The performance this past week in the Junior and the Main Market diverged significantly the Junior Market recorded gains in the week and put it back at early March levels this year while the main market declined further continuing negative performance since the beginning of June and is now back at August 2018 levels and is providing investors with a great opportunity to add some of these stocks to their early Christmas shopping at bargain prices.
The Junior Market has broken through the downward-sloping resistance line of the wedge. The Junior Market reclaimed the 3,800 handle last week and is close to retaking the 3,900 level shortly, with the market set for a big rally in the second half of the year a position supported by technical analysis of the market. The Main Market seems to be weighed down by concerns relating to inflation and interest rates, if so the reading is wrong as inflation is well under control and interest rates will start dropping before the year ends.
Against the background, the Junior Market recorded gains for six stocks during the week with iCreate jumping 26 percent to $1.20, Caribbean Cream moving up 22 percent to $3.89 and Edufocal putting on 6 percent to end the week at $1.89 hey worst performer was Iron Rock Insurance down 7 percent to $2 and General Accident fell 5 percent to $5, while One and One lost 3 percent to close the week at $1.04.
The Main Market had one price movement of note with Transjamaican rising 13 percent to close the week at $2.39. Declining are 138 Student Living down 11 percent to $4.60, Guardian Holdings, with a loss of 7 percent to $450.01 and Caribbean Producers lost 5 percent to end the week at $9.48.
Transjamaican moved out of the Main Market TOP10, with a gain of 27 percent since entering the TOP10 and 35 percent since it was added to Stocks to Watch at $1.77 in April, is replaced by Caribbean Cement, with projected earnings of $6.50 notwithstanding for the first quarter profit and in the Junior Market, Edufocal moved out while Everything Fresh returns after a brief absence to the TOP10 with the price having fallen to $1.50.
Transjamaican, although out of the top 10 has much more room to grow with the potential for an additional 200% increase in the stock price. A look at the order book for Transjamaican suggests that demand is likely to overwhelm supply over the next two to three weeks with a likely price target then of $3. Even then the potential dividend yield that could be 8 percent at that price could result in the price going higher.
Recent developments for some stocks – Lasco Distributors and Lasco Manufacturing increased dividends to 10 cents and 12 cents respectively, with both to be paid in July, while Stationery and Office Supplies hit a record high in the week at $24 but closed the week at $20 for a 17 percent gain for the year. The stock is now a prime candidate for a stock split. Earnings for Berger Paints were adjusted down to $1 per share for 2023.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.8, well below the market average of 13.1. The Main Market TOP10 is projected to have an average of 254 percent, to May 2024, based on 2023 forecasted earnings.
The 15 most highly valued Main Market stocks are priced at a PE of 15 to 98, with an average of 29 and 20 excluding the highest PE stocks, 23 for the top half and 18 excluding the stocks with the highest PEs.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 11.1. There are 11 stocks representing 23 percent of the market, with PE from 15 to 42, averaging 21 that are well above the average of the market. The top half of the market has an average PE of 16, possibly the lowest fair value for Junior Market stocks currently. Junior Market is projected to rise by 270 percent to May 2024.
The divergence between the average PE ratio of the Main and Junior Markets and the overall market valuation is an important indicator of the level of likely gains for ICTOP10 stocks.
In the market generally, Investors continue to nibble away at a number of stocks and in the process gradually reducing the supply of several stocks that are attractively priced as the market moves toward the summer months, the start of the stock market year.
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.
ICTOP10 stocks are likely to deliver the best returns up to the end of May 2023 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.
Kremi heads ICTOP10 after gaining 22%
JSE Main Market stocks back at 2018 levels
The Jamaica Stock Exchange Main Market continued to lose ground on Friday, with declining stocks clobbering those advanced on a 2 to 1 basis, with the losers dominated by some of the largest capitalized stocks, resulting in a decline in the market index to the lowest point since August 2018, with the market closing down for the week and ending on Friday with a 31 percent decline in the volume of stocks traded with a 39 percent lower value than Thursday.
A total of 58 securities changed hands compared with 59 on Thursday and ended with 15 rising 29 declining and 14 unchanged as two stocks hit 52 weeks’ lows, with NCB Financial closing act is 52 weeks’ low of $65.70 while Salada Foods dipped to a 52 weeks’ intraday low of $2.51.
