Main Market stocks recorded decent gains in trading ahead of the Labour Day holiday on Tuesday but the Junior Market after struggling in the morning session managed to eke out a modest rise at the close while the JSE USD Market closed marginally higher as the market started the week on a positive note as trading picked up over Friday’s low levels, helped by an exchange of 27.8 million shares in Paramount Trading.
At the close of trading on Monday, the JSE Combined Market Index climbed 2,185.89 points to end at 344,360.63, while the All Jamaican Composite Index surged 3,640.76 points to 367,371.61, the JSE Main Index rallied 2,217.69 points to 332,183.18 the Junior Market Index popped 12.74 points to finish at 3,759.14 and the JSE USD Market Index popped 0.36 points to settle at 226.97.
Shares in the preference segment of the Main Market and not included in the TOP10 graphs ended with Productive Business 10.50% preference share climbing $59.75 in closing at $1101, Productive Business Solutions 9.75% preference share increased $10.69 in closing at $117.63, Jamaica Public Service 7% dipped $6.95 to close at $79.06. Jamaica Public Service 9.5% lost $21 to end at $2979, JMMB Group 7.25% preference share fell 75 cents and ended at $4.25 crossing the market 2,085 units and 138 Student Living preference share dropped $5.33 to end at $120.17.
At the close, investors exchanged 46,795,133 shares in all three markets, compared with 17,012,254 units on Wednesday, with the value of stocks trading amounting to $118.5 million down from $92.6 million on Wednesday. Trading on the JSE USD market resulted in investors exchanging 323,887 shares for US$5,124 up from 441,233 units at US$11,332 on Wednesday.
The market’s PE ratio ended at 17.3 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.
CAB back atop ICTOP10
The ICTOP10 top performing stock for the previous week – Caribbean Assurance Brokers (CAB), was the biggest loser last week with a 15 percent decline and returns to the top of the listing as some selling came into the market, with most buyers remaining at the $2 or lower level with a pullback in prices of more Junior Market TOP10 stocks than those that rose.
Earning season delivered solid profit gains for several companies, but that did little to move prices substantially upwards, even as interest rates are softening. A few exceptions are CAB, Dolphin Cove, Consolidated Bakeries, Everything Fresh and earlier Image Plus and Tansjamaican Highway, which enjoyed increased buying interest that sent higher prices. Things have since cooled, as is the norm after most results were released in May, as investors await the critical second quarter number in late July into August before pulling the trigger.
Action in the markets this past week resulted in the ICTOP10 Junior Market stocks recording mostly losses with only a few winners. Main Market stocks recorded mostly wins, with few losses. Dolla Financial dropped out of the TOP10 with Everything Fresh moving back in.
Consolidated Bakeries jumped 20 percent to $2.44, followed by Iron Rock Insurance, which increased 9 percent to $2.50. Dolphin Cove climbed 8 percent to $16.44, helped by robust first quarter results, following an 88 percent increase in revenue to US$4.9 million over the first quarter in 2022, with profit after tax rising 97 percent to US$1.57 million from US$796,000 in 2022. Following CAB, the leading decliner, Image Plus, fell 7 percent to $2.04, while Edufocal and Dolla Financial lost 4 percent to end at $1.87 and $2.71, respectively.
The price of Main Market listed Sygnus Credit Investments gained 13 percent to finish at $13.04 and was followed by Key Insurance, up 7 percent to $3.65 and 138 Student Living with an increase of 5 percent to $5.67, while Caribbean Producers dropped 7 percent in closing at $9.05.
Interest rates on BOJ CDs and Treasury bills have declined in recent weeks below 8 percent, but the Bank of Jamaica held the overnight rate at 7 percent as they cite concerns about the implication of increased minimum wages and the usual agricultural price hikes in the summer months amongst other issues that could derail the reduced inflation rates in recent months. Although many stocks are severely undervalued, a real market bounce may be some time off and may not happen until BOJ starts reducing rates later in the year.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.9, well below the market average of 13.8. The Main Market TOP10 is projected to have an average of 250 percent, to May 2024, based on 2023 forecasted earnings.
