With interest rates softening, some life has entered the Jamaica stock market, with the Junior Market posting gains for a second consecutive week, but the Main Market suffered a mild retreat following notable increases in the last week of April as several ICTOP10 stocks posted solid gains, including Image Plus that posted impressive full year results at the end of the previous week.
Dr. Karlene McDonnough – Chairman of Image Consultants Ltd.
The week ended with several sizable winners in the ICTOP10 and one big loser. Lasco Distributors rose 13 percent to lead the winning stocks, followed by Everything Fresh with a strong 11 percent climb to $1.66, Consolidated Bakeries rose 10 percent to $2.39, Image Plus rallied 9 percent and iCreate rose by 5 percent to $1.47 and fell out of the ICTOP10 and is replaced by Jamaican Teas. Iron Rock Insurance fell 18 percent to close at $1.88 and General Accident slipped 6 percent to $5.08, being the only two losers of significance.
The price of Main Market listed Berger Paints rose 10 percent to $8.30, Caribbean Producers gained 8 percent in closing at $10.56, with the stocks seemingly poised to get back to the $12 region sooner than later as the supply of stocks being sold below $13 has virtually dried up. 138 Student Living popped 6 percent to $5.35, JMMB Group fell 6 percent to $29.60, and Jamaica Broilers slipped 4 percent to $35.70.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. This stems from the continued slide of BOJ CDs rates since March, which saw the rate falling by 25 percent to 8 percent this past week. Lower interest rates are around the corner, which will be positive for stocks and the signs are already showing.
At the previous week’s close, Image Plus released solid full year results showing profit after tax that jumped 125.6 percent to $213 million or 21 cents per share. Based on those numbers, ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously. On Monday, the company reported revised results, with the profit being even higher at $252 million, with a reduction in the amount previously booked as professional fees. Based on the revision, projected earnings were raised by the publication to 40 cents per share for the current fiscal year. The stock sits at the number three spot in the ICTOP10. The revision raises some serious questions about how such matters escaped the directors, auditors and the financial controller before the audited financial statements were released.
Dolla Financial fell out of the TOP10 at the end of the previous week and this past week released impressive first quarter results that excited investors who responded well to them by driving the price to close the week at $2.89, with the price hitting a high of $2.99 on Friday. The company seems poised to deliver ICInsider.com forecasted earnings of 40 cents, provided they obtain loans on a timely basis to on lend.
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 5.5, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 273 percent, to May 2024, based on 2023 forecasted earnings.
The 16 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 28 and 19 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.7 compared with the market at 11.5. There are 12 stocks, or 25 percent of the market, with PEs from 15 to 26, averaging 20, well above the market’s average. The top half of the market has an average PE of 16, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 258 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.
with trading activity occurring in 55 securities compared to 57 on Thursday and resulted in prices of 13 rising, 23 falling and 19 ending unchanged.
The All Jamaican Composite Index fell 1,306.49 points to close at 371,710.92, the JSE Main Index rallied 1,443.60 points to 334,870.71 and the JSE Financial Index gained 0.10 points to close at 76.69.
Jamaica Broilers dipped $1.28 to end at $35.70 as 29,289 stocks passed through the market, Jamaica Stock Exchange rallied $1.24 to end at $14.24 with an exchange of 6,691 units, JMMB Group declined $1.40 to close at $29.60 after investors traded 126,267 shares. Kingston Wharves dropped $2.40 to $30.50 with investors trading 20,319 units, Mayberry Investments popped 45 cents in closing at $7.95 in an exchange of 60,363 shares, Mayberry Jamaican Equities fell 45 cents and ended at $10.85 after 6,511 units passed through the market, NCB Financial fell $1 to close at $72 with a transfer of 268,196 stocks. Portland JSX shed 48 cents in closing at $11 in an exchange of 20 stock units, Proven Investments increased $1.69 and ended at $27.10 in trading 1,888 units, Seprod declined $1.50 to end at $70, with 27,546 stock units crossing the exchange. Stanley Motta lost 50 cents to close at $5.20 while exchanging 834 stocks and Sterling Investments climbed 38 cents to end at $2.87 after a transfer of 517 shares.
In the preference segment, Eppley 7.75% preference share dipped $1 to $17.54, with 558 shares changing hands, Jamaica Public Service 7% rose $7 and ended at $75, with 175 units clearing the market and JMMB Group 7.15% – 2028 climbed 47 cents to close at $2.94 after investors exchanged 10,905 stocks.
