The past week saw much changes in the main and junior markets as prices gyrated up and down, for several of the stocks. Some of the highly valued stocks, declined in value as some investors took profit from the sharp rise since the start of 2017, for a number of stocks.
In the TOP 10 junior market selection, Caribbean Flavours (CFF) rose 24 percent to $12.44 during the week and moved 
out of the list, with the bid at $12.50, making space for Caribbean Cream, now occupying ninth spot. CFF sits just outside the top tier of junior market stocks and could well reenter at the end of next week. ISP Finance moved to a new high of $10.10 on the bid, having traded during the week at record high of $10 and no longer sits on the number 1 spot. Key Insurance suffered a setback with a big 2016 fourth quarter loss of $136 million, coming from increased insurance claim provisioning of $433 million for the quarter and $1 billion for the full year. Hopefully, that is now behind them, clearing the way for 2017 to deliver what the company seems capable of doing. tTech pulled back in price, to sit at a more comfortable $7, after some selling came in for the stock. Access Financial climbed to a new all-time high of $35, helped by strong nine months results and lack of supply of stocks for sale.
Scotia Investments climbed to $41.19 during the week, from $38 the previous week and exited the TOP 10 main market stocks. The move made space for Jamaica Broilers that lost value during the past week, falling from $16.25 at the start of the week, down to a more attractive $14.50, with an increased forecast of $2 earnings per share for the 2018 fiscal year starting May, this year. The week saw more interest in Radio Jamaica and JMMB Group, the latter trading at $23 on Friday, but closed lower by the end of trading, helped by net profit rising 55 percent to $2.68 billion, for the nine months to December last year. Earnings per share for the nine months came out at $1.63 and 39 cents for the December quarter.
Juniors index jumps sharply on Friday
Lasco Financial Services stock closed at a new high of $35 on Friday.
In spite of the sharp gain in the index only 5 stocks rising while 9 declined with Access Financial jumping $3.75. Trading ended with 5,212,444 units valued at over $33,772,710 passing through the market, compared to 5,009,146 units, valued at $26,375,749, on Thursday. At the close 5 stocks had bids higher than their last sale prices and 5 with a lower offer, than the last sale, while 2 stocks closed at new 52 weeks’ high.
An average of 274,339 units with an average value of $1,777,511 traded, compared to of 238,531 units with an average value of $1,255,988 on the previous trading day. The average volume and value for the month to date ended at 285,096 units and $1,769,823 compared to 285,992 units and $1,769,183 to the previous day. The average volume and value for January, ended at 165,547 units and $884,749.
At the close of trading, Access Financial Services surged $3.75 to a 52 weeks’ high of $35 in trading 3,500 units, AMG Packaging jumped $3.50 and closed at $28 with 242 units changing hands, at the close the stock was offered at $25 to sell 150 units, Cargo Handlers traded 8,054 units, to close at $24.50. Caribbean Cream closed trading with 104,586 units at $7.25, after falling by 75 cents, Caribbean Producers closed trading with 16,011 units being exchanged at $4.65, Consolidated Bakeries traded 526,000 shares, to close at $4. General Accident closed trading with 162,398 shares while falling 15 cents to end at $4, Honey Bun closed with 422,790 shares changing hands to end with a loss of 50 cents at $7, Jamaican Teas traded 4,358 shares to close at $7.82 after declining by $1.18. Jetcon Corporation closed trading with 244,231 shares, to end with a loss of $1 at $10. Key Insurance traded 56,000 units, to close with a loss of 10 cents, at $2.90,
KLE Group lost 20 cents and ended with 42,816 units changing hands at $2.50, Lasco Distributors ended trading with 2,841,405 units changing hands to close at $7. Lasco Financial rose 20 cents with 149,488 shares changing hands, to end at a 52 weeks’ high of $4.70, Lasco Manufacturing with 62,296 units changing hands, closed with a gain of 19 cents at $4.70, Main Event gained 19 cents in trading 420,952 shares to close at $4.80. Medical Disposables lost 10 cents and closed at $7.40 with 34,000 shares changing hands, Paramount Trading closed at $3.80 with 77,959 shares changing hands and tTech lost $1 and closed trading with 35,358 units changing hands at $8, at the close investors offered 806,448 units for sale at $7.90.
