JSE post record high but…

Wigton Windfarm traded at 65 cents, Scotia group climbed to $51 and Wisynco Group traded at a new high of $15.99 to push the JSE All Jamaican Composite Index up 6,219.13 points to a record 457,965.13 after 47 minutes of trading.
At the same time, the JSE Index jumped 5,651.57 points to a new record of 417,158.72. The main market indices may be overstated with Wigton shares exceeding the maximum of 65 cents permitted for the day.
The moves beat the intraday high reached on Friday when the JSE All Jamaican Composite Index rose 1,367.16 points to 456,944.87 after 51 minutes of trading and the JSE Index rose 1,242.38 points to a then new record of 416,231.54.
The market index has since pulled back the record high with JSE All Jamaican Composite Index now 2,587.10 points to 454,333.08 after 72 minutes of trading and the JSE Index is up 2,138.24.57 points to a new record of 413,754.53. Meanwhile the Junior Market index trades 23.87 points up at 3,122.36.

All Jamaica Index now 455,998

The main market of the Jamaica Stock Exchange moved further ahead in early trading on Wednesday to record new records.
With more than half an hour before the afternoon session, the market hit 455,998.44 on the All Jamaican Composite Index (AJI) after rising by 2,858.98 points with NCB Financial trading as high as $151.50 and PanJamaican Investment at a record $100 after rising by $10 from Tuesday’s close of $90.
 The JSE Index climbed 2,598.04 points to be in record territory at 415,371.48.
The Junior Market index jumped 31.29 points to sit at 3,046.40 with Fontana trading at $4.49, General Accident at $4.45 and Lasco Manufacturing at $3.50.

All Jamaica Index at new record

New ecord high is in sight for the JSE main market.

The main market of the Jamaica Stock Exchange moved further ahead in trading on Tuesday and pushed the main market into it seventh day of new record high.
The market hit a new high of 453,856.77 on the All Jamaican Composite Index (AJI) after rising by 5,044.21 points with NCB Financial trading at $150 and helped to push the market. The JSE Index climbed 4,583.82 points to a record 412,827.88.
The Junior Market index is up just 7.32 points to sit at 3,008.07. Also rising were Sagicor Group at $47.60 and Supreme Ventures trading at $29.60.

Record high for JSE – Tuesday

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The All Jamaican Composite Index (AJI) of the Jamaica Stock Exchange jumped by 7,986.88 points to a record 443,244.68 at 10 am in early trading on Tuesday and the JSE Index climbed 7,257.92 points to a record 403,781.78 to be well ahead of the record close on Monday.
The Junior Market index rose13.69 points to sit at 2,978.12 after slipping slightly in early trading.
Caribbean Cement traded just 1,400 shares up to $77.90, but the exchange has the average price rising $4.43 to have the major impact on the indices move, along with Sagicor Real Estate Fund with a recorded average price change of 89 cents and NCB Financial trading 16,225 shares at $148 with an average change of $5.43. NCB now has a bid of $151 to buy 329 shares and an offer to sell 47,231 at $152.

The Lab, coming to a broker near you

NCB Capital Markets is readying a number of new public share issues to come to market by the summer this year.
Numbered amongst them are, The Lab that styles itself as a fully integrated 100 percent Jamaican born and bred advertising agency with global reach and an island swagger. “We are a strategic, creative, passionate solutions oriented and no nonsense group with a heavy emphasis on getting stuff done.” Kimala Bennett is the company’s Managing Director. Clients include National Commercial Bank, JPS, Wendy’s Domino, Supreme Ventures, Wray and Nephew, Grace Kennedy, Caribbean Broiler and Digicel. Persons in the know say this is one of those IPOs to plan for, it unique and profitable. QWI Investments is another that NCB Capital Markets is readying to take to the Jamaica Stock Exchange main market by early summer.

Kimala Bennett, Managing Director of The Lab.

Another that will be coming to market is Sagicor Select Funds Limited an Exchange Traded Fund. According to a note in the Sagicor Group audited financial statements, “It is the intention of the company to apply to the Board of the Jamaica Stock Exchange for admission of the shares to trading on the main market if subscriptions of at least $5,000,000,000 are raised.”
The above will come on top of the current public offer of Wigton Windfarm that opens next week to raise $5.5 billion, earmarked to be paid over to the government after expenses associated with the offer.

