The Main Market of the Jamaica Stock Exchange slipped 2.3 percent in value in the past week while the Junior Market lost 2.2 percent, primarily due to declines in prices of Cargo Handlers, Caribbean Cream, Express Catering and Indies Pharma. The Main Market was hit with a 13 percent drop in the value of NCB Financial Group shares.
With the decline in the price of NCB Financial, the stock is so close to the TOP10 and is now peeping in but could be a struggle before moving sustainably upwards. The demand for the stock is weak currently and the price could be trading in the $40 region. Technical reading suggests a $45 price is not far-fetched before in finding a bottom.
At the end of the week, Dolla Financial rose 12 percent to $2.80 followed by Access Financial closing at $21.96 after gaining 10 percent and tTech up 8 percent to $2.70.
Caribbean Cream and Consolidated Bakeries lost 11 percent each to close at $3.35 and $2.00 respectively and AMG Packaging declined by 5 percent to $3.02. In the Main Market, Berger Paints rose 7 percent to $8.40 to be the leading mover followed by 138 Student Living up 6 percent to $4.09. There are no major declining stocks in the ICTOP10.
Guardian Holdings moved up on the JSE TOP10 listing, with earnings per share revised from $71 to $92 helped by a fall in the price at the close of the week. Price gain for Access Financial resulted in it moving from the 5th spot last week out of the list this week and Caribbean Assurance Brokers moved into the listing, following price slippage during the week.
Lasco Financial Services returns to the Junior Market TOP10, replacing Dolla Financial rising appreciably during the week. The Main Market had no changes.
The average PE for the JSE Main Market ICTOP 10 stands at 4.9, well below the market average of 13.9 and the Junior Market TOP10 sits at 6.9, just over half of the market, with an average of 12.5.
The Main Market ICTOP10 is projected to gain an average of 319 percent by May 2025, based on 2024 forecasted earnings and providing better values than the Junior Market with the potential to achieve 211 percent over the same period.
In the Main Market ICTOP 10, a total of 17 of the most highly valued stocks representing 33 percent of the Main Market are priced at a PE of 15 to 92, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 16 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 10 stocks, or 21 percent of the market, with PEs ranging from 15 to 20, averaging 18, well above the market’s average. The average PE for the top half of the market is 17, possibly the lowest fair value measure for stocks currently.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2025 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