Jamaica stock market index up but
Stocks indices gained at the close of trading on the Jamaican Stock Exchange on Friday, but with declining stocks overpowering advancing ones 2 to 1 in the overall market based on last traded prices. The market closed with trading in 45 securities and ended with 11 stocks rising and 24 falling.
At the close 5 stocks gained and 9 declined from the junior market as 6 securities ending at new 52 weeks’ closing highs and one trading at an intraday high. The Jamaican Stock Exchange uses the average price as the closing market price as well as in computing the movement in the market indices, accordingly, the JSE reported that 21 stocks advanced and 16 declined.
The All Jamaica Composite Index rose 741.30 points to close at 253,344.50, the JSE Market Index gained 662.86 points to finish at 230,909.54 and the JSE combined index jumped 1,322.69 points, to close at 245,952.78.
Trading was quite steady compared with the previous day with 8,815,422 units valued at $83,003,765, having changed hands, compared to 8,545,755 units valued at $87,407,183 changing hands on Thursday. The junior market accounted for 5,212,444 units valued at over $33,772,710 of those trading.
The average trade for the day in the main market ended at 122,952 shares compared to an average of 95,844 units on Thursday. For the month to date, an average of 138,735 shares compared to an average of 154,517 units up to the prior trading day. January ended with an average of 592,602 units.
The junior market ended trading with an average of 274,339 units with an average value of $1,777,511 traded, compared to of 238,531 units with an average value of $1,255,988 on the previous trading day. The average volume and value for the month to date ended at 285,096 units and $1,769,823 compared to 285,992 units and $1,769,183 to the previous day. The average volume and value for January, ended at 165,547 units and $884,749.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks with bids higher than their last selling prices and 6 with lower offers.
Jamaican stocks enjoy gains on Thursday
Stocks mostly gained at the close of trading on the Jamaican Stock Exchange on Thursday as 51 securities changed hands in the overall market, ending with 21 stocks rising and 17 falling. At the close 7 stocks gained and 6 declined from the junior market as 3 securities ending at new 52 weeks’ closing highs.
The All Jamaica Composite Index rose 358.25 points to close at 252,603.20, the JSE Market Index gained 320.34 points to finish at 230,246.68 and the JSE combined index lost 207.72 points, to close at 244,630.09.
At the close, 8,545,755 units valued at $87,407,183 changed hands, compared to 14,119,849 units valued at $235,690,329 changing hands on Wednesday. The junior market accounted for 5,009,146 units valued at over $29,141,927 of those trading.
The average trade for the day in the main market ended at 95,844 shares compared to an average of 237,979 units on Wednesday. For the month to date, an average of 154,517, shares compared to an average of 213,191 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 5 with a lower offers.
In market activity, Barita Investments lost 38 cents to close at $7.52 trading 2,755 units, Berger Paints closed at $11.50, for a loss of 50 cents with 18,356 shares changing hands, Cable and Wireless gained 2 cents to close at $1.30 with an exchange of 809,255 units, Caribbean Cement closed at $33 trading 10,032 shares. Carreras closed at $69 with trades of 1,135 units, 1834 Investments lost 10 cents, closing at $2 with 168,582 shares changing hands, and Grace Kennedy closed at $41, gaining $1 with an exchange of 87,622 units. Jamaica Broilers closed $2 higher to $16 trading 20,237 shares, Jamaica Producers lost 55 cents and closed at $17.45 with 97,629 units changing hands, Jamaica Stock Exchange added 1 cent to close at $10 with 444,930 shares traded, JMMB Group advanced 50 cents, in closing at $20 with an exchange of 444,930 units. Kingston Wharves rose to $31 with a gain of $2.99 trading 30,200 units, Margaritaville Turks lost 4 cents and closed at 35 US cents trading 4,500 shares, Mayberry Investments lost 33 cents to close at $5.40 with 9,000 shares changing hands and National Commercial Bank closed at $63, losing $1, after exchanging 95,008 shares. 138 Student Living closed at $4.50 with 500,000 units traded, Pan Jamaican ended trading at $40.75 with a loss of 25 cents and an exchange of 67,789 shares,
Portland JSX gained 2 cents to close at $10.53 with an exchange of 4,000 shares. Pulse Investments closed at $6.90 with gains of 40 cents and 12,000 shares changing hands, Radio Jamaica lost 2 cents and closed at $1.90, trading 58,396 units, Sagicor Group climbed to a 52 weeks’ high of $35.57, gaining 57 cents with trades of 34,750 units, Sagicor Real Estate fund closed at $11.50 with an exchange of 45,615 units. Salada closed at $9.24 trading 2,990 shares, Scotia Group slid to $39.50 with a loss of $1.50 having traded 45,086 shares, Scotia Investments added 99 cents to close at $40.99 trading 11,500 shares. Supreme Ventures closed at $5.70, with trades of 92,605 units, Proven Investments closed at 32 US cents trading 355,925 ordinary shares and JMMB Group 7.5% preference share, lost 1 cent with trades of 178,840 units to close at $1.09.