Huge interest in Jamaican stock market

With interest rates now at the lowest on receord in Jamaica and the local stock market now in its fifth year of a bull run, more and more persons are turning to the stock market for investment opportunities.
The increased interest is aptly demonstrated by the more than 1,300 persons who attended the Jamaica Stock Exchange receent staging of the 50th Anniversary Investor Forum. Marlene Street Forrest, Managing Director of the JSE said the record high turnout was historic and affirmation that Jamaicans are warming to the idea of investing in the stock market. “Being the number one performing stock exchange in the world says a lot and this has awakened Jamaicans at home and abroad to the possibilities that exist, when they invest in the market, which has returned over 300 percent over the last five years. This is significant and of course, persons are looking forward to benefit,” she said.
The record turnout comes against a well publized new public share issue by the Government of Jamaica, in the sale of 11 billion shares in Wigton Windfarm, at 50 cents each.
The event was sponsored by Barita Investments, with several of their top managers making presentations, including Vanessa Williams, Manager Mandeville branch and Ferris Jackson, Investment Advisor at Barita’s Kingston Office.

How the east was won?

Annmarie Vaz winner of the East Portland seat.

Anne Marie Vaz increased her party’s support by a stunning 58 percent, over the JLP’s haul in the 2016 General Election to win the East Portland by-election on Thursday with just 11 votes less than 10,000.
At the same time, Damion Crawford only pulled out 5 percent more votes than was polled for the PNP, in 2016. The story gets increasing bad for the PNP and it is not just in this election. The writing was on the wall for years but poor candidature, by the JLP lent the view to many onlookers, that East Portland was safe PNP territory. The 2007, results with the PNP winning by less than 800 votes, should have sent a clear warning to them that things were changing rapidly.
In this latest election, the number of new voters on the list, grew by 5.6 percent, but Crawford’s increase of 4.8 percent was less than the rise in registered voters. Looked at differently, he picked up just 354 votes more than in the 2011 elections or only 3.8 percent more. On a net basis, he garnered only approximately 25 percent of new voters, while Vaz got 75 percent. This is consistent with a pattern seen island wide since 1993 and is one that is not likely to change, anytime soon.
The Labour party was able to get out their 8,000 voters of 2011 and add 24 percent more voters to it, in addition to commandeering the vast majority of new voters, the vote tally at the end of the preliminary count suggests.
The results on the surface is a major about turn for the seat. Closer examination of the numbers for a longer period tells a clear tale. The huge 2019 increase is due to a below performance for the JLP in the 2016 elections, when the votes by the party sank by a hefty 22 percent and  well against the national trend. The trend since the 1993 elections, suggests that the natural growth in party support should have seen them polling over 9,700 votes, just below the numbers she got in the latest polls.
The data also points out that the trend is indicating that the JLP should have polled around 2,000 more votes than they did, this time around.  Those voters are there in their corner based on the growth in support, reflected in the average gains in votes cast in prior elections. This bit of information is also reflected in public opinion voting survey data.

Use PE ratio to make big bucks

Investors can improve return on their stock market investment by just following one critical measure, the PE ratios of stocks. Buy low PE ratio stocks and sell those that are too high relative historical norm that almost a sure recipe for making good money in the stock market.
An important factor worth noting is that the PE ratios based on 2018 earnings are well ahead of those for 2019 earnings. The average PE of stocks listed on the Jamaica Stock Exchange based on 2018 earnings is just under 19 times, reflecting valuation as high as 60 times 2018 earnings, with some with PEs in single digits.
The Junior Market boast average PEs around of 17, while the main market is at 19.5. The Junior Market typical PE hoovers around 16 while that of the main market is around 15, all based on 2018 earnings. The typical PE is where a large number of stocks are clustered.
While many investors see stocks as cheap, based on price, that is not the basis of investing in a stock. The focus on the PE is most critical. It is the tool used by most investors to determine if a stock is worth having or not. Many individual investors consider NCB Financial as expensive at

Chart showing falling interest rates & rising PE ratio of the Jamaica Stock Market.