A total of 14,340,680 shares were traded for $56,260,192 compared with 20,658,946 units at $92,185,071 on Thursday.
Trading averaged 247,253 shares at $970,003 versus 350,152 units at $1,562,459 on Thursday and month to date, an average of 340,544 units at $5,192,296, compared to 349,201 shares at $5,584,125 on the previous day. May closed with an average of 226,361 units at $1,362,447.
Transjamaican Highway led trading with 4.70 million shares for 32.8 percent of total volume followed by Wigton Windfarm with 2.84 million units for 19.8 percent of the day’s trade, Sagicor Select Financial Fund chipped in with 1.23 million units for 8.6 percent market share and QWI Investments with 1.07 million units for 7.5 percent of total volume.
Several of the largest capitalized companies suffered big losses on Friday
The All Jamaican Composite Index fell 214.10 points to end at 360,434.51, the JSE Main Index slipped 843.81 points to 322,530.46 and the JSE Financial Index climbed 0.12 points to 72.89.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.1 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows 11 stocks ending with bids higher than their last selling prices and none with a lower offer.
At the close, Berger Paints dropped 99 cents to end at $7.08 after a transfer of 2,600 shares, Caribbean Cement dipped 94 cents in closing at $49.19 after an exchange of 2,659 stocks, Eppley popped $4 to close at $37, with 331 stock units crossing the exchange, Guardian Holdings shed $4.95 ended at $450.05 with shareholders swapping 885 units, Jamaica Producers gained 97 cents to $19.97 crossing the market 161 stocks, Jamaica Stock Exchange fell 97 cents in closing at $11.03 after an exchange of 161,640 stock units,
Kingston Wharves declined $1.90 to $28 in switching ownership of 61,995 units, Massy Holdings lost $9.50 in ending at $90 with 25,621 shares clearing the market, Mayberry Investments fell 90 cents to $8.01 in an exchange of 180,766 stock units, Mayberry Jamaican Equities lost 84 cents to end at $10.30, with 599,395 units being traded, NCB Financial declined $1.30 to end at a 52 weeks’ low of $65.70 with an exchange of 87,054 stocks, Pan Jamaica Group dipped 99 cents to $49 in trading 1,166 shares Proven Investments dropped $1.12 to close at $25.40 after an exchange 14,963 stock units, Sagicor Group gained $1.50 in closing at $50 as investors exchanged 3,140 stocks, Seprod advanced $3.49 and ended at $70.50 after 1,265 shares changed hands and Wisynco Group rallied 94 cents to end at $18.50 after 4,903 units crossed the market.
In the preference segment, Eppley 7.75% preference share rose $1 to close at $20 as 500 stock units passed through the market, Jamaica Public Service 9.5% climbed $22 to $3000 with stakeholders exchanging 2 shares and JMMB Group 7% preference share dipped 40 cents to $2 with investors transferring 8,333 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big trades dominate Main Market
Big bucks were exchanged in trading shares of Scotia Group, GraceKennedy and NCB Financial on Wednesday that swell trading to 29,208,655 shares for $724,590,730 compared with 54,343,616 units at $593,158,740 on Tuesday on the Jamaica Stock Exchange Main Market, with the volume of stocks traded declining 46 percent with a 22 percent higher value.
Trading ended with 55 securities changing hands compared with 56 on Tuesday, resulting in prices of 18 rising, 24 declining and 13 ending unchanged, resulting in the trading of an average of 531,066 shares at $13,174,377 compared to 970,422 shares at $10,592,120 on Tuesday and month to date, an average of 349,102 units at $6,003,345, up from 329,517 units at $5,231,512 on the previous day. Trading in May ended with an average of 226,361 units at $1,362,447.
Wigton Windfarm led trading with 7.45 million shares for 25.5 percent of total volume followed by Scotia Group with 4.85 million units for 16.6 percent of the day’s trade, GraceKennedy with 3.76 million units for 12.9 percent market share, NCB Financial with 3.05 million units for 10.4 percent market share, Transjamaican Highway with 3.03 million units for 10.4 percent market share and QWI Investments with 2.49 million units for 8.5 percent of total volume.
