Market activity ended on Wednesday, with the volume of shares trading declining 17 percent and the value jumping 159 percent higher than on Tuesday at the close of the Jamaica Stock Exchange Main Market as the market indices rose moderately.
The All Jamaican Composite Index rallied 1,681.76 points to settle at 434,587.17, the JSE Main Index and the JSE Financial Index rose 0.66 points to settle at 93.97. Trading ended with 57 securities compared to 55 on Tuesday, with 26 rising, 24 declining and seven ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.1. The PE ratios for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending to August 2022.
Overall, 33,966,132 shares traded for $614,323,672 versus 41,007,581 units at $237,565,083 on Tuesday. Radio Jamaica led trading with 11.11 million shares for 32.7 percent of total volume, followed by Wigton Windfarm, 8.46 million units, with 24.9 percent of the day’s trade. JMMB Group ended with 5.23 million units for 15.4 percent market share, Transjamaican Highway chipped in with 1.66 million units for a 4.9 percent market share. Carreras traded 1.42 million units for a 4.2 percent market share and JMMB Group 7.35% – 2028, after an exchange of 1.16 million units for 3.4 percent market share.
Trading averages 595,897 units at $10,777,608, compared to 745,592 shares at $4,319,365 on Tuesday and month to date, an average of 474,898 units at $6,184,700, compared to 466,578 units at $5,868,903 on the previous trading day. February closed with an average of 392,520 units at $3,199,976.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and 2 with lower offers.
At the close, Barita Investments climbed $1.35 to close at $91 after trading 57,043 shares, Berger Paints rose 40 cents to $12 in an exchange of 201 units, Caribbean Cement lost $2.50 in ending at $67.50 with 10,353 stocks changing hands. Eppley fell 71 cents in closing at $41.99 in switching ownership of 1,472 stock units, Eppley Caribbean Property Fund declined $2.60 to $38.10 after exchanging 1,711 shares, GraceKennedy rallied $1.40 to $103.50, with 576,122 stock units crossing the exchange. Guardian Holdings popped $5 to end at $550 after 18,151 units passed through the market, Jamaica Producers dropped $1.77 to close at $21.53, with 6,327 stocks changing hands, Jamaica Stock Exchange rose 30 cents to $17.30 in an exchange of 17,154 units. JMMB Group advanced 50 cents in closing at $42.50 after exchanging 5,226,226 stock units, Kingston Properties increased $1.30 to close at $9.50 in an exchange of 4,861 stocks, Kingston Wharves shed $2.92 to $39.03 after 5,995 shares changed hands. NCB Financial rallied $1.48 to end at $113.50 with the swapping of 16,089 stock units, Palace Amusement increased $40 in closing at $990 while exchanging 34 units, PanJam Investment declined 91 cents after ending at $66.09 and trading 101,777 stocks. Portland JSX climbed 32 cents in ending at $8.49, with 1,199 shares clearing the market, Proven Investments popped $2 in closing at $36 with an exchange of 12,456 stock units, Scotia Group dropped 30 cents to end at $34.50 with an exchange of 165,558 units. Seprod gained $7.43 to close at $57.95 after 103,417 stocks crossed the market, Supreme Ventures fell 55 cents to $17.95 in switching ownership of 4,940 shares, Sygnus Real Estate Finance lost 99 cents in ending at $16.01 as 3,536 shares changed hands.
In the preference segment, 138 Student Living Preference share rose $1.14 to close at $9.24 after exchanging 109 stocks, Jamaica Public Service 9.5% shed $947.69 to $2650, with 58,119 stock units crossing the exchange and JMMB Group 7.25% preference share advanced 49 cents in closing at $2.80 in an exchange of 355 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More changes to ICTOP10
The only major move in the Junior Market ICTOP10 listing, this week was a fall of 8 percent for Tropical Battery, while in the Main Market, Carreras rose 6 percent followed by Caribbean Producers with 5 percent, both dropped out of the TOP10, while Guardian Holdings and 138 Student Living both lost 5 percent for the week. The week’s movements resulted in no change to the ICTOP10 Junior Market stocks but Transjamaican Highway and Jamaica Broilers return to the list.
The Junior Market index closed up to 4,052.19 points, ahead of the 4,031 close of the previous week, helped by the strong gains in the two newly listed companies; JFP limited and EducFocal that jumped sharply during the week, with the former topping out at $2 to close the week up by 36 percent at $1.36, with a PE of 19 times projected 2022 earnings, while the latter jumped to $3.07 for an incredible gain of 207 percent with a PE of 38 based on projected earnings of 8 cents for 2022. Meanwhile, the Main Market continues to consolidate at a support level of around 440,000 points using the All Jamaica Composite Index, but the market drifted down below that level in the latter part of the week as NCB Financial dropped to a multi-year low of $91.01 on Wednesday, with little demand for the stock currently, but it may find support around the $105 level.
