Trading closed on the Junior Market of the Jamaica Stock Exchange on Tuesday, with the volume of stocks traded climbing 28 percent with the value surging 66 percent more than on Monday, with 41 securities trading versus 45 on Monday, with 18 rising, 12 declining and 11 closing unchanged.
At the close, the Junior Market Index rose 43.10 points to settle at 4,400.38.
The PE Ratio, a measure of computing appropriate stock values, averages 13.2. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
A total of 10,329,555 shares traded for $45,186,051 up from 8,095,169 units at $27,277,515 on Monday. Trading averaged 251,940 shares at $1,102,099 in contrast to 179,893 shares at $606,167 on Monday with month to date, averaging 922,459 units at $5,061,568 compared to 1,014,712 units at $5,606,327 on the previous trading day. June closed with an average of 429,016 units at $1,630,104.
Future Energy Source led trading with 2.99 million shares for 29 percent of total volume, followed by Dolla Financial with 2.80 million units for 27.1 percent of the day’s trade and Limners and Bards with 1.23 million units for 11.9 percent market share.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, AMG Packaging advanced 25 cents to close at $4.25 in exchanging 78,245 shares, Cargo Handlers rose 45 cents in closing at $13.95 with the swapping of 3,758 units, Caribbean Assurance Brokers increased 10 cents to $2.35 after trading 197,566 stocks. Caribbean Flavours popped 12 cents to end at $1.95 in exchanging 4,327 stock units, EduFocal rallied 14 cents in ending at $2.69, with 342,483 stocks changing hands, Express Catering climbed 58 cents to $6.09 after 3,289 stock units crossed the exchange. Fosrich gained $1.14 to end at $37.04 in trading 117,425 units, Future Energy Source declined 17 cents in closing at $5.90, with 2,993,856 shares clearing the market, ISP Finance jumped $6.50 to close at $29 after exchanging 1,328 stocks. Lasco Financial increased 29 cents to $3.07, with 16,304 units crossing the market, Limners and Bards rallied 30 cents to $3.20 with an exchange of 1,227,350 shares, Main Event dropped 35 cents in closing at $7.60 after 10,025 stock units changed hands. Medical Disposables climbed 24 cents to close at $7.09 in an exchange of 18,290 stock units, Paramount Trading popped 18 cents after ending at $1.89 while exchanging 829 shares and Stationery and Office Supplies shed 10 cents to end at $13, with 38,727 stocks crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big gains for ICTOP10 stocks
The markets bobbed and weaved this past week as investors mostly remained on the sidelines until late this month, ahead of the imminent release of second quarter results. Notwithstanding, there were a few strong moves in both markets.
In the Junior Market, Caribbean Cream climbed 16 percent to $4.66, followed by an 11 percent rise for Access Financial, while Lasco Distributors rose 7 percent to $3.43 and Elite Diagnostic gained 6 percent to close at $3.70. The Main Market saw Key Insurance jumping 23 percent to $4.17.
The Main Market, Radio Jamaica, dropped 15 percent to $2.47 and Berger Paints gave up 10 percent at $11. In the Junior Market, Medical Disposables, CAC 2000 and Lasco Financial fell 5 percent.
The week ended with one new listing in the TOP10 Main market as Key Insurance moved on with the strong gain mentioned above and Jamaica Broilers surged in following a jump in projected earnings after posting full year results.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, General Accident Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers, Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 14.1, while the Junior Market Top 10 PE is 6.1 versus the market at 13.2. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 244 percent.
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 to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions from selecting stocks 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.
Big price rise in ICTOP10
The markets closed with contrasting styles on Friday, with Junior Market listed Caribbean Cream dropping 27 percent to $4.01 and the main market listed Radio Jamaica rising 21 percent to $2.90, with the stock triggering the circuit breaker as investors exchanged 2.9 million units of the company’s shares on Friday.
It is unclear why RJR, a stock that was previously under selling pressure, surprisingly, surged at the week’s close. Caribbean Cream came under pressure after the company reported a loss for the year to February. Investors will have to await the first quarter results in a few days to determine whether the new year will see a return to brighter days.
Five Junior Market ICTOP10 stocks fell and four rose, while in the TOP10 Main Market, six stocks gained and two fell with none exceeding 4 percent, but for RJR.
Elsewhere in the Junior Market, C2000 climbed 11 percent to $10.30. In comparison, Access Financial and Elite Diagnostic gained 5 percent each to close the week at $21.01 and $3.50, respectively. In contrast, Caribbean Assurance Brokers lost 6 percent as Jetcon Corporation and Lasco Financial all fell 5 percent.
The week ended with one new listing in the TOP10 as mild gains by General Accident and a fall in the price of Dolphin Cove resulted in them swapping places.
VM Investments moved out in the TOP10 Main Market and Key Insurance moved into the TOP 10.
It is pretty clear that many investors are investing in the dark with the hope that some overvalued stocks will continue to deliver above average gains into the future, but not many people know that yesterday’s winners may not have tomorrow’s significant gains. They ignore the long established feature of the market going back almost 40 years of the IC 80/20 rule and rule of 72. The IC 80/20 rule is that only two out of ten stocks on average in one year end up in the top 10 the following year. The essence of this is that it is not prudent to invest in the vast majority of last year’s top 10 stocks, especially those that did exceptionally well and are unlikely to repeat.
Rule of 72 is simple. Divide 72 by the rate of return easily shows how quickly money can double. How does this apply to stocks? Last year the Junior Market rose 30 percent and for 2022, so far, by 27 percent. These growth rates indicate that an investment in all 45 stocks in this market would double every two and a half years based on the 2021 increase and roughly one year and four months using the year to date growth. What all of this is saying, investors don’t need to be chasing popular stocks to make good money in the market, choose those that are undervalued, with profit set to grow sufficiently to give a boost to the stock price.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers and Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 15, while the Junior Market Top 10 PE is six versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 242 percent to May 2023 and the Main Market 229 percent.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks 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, based on the possible increase for each company, considering the earnings and PE ratios 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.