The 15 highest valued Main Market stocks are priced at a PE of 15 to 115, with an average of 28 and 18 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 5.8 compared with the market at 10.8 there are ten stocks or 21 percent of the market, with PEs from 15 to 24, averaging 19, well above the average of the market. 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 250 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.
The fall of the JSE Main Market
Trading activity picked up on the Jamaica Stock Exchange Main Market on Friday but remained moderate as the market suffered a decline with more stocks declining than rising following a 43 percent increase in the volume of stocks traded and a 41 percent hike in value over Thursday, leading to 56 securities trading compared to 54 on Thursday, with prices of 19 rising, 22 declining and 15 ending unchanged.
In a moderate trading session, a total of 9,818,276 shares were traded for $78,748,697 up from 6,849,323 units at $56,037,409 on Thursday.
Trading averaged 175,326 shares at $1,406,227 compared with 126,839 shares at $1,037,730 on Thursday and month to date, an average of 214,582 units at $1,397,550 versus 217,351 units at $1,396,938 on the previous day. trading in April closed with an average of 264,549 units at $1,409,410.
Transjamaican Highway led trading with 3.22 million shares for 32.8 percent of total volume followed by Sagicor Select Financial Fund with 1.78 million units for 18.2 percent of the day’s trade and Wigton Windfarm with 1.12 million units for 11.4 percent market share.
The All Jamaican Composite Index lost 3,388.21 points to close at 363,730.85, the JSE Main Index declined 1,634.37 points to conclude trading at 329,965.49 and the 
JSE Financial Index dipped 0.79 points to close at 74.44.
The PE Ratio a formula used to compute appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Barita Investments dropped $1.99 in closing at a 52 weeks’ low of $75 after investors traded 9,251 shares, Berger Paints increased 35 cents to close at $7.90 after a transfer of 2,900 stock units, Caribbean Cement popped $2.99 to end at $51 while exchanging 370 stocks. Eppley climbed 58 cents and ended at $37.10 after 23 units changed hands, First Rock Real Estate dipped 40 cents to $10.50 in an exchange of 8,988 stocks, GraceKennedy lost 90 cents in closing at $78.10 after trading 10,116 units,
Guardian Holdings advanced $5 to end at $485 with investors transferring 795 shares. Jamaica Stock Exchange rose 78 cents to $13.84 with 1,000 units clearing the market, Kingston Wharves gained 48 cents and ended at $31 in an exchange of 2,510 stock units, Massy Holdings rallied $3 to close at $100, with 490,550 shares crossing the market. NCB Financial rallied $1.39 to close at $71.39 with an exchange of 23,568 units, Portland JSX climbed 48 cents in closing at $11.48, with 1,985 stocks crossing the market, Proven Investments shed 34 cents to $26 with an exchange of 10 units. Sagicor Group fell $1.24 to end at $49.50 in switching ownership of 50,000 shares, Scotia Group declined 30 cents and ended at $34.20 as investors exchanged 25,715 stocks, Seprod advanced 95 cents to $70.95, with 1,527 stock units changing hands and Sygnus Real Estate Finance declined $1.88 to $10.11 after an exchange of 5,300 stock units.
In the preference segment, Productive Business 10.50% preference share dropped $183.75 in closing at $1041.25 with a transfer of 450 stocks and Jamaica Public Service 7% shed $17.99 to end at $86.01 with shareholders swapping 2 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Investors held back trading Main Market stocks
Investors pulled in their wallets in trading on the Jamaica Stock Exchange Main Market on Thursday, resulting in a 42 percent fall in the volume of stocks traded, with the value 43 percent lower than on Wednesday, with trading activity in 54 securities compared to 50 on Wednesday, with 23 rising, 15 declining and 16 ending unchanged.
At the close, 6,849,323 shares were traded for $56,037,409, down from 11,799,520 units at $97,798,065 on Wednesday.
Trading averaged 126,839 shares at $1,037,730, versus 235,990 shares at $1,955,961 on Wednesday and month to date, an average of 217,351 units at $1,396,938, compared with 223,956 units at $1,423,151 on the previous day. April closed with an average of 264,549 units at $1,409,410.
Transjamaican Highway led trading with 3.30 million shares for 48.1 percent of total volume, followed by Wigton Windfarm with 793,520 units for 11.6 percent of the day’s trade and Carreras with 631,278 units for 9.2 percent market share.