At the close of the market, the All Jamaican Composite Index shed 1,105.39 points to end at 360,982.14, the JSE Main Index dropped 1,861.20 points to 327,139.32 and the JSE Financial Index dipped 0.98 points to end at 72.90.
The PE Ratio, a formula used to compute appropriate stock values, averages 13 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows nine stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Berger Paints gained 40 cents to close at $7.50 in switching ownership of 7,990 shares, Eppley Caribbean Property Fund lost 50 cents in ending at $39.50 with stakeholders trading 1,156 units, First Rock Real Estate shed 49 cents to end at $10 after 10,000 stocks passed through the market, Guardian Holdings dropped $10 to $475 with 215 stock units changing hands. 
Jamaica Broilers fell $1.74 in closing at $33.02 after an exchange of 26,800 units, JMMB Group rallied 49 cents to end at $28.99 with investors trading 25,215 stock units, Kingston Wharves advanced $1.75 to $29.75 after a transfer of 1,527 stocks, Margaritaville rose 57 cents ended at $15.20 with shareholders swapping 2,106 shares. NCB Financial declined $1 to $67 in trading 3,051,068 units, 138 Student Living dipped 45 cents in closing at $4.55, with 1,047,762 stocks crossing the market, Proven Investments popped $1.45 and ended at $26.95 after stakeholders exchanged 205 shares, Sagicor Group dropped 45 cents to $48.50 with an exchange of 52,303 stock units. Scotia Group dipped $2.64 in closing at $32.06 with a transfer of 4,846,189 stock units, Seprod climbed $1.90 to close at $71.90 with 102,837 stocks crossing the exchange, 
Sterling Investments increased 41 cents to end at $2.91 after an exchange of 8,440 units, Sygnus Real Estate Finance declined 80 cents to $11.20 as investors exchanged 299 shares, Wisynco Group shed 43 cents in closing at $17.87, with 587,233 stock units crossing the market.
In the preference segment, Eppley 7.25% preference share rose $2.85 to end at $19 in an exchange of 260,585 stocks and Jamaica Public Service 7% lost $1.99 in ending at $50.01 while exchanging 198 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big Transjamaican & Kingston Wharves’ trades
Transjamaican Highway led trading with 26.28 million shares controlling 48.4 percent of the total volume, followed by Kingston Wharves with 17.71 million units for 32.6 percent of the day’s trade as trading activity surged sharply over Monday on the Jamaica Stock Exchange Main Market on Tuesday, with the volume of stocks traded rising 387 percent and the value 744 percent more than on Monday.
Trading occurred in 56 securities compared with 62 on Monday and ended with prices of 27 rising, 22 declining and seven unchanged as three stocks hit 52 weeks’ high and two 52 weeks’ low, stocks trading at 52 weeks’ high are Transjamaican closing at a record of $2.21, Sagicor Select MD at 70 cents and Wigton Windfarms at 87 cents while Barita closed at a 52 weeks’ low of $73.95 and Eppley 7.25 Preference Share at $16.15.
At the close of trading, 54,343,616 shares were traded for $593,158,740, compared with 11,158,702 units at $70,313,195 on Monday.
Trading averaged 970,422 shares at $10,592,120 versus 179,979 shares at $1,134,084 on Monday and month to date, an average of 329,517 units at $5,231,512, compared with 250,636 units at $4,571,744 on the previous day. May closed with an average of 226,361 units at $1,362,447.
Other than Transjamaican Highway and Kingston Wharves that dominated trading, other leading trades are 138 Student Living ended with 2.11 million units for 3.9 percent market share, Wigton Windfarm with 2.08 million units for 3.8 percent market share, QWI Investments with 2.05 million units for 3.8 percent market share and Sagicor Select Financial Fund with 1.92 million units for 3.5 percent of total volume.
The All Jamaican Composite Index rallied 810.40 points to 362,087.53, the JSE Main Index rose 469.12 points to 329,000.52 and the JSE Financial Index popped 0.13 points to close trading at 73.88.
The PE Ratio, a formula used to compute appropriate stock values, averages 13 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and six with lower offers.
