JSE Main and Junior markets surged

The Main and Junior markets indices surged to close out trading on the Jamaica Stock Exchange on Wednesday but the USD Market declined, with market activity ending with the volume and value of stocks traded falling below Tuesday’s levels.
At the close of the market, Main Market stocks rallying were Guardian Holdings with a gain of $8, Jamaica Producers climbing 97 cents. Barita Investments, was up by 90 cents, Stanley Motta rising 78 cents and Scotia Group closed at a new 52 weeks’ closing high of $37.12 after the price hit an intraday 52 weeks’ high of $41.50. Declining Main Market stocks include Jamaica Broilers down $1.10 and Mayberry Group with a fall of 45 cents.
Rising Junior Market stocks include Main Event up 50 cents, CAC 2000 gaining 34 cents and Lasco Manufacturing gained 25 cents while ISP Finance fell 50 cents, AMG Packaging down 43 cents and Caribbean Assurance Brokers slipped 25 cents.
At the close of trading, the JSE Combined Market Index popped 2,409.89 points to close at 328,081.90, the All Jamaican Composite Index rallied 3,444.03 points to 351,411.76, the JSE Main Index climbed 2,092.44 points to finish at 315,262.16. The Junior Market Index jumped 51.10 points to wrap-up trading at 3,701.34 and the JSE USD Market Index dipped 2.73 points to close at 218.88.
Investors traded 13,761,322 shares, in all three markets, down from 20,978,708 units on Tuesday. The value of stocks traded on the Junior and Main markets amounts to $65.97 million compared with $360.1 million on Tuesday. The JSE USD market closed after 130,502 shares were traded, for US$2,973 compared to 47,641 units at US$822 on Tuesday.
In the preference segment, no stock traded with a notable price change.
The market’s PE ratio, the most popular measure used to determine the value of stocks, ended at 20.7  on 2022-23 earnings and 13.7 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily charts provide investors with regularly updated information to help decision-making.
The PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange, grouped by industry, allowing for easy comparisons between the same sector companies and the overall market. The EPS & PE ratios are based on 2023 and 2024 actual or projected earnings, excluding major one off items.
Investors need pertinent information to navigate numerous investment options successfully in the stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and place them on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
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.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts, along with the closing volume pertaining to the highest bid and the lowest offer for each company.

Main Event leads in latest quarterly profit

The vast majority of listed companies have now released earnings for the period ending in December or January, recently showing various degrees of success and some failures. Results during the past week, a number of results were released to the Jamaica Stock Exchange.

Main Event revenues growing nicely profit stalls.

The star performer was Main Event posting a 211 percent rise in revenues to $627 million from just $202 million in 2022 and generating a 390 percent rise in profit to $120 million from a loss of $41 million in 2022, with earning per share of 39 cents for the January first quarter showing and seeming poised to earn $1.80 for the year.
Blue Power reported an increase in revenues year over year, with a profit of $13 million compared with a profit of $9 million for the third quarter to January 2022. For the nine months, revenues rose 82 percent to $633 million from $347 million in 2022 with profit slipping from $204 million to $29 million, with earnings per share a mere 5 cents. The 2022 results included gain on sale of Investment property amounting to $346 million. For the January quarter revenues amounted to $194 million up from $135 million with a profit of $13 million up from $9 million in 2022.
CAC 2000 reported reduced revenues of $128 million for the first quarter to January from $222 million in 2022 and a loss of $52 million down from a loss of $32 million in 2022. Management stated that the results was affected by “delays in delivery of goods due to longer lead and delivery times.”
Fosrich released full year results to December, with profit jumping to $325 million from $199 million in 2021 as revenues climbed a solid 43.4 percent to $3.37 billion and delivered earnings per share of just 6 cents and placing the stock in a seriously overvalued position. The company recorded a $61 million loss in the final quarter with revenues rising 19.5 percent in the quarter to $795 million from $665 million in 2021, with the September quarterly growth being higher at 31 percent.
Dolla Financial posted increased profit of $280 million or 18 cents per share from revenues of $746 million up 115 percent from profit of $130 million in 2021, with revenues up 90 percent on the $395 million in 2021. The company should go on to earn 40 cents in 2023. In the earning call, Trevene Mckenzie, the Chief Financial Officer stated that they expected first quarter revenues to come in around $250 million with profit rising at least 50 percent year over year. The company also indicates that they plan to open a second branch in Guyana in Berbice town, in the second quarter.
Limners and Bards delivered disappointing first quarter results of just $7 million, down from $66 million in 2022 as revenues dropped sharply by 44 percent to $248 million from $443 million. The fall came from the Production segment, with revenues down from $58 million from $140 million with segment profit down from $62 million to $29 million while Media segment revenues dipped to $135 million from $243 million with segment fell from $35 million to $18 million while Agency was relatively steady with revenues came in at $54 million with profit of $44 million from $60 million in revenues in 2022 and profit of $46 million.
Lumber Depot suffered 7 percent decline in revenues for the January quarter with $373 million in the 2023 period versus $400 million in 2022 and profit of $29 million, a fall of 19 percent from $36 million in 2022, while revenues for the nine months to January 2023 amounts to $1.15 billion, marginally below $1.16 million garnered in 2022 and profit of $107 million in 2023 down 25 percent from $143 million in 2022.
TransJamaican Highway reported a US$7 million loss for 2022, but only after accounting for a net loss of $14 million on the acquisition of a subsidiary, which compares with a profit of US$4 million in 2021 from revenues of $53 million, with improved traffic delivering a record US$65 million in revenues in 2022. Without the exceptional loss, profit for 2022 would have been US$6.7 million or earnings per share amounting to 0.0006 US cents or 9 cents Jamaican.

