Market activity ended on Monday, with the volume of stocks traded declining 69 percent and the valuing surging 185 percent over trading Friday at the close of the Jamaica Stock Exchange Main Market and ended with rising stocks just edged out by those declining.
The All Jamaican Composite Index dipped 44.74 points to 440,164.82, the JSE Main Index fell 1,246.97 points to 385,283.93 and the JSE Financial Index lost 0.22 points to settle at 91.53.
Trading ended with 59 securities up from 56 on Friday, with 24 rising, 25 declining and 10 ending unchanged.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14.5 for the Main Market. The JSE Main and USD Market PE ratios are computed based on ICInsider.com’s forecasted earnings for companies with financial years, ending up to the close of August 2023.
Overall, 10,717,973 shares were exchanged for $468,094,270 versus 34,028,346 units at $164,480,692 on Friday. Trading averages 181,661 units at $7,933,801, compared to 607,649 shares at $2,937,155 on Friday and month to date, an average of 274,067 units at $3,499,615, compared to 286,629 units at $2,896,811 on the previous trading day. May closed with an average of 238,645 units at $3,561,016.
Productive Business Solutions 9.75% preference share led trading with 3.63 million shares for 33.9 percent of total volume followed by Transjamaican Highway ended with 1.80 million units for 16.8 percent of the day’s trade and QWI Investments with 1.07 million units for 9.9 percent market share.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments declined $1.41 to end at $86.99, with 213,628 shares crossing the exchange, Berger Paints rallied $1 to close at $12 with an exchange of 11,736 stock units, Caribbean Cement shed $1.30 to $68.70 with the swapping of 25,573 stocks. Eppley jumped $7.90 in closing at $46 after trading two units, First Rock Capital gained $1.07 in ending at $13.07 and finishing trading with 6,954 units, Guardian Holdings fell $25 to close at $512 in switching ownership of 34 stocks. Jamaica Broilers dropped $1.49 in closing at $26 trading 73,934 stock units, Jamaica Producers lost 95 cents to end at $21.27 in an exchange of 1,736 shares, Jamaica Stock Exchange fell $1.60 to $18.35, with 4,545 stocks crossing the market. JMMB Group popped $1 in ending at $43 after an exchange of 149,358 stock units, Kingston Properties shed 40 cents to close at $7.51 while trading 15,395 shares, Massy Holdings advanced $1.50 to $94 after 47,901 units changed hands. Mayberry Investments climbed $1.50 to $10.50 with 532,238 stock units clearing the market, Mayberry Jamaican Equities declined 29 cents to $14.70, with 35,083 units crossing the market, MPC Caribbean Clean Energy lost $12.94 in closing at $95.01 after exchanging 10,624 shares. 138 Student Living dropped 43 cents in closing at $4.76, with 3,271 stocks changing hands, Palace Amusement dropped $78 to $910 in an exchange of 19 units, PanJam Investment rose 50 cents to $66 in exchanging 22 shares. Pulse Investments declined 59 cents to close at a 52 weeks’ low of $3.01 with 621,901 stocks changing hands, Sagicor Group rallied 90 cents to end at $56.90 in an exchange of 5,878 stock units, Scotia Group advanced $1.46 to close at $37.50 after exchanging 18,617 units. Stanley Motta climbed 40 cents in closing at $5.50 with the swapping of 3,590 shares and Supreme Ventures shed $1 to end at $29, with 113,240 stock units changing hands.
In the preference segment, Eppley 7.50% preference share lost $1.23 to end at $6, with 10,000 stocks crossing the market, 138 Student Living preference share fell 25 cents to $20.63 with 5 stock units changing hands and Productive Business Solutions 9.75% preference share gained $1.25 to $108.25 with 3,628,039 shares clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
3 new ICTOP10 listings
The old stock market adage of sell in May and go away continued to influence the market this past week, helped by funds tied up in the Dolla Financial IPO, but most investors should get full refunds early this coming week, as well as the likelihood of the trading commencing in the stock in the latter part of the week.
