JSE drops sharply on Wednesday

The Jamaica Stock Exchange on Wednesday closed with main market indices recording big losses, cancelling out the gains made in yesterday’s trading. The market closed with a fairly high participation rate of 33 securities changing hands accounting for 3,862,624 units trading, valued at $45,895,747 with 9 stocks rising, 16 declining with 1 stock closing at 52 weeks high, in all market segments.
At the close, the JSE Market Index fell 2,316.03 points to 99,099.31, the JSE All Jamaican Composite index dived 2,588.67 points to close at 109,705.40 and the JSE combined index dropped 2,164.74 points to end at 102,674.88.
The eve of and the actual Treasury bill auction days, historically have not been good for the local stock market. Stockbrokers main focus is on the outcome of the auction and interest rates out turn as well as how successful their bidding was. Wednesday’s sluggishness and pull back in prices could be related to this development with today being the day when Treasury bill bids are opened. At the close of trading on Tuesday the signals were for a weaker market on Wednesday as such today’s declines should come as no great surprise.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading that is better than Tuesday’s reading, with only of 3 stocks with bids higher than their last selling prices and 9 with offers that were lower. Today’s reading is 4 stocks with bids higher than their last selling prices and 6 with offers that were lower, a reading that still carries some negative undertone.
In trading, Cable and Wireless had 306,499 shares changing hands with a loss of 3 cents, to end at 40 cents, Caribbean Cement had 19,000 units changing hands at $8, Gleaner closed with 23,326 shares and fell 17 cents to $2. Grace Kennedy traded firm at $64 with 54,439 shares, Jamaica Broilers traded at $6.05 with 42,876 shares changing hands, Jamaica Producers traded at $18.25 with 4,000 shares changing ownership with a loss of 25 cents. JMMB Group traded 5,909 shares at $7.95 to add 22 cents, with the company reporting strong increase in profit for the first quarter. Jamaica Stock Exchange lost altitude and traded with a decline of $1.50 to $7.50 with only 7,100 shares changing hands. Mayberry Investments had 242,254 shares trading down 26 cents to $3.14, National Commercial Bank traded 421,180 shares to end at $30, Palace Amusement gained $10 in trading 2,500 shares to end at $75, Pan Jamaican Investment closed at $60.70 after trading 1,539 shares with a loss of $1.30. Sagicor Group with 1,077,602 shares changing hands, closed 50 cents up, at $13.50, Sagicor Real Estate Fund gained 95 cents to close at $8.75 while trading 10,095 units, Scotia Group traded 471,710 units to close at $23.70, down 80 cents, Supreme Ventures ended at $3.50 with 56,004 units to be down by $1 and Jamaica Money Market Brokers 7.50% preference share traded 150,200 units at $2.