13 Junior Market stocks to watch in 2023

To make the 2023 ICTOP15, projected gains have to exceed 280 percent over the next 18 months at a projected PE of 22.5 times earnings. That level of growth is what the lowest on the list, Access Financial is projected to deliver over the period.
So great are the prospects of the Junior Market that IC Insider.com thought it important to highlight these additional companies for investors to see the great potential to make money over the next 18 months. This publication has never before put out such a list to start the year, in addition to the ICTOP15.
While the IC TOP15 2023 listings reflect 15 companies that show the greatest potential to be the top performers up to May 2024, a number of companies have the potential to do exceedingly well over the period but are likely to underperform those in the ICTOP15, even then, the future is not assured and some in the watch list could outperform projections and end in the top performers for the period.
The watch list shows that investors do not have to hit home runs to make decent gains in the stock market, but observation in the local market suggests that many persons may not have the patience to build gains over time.
These may or may not be the best companies in the market based on management, products or services and financial health, but they are undervalued and could deliver above average gains as well as pay attractive dividends in the 2023 to 2024 period.
The market has demonstrated that the ability to increase profits is the most important factor that will drive stock prices and is the primary area for investors to focus on going forward.
CAC2000 Projection EPS $1.
The company has the potential to do exceedingly well, especially with an upsurge in the construction of homes and hotels. But it is not without risk and disappointment from quarter to quarter as projects take time to complete, resulting in jerkiness in earnings. This is definitely a stock to consider from a longer time horizon and not one that can be relied on to deliver instant gains, but it could surprise.
Cargo Handlers
This company is not one that will be on every investor’s list for 2023, don’t let that dissuade you from taking a closer look. One of the smaller Junior Market companies and is highly profitable and holds over $500 million in cash funds and with add to it yearly.  The company serves one of the fastest growing regions of Jamaica with the continued expansion of the tourist sector that fuels above average economic activities and the BPO sector that lead to increased imports through the Montego Bay port where its operation is centred. Last year’s earnings per share were 77 cents and ICInsider.com is forecasting $1.10 for the current year, that should be enough to push the price towards $20 or more.
An important factor to consider is the cash that they hold which is available for investment in other entities that could add to improved profits going forward. By the way, don’t ignore the dividends they pay.
Dollar Financial came to the Junior Market in June last year and is now accredited by Bank of Jamaica to operate as a micro financial institution. For the nine months to September 2022, profit before tax amounted to $201 million, 257 percent higher than in 2021. Profit before tax for the quarter ending September 2022 increased a solid 214 percent to $70 million, an indication of what could be coming down the road.
The increase in profits was fueled by loans receivable of $1.2 billion to September 2022, an increase of $650 million or 125 percent over the  September 2021 position. Up to September, secured loans represented 72 percent of total loans and unsecured 28 percent.
The company recently raised $1.17 billion in debt financing and expanded the resources available for lending. These funds plus additional cash from profit to be generated provide more than adequate fuel for strong loan expansion that will result in continued above average profit growth. The company plans to use some of the funds raised to expand to the Bahamas and the Eastern Caribbean and capitalize Ultra Financier Limited, their asset based lender. The company could turn out to be exceptionally profitable if the resources are managed well to prevent heavy loan loss provisioning that could eat away at profits. ICInsider.com projects earnings of 35 cents per share for 2023 and that should be good enough to send the stock flying with gains of more than 200 percent.
Express Catering EPS is projected at 65 cents for 2023/4