Juniors retreat sharply on Thursday
Medical Disposables added 60 cents and closed at $7.50′
The market closed ending with 5,009,146 units valued at over $29,141,927 passing through the market, compared to 6,418,006 units, valued at $39,202,136, on Wednesday. At the close, 5 stocks had bids higher than their last sale prices and 1 with a lower offer, than the last sale while 1 stock closed at new 52 weeks’ high.
An average of 238,531 units with an average value of $1,255,988 traded, compared to of 377,530 units with an average value of $754,627 on the previous trading day. The average volume and value for the month to date ended at 285,992 units and $1,758,206 compared to 290,307 units and $1,803,862 to the previous day. The average volume and value for January, ended at 165,547 units and $884,749.
At the close of trading, AMG Packaging closed at $24.50 with 7,859 units changing hands, Blue Power closed with 3,000 shares changing hands at $50.01, Cargo Handlers rose 10 cents while trading 7,456 units, to close at $24.50. Caribbean Cream closed trading with 7,153 units at $8, Caribbean Producers fell 18 cents in trading 17,802 units at $4.65, Consolidated Bakeries traded 681,057 shares with a rise of 20 cents, to close at $4. Derrimon Trading ended at $7.20 with 10,000 shares changing hands, General Accident closed trading with 24,861 shares at while falling 5 cents to end at $4.15, Honey Bun closed with 384,852 shares changing hands to end with a loss of 50 cents at $7.50, Jamaican Teas traded 62,765 shares to close at $9 after declining by 33 cents. Jetcon Corporation closed trading with 460,473 shares, to end at a closing high of $11. Key Insurance traded 1,077 units to close with a gain of 2 cents at $3, KLE Group lost 30 cents and ended with 1,500 units changing hands at $2.70, 
Knutsford Express traded just 4,000 shares and gained $1.49 in closing at $26. Lasco Distributors ended trading with 469,944 units changing hands to close at $7, Lasco Financial rose 27 cents with 819,651 shares changing hands to end at $4.50, Lasco Manufacturing with 1,086,082 units changing hands, closed with a loss of 44 cents at $4.51. Main Event traded 592,737 shares to close at $4.51, after trading at $4.80, Medical Disposables added 60 cents and closed at 52 weeks’ high of $7.50 with 334,877 shares changing hands. Paramount Trading rose 20 cents and closed at $3.80 with 25,500 shares changing hands, Sweet River ended with 10,000 units changing hands at $3.50 and tTech closed trading with 500 units changing hands to end at $8.
Scary data pushing some stocks
Overvalued Cargo Handlers, rated a buy by Barita.
IC Insider.com attempted to get an understanding of this unusual development of scary PE ratios. One possible clue came from two seasoned investors. One bought shares in Jamaica Stock Exchange (JSE) on the assumption that the PE was only 4, he was unaware that the earnings per share, last reported by the company, was not adjusted for the 5 to 1 stock split. The other investors pointed out that Cargo Handlers was selected by Barita Investments as the top junior market stock for 2017. That is a strange selection as research going back to the early years of the JSE, shows that only around 20 percent of top 10 stocks ends in the top 10 in the subsequent year, in very bullish periods, even less do so. A look at Barita’s stock market update chart, shows the Cargo Handlers having a PE of just 11.47 with earnings of $2.18, but the earnings is well ahead of the 43 cents the company reported for 2016. The PE for the stock, based on 2016 earnings is near 60 and 46
Jamaica Producers is one of the company’s that investors seem to be pushing the price, based on pre-bonus earnings.