The All Jamaican Composite Index lost 2,663.44 points to close at 367,119.06, the JSE Main Index fell 2,392.04 points to 331,599.86 and the JSE Financial Index dipped 0.20 points to end trading at 75.23.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Caribbean Cement shed $1.99 to end at a 52 weeks’ closing low of $48.01 in switching ownership of 18,340 shares, Caribbean Producers declined 38 cents in closing at $9.02 in an exchange of 34,946 stock units, Jamaica Broilers fell $1.64 to $34.80 after exchanging 17,477 units.
JMMB Group rallied 38 cents and ended at $30.38, with 35,912 stocks crossing the market, Kingston Wharves dropped $1.48 to $30.52 after an exchange of 1,000 shares, Massy Holdings fell $1 to $97, with 5,421 stocks changing hands. Mayberry Jamaican Equities popped 49 cents to end at $10.50 in an exchange of 1,125 units, MPC Caribbean Clean Energy dropped $12 in closing at $71 after investors traded 66 stock units, Pan Jamaica Group rose $3.59 to $54.09, with 42,788 stocks passing through the market. Proven Investments increased 84 cents to close at $26.34 as investors exchanged 21,359 shares, Sagicor Group advanced 74 cents to end at $50.74 after 4,916 stock units passed through the market, Scotia Group gained 50 cents to close at $34.50 with 505,530 units clearing the market and Seprod lost 98 cents in closing at $70 while exchanging 101,819 stocks.
In the preference segment, Jamaica Public Service 7% climbed $19 and ended at $104 with an exchange of 303 shares and 138 Student Living preference share gained 50 cents to close at $125.50 as investors exchanged 47 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Steady trading on JSE main market
Stocks squeezed held a narrow path in trading on the Jamaica Stock Exchange Main Market on Wednesday, following a 42 percent drop in the volume of stocks traded and a 29 percent lower value than on Tuesday, with trading in 50 securities compared to54on Tuesday, resulting in prices of 19 rising, 22 declining and nine ending unchanged.
A total of 11,799,520 shares were traded for $97,798,065 compared to 20,517,691 units at $136,987,002 on Tuesday.
Trading averaged 235,990 shares at $1,955,961 compared with 379,957 shares at $2,536,796 on Tuesday and month to date, an average of 223,956 units at $1,423,151 versus 223,084 units at $1,384,541 on the previous day. April closed with an average of 264,549 stock units at $1,409,410.
Transjamaican Highway led trading with 6.78 million shares for 57.4 percent of total volume, Wigton Windfarm followed with 2.28 million units for 19.3 percent of the day’s trade and Sagicor Group with 501,749 units for 4.3 percent of market share.
All Jamaican Composite Index popped 178.41 points to close at 369,782.50, the JSE Main Index lost 54.13 points to finish at 333,991.90 and the JSE Financial Index gained 0.07 points to finish at 75.43.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.4 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows 10 stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Barita Investments declined $1 to end at $76.80 with shareholders swapping 93,411 shares, Caribbean Cement fell $2 to close at $50 after 2,098 stocks changed hands, Caribbean Producers popped 40 cents after an exchange of 1,029 units at $9.40, GraceKennedy dropped $3.19 to end at $79 with 275,283 stock units changing hands. Guardian Holdings dipped $10 to $480, with 699 shares crossing the market, Jamaica Broilers increased 44 cents to close at $36.44 with a transfer of 876 stock units,
Jamaica Stock Exchange shed 77 cents to end at $13.06 with 92 units clearing the market, JMMB Group rose 40 cents in closing at $30 in an exchange of 411,656 stocks. Margaritaville gained $4.38 to close at $18.99 in switching owners of just one unit, Massy Holdings advanced 50 cents to end at $98 as 3,100 stocks passed through the market, Mayberry Jamaican Equities lost 49 cents to end at $10.01, with 44,300 stock units crossing the market, NCB Financial fell $1.40 and ended at $70 in trading 49,603 shares, Pan Jamaica Group dropped $3.50 in closing at $50.50 with investors transferring 12,712 units. Proven Investments declined 50 cents to close at $25.50, with 2,021 stock units crossing the exchange, Sagicor Group climbed $1.75 to $50 while exchanging 501,749 stocks, 
Scotia Group lost $1 to end at $34 after trading 35,429 shares and Supreme Ventures dipped 52 cents in ending at $26.98 with an exchange of 60,375 units.