A total of 3,816,748 shares were traded for $33,796,305 compared to 6,353,061 units at $48,244,526 on Wednesday.
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 between November 2022 and August 2023.
Massy Holdings jumped $5.50 to end at $95 after an exchange of 3,762 stock units, NCB Financial declined $1.11 in closing at $73 with 41,486 shares changing hands. Proven Investments dipped $1.89 to $25.41 with investors trading 4,483 shares, Sagicor Group lost 50 cents to close at $50 in switching ownership of 13,572 stock units; Scotia Group rose 75 cents in closing at $34.85 with a transfer of 71,051 stocks, Supreme Ventures advanced 50 cents to $28, with 23,422 units changing hands and Sygnus Real Estate Finance shed $1.39 to close at $9.51 in an exchange of 1,000 stocks.
Jamaica Public Service 7% fell $22.52 in closing at $68, with 1,526 units crossing the market. JMMB Group 7.15% – 2028 dropped 45 cents to close at $2.47 while exchanging 60,000 stock units and Productive Business Solutions 9.75% preference share declined $4 to close at $100 with an exchange of 89 shares.
A total of 6,353,061 shares were traded for $48,244,526 down from 25,780,894 units at $362,794,152 on Tuesday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.6 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded stock prices and earnings forecasted ICInsider.com for companies with the financial year ending between November 2022 and August 2023. Investor’s Choice bid-offer indicator shows seven stocks ended with bids higher than their last selling prices and six with lower offers.
Jamaica Stock Exchange climbed 65 cents to $13.95 with the swapping of 231 stock units, Mayberry Investments shed 45 cents to close at $7.50 in trading 43,199 units. 138 Student Living increased 30 cents to $5.40 with an exchange of 4,238 stock units, Pan Jamaica Group dropped $2.33 to $54.10, with 1,656 stocks crossing the market, Proven Investments popped $1.80 to close at $27.30 with a transfer of 2,178 shares. Sagicor Group dropped $1.50 to $50.50 after 43,226 stock units crossed the market, Scotia Group declined 70 cents in closing at $34.10 after an exchange of 75,093 units, Seprod rose $6.61 and ended at $71.62 after 3,322 shares were exchanged. Stanley Motta rallied 75 cents to $5.56 after a transfer of 20,752 stocks and Sygnus Real Estate Finance advanced 70 cents in closing at $10.90 in an exchange of 2,801 shares.
In the preference segment, Jamaica Public Service 7% lost $18.48 to end at $90.52 in switching ownership of 624 units and Productive Business Solutions 9.75%preference share rose $9 to close at $104 after exchanging 2 stocks.
All of 25,780,894 shares were traded for $362,794,152 versus 22,921,329 units at $44,514,498 on Monday.
The All Jamaican Composite Index fell 6,576.29 points to finish at 373,543.17, the JSE Main Index dropped 5,785.97 points to close at 334,626.31 and the JSE Financial Index dipped 0.37 points to 77.41.
Jamaica Producers declined $1.47 to $20.51 with an exchange of 61,044 units, Jamaica Stock Exchange fell 98 cents to $13.30 with 45,574 stocks crossing the market. JMMB Group shed $1.42 to end at $30 after an exchange of 47,384 shares, Kingston Wharves dipped 75 cents to end at $33 with 189 stock units clearing the market, Massy Holdings lost 50 cents to end at $89.50 with a transfer of 202 stock units. Pan Jamaica Group advanced $4.43 to $56.43 in trading 19,440 stocks, Seprod dropped $9 to end at $65.01 with the swapping of 17,786 units, Stanley Motta lost 74 cents to close at $4.81 with 100,101 shares crossing the market. Supreme Ventures lost 35 cents in closing at $27.75 with 73,409 stock units changing hands and Sygnus Real Estate Finance shed $1.59 to end at $10.20 after swapping 3,022 units.
Eppley 7.50% preference share lost 69 cents to close at $6.90 in switching ownership of 2,754 stocks, Jamaica Public Service 7% dropped $20 after ending at $109 with 2,248 shares crossing the exchange and 138 Student Living preference share rose $9.50 in closing at a 52 weeks’ high of $104.50 in a transfer of 2 stocks.
At the close, 22,921,329 shares were traded for $44,514,498 compared with 15,514,547 units at $64,737,290 on Friday.
PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with their financial year ending between November 2022 and August 2023.