The company started to benefit from the rebound in tourism but importantly the first half of the 2022 calendar year saw a decline in visitor arrivals compare to 2019, with the numbers for 2023 set to show a major increase over 2022first quarter numbers. The first quarter should be up over 50 plus percent compared with that of 2022. That will have a major impact on the revenues, with its entire operation within the Sangster International Airport. It is worth noting also that the company will have additional restaurants within the airport during the new fiscal year and this is going to add to revenues and profitability for the company.
With the stock price hovering around $5 per share this stock is selling slightly less than eight times earnings and shows the potential to do even better than the revenues and the earnings per share projections. With many Junior Market companies selling at PE ratios around 20 one should expect the stock to deliver a 200 percent rise in value over the next 18 months or so.
Fontana stock could gain 150 percent for the period. looking back, for the first quarter to September, revenues rose a healthy 26 percent and profit jumped 43 percent to $87 million. The projection is for revenues to continue to grow around the 26 percent level into 2023, with profit to rise to 80 cents per share for the year and $1.50 in the 2024 fiscal year ending June. With the stock priced around $9 it is nicely positioned for a bounce to provide an excellent return over the next year and a half.
The company is adding a new store in Portmore that should come into operation during the first half of 2023 and add revenues and profits to the business, but this may not be significant until the 2024 fiscal year. Expected growth in the local economy and a big bounce in tourism traffic will have a positive impact on stores in the western end of the country and deliver increased revenues and increased profit as a result. For the year to June 2022, profit was up 12 percent to $415 million from a 21 percent rise in revenues to $4.7 billion.
Image Plus Consultants – EPS 30 cents 2023 and $0.35 for 2023-4
The Image Plus stock failed to sparkle on listing in January, rising just 10 percent by the close of its first day on the market in heavy trading of nearly 12.4 million shares, the second heaviest traded Junior Market stock on opening, following an IPO. The price has now fallen below the issue price providing a good entry point for investors but has since bounced just above $2 with the release of nine months’ results to November. (See articles on analyzing the IPO and the nine months’ results.)
Jamaican Teas – earnings could hit 30 cents per share for the current fiscal year. Some input costs have declined following shipping facilities normalizing, resulting in lower shipping costs as well a reduction in some raw material prices worldwide. The forecast includes a sizable contribution from QWI Investments and a contribution from the real estate development that should see sales of its current development being concluded in the current fiscal year.
The group is expanding the product range for the local and export markets which will add to revenues and profits going forward.
The stock has seen increased buying from individual and institutional investors which is an excellent sign as it lends solid support for trading.

Knutsford Express

Knutsford Expressprojected EPS of $1 and $1.40 for 2024.
The company suffered, in a meaningful way, from lower revenues when business activities were severely curtailed with the advent of the Covid-19 pandemic in Jamaica which resulted in major disruption in the economy. In the latest fiscal year to May, revenues were back to pre-pandemic levels in dollar terms but profits lagged as increased costs grew faster than revenues, resulting in the 2022 full year results being 38 percent of 2019 but more than twice 2020.
For the August quarter, revenues rose 78 percent to $415 million and profit jumped from $9 million to $84 million. For the half year to November, revenues rose to $813 million from $473 million in 2021 with profit surging from $13 million after tax to $143 million. Third quarter profit rose from just $2 post-tax to $59 million. The Drax Hall Business Centre is contributing fully to profit with all available space occupied with several tenants already open for business and the company looking to generate income in the order of $100 million a year from the complex.
The company is benefiting from the upsurge in visitor arrivals both directly and indirectly from persons working in the industry.