The Junior Market potential gains for the TOP 10 Junior Market stocks stand at 109 percent, much lower than the Main Market at 137 percent, an indication that Main Market is greatly undervalued. The top three stocks in the Junior Market are Elite Diagnostic, Medical Disposables followed by AMG Packaging, to gain between 122 and 133 percent.
The potential gains for Main Market stocks moved from 127 percent last week to this weeks’ 137 percent, with the top three being Guardian Holdings, JMMB Group followed by Sygnus Credit Investments all projected to gain between 169 and 198 percent versus 168 to 193 percent last week.
The average PE for Junior Market is well ahead of the average of 17 times 2020 earnings achieved at the end of March last year in moving to 21.8 based on ICInsider.com’s 2021-22 earnings, pushed up mainly by five stocks, with EduFocal and Main Event over 100 times 2021 earnings. Excluding the 5 highest PE ratios over 40, the average would be around 18. The JSE Main and USD Markets at 15.8 is well off from 19 in 2021. The TOP 10 stocks trade at a PE of a mere 8.6, with a 45 percent discount to that market’s average.
The average PE for the JSE Main Market is 20 percent less than the PE of 19 at the end of March and 24 percent below the target of 20 to the end of March this year. The Main Market TOP 10 average PE is 8.6 representing a 45 percent discount to the market, well below the potential of 20. The depressed PE of the main market is an indication that bigger investors are reluctant to be aggressive in buying into the market currently, with inflation, rising interest rates and war populating the headlines.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Cargo Handlers exits ICTOP10 with 33% gain
Cargo Handlers returned to ICTOP10 listing last week and was another winner with gains of 33 percent, sufficient to move it out of the top flight Junior Market stocks. The stock joins a long list of high performance ICTOP10 stocks, including the 32 percent gain in Tropical Battery stock in the previous week.
Caribbean Assurance Brokers come back in the Junior Market list, while Sterling Investments makes it back to the Main Market listing at the expense of TransJamacian Highway after just one week, but investors should keep an eye for this one.
In a week when the Junior Market dropped 297 points in three days that pushed the index down to 3,871 points, it bounced on the last two days to close over 4,031, still 137 points from the record of 4,168.16, at the end of the previous week. Meanwhile, the Main Market continues to consolidate around support at 440,000 points measured by the All Jamaica Composite Index.
Recent IPOs JFP limited and EducFocal are set to list on Monday and Tuesday coming following the oversubscribed initial public offers.
During the past week, the Junior Market TOP10 listed Access Financial, Lasco Financial and Iron Rock Insurance gained 6 percent each while Medical Disposables fell 9 percent and Tropical Battery slipped 5 percent. In the Main Market, the primary movers are Guardian Holdings with a 4 percent gain, while JMMB Group fell 7 percent and Proven Investments declined by 5 percent.
The potential gains for the TOP 10 Junior Market stocks remained for a second week at 105 percent, much lower than the Main Market at 127 percent, an indication that the Main Market is undervalued. The top three stocks in the Junior Market are Medical Disposables followed by Elite Diagnostic and Lasco Distributors to gain between 122 and 133 percent, compared to 121 and 126 percent, previously.
The potential gains for Main Market stocks moved from 124 percent last week to this weeks’ 127 percent, with the top three being JMMB Group followed by Guardian Holdings and Sygnus Credit Investments all projected to gain between 168 and 193 percent versus 161 and 193 percent last week.
The average PE for Junior Market has surpassed the average of 17 times 2020 earnings achieved at the end of March last year in moving to 19 based on ICInsider.com’s 2021-22 earnings and is ahead of the JSE Main and USD Markets at 15.7 well off from 19 in 2021. The TOP 10 stocks trade at a PE of a mere 9, with a 48 percent discount to that market’s average.
All the stocks in the Junior Market can gain just 5 percent to the end of March this year, based on an average PE of 20. About a third of Junior Market stocks with positive earnings are trading at or above this level, averaging around 23.
The average PE for the JSE Main Market is 21 percent less than the PE of 19 at the end of March and 24 percent below the target of 20 to the end of March this year. The Main Market TOP 10 average PE is 9 representing a 43 percent discount to the market, well below the potential of 20. Around 15 stocks or a thirty percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times current year’s earnings. The depressed PE of the main market may be indicating that bigger investors are reluctant to be aggressive in buying into the market currently with inflation, rising interest rates and war populating the headlines.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.