The Main and Junior Markets closed the week lower, resulting in three new entrants into the top 10 listings and some notable price movements, with the two markets without a clear direction, but the Main Market is showing signs of bottoming out with a big breakout not seeming far away.
Some emerging signs of potential moves higher are emerging for some stocks, with a sharp decline in the volume of some select stocks being offered for sale, setting the stage for sharp upward push in prices of some stocks in the coming weeks. Scotia Group is one such, as it approaches the release of full year results and an announcement on dividend, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with only 58,816 shares on offer at the close on Friday and so is Jamaica Teas, with offers now generally above $2.53, with buyers mostly at $2.30, Access Financial is yet another, but buying is weak, Caribbean Cement also has limited stocks on offer.
Four Junior Market stocks gained 6 percent and over and two ended with big losses, while the Main Market had two stocks with worthwhile gains and two with moderate losses of 4 and 6 percent.
The Main Market ICTOP10 ended with Palace Amusement rising 15 percent to $1.29, Key Insurance popped 10 percent to $2.20, while Margaritaville declined 6 percent to $16 and Caribbean Producers lost 4 percent to close at $9.08.
The Junior Market ended with Caribbean Cream jumping 19 percent to $3.69, AMG Packaging climbed 12 percent to $2.89 while Jamaica Teas rose 7 percent to $2.55, Iron Rock Insurance jumping 20 percent to $2.65 and Honey Bun rose 6 percent to $6.44. The losers were Iron Rock Insurance down 22 percent to $2.06 and Lasco Distributors with a fall of 12 percent to 3.61.
Honey Bun and Elite Diagnostic dropped out of Junior Market ICTOP10 and are replaced by Tropical Battery and Stationery and Office Supplies. Sygnus Credit Investments drop out of the Main Market TOP10 with Pulse Investments coming in to replace it.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5.3, well below the market average of 12.8. The Main Market ICTOP10 is projected to gain an average of 287 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, over half of the market, with an average of 13.2. There are 16 stocks, or 33 percent of the market, with PEs from 15 to 49, averaging 20 that are well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 200 percent on or around May 2024.
Of great significance is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. 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 on or around 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.
as funds pulled into the market surged 152 percent more than Thursday as the market closed with prices of 12 stocks rising, 11 declining and 13 unchanged.
The Junior Market ended trading with an average PE Ratio of 12.9, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2024.
Jamaican Teas climbed 25 cents to $2.55 with a transfer of 119,469 stocks, as buyers eat away at the limited supply of stocks on offer. Jetcon Corporation shed 8 cents and ended at 75 cents, with a mere 1,335 units crossing the market, Knutsford Express declined $1.68 to close at $11.12 in switching ownership of 2,300 stock units, Lasco Distributors fell 39 cents to end at $3.61 with shareholders swapping 112,863 shares. Lasco Manufacturing dipped 20 cents in closing at $4.30 while exchanging 44,307 stocks, Limners and Bards dropped 9 cents to $1.61 with investors dealing in 5,109 units and Main Event skidded 98 cents to close at $13, after 54,527 stock units passed through the market.
compared to Wednesday and resulting in the trading of 39 securities down from 41 on Wednesday, ending with prices of 12 rising, 15 declining and 12 closing unchanged.
Jamaican Teas with 299,806 units for 12.3 percent of the day’s trade and One Great Studio with 289,403 units for 11.8 percent market share.
Derrimon Trading shed 16 cents to close at $1.87 with a transfer of 30,656 shares, Dolphin Cove increased 87 cents to $17.40 after 797 stock units passed through the market. EduFocal popped 17 cents to end at $1.93 in an exchange of 85,150 stocks, ISP Finance picked up $6 in closing at $30 with traders dealing in just 30 units, Jamaican Teas declined 10 cents to close at $2.30, with 299,806 shares crossing the market. JFP Ltd lost 11 cents and ended at $1.41 with an exchange of 25,970 units, Knutsford Express dipped 13 cents to $12.80 while trading 41 stocks, Medical Disposables dipped 38 cents to end at $2.92 in switching ownership of 4,906 stock units and Spur Tree Spices lost 8 cents in closing at $2.11 while exchanging 112,204 shares.
followed by Access Financial, up $1.15 and Main Event with a rise of 98 cents as the market closed with the volume of stocks traded declining 16 percent at a 47 percent lower value than on Tuesday after trading resulted in activity in 41 securities compared with 44 on Tuesday and ended with 21 rising, eight declining and 12 closing unchanged.
Regency Petroleum with 1.29 million units for 21.7 percent of the day’s trade and Spur Tree Spices with 988,959 units for 16.6 percent market share.
Elite Diagnostic popped 21 cents to close at $1.85 with stakeholders exchanging 99,695 shares, Fontana advanced 18 cents to $10.20, with 19,328 stocks crossing the market. Future Energy rallied 8 cents and ended at $3.58 as investors exchanged 620,887 units, Indies Pharma lost 13 cents to end at $2.80 with shareholders swapping 2,403 stock units, Jamaican Teas popped 10 cents in closing at $2.40 while exchanging 251,734 shares and ended with stocks on offer declining. Knutsford Express advanced $1.75 to close at $12.93 in switching ownership of 567 units, Lasco Distributors rose 24 cents to $4.04, with 3,118 stocks crossing the market, Lasco Financial rallied 14 cents to close at $1.84 in an exchange of 750 stock units. Lasco Manufacturing increased by 10 cents in closing at $4.50 with investors transferring 4,471 shares, 
Main Event climbed 98 cents to end at $13.98 after exchanging a mere 379 stocks, Medical Disposables gained 38 cents and ended at $3.30 with a transfer of 3,018 units and MFS Capital Partners fell 10 cents to $2.05 after 132,587 stock units were traded.
led by Guardian Holdings, down $104.99, ISP finance with a fall of $7.50, Pan Jamaica down $5.41, Seprod falling $4.70, Eppley Property $4.30, Carib Cement off $2.77 and Access down $2,45.
