The Jamaica Stock Exchange Junior Market and the Main Market moved in opposite directions in the past week with the Junior Market enjoying some recovery from the fall in the past week and the Main Market suffering more pain, with a near 2 percent fall, with a few of the stocks hitting 52 weeks’ low, with Scotia Group being one of them and pushed to stock to 6 positions in the TOP10.
Developments in the past week, the Main Market, Key Insurance rose 11 percent to close the week at $2.77, followed by a 10 percent fall in Scotia Group down to $30, but the bid closed higher than the last price, suggesting a rebound in the coming week. Scotia Group reported solid results for the nine months to July. ICInsider.com upgraded earnings to $5.50 but it could hit $6, with the stock being extremely undervalued. Caribbean Cement declined by 6 percent to close the week at $47.50 and JMMB Group fell 5 percent to $28.10
The Junior Market ICTOP10 closed the week with a 16 percent rise in the price of Caribbean Cream to $4.06 followed by a 12 percent decline for Elite Diagnostic to $1.61 and an 8 percent fall in General Accident Insurance to $4.55.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5, well below the market average of 12.3. The Main Market TOP10 is projected to have an average of 336 percent, to May 2024, based on 2023 forecasted earnings.
A total of 12 of the most highly valued stocks representing 26 percent of the Main Market are priced with a PE of 15 to 84, with an average of 30 and 21 excluding the highest PE ratios, with a PE of 21 for the top half and 17 excluding the stocks with the highest PEs.
The Junior Market Top 10 PE sits at 5 compared with the market at 10.6. There are 12stocks or 26 percent of the market, with PEs from 15 to 38, averaging 21 that are well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently, and projected to rise by 300 percent to May 2024.
The divergence between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the level of likely gains for ICTOP10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 
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 are likely to deliver the best returns up to the end of May 2024 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 and result 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.