138 Student Living in pushing the price by 24 cents to $5.27, Pan Jamaica Group shed $2.50 in ending at $52 and closed with 3,176 stock units changing hands, Radio Jamaica fell 40 cents in closing at $1.85 in switching ownership of 438,522 stocks, Seprod rallied $1.01 to $74.01 in trading 4,628 shares, Stanley Motta dropped 45 in closing at $5.55, with 4,906 stock units crossing the exchange, Sygnus Real Estate Finance popped 90 cents to end at $11.79 as investors exchanged 1,341 units and Wisynco Group lost 68 cents to close at $16.77, with 15,585 units clearing the market.
and 138 Student Living preference share climbed $7 and ended at $95 with investors transferring just one stock.
There were no significant winners for the past week in both markets’ TOP10 as losers dominated. The Junior market had Consolidated Bakeries falling 11 percent to $2.17 and general Accident down 10 percent to $5.40 and Lasco Distributors down 3 percent, with the stock selling at just 5.5 times 2023 estimated earnings and only 8.5 times the company’s nine month results. By any stretch, the stock is considerably undervalued and there are more profits to come in the current fiscal year.
At the week’s close, Image Plus released full year results showing profit after tax jumping 125.6 percent to $213 million or 21 cents per share. ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously.
The 18 highest valued Main Market stocks are priced at a PE of 15 to 115, with an average of 29 and 20 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
A total of 15,514,547 shares were traded for $64,737,290 compared to 9,660,257 units at $49,441,575 on Thursday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.8 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.
Pan Jamaica Group dropped $1.94 in closing at $54.50 after an exchange of 60,692 shares, Radio Jamaica jumped 50 cents to end at $2.25 after 1,483,903 stocks changed hands, Sagicor Group climbed $2.97 to $52 with the swapping of 218,681 stock units, Seprod fell $2 in closing at $73 as investors exchanged 15,401 units. Supreme Ventures dipped $1.46 to $28 in an exchange of 67,158 stock units, Sygnus Real Estate Finance rallied $1.50 to close at $10.89 after a transfer of 3,947 shares and Wisynco Group popped 56 cents to end at $17.45 with 236,080 stocks crossing the exchange.
138 Student Living preference share shed 65 cents in ending at $88, with 50 units crossing the market and Productive Business Solutions 9.75% preference share lost $9 in closing at $95 after exchanging 10 stock units.
A total of 9,660,257 shares were traded for just $49,441,575 versus 27,085,519 units at $325,797,894 on Wednesday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.6 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.
Kingston Properties rallied 85 cents to close at $7.50 after trading 123,711 stock units, Margaritaville dropped 38 cents in closing at $18.62 with the swapping of 451 stocks, Massy Holdings gained $2.50 to end at $88, with 64 stocks crossing the market. MPC Caribbean Clean Energy shed $12.75 to end at $72.24 in switching ownership of 156 shares, NCB Financial increased $1.50 to close at $73.53 after 27,308 stock units passed through the exchange, Sagicor Group dipped 97 cents in ending at $49.03 as 15,946 units passed through the market, Seprod advanced $5.30 in closing at $75 with an exchange of 30,340 stocks. Supreme Ventures climbed 57 cents to $29.46 and closed with an exchange of 96,813 stock units, Sygnus Real Estate Finance declined $1.61 to end at $9.39 in trading 2 units and Wisynco Group shed 41 cents to $16.89 trading 101,965 shares.
In the preference segment, Jamaica Public Service 7% gained $19.12 to close at $98.61 with investors transferring 1,183 shares. JMMBG 7.5% closed at a 52 weeks’ high of $1.18 after trading 27,760 shares.
A total of 27,085,519 shares were traded for $325,797,894 compared to 27,564,223 units at $93,817,986 on Tuesday.
The All Jamaican Composite Index climbed 1,936.55 points to 376,387.83, the JSE Main Index rallied, 1,767.62 points to finish at 334,833.76 and the JSE Financial Index popped 0.29 points to 77.09.
JMMB Group shed 75 cents in closing at $30.55 with the swapping of 62,383 units, Kingston Properties lost 45 cents in closing at $6.65 after exchanging 12,176 stocks, Margaritaville gained 99 cents after ending at $19 with 149 stock units clearing the market, NCB Financial dipped $2.96 to $72.03 and closed after trading 159,555 shares, Pan Jamaica Group rallied $4.44 to $56.44 in an exchange of 163 units and Supreme Ventures rose 89 cents to close at $28.89 as investors exchanged 550,580 stock units.
Jamaica Public Service 7% popped $16.24 to close at $79.49 as 538 shares passed through the market and Productive Business Solutions 9.75% preference share fell $3 in closing at $104 after a transfer of 658 stocks.