Cargo Handlers may not be the sole stock that investors seem to be ignoring the effect of stock split on values. Barita shows JSE with a PE of 12.5 with earnings of $1.02, thankfully there is no recommendation for this one. Jamaica Producers is shown with a PE of 6.52 from earnings of $3.02, with a buy recommendation. Producers earnings are at best inflated with one off items, with them earning at the above level highly unlikely, as such the stock boast a PE of 40 times 2017 earnings. Pan Jam Investment is shown with earnings per share of $3.97 and a PE of 10.08. The only problem is that Pan Jam earnings for the nine months from continuing operations for 2016, is in the order of $1.92 making reaching the Barita’s earnings forecast challenging.
When the quarterly reports start coming in with adjusted earnings, it could be a huge disappointment and wake up call for some investors. It just does not seem smart for investors to be buying stocks that are valued well ahead of the market and expect to beat the market, unless there are huge increased profits down the road.
Main Event jumps TOP 10 stocks
Main Event Entertainment, Jamaica’s recent initial public stock offering, listed on the Jamaica Stock Exchange junior market this past week. The stock traded just 100 units on Wednesday, the opening day for a 30 percent rise from the IPO price of $2.
On Thursday a small amount traded at $3.70 and on Friday the stock shot to $4.70 with 15,722,362 units trading. The price has so far risen by 138 percent and seems to be heading higher.
The one week performance, pushed Main Event out of the IC Insider’s 2017 TOP 10 stocks, for the junior market. Lasco Financial Services entered the listing at ninth spot with potential to gain over 100 percent in the next twelve months based on projected 2018 fiscal year earnings and a market PE of 20.
Access Financial reported an 87 percent improvement in results for the December quarter, with profit of $142 million and $494 million for the nine months versus $296 million in 2015, at Caribbean Flavours, profit rose 31 percent in the December quarter to $23 million and to $43 million for the six months versus $37 million in 2015. ISP Finance reported increased profit for 2016 over 2015 with $39 million generated versus $31 million in 2015, the unaudited report showed healthy gains in the loan portfolio and a reduction in loan losses. Lasco Financial reported a 51 percent increase in profits for the December quarter of $75 million before tax, compared to 2015. 
Profit before taxation for the nine months’ period rose 21 percent to $199 million, but Lasco Manufacturing suffered a profit set back with lower profits of $113 million in the third quarter compared with $233 million in the December 2015 quarter. Increased profit after tax in the first 6 months, kept the year to date decline, to a moderate level, with profit of $700 million versus $729 million in 2015. The company will still be bringing new products to market in the current quarter that should have a positive impact on its operations during the 2018 fiscal year.
140% jump in past week for JSE stock
Major moves in the past week in the main market indices of the Jamaica Stock Exchange saw the market indices climbing sharply on three days, with more than 8,000 points on Thursday, more than 5,000 points move on Tuesday and one with over 2,300 points on Monday.
By the close on Friday, the market rose more than 7 percent in the week.
Jamaica Stock Exchange jumped sharply during the week by 140 percent, to $13.50 and joined Cargo Handlers, Kingston Wharves and Jamaica Producers with PE in excess of 30 times 2017 projected earnings. During the past week of rapid gains in some stocks, Radio Jamaica, Barita Investments, JMMB Group, Berger Paints and Scotia Investments all 
recorded gains during the week, with each hitting new 52 weeks’ highs.
The week closed with the full slate of stocks remaining in the IS Insider’s TOP 10. During the week Pulse Investments released quarterly results to December, with slightly lower profit for the quarter than in 2015 but with improved six months numbers over 2015.
The target PE used in the projecting prices is based on the market’s PE for 2016 earnings, for 12 stocks in the junior market and 11 in the main market that are selling around this level, with some well over.
Jamaican stocks hit new highs – Friday
Bulls pushed stocks higher on Friday, with the all market indices moving to new record highs on the Jamaica Stock Exchange with 56 securities changing hands in the overall market ending with 25 stocks rising and 13 falling.
The market closed Friday, with 10 stocks gaining and 4 declining coming from the junior market as 6 securities ending at new 52 weeks’ closing highs.