In the preference segment, Jamaica Public Service 7% shed $5 in closing at $85 after an exchange of 539 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading picks up lead to JSE Main Market gains
Trading activity on the Jamaica Stock Exchange Main Market ended on Tuesday, with the volume of stocks traded rising 15 percent and the value jumping 174 percent over Monday’s trades, after trading took place in 54 securities, down from 61 on Monday, with prices of 21 rising, 22 declining and 11 ending unchanged.
On Monday, 20,517,691 shares were traded for $136,987,00 compared with 17,840,357 units at $50,065,528.
Trading averaged 379,957 shares at $2,536,796 compared with 292,465 shares at $820,746 on Monday and month to date, an average of 223,084 stock units at $1,384,541, compared to 209,764 units at $1,286,709 on the previous day. April’s trading averaged 264,549 stock units at $1,409,410.
Transjamaican Highway led trading with 7.56 million shares for 36.8 percent of total volume, followed by JMMB Group 7.5% with 3.34 million units for 16.3 percent of the day’s trade, Carreras ended with 1.31 million units for 6.4 percent market share, Sygnus Credit Investments came in with 1.27 million units for 6.2 percent share of trading, Wigton Windfarm with 1.14 million units for 5.5 percent market share and Scotia Group with 1.08 million units for 5.3 percent of total volume.
The All Jamaican Composite Index climbed 2,328.48 points to 369,604.09, the JSE Main Index rose 1,411.65 points to 334,046.03 and the JSE Financial Index gained 0.13 points to 75.36.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios are calculated based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows 11 stocks ending with bids higher than their last selling price and four with lower offers.
At the close, Barita Investments popped 95 cents and ended at $77.80 as 40,535 shares passed through the market, Berger Paints dipped 35 cents to $7.75 after exchanging 313 units, Caribbean Cement increased $2 in closing at $52 as investors exchanged 14,427 stocks. Caribbean Producers dropped 70 cents to end at $9 after trading 126,441 stock units, Carreras fell 36 cents to $8 after an exchange of 1,306,872 units, 
GraceKennedy rallied 69 cents in closing at $82.19 with 5,806 stock units changing hands. Jamaica Broilers shed 49 cents to close at $36 after a transfer of 15,029 shares, Kingston Wharves declined 50 cents and ended at $32 after an exchange of 4,540 stock units, Mayberry Investments climbed 49 cents to end at $7.40 in switching ownership of 6,307 stock units. Mayberry Jamaican Equities gained 49 cents to $10.50, with 34,936 stocks crossing the market, NCB Financial rose 39 cents in closing at $71.40 after an exchange of 92,064 shares, Pan Jamaica Group advanced $2 to close at $54, with 518,344 units crossing the market. Salada Foods traded 515,000 shares after hitting a 52 weeks’ intraday low of $3 but ended trading with a 5 cents fall to $3.55, Scotia Group increased $1 to $35 in an exchange of 1,080,214 stock units. Supreme Ventures climbed 55 cents to $27.50 while exchanging 13,359 shares, Sygnus Credit Investments rose $1.60 and ended at $12.85, with 1,269,256 stocks clearing the market and Wisynco Group rallied 39 cents in closing at $17.50 with shareholders swapping 16,282 units.
In the preference segment, Eppley 7.25 preference share advanced $1.75 to end at $19.25 with investors transferring 5,000 units, Jamaica Public Service 7% lost $15.97 to close at $90 with an exchange of 371 stock units and 138 Student Living preference share shed $25 after it ended at $125, with 42 stocks changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More trading gains for the JSE markets
Trading picked up on the Jamaica Stock Exchange on Tuesday with increased volume and value of stocks traded and leading to a rise in Main Market major indices and a slight rise in the JSE USD Index but the Junior Market Index declined.
at the close of trading the JSE Combined Market Index popped 957.80 points to 345,567.64. The All Jamaican Composite Index rose 2,328.48 points to 369,604.09, the JSE Main Index advanced 1,411.65 points to end trading at 334,046.03, but the Junior Market Index declined 38.64 points to finish at 3,701.11 and the JSE USD Market Index advanced 0.89 points to close at 239.93.