At the close, Berger Paints declined 57 cents to end at $7.10, with 985 shares clearing the market, Eppley popped $4.69 to $36.80 while exchanging 317 units, Eppley Caribbean Property Fund dipped $1 to $40 in switching ownership of 100 stock units, First Rock Real Estate increased 48 cents to close at $10.49 with shareholders swapping 920 stocks, GraceKennedy advanced 40 cents in closing at $78.90 with investors transferring 40,608 stocks, Jamaica Broilers rallied $1.26 to end at $34.76 with an exchange of 44,648 stock units, Kingston Wharves dropped $1.50 to close at $28 17,706,722 shares crossing the market, Margaritaville shed 34 cents to end at $14.63 in an exchange of 12,057 units, 
Massy Holdings fell 43 cents to close at $99.57 in an exchange of 1,962 shares, Mayberry Investments gained 46 cents and ended at $9 after a transfer of 119,549 units, NCB Financial climbed 50 cents to end at $68 in trading 16,338 stock units, 138 Student Living lost 51 cents to close at $5, with 2,114,160 stocks changing hands, Pan Jamaica Group rose $1.88 to $49.99, with 906 shares crossing the market,Sagicor Group popped 45 cents to $48.95 as investors exchanged 100,393 stocks, Scotia Group rallied $1.10 in closing at $34.70 after an exchange of 91,334 stock units, Seprod shed $2.40 to end at $70 with a transfer of 482 units, Stanley Motta advanced 36 cents and ended at $5.44 after exchanging 33,521 shares, Sterling Investments slipped 39 cents to $2.50 after 6,196 stocks passed through the market, Supreme Ventures increased $2.19 to close at $26.69 trading 52,974 units.
In the preference segment, Eppley 7.25% preference share declined $2.85 in closing at $16.15 with 50 stock units changed hands, 
Eppley 7.50% preference share climbed $1.19 to end at $7.39, with 220 units crossing the exchange, Jamaica Public Service 7% gained $2 in closing at $52 after a transfer of 200 stock units, Jamaica Public Service 9.5% fell $22 to close at $2978, with six shares crossing the market, 138 Student Living preference share rose $6.99 and ended at $87.99 in switching ownership of 7 stocks and Productive Business Solutions 9.75% preference share dipped $14.50 to $91.50 in trading seven units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Kingston Wharves dominates JSE trading
Trading surged on the Jamaica Stock Exchange on Tuesday Kingston Wharves traded 17.7 million shares valued at $496 million and swelled the overall trade for the day sharply higher than on Monday with all three markets rising at the close with Transjamaican Highway continuing to hit record highs and closed at $2.21.
Trading ended with the JSE Combined Market Index popping 826.66 points to 342,175.85, while the All Jamaican Composite Index rallied 810.40 points to 362,087.53, the JSE Main Index climbed 469.12 points to 329,000.52. The Junior Market Index jumped 42.50 points to close at 3,844.90 and seems to be breaking out from wedge-shaped chart formation, while the JSE USD Market Index popped 4.19 points to 238.13.
Preference shares with notable price movements but are not in the Main Market TOP10 graphs are Eppley 7.25% preference share declined $2.85 in closing at $16.15, Eppley 7.50% preference share added $1.19 to end at $7.39, Jamaica Public Service 7% gained $2 in closing at $52, Jamaica Public Service 9.5% fell $22 to close at $2978. 138 Student Living preference share rose $6.99 and ended at $87.99 and Productive Business Solutions 9.75% preference share dipped $14.50 to $91.50.
At the close, investors exchanged 60,867,391 shares in all three markets on Tuesday compared to 22,548,034 shares on Tuesday. The value of stocks trading in the Junior and main markets was $609.18 million, up sharply from $90.9 million on Tuesday. Trading on the JSE USD market resulted in investors exchanging 132,703 shares for US$3,992 compared to 2,048,216 units at US$53,374 on Tuesday.
The market’s PE ratio ended at 18.2 on 2022-23 earnings and 11.4 times those for 2023-24 at the close of trading.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange and shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Stock prices tumble on JSE Main Market
Trading activity on the Jamaica Stock Exchange Main Market ended on Monday, with the volume of stocks traded declining 69 percent and the value 96 percent lower than on Friday, with 62 securities trading compared with 51 on Friday, with 15 rising, 34 declining and 13 ending unchanged.
A total of 11,158,702 shares were traded for $70,313,195 compared with 35,821,582 units at $1,604,168,706 on Friday.