In the preference segment, Jamaica Public Service 7% popped $1 to end at $46.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Some positives are visible in the market, with a sharp decline in the volume of some stocks being sold. Scotia Group is one such stock, as it approaches the release of full year results and an announcement on dividends, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with a very limited supply of stocks on offer.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
Of import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
Investors traded 4,811,921 shares for $11,579,633 compared with 20,658,101 units at $44,997,586 on Thursday.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one with a lower offer.
Jamaican Teas lost 10 cents to close at $2.38 after 115 stocks crossed the exchange, JFP Ltd declined 17 cents to $1.41 with investors trading 290,287 units, KLE Group rose 15 cents to $1.64 while exchanging 11 stock units. Knutsford Express gained 19 cents in closing at $12.94 after a transfer of 933 shares, Limners and Bards shed 14 cents to end at $1.60 as investors traded 12,021 stock units, Lumber Depot dropped 18 cents to close at $2.39 with a transfer of 37,032 stocks. MFS Capital Partners rallied 38 cents to $2.48 after exchanging 70,032 units, 
Regency Petroleum fell 24 cents to close at $2.25 with investors transferring 1,064,663 stocks and Spur Tree Spices skidded 19 cents to end at $2.30 after an exchange of 39,063 shares.
At the close, the Junior Market Index advanced 76.62 points to lock up trading at 3,771.09 with the market closing 91.78 points lower than the October close and is down 5.4 percent for the year to date.
The Junior Market ended trading with an average PE Ratio of 13.4, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2024.
ISP Finance rallied 50 cents to close at $31.50, with a mere 2 stocks clearing the market, JFP Ltd increased 18 cents to $1.58 after exchanging 1,011,951 stock units, Knutsford Express climbed 55 cents to close at $12.75 with investors dealing in 24,601 shares. Lasco Distributors popped 20 cents and ended at $4.10 with a transfer of 31,102 stocks, Lasco Manufacturing declined 30 cents to end at $4.20 after an exchange of 16,971 units, Lumber Depot advanced 18 cents in closing at $2.57 with shareholders swapping 18,272 stock units. Main Event fell 35 cents to $13.55 and closed after an exchange of 11,214 stock units, MFS Capital Partners rose 9 cents to close at $2.10 with traders dealing in 169,754 shares, Paramount Trading gained 22 cents in closing at $1.70 after switching 11,000 stocks. 
Regency Petroleum rallied 20 cents to end at $2.49 after 3,431,680 units changed hands, Spur Tree Spices rose 24 cents and ended at $2.49 as investors exchanged 3,151,885 stock units and tTech advanced 12 cents to $2.22 in trading 11 shares.
Investors traded 54,284,961 shares at $125,759,136 compared to 6,118,187 units at $16,249,732 on Tuesday.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and six with lower offers.
Jamaican Teas rallied 13 cents to $2.44 and closed with an exchange of 51,685 units, Knutsford Express rose $1.05 in closing at $12.20 after investors traded 1,254 stocks. Lasco Distributors lost 8 cents to end at $3.90 with a transfer of 11,870 shares, Lasco Manufacturing rallied 23 cents and ended at $4.50 while trading 1,009 stock units, Lumber Depot declined 22 cents to $2.39 after 102,843 stocks were traded. Mailpac Group popped 10 cents to $2.15 with an exchange of 30,116 units, Main Event increased 89 cents to close at $13.90 with 311 shares clearing the market, Medical Disposables dipped 12 cents to end at $2.90 after an exchange of 16,201 stock units. MFS Capital Partners fell 8 cents in closing at $2.01 with investors transferring 21,500 units, Paramount Trading shed 19 cents and ended at $1.48 in switching ownership of 25,028 stocks, 
Regency Petroleum climbed 8 cents to $2.29, with 392,399 units crossing the exchange and Spur Tree Spices gained 15 cents to close at $2.25 with traders dealing in 41,230 shares.
Investors traded 6,118,187 shares for $16,249,732 compared with 2,456,405 units at $5,558,360 on Monday.
The Junior Market ended trading with an average PE Ratio of 13, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2024.
Honey Bun climbed 10 cents to $6.10 with an exchange of 1,155 stocks. iCreate shed 9 cents to end at 61 cents after 103,596 units passed through the market, Image Plus fell 9 cents in closing at $1.91 in an exchange of 8,390 stock units, Iron Rock Insurance skidded 60 cents and ended at $2.05 after trading 306,500 shares. Jamaican Teas declined 14 cents to close at $2.31 after a transfer of 187,281 units, Lasco Distributors lost 12 cents to end at $3.98 in switching ownership of 10,021 stocks, Limners and Bards rose 13 cents to end at $1.74, with 14,349 stock units crossing the market. Main Event skidded 98 cents in closing at $13.01 in an exchange of 40,000 shares, 
MFS Capital Partners gained 25 cents and ended at $2.09 with 888,888 stocks changing hands and Spur Tree Spices fell 10 cents to close at $2.10 with a transfer of 107,170 units.