Main Event returns to IC TOP 10.

Main Event – EPS is projected at $1.10 for 2023 
There is the potential for the stock price to gain 180 percent over the next 18 months. Profits for the nine months last year jumped 147 percent to $243 million over 2021 as revenues rose from $501 million to just over $1 billion dollars representing 85 percent increase over the previous year.  Revenues for the September quarter rose 147 percent to $602 million with profits for the quarter jumping a solid 332 percent to $104 million as profits rose by $95 million over the previous year, suggesting that the results of 2022 will be outstanding and that could carry over well into 2023.
What is worth noting is that revenues for the first quarter were just $203 million and for the April quarter $290 million, well below third quarter numbers. By contrast, revenues were $458 million in the first quarter of 2019 and $438 million in the second quarter, well ahead of those for the 2022 periods, this has a lot of significance for revenue growth in the first half of the 2023 year. The data show that there should be a significant pick up in revenues and profitability in the corresponding 2023 period and a major uptick in revenues for the year and profits. There is a bit of seasonality in earnings and this could have implications in 2023. The final results for 2022 will provide good guidance on this.
The lesson to be drawn from the numbers for the first three quarters of the year is that profit for 2023 will be up substantially up on the ultimate results for 2022. There is a level of uncertainty along with various developments in the local economy that makes it challenging to project with certainty the level of business that Main Event will undertake, this is the major reason why the stock is placed on the watch list. The final numbers could impact the stock price significantly.
Of note, the third quarter revenues are the highest record in the company’s history in the quarter. The company indicates that the increased business was due to added activity in its core business. The entertainment industry has seen a strong return to outdoor events and lifestyle experiences after a two year break.

Medical Disposables EPS is projected at 40 cents for fiscal 2023 and 70 cents for 2024
This company is not one to take at face value as they quietly build the infrastructure on which to deliver increased business going forward. The company is focusing on laying the foundation for growth in consumer products as increased business opportunities in the medical area slow. The dental area that is operated by the newly formed subsidiary has room for expansion outside of the western region and should be able to ride on the parent company’s infrastructure that currently exists in the next year or two.
The company in the meantime has increased expenditure to attract and keep talent within its employ to grow business, this development resulted in increased costs in the current fiscal year and negatively affected growth in profits for the fiscal year to date.
There is the possibility that more shares could be available in the market over the next year or so.
One on One Educational EPS is projected at 20 cents
The stock raced out the blocks on the fifth day of listing in the latter part of last year to hit $2.50 but the price has fallen to a low of $1.10 in December, with investors concerned that they may have lost a major client and the negative impact that may have on profit. The prospectus stated that in August 2021, 63 percent of the Company’s revenue came through Business to Business contracts and 37 percent through the Company’s end user consumers’ business line. Neither the 2022 audited accounts nor the first quarter results show any fall out of business, in fact, revenues almost doubled in the quarter with profit rising to $12 million before tax from a loss of $1.8 million in 2021. The price could be considered appropriate based on results released so far but as more results become available, the current price may appear to be a gift.
Funds raised in the public issue in 2022 net of loan repayment were earmarked for the development of technological infrastructure for expansion. Regardless, the major reasons to invest in this company is not its short-term fortunes or misfortunes but the major potential its operations have to deliver above average growth within Jamaica and overseas.
Spur Tree Spices EPS is projected at 40 cents.
The company recorded a 9.4 percent growth in revenues to $672M for the nine-months ended September 2022, from $614 million in 2021. Gross Margin increased from 31 percent in 2021 to 35.4 percent in 2022.
For the September quarter revenues slipped to $233 million from $247 but improved profit margin resulted in a gross profit of $75 million versus $73 million in the prior year. Profit before Taxation fell to $30 million in the quarter from $33 million in 2021, but climbed 30 percent to $119 million for the year to September compared with $91 million in 2021 and was just shy of the $124 million for the full year in 2021.
The company implemented investment projects to expand the Exotic Products factory infrastructure to double production capacity, purchase of building in Port Morant to establish a production facility and upgraded the Spur Tree Spices production capacity.
They also advanced $100 million to purchase a controlling interest in Canco, an ackee canning company, and if combined with Exotic Products could result in a major jump in production and improved efficiency. They also appointed Massy Distributions agents for regional distribution.
This company has a lot of promise but the valuation placed on the stock ran ahead of results as such improved results in 2023 are unlikely to be reflected fully in the stock price and provide above average growth for the stock but it could be good enough to deliver a reasonable gain that investors would be normally pleased with even if it does not put it in the top ranking of stocks. Additionally, it has growth potential going beyond 2023 that could help deliver above average long term growth.

