Worse day for Jamaican Stocks

The Jamaica Stock Exchange suffered it worse day with a fall of 24,224.80 points off the Composite index on Thursday, beating the 14,424.69 points fall on Tuesday when the market closed at 511,165.47.
Main Market stock suffering significant declines include NCB Financial $1.55, Caribbean Cement $2, PanJam Investments $2.01, Scotia Group $2, Sygnus Credit $3.30 and Wisynco off $2.45.
The Junior Market that has been under pressure some months and fell 99.62 points on Wednesday dropped another 102.35 points on Thursday, to close at 2,656.41. Junior Market stocks that suffered the greatest losses that to Thursday’s sharp fall include Access Financial down $2.11, Blue Power off 56 cents, Cargo Handlers with a loss of 96 cents Express Catering falling 46 cents, General Accident down 80 cents, Knutsford Express off by 65 cents and Stationery and Office Supplies down 75 cents.

Jamaican stocks set for 2020 growth

The Jamaica Stock Exchange saw divergent movement in the three markets it operates, in 2019. While the major focus was on the Main Market performance with 34 percent gain, the US dollar market actually outdid it with gains of 40 percent but the Junior Market was nowhere to be found.

Almost clear skies for the Jamaica Stock Exchange

The Junior Market had its worse performance in three years, with an increase of just 3.4 percent. Last year was the fifth year of annual gains for the Jamaica Stock Exchange. In the past, the five-year mark meant that the market had peaked and was due for a major correction. Technical and fundamental indicators are not pointing in this direction currently.
Technically, the Main Market has 900,000 plus points on its radar, 60 percent away for the All Jamaica Composite index from the start of the year. The market is being steered by an upward sloping support line. There is no indication of any major resistance until it passes the 900,000 points mark.
The PE for the Main Market based on 2020 earnings is down to 16 times, 25 percent below the 2019 PE at the end of 2019 of 20.  NCB Financial performance is going be crucial to the performance of the market index as it controls so much of the market capitalization. In the end, the index is just a barometer of the movement in the value of all the companies listed and investors would be well advised to focus on the quality of stocks that will provide good returns. IC Insider.com forecast shows 13 to 15 companies that could double in price during the next 15 months in the Main Market starting in January.
The Junior Market is poised to move much higher on improved profits for 2019 and 2020, even as some 2019 results were disappointing and did not stimulate investors to acquire these stocks in increasing volumes with many of them still undervalued relative to values in the Main market. Improvement in profitability will convince investors that there are excellent values in this segment of the market.
There are 28 Junior Market stocks with the potential to deliver gains between 100 to 600 percent in 2020 and up to March 2021. The major reason for the large group is the lack of performance in the market in 2019. Investors placed a major focus on the Main Market, driving the PE ration to 21 compared to 14 for the Junior Market. At the end of 2018, both markets were trading around 17 times 2018 earnings. This divergence, suggests that there are good opportunities to profit from in 2020, as investors move to take advantage of undervalued stocks when
The forecast assumes that economic growth will continue during the year around the 2 percent level and that interest rates will remain close to current levels with Treasury bills rates staying under 2 percent. A major factor, that is important in viewing the market is the number of companies that are enjoying strong growth in sales as well as those that are expanding or likely to do so. Such developments bode well for major gains in profit going forward.
Investors should not ignore companies that performed poorly in 2019 but could enjoy a strong turnaround in 2020. The Investors’ Choice 80:20 rule based on 40 years of data, shows more stocks rising form the bottom 10 worse performers in a year and surge into the TOP 10 the following year, while an average of 80 percent of those in the TOP 10 fail to repeat in the following year and since 2016 the average is just one.
With the likelihood of twenty IPOs planned for 2020, investors can look for a series of disruptions in the upward trajectory of the market. For the past two years, there were signs that on each occasion of popular initial public offers, prices of existing stocks came under pressure.  The most recent were the three issues for 2020 to date. This phenomenon is most pronounced in the Junior Market that is far less liquid than the Main Market. The pullback of prices caused by the sell-off to fund IPOs also provides opportunities for investors who may want to pick up existing listed stocks at bargain prices.

5% of Proven shares traded

An investor picked up 31,265,399 proven shares in trading on the US market of the Jamaica Stock Exchange today, representing 5 percent of the total issued share capital of the company of 625,307,963 units.
The trades were executed at 31.55 US cents per share and cost US$9,864,233. The trades comprise a block of 21,374,171 shares with amounts in smaller denominations. Proven Investments’ record show Nekia Limited as the owners of the 21.37 million block and the second-largest shareholder.
The purchaser is unknown at the time of going to press, but Barita Investments subsequently announced that they acquired the block of shares that put them as the lead shareholder in the company. The move is consistent with realignments taking place within the dynamic Jamaican financial market.

August off with record breaking run for JSE

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The Junior Market of the Jamaica Stock Exchange is up 52.35 points to cross over the 3,500 points level for the first time in the market’s history.
The move after an hour trading on Friday pushed the Junior Market Index to a record high of 3,514.89 points.  The JSE Main Index rose 5,119.76 points to a record of 528,859.86 and the All Jamaican Composite Index added 5,633.92 points to trade at 580,884.11.
The Limners and Bards the (Lab) traded at $3.65 to record a 265 percent gain since the IPO and the listing a week ago. Pulse Investments traded at $3.90 up from $3 at the close on Wednesday. General Accident trades at $4.90, Jamaican Teas rose to a record high of $7 from $5.65 on Wednesday and Caribbean Cream fell to $4.40 on limited volume.

AJ Index up over 14,000 points

New record high for the JSE main market.