Shares in the preference segment of the Main Market not included in the TOP10 graphs ended with Eppley 7.25% preference share advancing $1.75 to end at $19.25, Jamaica Public Service 7% losing $15.97 to close at $90 and 138 Student Living preference share shedding $25 an ended at $125.
At the close, investors exchanged 41,256,345 shares in all three markets, up from 31,480,265 units on Monday, with the value of stocks trading amounting to $187.5 million up from $91.7 million on Monday. 
Trading on the JSE USD market resulted in investors exchanging 12,114 shares for US$1,838 down from 169,789 units at US$62,331 on Monday.
The market’s PE ratio ended at 17.2 on 2022-23 earnings and 11.5 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.
Stocks pull back to start the week
Stocks mostly declined in prices in trading on the Jamaica Stock Exchange Main Market on Monday, even with the volume of stocks traded rising 100 percent, but the value traded was 25 percent lower than on Friday, resulting in 61 securities trading compared to 58 on Friday, with 19 rising, 29 declining and 13 ending unchanged.
A total of 17,840,357 shares were traded for $50,065,528 compared to 8,921,791 units at $66,764,856 on Friday.
Trading averaged 292,465 shares at $820,746 versus 153,824 shares at $1,151,118 on Friday and month to date, an average of 209,764 units at $1,286,709 compared to 200,991 units at $1,336,141 on the previous day. April closed with an average of 264,549 units at $1,409,410.
Transjamaican Highway led trading with 7.30 million shares for 40.9 percent of total volume as demand rises for the stock, with investors pushing the price to a record high of $2.20 before closing lower. Wigton Windfarm followed with 4.04 million units for 22.7 percent of the day’s trade, QWI Investments was next with 2.40 million units for 13.5 percent market share and Sagicor Select Financial Fund with 1.30 million units for 7.3 percent of the total volume.
The All Jamaican Composite Index fell 2,299.52 points to settle at 367,275.61, the JSE Main Index shed 1,073.25 points to settle at 332,634.38 and the JSE Financial Index fell 0.14 points to finish at 75.23.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.4 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded stock prices and earnings forecasted by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows 10 stocks ended with bids higher than their last selling prices and six with lower offers.
At the close, Barita Investments dropped 65 cents to close at $76.85, with 6,760 shares changing hands, Caribbean Cement shed $1.20 in closing at a 52 weeks’ low of $50 after a transfer of 29,980 stocks and after hitting an intraday low of $45.10, Eppley Caribbean Property Fund rallied $8.72 and ended at $43.79 with investors transferring 127 stock units. GraceKennedy fell 88 cents to $81.50, with 29,124 units clearing the market, Guardian Holdings increased $10 to end at $490 with shareholders swapping 30 units, Jamaica Broilers climbed $2.54 in closing at $36.49 after exchanging 137,599 shares. JMMB Group popped 50 cents to $29.80 in switching ownership of 46,629 stocks, Kingston Wharves lost 49 cents to end at $32.50 while exchanging 168 stock units, 
Massy Holdings advanced $1.50 and ended at $97.50 in an exchange of 520 units, Mayberry Investments dipped 87 cents to $6.91 with 90 shares crossing the market. Mayberry Jamaican Equities declined 49 cents in closing at $10.01 in an exchange of 174 stock units, MPC Caribbean Clean Energy declined $7 and ended at $83 after an exchange of 275 stocks, NCB Financial lost 49 cents to end at $71.01 with a transfer of 51,642 stock units. Pan Jamaica Group shed $2.09 to close at $52 trading 18,512 units, Sagicor Group fell $2.72 to $48.27, with 101,052 shares crossing the market, Scotia Group dipped 62 cents to $34 as investors exchanged 11,233 stocks. Supreme Ventures dropped 75 cents to end at $26.95 as 35,770 stocks passed through the market, Sygnus Credit Investments dropped 30 cents in closing at $11.25, with 6,077 units crossing the exchange, 
Sygnus Real Estate Finance shed $1.26 and ended at $11.74 after an exchange of 1,057 shares and Wisynco Group fell 39 cents to close at $17.11 in trading 20,889 stock units.