Stationery & Office Supplies recording record 2022 profits.

Stationary and Office Supplies should deliver gains of 250 percent for the period. The company has done exceptionally well in 2022 and is one of the top performing stocks for that year, gaining 140 percent as a result of very strong profit performance during the year that came from an incredible 60 percent increase in revenues that should end close to $1.8 billion for the year and $2.3 billion for 2023. The company generated a profit of $250 million for the nine months to September that should reach $360 million for the full year and just over $550 million in 2023.
ICInsider.com does not expect the performance to be at the same level in 2023 but sees continued attractive growth in earnings that should put it at about $2.20 per share, up from around $1.35 per share in 2022.
The business continues to increase from local and overseas demand. Information is that a deal was struck with a Trinidad company to sell their furniture in that market in addition the possibility exists that they could be getting into other Caribbean countries to add to the organic growth of the business. There is the possibility for acquisitions of small businesses during the year that could benefit from synergies within the company and deliver above average returns from such investments. Investors should not ignore the possibility of a stock split that could provide additional spice to make the performance of the stock an attractive one.
Finally, the company is well managed and financially healthy with limited debt and increasing shareholders’ equity.

Carib Producers Top stock of the year & Juniors up 30%

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The Jamaica Stock Exchange Junior Market closed out 2021 with the market Index climbing 29.7 percent to settle at 3,428.30 points while the JSE Main Market index rose a mere one percent to end at 396155.61 points, the JSE USD market closed at 195.51 points for a yearly gain of just 4.99 percent.

Caribbean Producers gained 364% in 2021.

The Junior Market had 32 winners and nine losers, with 2021 newly list Future Energy Source, rising a substantial 266 percent, Fosrich was up 155 percent with rising profit, Jamaica Teas that had a gallant year helped by its investment arm posting positive results and helping to post increased profits for the year and Lumber Depot, with improved results for the year, both companies had a 99 percent rally, followed by ISP Finance up 95 percent.
The JSE main market had 24 stocks rising between one percent and a high of 364 percent. Caribbean Producers was switched from the Junior Market in July this year to the Min Market with the price under $5 and ended the year as the best performing stock in the overall market with a towering gain of 364 percent with the price closing at $13. Had the switch not taken place the Junior Market would have recorded greater gains than it did. Ciboney rose 221 percent as investors speculated heavily on it and Salada Foods jumped 117 percent, with the bulk of the increase coming as a result of a misunderstanding about the stock value. The price is likely to suffer a sharp correction in 2022.

Eppley Property gained 68 percent followed by Radio Jamaica with a 61 percent rise following big gains in profit for the half year that ended in September, this year and GraceKennedy rose 58 percent helped by continued growth in profit.
The average gain for the Junior Market stocks were 48 percent from 32 companies and a total of nine stocks lost an average of 16 percent in the Junior Market with the highest loss being 45 percent clocked up by CAC 2000.
The average gain for the Main Market stocks was 52 percent from 22 stocks and a total of 21 stocks lost an average of 15 percent in the Main Market with the highest loss being 33 percent clocked up by 1834 Investments and Wigton Windfarm.

