Last year (2017), was a great year for Jamaican stocks with prices of several stocks more than doubling on the Jamaican Stock Exchange and 10 new companies listing on the exchange.
2018 seems poised to be another year for a number of new issues on the market as business owners take advantage of a buoyant market for equity investments.
The local market should have new 9 issues, Marlene Streete-Forrest, the JSE Managing Director confirmed. Streete-Forrest expects that 5 issues will list on the Junior Market and 4 for the main market. New financial entity Sygnus Capital is said to be heading to the public in January. Other listings expected shortly are Caribbean Insurance Brokers, NevEast and Elite Diagnostics. University College of the Caribbean with its main operations in Kingston, Jamaica, is expected to be the first educational institution to seek to list on the stock exchange. The listing is expected to take place in the first quarter of 2018. Mayberry Investment is also expected to bring their subsidiary, Mayberry West Indies to market by February.
In 2017, the Jamaica Stock Exchange had 10 new companies listing on the exchange, including 2 new companies listing preference shares. Two new listings were on the main market one on the US dollar market and 5 on the Junior Market.
Scotia Investments, Trinidad Cement, Montego Bay Ice and Margaritaville preference share were delisted during the year.
9 new IPOs for 2018
Junior stocks beat majors in 2017
Junior market stocks performed better than main market stocks in 2017 but that performance does not show in the gains in the market indices of both markets.
A cursory look at the Junior and Main Market indices would lead to the conclusion that investors in the main market were far better off in 2017 that their Junior Market counter path. Such a conclusion would be completely wrong. The Junior Market rose just 5.3 percent at the end of the year, down from a high of 31 percent in May, compared with almost 51 percent gain for the main market for, the full year.
Data is showing that while the Junior Market index was barely up, 8 stocks gained more than 100 percent compared to 6 in the main market. 7 Junior Market stocks rose between 50 percent and 76 percent and 9 gained between 52 percent and 81 percent in the main market. Importantly, the average gains for the Junior Market is 79 percent and losses, an average of 20 percent for a net gain of 59 percent. The average main market stock rose 68 percent while losses averaged 22 percent, a net of 48 percent.
A 43 percent fall in the price of the heavily weighted, Lasco Distributors and 14 percent in Lasco Manufacturing dented the Junior Market index in a big way.
The main market benefitted from big gains in heavy weighted, Supreme Ventures, NCB Financial, Jamaica Producers, JMMB Group, Carreras and Scotia Group with increases of 61 to 100 percent. Added to that PanJam Investment gained 60 percent, Cable and Wireless 56 percent and Sagicor Group 31 percent.
Pulse no 1 stock in 2016 & 2017
Data going back 30 years show that on only very rare occasions more than 2 stocks appear in the TOP for two consecutive years. 2017 is one such exception with 3 stocks doing so.
Pulse Investments retains the number 1 best performing main market stock position in 2017 with a gain of 256 percent, the stock also was also in the TOP 10 in 2016 at number 1 position for local stocks with gains, then of 350 percent. Berger Paints ended at the number 6 best performing stock in 2016 with gains of 200 percent and repeated in the 2017 TOP 10 with a rise of 196 percent, for the 2017 number 2 spot. Palace Amusement ended at 7 position in 2016 with a rise of 134 percent and rose 187 percent in 2017 to hold down the number 3 spot and is followed by Supreme Ventures at number 4.
The stocks from the 2017 top 10 that could repeat in 2018 include Berger Paints, Palace and Pulse, with JMMB Group looking to have a chance.
3 new junior stocks in 2017 best 10
The Junior Market ended 2017 with 3 new listings in the Top 10 best performing stocks in 2017. The 3 are, Express Catering up 167 percent, Main Event with a rise of 164 percent and Stationery and Office Supplies with a gain of 148 percent.
Knutsford Express with an increase of 275 percent, is the winning Junior Market stock for 2017, after ending at ninth position on the Junior Market in 2016, with a rise of 108 percent in 2016. Jetcon Corporation, the no 6 best performing stock in 2016 gained 199 percent in 2017 to land the number 2 spot. Eppley gained 145 percent for 2017 to hold down spot number 6 spot, number 7, is Blue Power rising 104 percent, followed by C2W Music after gaining 104 percent, with the number 9 spot being held down by Access Financial with gains of 76 percent and KLE Group rising 67 percent at 10.
Investor’s Choice research covering more than 30 years’ data shows that only an average of 2 stocks out of the top 10 performers each year repeat that performance in the following year, with the rest falling outside the top 10.