In the preference segment, Productive Business 10.50% preference share rose $10 to end at $1225 with an exchange of 2 shares, Eppley 5% preference share gained 97 cents in ending at $22.97 after a transfer of 3 stock units. Eppley 7.25% preference share lost $2.49 in closing at $17.50 in an exchange of 20,000 units and Jamaica Public Service 7% advanced $10.97 to close at $105.97 with 2,554 stocks crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Transjamaican in ICTOP10, CAB jumps 44%
The release of company results and some sharp price movements shook up the ICTOP10 listing this week, resulting in several changes in the top 10. Caribbean Assurance Brokers (CAB) topped the week, reporting record first quarter profit cheered by investors who pushed the price up by 44 percent to $2.88 and cleared the market of just about all supplies under $3. The stock sits in the number 7 spot, with potential for gains of 250 percent over the next twelve months.
CAB has been at the top of the TOP10 for several weeks going back to mid-March and now sits at the number 6 spot in spite of the substantial price gains, with ICInsider.com raising EPS to 50 cents from 45 cents. Taking over the number one spot is baker Consolidated Bakeries with Image Plus, that is in demand at number 2.
At the same time, ICInsider.com’s projection for Transjamaican Highway puts the stock into the Main Market TOP10 with projected earnings of 31 cents and a targeted price in the $6 region by early 2024 and replaces NCB Financial that got an earnings downgrade following the release of half year results showing earnings falling behind that for 2022, with a sharp fall in foreign exchange trading gains and increase loan loss provision.
Transjamaican headed the Market Watch list on April 29 this year. Then the price was at $1.77, with ICInsider.com indicating projected earnings of 24 cents per share and a short term price target of $2.40 and now the stock price is $1.85. The company released first quarter results on Friday, with profit of US$6 million.
Caribbean Assurance Brokers selling at a PE of just 7 based on historical earnings.
ICInsider.com has since adjusted earnings to 0.02 US cents per share or 31 Jamaican cents.
While the ICTOP10 Junior Market stocks had solid gains at the end of the week, the Main Market suffered several losses, with seven stocks declining.
Iron Rock Insurance jumped 22 percent to $2.29, Jamaican Teas rebounded from the previous week’s low by climbing 11 percent to $2.19 and dropped out of the TOP10 along with Everything Fresh having posted robust gains in revenues and profit for the March quarter, with investors welcoming the positive development by driving the stock up 14 percent to $1.89, with more to come. The company reported a profit of $35 million compared to just $7 million for the 2022 March quarter. IC Insider.com has since revised EPS for 2023, down to 25 cents from 30 cents previously, the combination of both of the above moves resulted in the stock moving out of the TOP10, but it still has more room for gains ahead. Lasco Distributors, one of the most undervalued stocks on the market, rose 4 percent to $2.68 but is trading at less than 6.4 times 2023 earnings of 42 cents per share and much lower based on earnings of 70 cents for fiscal 2024 has already started. After the March 2023 results are out, the EPS will switch over to the figure for 2024 and that would result in the stock holding the number 1 spot with likely gains above 400 percent. Image Plus rallied 4 percent to $2.20 and holds the number 3 spot on the TOP10.
Tropical Battery is the third stock to move out of the TOP10 with an earnings downgrade to 20 cents per share, following the release of half year results, showing a profit of $50 million, up from $30 million in the March quarter and from $87 million to $94 million for the half year. Dolla Financial, Edufocal and Dolphin Cove are this week’s new entrants to the Junior Market IC TOP10. Dolphin sits at the number 2 spot, with projected earnings of $3, following the 2022 full year results of 0.76 US cents or J$1.17 and will benefit from a sharp rebound in cruise ship arrivals, with the first 10 months last year being a fraction of what it was 2019 and the first quarter of 2020. This is in addition to increased stopover arrivals that will be greater than last year for a large part of the year.
