trinidad & Tobago NGL slipped 21 cents to $20.62 with the swapping of 24 stock units, Trinidad Cement finished at $3.70 while exchanging 5,024 units and West Indian Tobacco shed 85 cents to close at $22.50, with 5,595 shares crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