$145, but with a PE ratio of less than 10 times 2019 earnings, suggest otherwise. PEs based on current year’s estimated earnings, are just 10 for the Junior Market and 14 for the main market, with the typical average of 12 for the main market. Should economic factors remain relatively stable, as they current are in Jamaica, as well as globally, the PEs based on 2018 earnings, are indicative of good gains in stock prices in 2019. The above would equate to the junior stock posting gains of 60 percent by next year March and the main market 25 percent.
Investors can compare, the current PE based on 2019 estimated earnings of each stock against the typical ones based on 2018, to get a picture of which ones are likely to gain strongly this year. IC Insider.com daily stock market report charts carry projected earnings and current PE for each stock that investors can use as their tool for identifying stocks with above average potential gains.

New index for JSE on Friday

The Jamaica Stock Exchange introduces the long overdue JSE Financial Index on Friday. The index will  track the performance of financial services companies, listed on the exchange.
The JSE Financial Index is the JSE’s first Sector Index since 1974. The Index will commence at a base of 100 points. The index includes insurance companies, banks, microfinance companies, consumer finance companies and diverse financial services companies listed on both the Main Market and Junior Market and trade in Jamaican dollars. The JSE Financial Index will provide information on the overall performance of the financial sector.
Marlene Street Forrest, Managing Director of the JSE stated that, “Innovation is the key for survival of any company. In keeping with its 50th anniversary celebration, the JSE will be introducing new products, services and market measurements that will be of interest to all market participants. Consistent with other Indices on the market, the JSE Financial Index will be computed using the weighted average market capitalization method.  The Index will be calculated in real time and reported daily, in the same manner as the other JSE’s Indices.”
“Almost 30 percent of the companies listed on the Exchange are financial companies and therefore, this is a useful Index to track this important sector”, the Managing Director stated. “We are looking to develop more sector specific Indices in the near future”, she went on to say.
The other indices of the exchange are, the JSE Combined Index, the JSE Index, the JSE All Jamaican Composite Index, the JSE Select Index, the JSE Cross Listed Index, the Junior Market Index and the JSE USD Equities Index. Up to 1974, the exchange had a utilities index that was discontinued in that year, an Industrial index and a Composite index.

JSE trading hits record in 2018

The Jamaica Stock Exchange enjoyed its best year ever in 2018, with trading in the main market climbing 110.40 percent over 2,590,383,796 shares in 2017 to reach 5,450,190,431 units valued at $75,469,542,096, up by 105.70% compared to $36,689,806,007 traded in 2017.
In the final quarter of 2018, trading volume excluding block transactions in the main market fell by 13 percent to 915 million shares with the value increasing 62.4 percent to $22,271,459,936, for the highest quarterly value traded for 2018, data from the Jamaica Stock Exchange show.
Trading activity fell in the Junior Market in 2018, versus the previous year, as regular trading declined 70 percent in December and helped push the volume down by 10 percent for the year and the value by 15 percent. Trading in the Junior Market resulted in 26,845 transactions in 2018 and 1,415,717,406 units changing hands for $5,848,812,746 compared to 22,230 transactions and 1,347,735,367 shares valued at $6,863,734,529.90 in 2017, for regular and block transactions.
In the US dollar market, 15.5 percent less transactions occurred, but volume traded was just marginally down to 43,576,278 units with a decline of 30 percent in value to US$8,765,761, from US$12.5 million in 2017.
With trading reaching the above levels and equating to more than US$633 million in 2018, the market   has surpassed the record $40 billion or US$630 million traded in 2005.
For January this year, the overall volume amounted to 1,230,485,201 units valued at $5,675,185,083 up sharply from 201,572,646 shares valued at $3,001,143,584, last year January.
The increased trading while indicating increased buying interest in the market, it is signaling a major switch in interest from the Junior Market stocks to the main market, last year. It also suggest that institutional investors are more involved in the market than before. Finally, it telegraph a strong message about the prospects for the profitability for the Jamaica Stock Exchange should the trend continue.