High volume Tuesday for Junior Market

Rising stocks were outnumbered by those declining on Tuesday and resulting in the Market Index declining for a second day, although the volume of stocks traded jumped 66 percent and the value soared 134 percent over Monday trading at the close of the Jamaica Stock Exchange Junior Market.
Market activity led to 34 securities trading compared to 37 on Monday and ended with the prices of 11 rising, 15 declining and eight closing unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 13 based on ICInsider.com’s 2021-22 earnings forecast.
Trading picked up, with 9,034,942 shares changing hands for $32,570,639 compared to 5,432,434 units at $13,895,368 on Monday. Lasco Manufacturing led trading with 27.8 percent of total volume after trading 2.51 million shares, followed by Lumber Depot 25 percent, with 2.26 million units and Caribbean Flavours 12.6 percent, with a transfer of 1.14 million units.
Trading averages 265,734 units at $957,960 compared to 146,823 at $375,550 on Monday. Trading month to date averages 161,120 units at $469,047 compared to 155,553 units at $443,033 on Monday. June closed with an average of 225,705 units at $644,459.
Investor’s Choice bid-offer indicator shows one stock ending with the bid higher than the last selling price and one with a lower offer.
At the close, AMG Packaging dropped 16 cents to $1.50, trading 461,011 shares, Caribbean Cream slipped 7 cents to $5.95, with 40,500 stocks traded, Dolphin Cove shed 40 cents to finish at $7.85 with a transfer of 22,861 stock units. Express Catering fell 46 cents to $5.50, with 13,778 units passing through the market, Fosrich declined by 10 cents to $8, with an exchange of 5,748 shares, Honey Bun lost 18 cents to close at $6.52 with investors switching ownership of 113,248 stocks. iCreate slipped 6 cents to 80 cents, with 10,000 units changing hands, Indies Pharma rose 10 cents to $3.75 with 68,746 stock units traded, Iron Rock Insurance dropped 28 cents to $3.60 with a transfer of 250 shares. Lasco Financial fell 8 cents to $3.10, with 45,900 stocks passing through the market, Lasco Manufacturing lost 5 cents to settle at $5.20 with an exchange of 2,510,219 units, Limners and Bards spiked 18 cents to $3.20, with 87,809 stock units changing hands. Lumber Depot rose 5 cents to $3.45 with 2,258,991 shares changing hands, Main Event shed 30 cents to finish at $4.80  with a transfer of 8,284 stocks, Medical Disposables added 5 cents to end at $4.60 with investors switching ownership of 1,100 units and Stationery and Office Supplies advanced 12 cents to $7.17, with 2,336 shares crossing the exchange.
 Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

More decline for Junior market

Trading closed on Thursday with the Market index declining for a third day as volume and value of stocks traded varying marginally from that on Wednesday on the Junior Market of the Jamaica Stock Exchange.
Market activity led to 33 securities trading compared to 34 on Wednesday and ended with the prices of 13 stocks each, rising and falling, leaving nine unchanged. At the close, the Junior Market Index dropped 11.87 points to settle at 3,335.20.
The PE Ratio, a measure used to compute an appropriate stock value, averages 13.2 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 3,674,321 shares traded for $8,690,782 compared to 3,516,276 units at $8,817,575 on Wednesday.
Future Energy Source led trading with 41.4 percent of total volume as 1.52 million shares traded, followed by Caribbean Flavours 25 percent of the day’s trade, with 918,114 units and Mailpac Group 4.7 percent in exchanging 172,567 units.
Trading averages 111,343 units at $263,357 in contrast to 103,420 at $259,340 on Wednesday. Trading month to date, averages 155,814 units at $442,949, versus 158,552 units at $454,006 on Wednesday. June closed with an average of 225,705 units at $644,459.
Investor’s Choice bid-offer indicator shows five stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Blue Power advanced 20 cents to $3.60 with an exchange of 4,639 shares, Caribbean Assurance Brokers rose 5 cents to end at $1.91, with 5,099 stocks changing hands, Caribbean Cream dropped 29 cents to finish at $6.10 with 27,902 units traded. Caribbean Flavours fell 11 cents to $2 with a transfer of 918,114 shares, Consolidated Bakeries dropped 34 cents to $1.65, with 7,000 stocks passing through the market, Elite Diagnostic slipped 13 cents to $3.07, with an exchange of 17,988 units. Express Catering rallied by 54 cents to end at $6.04 with 41,133 shares changing hands, Fosrich slipped 10 cents to $7.90 with 18,234 units traded, Honey Bun popped 5 cents to $6.60 with a transfer of 14,513 stocks. Jetcon Corporation rose 9 cents to $1.39 with investors switching ownership of 6,333 units, KLE Group spiked 13 cents to $1.18 with an exchange of 2,466 shares, Lasco Manufacturing slipped 18 cents to $4.82, with 24,939 stocks changing hands. Limners and Bards dipped 5 cents to $3.10 with 36,700 stock units traded, Medical Disposables fell 23 cents to $4.76 with a transfer of 1,276 units, Stationery and Office Supplies shed 36 cents to settle at $7.04 with 4,500 stocks changing hands and tTech jumped 33 cents to $4.75 with 492 shares crossing the exchange.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Junior Market jumps 47% since March 2020

