Last week, the Junior Market closed the week at the highest level since November 17 and before that, October 2 and moved higher this week to just below mid-August summer high. Based on the close on Thursday when the market closed above 2,600 points, the first in several months the market seems poised to challenge the April high point before the year ends.
The Main Market closed lower at the end of the past week having pulled back from last week from the close of the previous week. Against the above out turn, there is just one new addition to the TOP10 at the end of the week but there were some price movements of note during the week.
Lasco Manufacturing edged into Junior Market TOP10 as Derrimon Trading fell out with our projection for earnings down to 13 cents per share for the current year.
Radio Jamaica surged 14 percent to close at $1.28 after the company reported completion of its reorganization that resulted in 107 persons made redundant and restructuring of the operating segments within the group that should allow for greater efficiency and focus. The market closed the week with limited stocks on offer suggesting, the price should be moving higher if buyers want to stock up. 
AMG Packaging and Caribbean Producers fell 7 percent to $1.55 and $2.74, respectively. Lasco Distributors fell 8 percent to $3.16 from $3.55. Lumber Depot rose 12 percent to $1.55 and Jamaican Teas gained 8 percent to $2.05.
The top three stocks in the Junior Market with the potential to gain between 193 to 374 percent down from 216 to 342 percent by March 2021, are Caribbean Producers, followed by Elite Diagnostic and Jamaican Teas. With expected gains of 138 to 221 percent, the top three Main Market stocks are, Berger Paints followed by Carreras and Scotia Group.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. 
The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 16.8 and the Junior Market 13.7, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9.2 or 55 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 194 percent and 125 percent for the JSE Main Market, based on 2020-21 earnings. 
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