The week ended with three new listings in the TOP10, as declining stocks dominated the Junior and Main Market.
In the Junior Market, the only worthwhile gain was a 14 percent rise by Paramount Trading to $2. Access Financial shed 6 percent to close at $20.45, stocks that declined by 5 percent each are Lasco Financial to $3.43, Jetcon Corporation to $1.26 and Medical Disposables to $7.45.
For the TOP10 Main Market stocks, Caribbean Cement gained 7 percent to $70 after the company reported a proposed $1.50 dividend payment in August. VM Investments lost 10 percent to $5.30, Berger Paints slipped 3 percent to $11, JMMB Group down 5 percent to $42 and Sygnus Credit Investments dipped 5 percent to $14.11.
Lasco Distributors and Paramount Trading dropped out of the Junior Market TOP10. They were replaced by Dolphin Cove, with the price dropping to $15.40 and Stationery and Office Supplies (SOS).
SOS got an earnings upgrade to $1.70, with first quarter revenues 24 percent ahead of 2019, the previous best quarter before the negative impact of Covid-19, with the full reopening of the economy after, suggesting revenues should be running even further ahead of 2019 for the second quarter onwards. Dolphin Cove is benefitting from a resurgence in the tourism industry that is delivering increased revenues compared to 2021. The increased income and cost reduction contribute to a substantial profit increase that will carry over into the first half of 2023. It will enjoy increased revenues since the tourism recovery was not at full force in the first half of this year.
In the Main Market, Caribbean Producers is back, with upgraded earnings for the fiscal year to June 2023 of $2.30 per share that will flow from increased earnings for the year starting in July as it benefits from the recovery in the tourism sectors from which the bulk of its revenues is earned. QWI Investments has dropped out of the ten.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.6, while the Junior Market PE for the Top 10, is 6 versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 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 will likely deliver the best returns up to the end of May 2023. They 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, 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.
One new entry to ICTOP10
Prices of several stocks rebounded this past week as the selloff to fund the Dolla Financial IPO receded, but the changes had little impact on changing stocks in the TOP10, with just one new entrant to the listing.
Following last week’s 330 points fall, the Junior Market index recovered 143 points by the end of the week, while the Main Market All Jamaica Index lost 211 points on top of the 5,954.55 points given up in the previous week.
This week’s market performance resulted in mostly gains for TOP10 stocks. In the Junior Market, Medical Disposables rose 12 percent to $7.85, while Access Financial gained 9 percent to close at $21.80 and Lasco Financial rallied 6 percent to $3.50, following the release of full year results to March, with profit doubling to $306 million for earnings per share of 24 cents. Elite slipped 6 percent in closing at $3.40 and Caribbean Cream fell 5 percent to $4.69.
For the TOP10 Main Market stocks, Productive Business Solutions gained 15 percent to US$1.15, VM Investments rose 13 percent to $5.87, Berger Paints rallied 6 percent to $11.30, followed by QWI Investments up 5 percent to 89 cents. Sygnus Credit Investments declined 5 percent to $14.80 and JMMB Group slipped 4 percent to $44 following the release of full year results.
Jetcon Corporation price dipped to $1.32 and squeezed out General Accident from the Junior Market TOP10.
Medical Disposables reported full year results to March, on Thursday, with profit before tax surging 938 percent to $143 million and profit due to the parent company shareholders before extraordinary gains in 2021 of $62 million, rising to $105 million, from $7.5 million, with revenues up 42 percent over the previous year.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.1, while the Junior Market PE for the Top 10 is six versus the market at 13.4. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
Watch these stocks that are sitting just outside the TOP10, the list includes Key Insurance, followed by Caribbean Producers, Scotia Group and Sagicor Group from the Main Market and in the Junior Market, Dolphin Cove, General Accident and Iron Rock Insurance.
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.