The price of Main Market listed Key Insurance rose 8 percent to $3.40 to be the only stock of notable gains while Caribbean Producers dropped 8 percent in closing at $9.71, following release of nine months’ results that suggest that full year earnings from ongoing operations should end up around J$1.30 per share. Jamaica Broilers slipped 5 percent to $33.95 and Berger Paints fell 4 percent to $8.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. Interest rates fell below eight percent on BOJ CDs and Treasury bills this past week, paving the way for a cut in the Bank of Jamaica overnight rate. That will provide more invigoration for the Jamaica stock market, with the Junior Market posting gains for a third consecutive week, even as the Main Market suffered another week of a mild decline.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
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 13.5. The Main Market TOP10 is projected to have an average of 259 percent, by May 2024, based on 2023 forecasted earnings.
The 15 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 27 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 10.8. There are nine stocks, or 19 percent of the market, with PEs from 15 to 26, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 248 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 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, 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.
Trading picks up on JSE Main Market
Trading activity on the Jamaica Stock Exchange Main Market ended on Friday, with the volume of stocks traded rising 44 percent and the value jumping 172 percent over Thursday, following trading in 58 securities up from 55 on Thursday, and ended with prices of 24 rising, 21 declining and 13 ending unchanged.
Investors traded 8,921,791 shares for $66,764,856 up from 6,187,825 units at $24,579,359 on Thursday.
Trading averaged 153,824 shares at $1,151,118 versus 112,506 shares at $446,897 on Thursday and month to date, an average of 200,991 units at $1,336,141, compared with 206,282 units at $1,356,898 on the previous day. April closed with an average of 264,549 units at $1,409,410.
Transjamaican Highway led trading with 3.32 million shares for 37.2 percent of total volume after the price closed at a record high of $1.85, ahead of the company reporting record first quarter profits. Wigton Windfarm followed with 2.11 million units for 23.6 percent of the day’s trade and Sagicor Select Financial Fund with 1.26 million units for 14.1 percent of the market.
The All Jamaican Composite Index lost 2,547.79 points to close at 369,575.13, the JSE Main Index fell 776.23 points to 333,707.63 and the JSE Financial Index lost 1.10 points to settle at 75.37.
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 selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
The Investor’s Choice bid-offer indicator shows 10 stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Barita Investments gained 50 cents and ended at $77.50, with 1,105 shares crossing the market, Caribbean Cement fell $1.80 to close at $51.20 with a transfer of 608 stocks, Caribbean Producers declined 38 cents to end at $9.71 in an exchange of 55,429 stock units, Eppley Caribbean Property Fund lost $6.53 in closing at $35.07 in switching ownership of 1,195 units, GraceKennedy gained $4.88 to in ending at $82.38, with 36,347 stock units crossing the market, 
Guardian Holdings popped $7.99 to $480 while exchanging 1,445 units, Jamaica Broilers shed $3.33 in closing at $33.95 with 980,603 shares clearing the market, Kingston Wharves rose $2.47 to $32.99, with investors trading 1,000 shares, Margaritaville dropped $4.40 to $14.60 in an exchange of 32 stocks, Mayberry Jamaican Equities rallied 49 cents to $10.50 with shareholders swapping 22,988 stock units, MPC Caribbean Clean Energy rose $7 to close at $90 while 123 shares passed through the market, NCB Financial dipped $3.48 to end at $71.50 in trading 171,711 units, 138 Student Living advanced 39 cents to $5.40 after a transfer of 25,247 shares, Scotia Group fell 38 cents in ended at $34.62, with 34,830 units changing hands, Seprod dipped 96 cents in closing at $71 with an exchange of 12 stocks, Supreme Ventures gained 70 cents and ended at $27.70 after investors were involved in trading 28,660 stock units, Wisynco Group advanced 93 cents to close at $17.50 after an exchange of 46,863 stock units.
In the preference segment, Eppley 5% preference share rose $3.97 in closing at $22, with 100 units crossing the exchange, Jamaica Public Service 7% rallied $15.65 to $95 after exchanging 2,001 stocks, Jamaica Public Service 9.5% increased $20 to end at $3000 and closed with just one share changing hands and Productive Business Solutions 9.75% preference share popped $10.90 to close at $106.93 with investors transferring 87 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.