Trading averaged 179,979 shares at $1,134,084 compared with 702,384 shares at $31,454,288 on Friday and month to date, an average of 250,636 units at $4,571,744 compared to 261,783 units at $5,114,072 on the previous trading day. May closed with an average of 226,361 units at $1,362,447.
Transjamaican Highway led trading with 4.71 million shares for 42.2 percent of total volume with the price rising 9 cents to close at a 52 weeks’ high of $2.20, followed by Wigton Windfarm with 2.24 million units for 20 percent of the day’s trade, with the stock closing at a 52 weeks’ high of 85 cents and Scotia Group with 1.05 million units for 9.4 percent of the day’s trade.
The All Jamaican Composite Index lost 325.98 points to close at 361,277.13, the JSE Main Index popped 1,197.20 points to finish at 328,531.40 and the JSE Financial Index climbed 0.54 points to close at 73.75.
The PE Ratio, a formula used to compute appropriate stock values, averages 12.9 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows 12 stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Berger Paints rose 80 cents to close at $7.67 after an exchange of 11,064 shares, Caribbean Cement advanced $3.15 to $54.15, with 9,685 units clearing the market, Eppley fell $4.89 to end at $32.11 after 1,005 stocks passed through the exchange, Eppley Caribbean Property Fund dropped $1.99 in closing at $41 after investors traded 1,139 stock units. First Rock Real Estate declined 76 cents to $10.01, with 3,238 shares changing hands, GraceKennedy lost 40 cents to end at $78.50 while shareholders exchanged 22,045 stock units, Jamaica Broilers dipped $1.50 in closing at $33.50 as investors traded 8,847 units, Jamaica Stock Exchange shed 50 cents to close at a 52 week’s closing low of $11.50 after an exchange of 88,083 stocks. Kingston Wharves dipped 50 cents and ended at $29.50 in trading 977 units, 
Margaritaville lost $3.02 to close at $14.97, with 10 stocks crossing the market, Mayberry Investments popped 54 cents to close at $8.54 in an exchange of 28 units, MPC Caribbean Clean Energy rallied 50 cents to $71 with 1,503 shares changing hands. NCB Financial dipped 50 cents to $67.50 and closed with 35,790 units being traded, 138 Student Living gained 36 cents in closing at $5.51 after investors ended trading 3,865 shares, Palace Amusement shed 35 cents ended at $2.63 after an exchange of 34,774 stocks, Pan Jamaica Group fell $3.39 to $48.11 in switching ownership of 3,287 stock units. Proven Investments declined 71 cents to close at $25.30 in an exchange of 13,918 stocks, Sagicor Group lost $2 in closing at $48.50 after a transfer of 4,824 units, Stanley Motta declined 32 cents and ended at $5.08 with 693 stock units changing hands, Supreme Ventures dipped $1.25 to end at $24.50 with investors transferring 30,683 shares and Sygnus Real Estate Finance climbed 99 cents to close at $12 with shareholders swapping 401 stock units.
In the preference segment, Productive Business 10.50% preference share dropped $50 to end at $1200 with 50 stocks crossing the market, Eppley 7.50% preference share shed $1.28 to $6.20 with an exchange of 224 units, Jamaica Public Service 7% fell $10.48 in closing at $50 in trading 35 shares. 138 Student Living preference share declined $6.99 and ended at $81 while exchanging 104 stock units and Productive Business Solutions 9.75% preference share slipped 94 cents to $106 as investors exchanged one unit.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market rises Juniors & JSE USD fall
The Main Market of the Jamaica Stock Exchange broke its losing streak after closing moderately higher than Friday and Transjamaican Highway continues to hit record closing highs and closed at $2.20, but the Junior and the JSE USD Markets slipped below Friday’s close after six Junior Market stocks triggered the exchange circuit breaker at varying times during the trading session.
At the close, the JSE Combined Market Index rose 1,083.75 points to end at 341.349.19, the All Jamaican Composite Index lost 325.98 points to close at 361,277.13, the JSE Main Index popped 1,197.20 points to 328,531.40, the Junior Market Index dipped 3.64 points to 3,802.40 and the JSE USD Market Index dipped 4.97 points to 233.94.