IC Insider.com data is showing that only Access and Stationery and Office Supplies are likely to end in the TOP 15 Junior Stocks in 2018.
Trinidad stocks down for second year
A lackluster year came to an end for Trinidad & Tobago Stock Exchange on Friday with trading in 14 securities against 11 on Thursday, with 4 stocks advancing, 3 declining with 7 closing unchanged.
The year closed with Composite Index rising 0.92 points on Friday to 1,266.35 with a rise of 4.7 percent for the year. The All T&T Index declined 1.16 points to 1,728.75, increasing the year’s fall to 5.75 percent while the Cross Listed Index inched 0.41 points higher to close at 108.38 for a gain of 38.12 percent for the full year. In 2016 Trinidad stocks lost 5.86 percent after ending 2015 with no change.
Market activity ended with a mere 109,529 shares with a value of $2,139,960 traded, rising above the 95,251 units changing hands on Thursday, valued at $1,845,641.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 4 with lower offers.
Gains| JMMB Group ended trading increase by 10 cents with 20,860 stock units and closed at $1.65 Massy ended rose 2 cents to $48.02 with 681 stock units changing hands, National Flour finished 1 cent higher at $1.91 with 1,154 shares and Point Lisas traded 2,000 units with the price rising 4 cents to $3.94.
Losses| Angostura Holdings ended with a loss of 15 cents with 75 stock units, to close at $15.05, Guardian Holdings finished with a loss of 22 cents to end at $17.03 with 16,076 shares changing hands and Republic Financial ended with a loss of 7 cents at $101.51 with 178 stock units.
Firm Traded| First Citizens closed with 861 shares at $32, Grace Kennedy concluded trading with 350 units at $3, National Enterprises concluded trading with 399 units at $9.80, Sagicor Financial concluded trading with 1,600 units to close at $7.83. Trinidad & Tobago NGL ended at $26.50, trading 65,000 stock units valued at $1,722,500, Trinidad Cement traded 250 units and closed at $3.75 and Unilever Caribbean finished trading just 45 shares at $29.
Prices of securities trading for the day are those at which the last trade took place.
It is now J$125 for 1 US dollar
At the close of trading the Jamaica’s Forex market on Friday the average rate for the public to buy the US dollar declined to $125 Jamaican for the first time since May 17, 2016, when the rate was $124.80.
Inflows of all currencies ended at US$47.75 million, versus US$75.53 million on Thursday with selling of US$56.28 million compared with US$82.73 million sold on Thursday. Total purchases for December came to US1.055 billion while the dealers sold a similar amount in all currencies.
In US dollar ,trading dealers sold US$55.06 million at an average of $125 at the close, compared US$73.32 million at an average rate of $125.09 on Thursday. US currency purchases by dealers, amounted to US$40.80 million, at an average rate of $124.06, compared to Thursday, with US$65.24 million at $124.06.
On Friday at midday dealers purchased US$17.6 million at an average rate of J$124.48 and sold US$9.87 million at an average of J$124.95. At mid-day on Thursday dealers purchased US$26.33 million at an average rate of J$124.45 while they sold US$24.36 million at an average of J$124.99.
The selling rate for the Canadian dollar dropped to J$97.39 from J$99.87 at the close on Thursday. The selling rate for the British Pound rose to J$167.03 versus J$164.20 previously and the euro gained in value against the Jamaican dollar at J$147.52 to buy the European common currency, versus the prior selling rate of J$146.75.
VM Investments lists on Friday
Investors who applied for shares in the public pool in VM Investments recent public issue of shares will get the first 30,000 units and 4.32 percent of the balance.
Employees and Members reserved groups were allocated the full amounts applied for. The offer closed with subscriptions in excess of $2 Billion for the $689,261,487 offered”
A total of 225,003,750 Ordinary Shares in the Offer were reserved for staff and customers of the VMBS Group at discounts from $2.08 to $2.33 each and 75 million for the general public at $2.45 each.
The company’s shares will list on the main market of the Jamaica Stock Exchange on Friday.
Wisynco started trading on the main market on Thursdays with very strong demand for the shares that were sold to the public at $7.87, by the close of trading attempts were made to trade 3.46 million units as high as $13.50 but most were cancelled as the price exceeded the 30 percent price movement limit of for the day. At the close 2,925,359 units were traded up to $10.09, the maximum price limit for the day.
Wisynco ended with 7,382 new shareholders, with those applying for shares from the General Public pool receiving the first 25,000 units in full and approximately 18.81 percent of the balance.