The JSE All Jamaican Composite Index gained 14,248.21 points to a record of 576,003.55, the JSE Index advanced 12,947.88 points to a record high of 524,424.70 and the JSE Financial Index rose 3.79 points a record of 141.10.
Bulls pushed the Junior Market index up 33.05 points at 10:15 am to reach 3,351.14 points after it went as high as 3,361.08 points after 30 minutes of trading. The index just 86 points adrift from the all-time high of 3,436 points on September 20, last year.
NCB Financial in early market activity traded at $249 but now trades at $225 while the Jamaica Stock Exchange is down to $32.
Shares of Limners and Bards, trading as the Lab, were listed on the Junior market today and has so far traded just 100 shares at $1.30, the maximum it can trade at for the day. The highest bid is now at $2 to buy 49,808 shares and offers are at $3. Investors attempted to trade the Lab at $2, resulting in suspension in trading until just after 12 noon.

Bulls push Junior Market over 3,300

Bulls let out their fury on bears in the Junior Market pushing the market index up 87.62 points at 10:15 am to reach 3,320.05, the highest level since October last year.
Amongst the stocks contributing to the big surge were Blue Power that rose to $11.95, Cargo Handlers $10.95, Elite Diagnostic at a record high of $5.99, Fontana traded as high as $8.99, Jamaican Teas $4.56, with third quarter results, more than tripling that of 2018 to $118 million versus $44 million and General Accident  at $4.50.
The JSE All Jamaican Composite Index gained 10.675.81 points to a record of 565,028.91, the JSE Index advanced 9,701.20 points to a record high of 514,451.64 and the JSE Financial Index rose 2.53 points a record of 137.90. Wisynco traded at a new record high of $28, subsequently NCB Financial traded at an all-time high of $229.99.

AJ Index at record 550K – Wednesday

New record high for the JSE main market.

Investors pushed the Jamaica Stock Exchange to a new record on Wednesday, for the main market with NCB Financial trading at a new high of $219.99 having gained $9.99.
The JSE All Jamaican Composite Index jumped 12,035.55 points to  a record  of 550,672.36, the JSE Index climbed 10,937 points to a new record of 501,405.60 and the Junior market Index rose 24.93 points to 3,101.46 with Fontanahitting a new high of $7 and seeming poised to rise further, with the bid above the last selling price. Proven Investments traded at a new all-time high of $41 on the main market.

Record 521,000 points for All Jamaica

New record high for the JSE main market.

The main market of the Jamaica Stock Exchange hit new record highs in mid-morning trading on Thursday with the JSE All Jamaican Composite Index surpassing the 520,000 mark for the first time.
The JSE All Jamaican Composite Index (AJI) rose 6,011.90 points to a record 521,685.45  and the JSE Index climbed 5,463.24 points to a record 475,064.08 at 10.50 am. The rise to more than 521,000 points on the AJI is a major development. The market has broken through an important resistance level of 520,000 points that has it genesis from as far back as the 2004 and 2005 peak. Continuing rallies above current levels, would confirm a big upside for stocks.
The Junior Market Index climbed 27.55 points to 3,126.49.
In trading, Barita Investments traded 66,243 shares at $45.05,  JMMB Group is up to a record $49.95 with 15,329 shares changing hands, NCB Financial traded 106,754 units at $192. In the Junior Market, Fontana hit a new record of $6 trading 54,772 shares, the stock has gone on to trade at $6.50 with more than 164,00 share trading.

Huge growth ahead for JSE stocks

At the start of July last year, the Jamaica Stock Exchange main market PE ratio was just 12 times that year’s estimated earnings and it has climbed 29 percent to 15.5 currently.
The rise in main market PE is leading some investors to be concerned about the value of many stocks, but they need not be as the main market is priced well below the 45 percent fall in Government of Jamaica Treasury bill rates since June last year. Not only that, since interest rates peaked at 9.11 percent in 2014, Treasury bill rates declined 400 percent while the main market stocks are up 520 percent but PE ratio of the main market is up only 160 percent over the same period, an indication that the main factor driving stock prices is increased profit and that the fall in interest rates has played much lesser role than profits.
Profits have been rising and interest rates have dropped with the 92 days Treasury bill for last year June, yielding 2.656 percent and currently 1.836 percent, a sharp 45 percent fall.

Growth in profit is the main reason for JSE rise since 2014.

What this suggests is that the PE ratio of the main market far from overvalued, is set to rise to 18 to 20 times current year’s earnings by the end of the year. The market valuation is well below the fall in interest rates and therefore has a far way to go before topping out.
Interestingly, while the Jamaica Stock Exchange main market stocks surge higher, the Junior Market PE at 11 times last year’s earnings at mid-year is still around the same level currently and trailing by a wide margin the main market stocks. This has huge implications for increases to come from the Junior Market as investors eventually bid these stocks up to reflect the sharp fall in interest rates and rising profits.

JSE majors jump to new record – Friday

New record high for the JSE main market.

NCB Financial Group raced to $190.20 and Scotia Group to $59.60 to help the JSE All Jamaican Composite Index climb 4,775.33 points to a record of 497,884.46 while the JSE Index jumped 4,339.53 points to a new high of 453,435.24 with 90 minutes of trading left in the day.
While the main market was hitting new highs, the Junior Market struggles with a decline of 16.04 points to 3,113.94.
The big trades so far are Wigton with 15.7 million shares, NCB with 5 million units and in the Junior Market Lasco Finance with 1 million shares and Lasco Manufacturing 1.73 million shares. Subsequent to 11:30 am, NCB traded up to $193.