The All Jamaica and the Junior Market indices closed the week higher than the previous week but with the Junior Market trading at its lowest since early June this year. The Main Market index which includes overseas companies, slipped back during the week. Stocks measured by the All Jamaica Index recorded gains of 4,565 points from the end of October in the past week and traded at a near two months high and have been flashing bullish signals with a sharp breakout looking very likely.
Some positives are visible in the market, with a sharp decline in the volume of some stocks being sold. Scotia Group is one such stock, as it approaches the release of full year results and an announcement on dividends, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with a very limited supply of stocks on offer.
Even as the Main Market index rose in the past week, winners were hard to find the Main Market ICTOP10, with the highest riser up just 3 percent as Key Insurance dropped 20 percent to $2, followed by Palace Amusement down 14 percent to $1.12 and Sygnus Credit Investments declining 7 percent to $11.11.
The Junior Market has 6 stocks gaining, with Iron Rock Insurance jumping 20 percent to $2.65, Express Catering rallying 7 percent to $4 and AMG Packaging rising 4 percent to $2.59 while Caribbean Creamfell 16 percent to $3.10.
There was just one new addition to the ICTOP10 with a listing for the Junior Market with Access Financial dropping out of the list and replaced by Honey Bun, with projected earnings per share of 70 cents for the fiscal year ended September and $1 for 2024.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 12.9. The Main Market ICTOP10 is projected to gain an average of 302 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, over half of the market, with an average of 13.1. There are 15 stocks, or 30 percent of the market, with PEs from 15 to 49, averaging 20 that are well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 200 percent on or around May 2024.
Of import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings 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.
Trading slipped to a mere 6,383,376 shares being exchanged for just $32,170,003 down from 16,736,165 units at $57,402,800 on Thursday.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and six with lower offers.
Proven Investments shed $1.48 to end at $22.01 in an exchange of 15,848 shares, Sagicor Group popped 95 cents in closing at $41.95 with traders dealing in 175,260 units, Scotia Group gained $1.14 and ended at $33.99 after an exchange of 5,240 stocks. Seprod dipped $3.89 to $74, with 27,420 stock units crossing the market, Supreme Ventures rose 49 cents in closing at $26.99 in switching ownership of 11,913 shares and Sygnus Credit Investments fell 64 cents to end at $11.11 after exchanging 20,349 units.
Jamaica Public Service 7% shed $1 to close at $45, with 198 stocks clearing the market and JMMB Group 7% preference share lost 36 cents and ended at $2.04 with a transfer of 3,435 stock units.
Investors traded 4,811,921 shares for $11,579,633 compared with 20,658,101 units at $44,997,586 on Thursday.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one with a lower offer.
Jamaican Teas lost 10 cents to close at $2.38 after 115 stocks crossed the exchange, JFP Ltd declined 17 cents to $1.41 with investors trading 290,287 units, KLE Group rose 15 cents to $1.64 while exchanging 11 stock units. Knutsford Express gained 19 cents in closing at $12.94 after a transfer of 933 shares, Limners and Bards shed 14 cents to end at $1.60 as investors traded 12,021 stock units, Lumber Depot dropped 18 cents to close at $2.39 with a transfer of 37,032 stocks. MFS Capital Partners rallied 38 cents to $2.48 after exchanging 70,032 units, 
Regency Petroleum fell 24 cents to close at $2.25 with investors transferring 1,064,663 stocks and Spur Tree Spices skidded 19 cents to end at $2.30 after an exchange of 39,063 shares.
Overall, 37,877 shares were traded, for US$2,504 compared with 826,627 units at US$14,407 on Thursday. Trading on Friday averaged 6,313 units at US$417, versus 165,325 shares at US$2,881 on Thursday down from November with an average of 249,102 units for US$14,204.
Sterling Investments ended at 1.6 US cents after trading 12,626 shares and Transjamaican Highway popped 0.02 of a cent to end trading at 1.71 US cents with stakeholders exchanging 21,144 units.
At the close of trading, the JSE Combined Market Index popped 366.08 points to close at 328,951.43, the All Jamaican Composite Index climbed 1,439.55 points to end the final month of the year at 351,375.40, the JSE Main Index rose 521.37 points to close at 315,669.00. The Junior Market Index after it surged 76.62 points on Thursday, dipped 14.05 points to close at 3,757.04 on Friday as trading fell sharply in the market to start the final month of the year of trading negatively and the JSE USD Market Index dipped 1.01 points to wrap-up trading for the week at 226.85.
The market’s PE ratio, the most popular measure used to determine the value of stocks, ended at 21.8 on 2022-23 earnings and 14 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily charts provide investors with regularly updated information to help decision-making.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Investors exchanged 487,619 shares for $4,456,955 versus 176,605 stock units at $1,382,075 on Thursday.
Ansa Merchant Bank dipped 61 cents to close at $42.89 with investors transferring 400 units. First Citizens Group rallied 15 cents in closing at $49.25 after trading of 14,716 stocks, FirstCaribbean International Bank remained at $7 after a transfer of 273,623 shares, GraceKennedy rose 1 cent to $4.01 with shareholders swapping 3,000 stock units. Massy Holdings fell 1 cent to end at $4.44 after an exchange of 142,394 stocks, National Enterprises dipped 1 cent in closing at $3.54 in switching ownership of 2,696 units, National Flour Mills advanced 23 cents to close at $1.75 with traders dealing in 7,232 stocks. NCB Financial shed 15 cents and ended at $2.85 after an exchange of 15,975 shares, One Caribbean Media declined 1 cent to $3.52, with 5,979 stock units changing hands, Point Lisas lost 6 cents in closing at $3.50, with 5,169 units crossing the exchange. 
Prestige Holdings skidded $1.30 to close at $8.70 with a transfer of 100 shares, Republic Financial gained 24 cents and ended at $120.24, with 3,479 stock units crossing the market, Scotiabank climbed 10 cents to end at $70 with an exchange of 1,866 stocks. Trinidad & Tobago NGL lost 4 cents to close at a 52 weeks’ low of $10.50 with 2,624 units clearing the market, Unilever Caribbean ended at $11.29 as investors exchanged 10 stocks and West Indian Tobacco popped 26 cents in closing at $9.51 after an exchange of 1,673 shares.
