Tuesday, 29th May 2013 | The market was dominated by Scotia Group with 2.265 million shares trading for value of $49.4 million in a market that traded $59.6 million for the day. The bulk of the trades in this stock were crosses done by Scotia Investments on behalf of clients. The stock jumped $1.24 on the day to close at $21.80. The gain in Scotia, plus a 40 cent increase in Sagicor Life which closed at $8.50, were the main contributors to the 1,452 points rise in the all Jamaica Index which closed above 87,000 points for the first time since February 6th and it now sits just below January 25th close of 87,888.49 on a day when advancing stocks again out paced declining stocks 3 to 1 with 12 stocks climbing versus 4 that fell.
Technically speaking | The junior market is heading to the 800 points level before it meets resistance and closed today at 716.63, so the target may not be that far away. The main market has broken the 85,000 mark decisively and today broke a minor resistance level created this year when the market slipped with the NDX and tax announcements. It now looks as if the market’s next serious resistance level is around 130,000 points. Using the all Jamaica Composite index, even if the market moved at the level it did today, it would take until mid-July to reach it.
The challenges the main market faces is that it requires the big companies to fully participate in any major rally to meet such a target within the time frame. So far, two of the big ones, National Commercial Bank (NCB) and Scotia Group, have not made any great moves to lend confidence that they are about to contribute in any major rally. Based on where money market interest rates are and the low level of stock valuation, this level may only be a temporary stop — if it becomes one at all. An indicator of the near-term future of the market can be measured by the advance decline ratio, as well as the number of stocks closing either bids higher or offers lower than the last sale price. At the end of Tuesday’s trade it was 8 to 1 a positive for continued advances.
Other price movers | Other stocks to post worthwhile moves include Carreras up $2 on Mondays last traded price with the stock closing at $60 with 16,246 units trading between $58 and $60. Jamaica Broilers gained 30 cents to close at $4.90 while trading 86,706 units. All three Lasco companies posted gains in continued response to the 10 for 1 stock split. Distributors gained $1.69 to close at $13.70 with 83,079 shares trading, Financial Services traded only 7,500 units to close $1.20 higher at $9.50 and Manufacturing was up 94 cents on just 5,000 units to close at $13. NCB shed 21 cents, closing at $18.80 as 19,134 units traded. Scotia Investments gained 50 cents with only 1,000 shares changing hands.
