BOJ dividend ban slaps JSE Main Market

Bank of Jamaica’s decision, to slap a ban on the payment of dividends for the rest of 2020 by financial banking groups, took another big bite out of the local stock market on Tuesday. Investors continue to react negatively to the decision by more selling of stocks in the banking sector with all four falling, taking the market index down with by another day of big losses following the slide on Monday.  
At the close, the JSE All Jamaican Composite Index declined 11,964.17 on Monday, fell a further by 13,352.19 points to close at 393,321.05. The JSE Market Index dropped 12,250.06 points on top of the 10,830.61 points fall on Monday to 358,512.98 and the JSE Financial Index lost 4.24 points to 95.49. The losses pushed the year to date loss to 30 percent, for main market stocks and ahead of the Junior Market that is down by 28 percent for the year.
The market closed with 39 securities changing hands in the Main and US dollar markets with prices of 11 stocks advancing, 24 declining and 4 securities trading firm. The JSE Main Market activity ended with 36 securities accounting for 96,137,935 units valued at $316,661,417, in contrast to 18,718,741 units valued at $83,219,012 from 40 securities on Monday.
Radio Jamaica led trading with 66.7 million shares for 69.4 percent of total volume followed by Trans Jamaican Highway with 14.7 million units for 15.3 percent of the day’s trade with the price ending at a record closing high of $1.40. Wigton Windfarm followed with 6.6 million units for 6.9 percent market share. The only other stock trading more than one million units was Jamaica Stock Exchange with 3.9 million units.
The Market closed with an average of 2,670,498 units valued at an average of $8,796,150 for each security traded, in contrast to 467,969 units valued at an average of $2,080,475 on Monday. The average volume and value for the month to date amount to 1,073,044 units valued at $3,888,797 for each security changing hands, compared to 996,058 units valued at $3,638,209 for each security traded. Trading in March resulted in an average of 1,146,245 units valued at $7,550,295 for each security.
IC bid-offer Indicator│ At the end of trading, the Investor’s Choice bid-offer indicator reading shows nine stocks ending with bids higher than their last selling prices and six stocks closing with lower offers. The PE ratio of the market ended at 13.9, while the Main Market ended at 14.1 times 2020-21 earnings.
In the Main Market, Barita Investments ended the day’s trade at $53, having lost $1.90 exchanging 4,872 units, Berger Paints closed 40 cents lower to settle at $13.50, in trading 8,147 units, Caribbean Cement lost $1 trading 163,854 shares to close at $45. Grace Kennedy shed 61 cents in transferring 14,047 stock units and closed at $56.89, JMMB Group fell by $1 to $34, with 290,970 shares changing hands, Key Insurance added 35 cents to finish at a 52 weeks’ high of $5.55, after swapping 91,058 shares. Kingston Properties ended at a 52 weeks’ high of $4.50, with a loss of $1.50 after a transfer of 56,639 stock units, Mayberry Investments gained 60 cents trading 28,831 units and closed at $5.80, NCB Financial Group fell $2 to close at a 52 weeks’ high of $138, with an exchange of 276,121 shares. PanJam Investment closed 50 cents higher to $76 after 482,161 shares changed hands, Proven Investments declined to $37.50, after losing $1.35 transferring 359 units, Sagicor Group closed $1 lower to $45, in swapping 73,341 shares. Scotia Group traded $2 lower to end at $43, with an exchange of 255,788 shares and Seprod ended with a loss of $2.60 to close at $42, in trading 101,200 shares.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.