Preference shares with notable price movements but are not in the Main Market TOP10 graphs are Eppley 7.50% preference share shed $1.28 to close at $6.20, Jamaica Public Service 7% fell $10.48 in closing at $50. 138 Student Living preference share declined $6.99 and ended at $81, Productive Business 10.50% preference share dropped $50 to $1200 and Productive Business Solutions 9.75% preference share lost 94 cents to close at $106.
At the close, investors exchanged 22,548,034 shares in all three markets on Monday compared to 52,143,554 shares on Friday. The value of stocks trading in the Junior and main markets was $90.9 million, down from $1.637 billion on Friday. Trading on the JSE USD market resulted in an exchange of 2,048,216 shares for US$53,374 compared to 857,775 units at US$11,684 on Friday.
The market’s PE ratio ended at 18.1 on 2022-23 earnings and 11.3 times those for 2023-24 at the close of trading.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange and shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Kremi heads ICTOP10 as Lasd gains 19%
There was much activity in the Junior Market this past week, with the market index bouncing over the 3,800 mark for the first time since the middle of March, resulting in Caribbean Cream moving to $4.45 during the week but closed at $3.20 after traders pushed the stock down sharply on Friday, but Lasco Distributors shot to $3.31 and Lasco Manufacturing to $4.48 at the close with both moving out of the Junior Market ICTOP10.
Lasco Distributors and Lasco Manufacturing are still priced at less than 10 times 2023 fiscal year earnings when many others are priced over 15 times. Additionally, the company’s directors meet this week to consider dividends. Distributors is seemingly set to pay around 12 cents per share and Manufacturing 13 cents. With the dividend likely to be paid in July, the annual yield will equate to 42 percent and 35 percent, respectively, if the shares were acquired now. Replacing the two Lasco Companies are iCreate following a drop in the price to 95 cents and Edufocal closing at $1.78.
The Main Market TOP10 stocks remained the same as the week before, with the market struggling throughout the week, with four days of significant declines in the market index as selling pressure pushed prices down, resulting in just one stock, Transjamaican moving up in ICTOP10 with the largest gain of just 4 percent, with the stock hitting a record closing high of $2.11 on Friday. The chart shows it has the potential to gain another 200 percent. Berger Paints fell 9 percent to a 52 weeks’ low of $6.87, followed by JMMB Group with a loss of 4 percent to close at one year low of $28.75, Jamaica Broilers is down 3 percent to $35 and Scotia Group dipped 3 percent to $33.60 despite reporting increased profit for the first half of the 2023 fiscal year, with the second quarter almost doubling the similar quarter in 2022.
Lasco Distributors climbed 19 percent following an 11 percent rise last week to close at $3.31 and is up 59 percent from the 2023 low of $2.08 in April. Five stocks rose 6 percent: Caribbean Assurance Brokers, Dolphin Cove, General Accident, Consolidated Bakeries and Lasco Manufacturing, while One on One slipped 3 percent at the end of the week to be the biggest loser.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.7, well below the market average of 13.2. The Main Market TOP10 is projected to have an average of 265 percent, to May 2024, based on 2023 forecasted earnings.
The 15 most highly valued Main Market stocks are priced at a PE of 15 to 98, with an average of 30 and 20 excluding the highest PE stocks and 18 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.3 compared with the market at 10.4. There are 10 stocks representing 21 percent of the market, with PEs from 15 to 25, averaging 19 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. Junior Market is projected to rise by 283 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the 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 will likely deliver the best returns up to the end of May 2023 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.
NCB dominates trading on Friday
Share of NCB Financial commanded the largest portion of the volume and value of stocks trading on Friday, with 22.75 million shares valued at $1.55 billion as trading activity on the Jamaica Stock Exchange Main Market ended on Friday, with the volume of stocks traded rising 174 percent and the value surging 1,006 percent over Thursday, after trading in 51 securities compared with 61 on Thursday, with 20 rising, 20 declining and 11 ending unchanged.
A total of 35,821,582 shares were traded for $1,604,168,706 compared to 13,055,782 units at $145,021,241 on Thursday.
Trading averaged 702,384 shares at $31,454,288 versus 214,029 shares at $2,377,397 on Thursday and month to date, an average of 261,783 units at $5,114,072 versus 196,079 units at $1,186,146 on the previous day. May closed with an average of 226,361 units at $1,362,447.