The All Jamaica Composite Index rose 646.51 points to close at record 257,395.71, the JSE Market Index gained 578.09 points to finish at record close of 234,532.02 and the JSE combined index climbed 740.72 points, to close at new closing high of 249,735.10. The movement of the main market, for the year to date, resulted to gains of 22.5 percent, for the all Jamaica Composite Index, with the JSE Market Index up 22 percent. The moves in the indices are subject to change as the stock exchange daily postings indicate that there are errors in the reports since the new trading system was activated on Monday.
At the close, 23,308,737 units valued at $169,240,005 changed hands, compared to 13,502,301 units valued at $146,199,269 changing hands on Thursday. Of the stocks traded, the junior market accounted for 18,452,895 units valued at over $81,504,636.
The average trade for the day in the main market ended at 116,707 shares compared to an average of 200,657 units on Thursday. For the month to date, an average of 152,563 shares compared to an average of 188,419 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 12 stocks with bids higher than their last selling prices and none with lower offers.
In market activity, Berger Paints traded 9,118 shares at $12, Cable and Wireless gained 11 cents to close at $1.25 trading 594,541 units, Caribbean Cement closed at $33, gaining $1 with an exchange of 34,000 shares. Carreras traded 21,609 units, gaining 1 cent and closed at $67, investors pushed 1834 Investments higher by 26 cents to $2.12 with 44,419 shares trading, Grace Kennedy closed at $40.65, gaining 65 cents with trades of 83,470 units. Jamaica Broilers closed at $16.25 with an exchange of 76,657 shares, Jamaica Producers declined by $1 to close at $20 with 168,659 units changing hands, Jamaica Stock Exchange climbed to a 52 weeks’ closing high of $13.50, gaining $2.90 with 132,518 shares traded,
Jamaica Stock Exchange climbed to a 52 weeks’ closing high of $13.50.
17 new highs for JSE stocks on Thursday
Scotia Group was one of 17 stocks to close at a 52 weeks’ high on Thursday.
The market closed Thursday, as 48 securities changed hands in the overall market, ending with 26 stocks rising and 12 falling, including 16 stocks gaining and 3 declining, in the junior market.
The All Jamaica Composite Index surged 7,266.97 points to close at record 256,749.20, the JSE Market Index jumped 6,497.96 points to finish at record close of 227,455.97 and the JSE combined index climbed sharply by 6,919.27 points, to close at new closing high of 248,994.38. The movement of the main market, for the year to date, resulted to gains of 22.2 percent, for the all Jamaica Composite Index, with the JSE Market Index up 18.7 percent. The moves in the indices are subject to change as the stock exchange daily postings indicate that there are errors in the reports since the new trading system was activated on Monday.
At the close, 13,502,301 units valued at $265,917,085 changed hands, compared to $146,199,269 units valued at $265,917,085 changing hands on Wednesday. Of the stocks traded, the junior market accounted for 7,916,160 units valued at over $42,290,565.The average trade for the day in the main market ended at 200,657 shares compared to an average of 355,210 units on Wednesday. For the month to date, an average of 188,419 shares traded compared to an average of 176,182 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 6 with lower offers.
In market activity, Berger Paints advanced $1.75 to a new 52 weeks’ high of $12, while trading 6,101 shares, Cable and Wireless lost 3 cents to close at $1.14 with trades of 273,176 units, Caribbean Cement closed at $32 with an exchange of 124,119 shares. Carreras traded 18,307 units, gaining 24 cents and closed at $66.99, Investors pushed 1834 Investments up by 16 cents to close at $1.86 in trading 28,194 shares, Grace Kennedy closed at $40, in losing 65 cents with trades of 33,486 units. Jamaica Broilers gained 25 cents with an exchange of 21,495 shares to close at 52 weeks’ high of $16.25, Jamaica Producers advanced $1.50 to close at 52 weeks’ high of $21 with 37,466 units changing hands, Jamaica Stock Exchange gained 60 cents to close at 52 weeks’ high of $10.60 with 21,813 shares traded. JMMB Group lost 1 cent to close at $19.99 with 61,718 units traded, Kingston Wharves closed at $30 with trades of 8,200 units, Mayberry Investments lost 10 cents to close at $5.80 with 251,786 shares changing hands,
Proven Investments traded at a new high on Thursday.