NCB Financial led trading with 22.75 million shares for 63.5 percent of total volume followed by Transjamaican Highway with 4.92 million units for 13.7 percent of the day’s trade and ended with the price ending at a 52 weeks’ closing high of $2.11, Wigton Windfarm ended with 2.54 million units for 7.1 percent market share and Sagicor Select Financial Fund with 2.19 million units for 6.1 percent of total volume.
The All Jamaican Composite Index dived 2,291.49 points to 361,603.11, the JSE Main Index declined by 2,486.07 points to close at 327,334.20 and the JSE Financial Index fell by 1.12 points to end at 73.21.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.2 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and six with lower offers.
At the close, Barita Investments lost 90 cents to close at a 52 weeks’ low of $74.10, with 2,201 shares changing hands, Berger Paints declined $1.21 to close at a 52 weeks’ low of $6.87 as investors exchanged 78,000 stocks, Eppley increased $1.08 to end at $37 after trading 3 units, Eppley Caribbean Property Fund climbed 30 cents and ended at $42.99 in an exchange of 271 stock units. First Rock Real Estate gained 62 cents in closing at $10.77 in switching ownership of 24,747 shares, 
GraceKennedy rose 90 cents to end at $78.90 in an exchange of 43,296 stocks. Guardian Holdings rallied $35 and ended at $485 with shareholders swapping 5,377 shares, Jamaica Broilers rose $1.99 to $35 in trading 218,282 units Jamaica Stock Exchange shed $1 to end at a 52 weeks’ closing low of $12 with investors trading 131,493 units, Kingston Properties fell 37 cents to close at $7.10 with an exchange of 5,000 units. Mayberry Investments dipped 50 cents to $8, with 227,543 stocks crossing the exchange, NCB Financial dropped $1 to close at $68, with 22,747,667 shares clearing the market, Palace Amusement popped 30 cents in closing at $2.98 with a transfer of 2,810 stock units. Pan Jamaica Group lost 50 cents and ended at $51.50 with an exchange of 5,684 shares, Proven Investments gained 70 cents to end at $26.01, with 2,012 units crossing the market, Sagicor Group rallied $1.50 to end at $50.50 after exchanging 27,716 stocks. Scotia Group dropped 58 cents and ended at $33.60 after a transfer of 277,369 units following the release of half year results that showed increased profit and 
Seprod rose $3.87 in closing at $72.50 while exchanging 7,135 stock units.
In the preference segment, Eppley 7.50% preference share climbed $1.28 to $7.48 after an exchange of 90 shares, Jamaica Public Service 7% declined $3.35 to close at $60.48 after 16 stocks crossed the market and 138 Student Living preference share advanced $13.99 to end at $87.99 as 10 stock units passed through the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Markets ends week negatively
Trading surged sharply on the Jamaica Stock Exchange on Friday but the Main Market suffered more declines at the close, even as Transjamaica Highway continues to hit record closing highs as the indices suffered another four digit fall, following the previous two trading days while the Junior Market just slipped below Thursday’s close, after opening at 3,854.64 points, but market index stayed above the 3,800 mark for a third day while JSE USD Market eked out a modest rise at the close.
At the close of trading, the JSE Combined Market Index dropped 2,327.36 points to 340,265.44, the All Jamaican Composite Index shed 2,291.49 points to close at 361,603.11, the JSE Main Index dived 2,486.07 points to 327,334.20, the Junior Market Index dipped 0.84 points to settle at 3,806.04 and the JSE USD Market Index rose 0.05 points to close at 238.91.
Preference shares with notable movement but are not in the Main Market TOP10 graphs are Eppley 7.50% preference share with a rise of $1.28 to $7.48, Jamaica Public Service 7% down $3.35 to $60.48 and 138 Student Living preference share up $13.99 to $87.99.
At the close, investors exchanged 52,143,554 shares in all three markets, with NCB Financial accounting for 22,747,667 shares valued at $1.55 billion. Trading on Thursday amounted to 19,714,383 shares in all three markets, with the value of stocks trading amounting to $1.637 billion, down from $161.15 million. Trading on the JSE USD market resulted in investors exchanging 857,775 shares for US$11,684 compared to 269,277 units at US$11,912 on Thursday.
The market’s PE ratio ended at 18.1 on 2022-23 earnings and 11.4 times those for 2023-24 at the close of trading.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange and shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.