The Junior Market climbed 47 percent in just over a year since the market collapsed by just over 39 percent in March last year from the close of 2019 when the market hit a multi-year low of 2,031.79 on March 18 last year.  
At the same time, the JSE Main Market, while trading above the March 2001 low, is nowhere near the 2020 high and closed out the first quarter marginally down on the 2020 closing.
The Junior Market is up 13 percent for 2021 to the end of March, clawing back most of 21 percent of the fall in 2020 and is now just 11 percent from the close of 3,348.97 at the end of December 2019.
In 2020, the Junior and Main Markets declined, with the Junior Market just edging out the Main Market index with a lower decline of 21 percent versus 22.6 percent for the year.
One year ago, to the end of March, the Junior Market Index dropped 29 percent to 2304.14 but was down a much steeper 47 percent to March 18, at 2031.79 points on the market index. The March 2020 low was the lowest point for the Junior Market since it closed at 2,032.77 points on July 1, 2016.
The market made some recovery last year from the year’s low when it moved higher on April 14, to 2,686.90 points but drifted down after some attempts to break over 2,600 points on a sustained level and closed out 2020 at 2,643.38.
In the meantime, the JSE Main Market failed to move higher in 2021, ending the first quarter 0.20 percent lower than the December close. It is still a bit lower than the 442,905.76 reached on the All Jamaica Composite Index after the early rebound from the 2020 low of 375,091.09 reached on March 25 last year, or the 438,045.18 reached subsequently on November 30.
The gains of eighteen stocks in the first quarter, this year, exceed that of the average of the market and just three performed worse, including CAC 2000 with a fall of 24 percent 19 percent decline for Dolphin Cove and 16 percent in the case of Knutsford Express. Five stocks contributing to the 2021 rebound for the Junior Market are Jamaican Teas up 60 percent, Indies Pharma 48 percent, Lumber Depot 47 percent, Blue Power 35 percent, Caribbean Flavours 35 percent and Fosrich 28 percent.
The Main Market recorded gains in 16 stocks that beat the market’s average move in 2021, with 26 falling below. Main market stocks with healthy gains are Ciboney with a stunning 142 percent rise, followed by Salada Foods with 125 percent gain aided by a 10 to one stock split, Grace Kennedy 37 percent, First Rock 31 percent and proven Investments 27 percent.  Palace Amusement Company that the Covid-19 dislocation has badly hurt is the worst-performing stock with a 51 percent decline, followed by Portland JSX with a loss of 25 percent and Radio Jamaica with 22 percent. Wisynco lost 14 percent and Wigton Windfarm 13 percent.

Sygnus US$ stock hits IC TOP 10

The JSE Main Market TOP 10 had just stock leaving with Sygnus Credit Investments Jamaican dollar listing replaced by the US dollar listed stock, with the price of the latter at 14 US cents or just under J$19 equivalent.
The Sygnus Jamaican quoted stock climbed to a record high of $30 on Friday, but ended at a record closing high of $27 at the end of trading and moved down to 12th spot in the overall market ranking.
The recently listed Lumber Depot closed trading at $1.91 on Friday and moved out of the TOP Junior Market listing. Also, leaving the TOP 10 was Honey Bun, with the price rising to $8.39 with a limited supply of the stock.
Coming into the Junior Market listing, are Lasco Distributors and Paramount Trading as investors beat down their prices.
The targeted PE ratio is now 25, with several stocks trading at that level or around 22 currently. The average projected gains for the IC TOP 10 stocks are 179 percent for Junior Market and 154 percent for JSE Main market Top 10 shares.
The top three Junior Market stocks currently are the Main Event with projected gains of 243 percent, followed by Medical Disposables with a potential increase of 238 percent and Jamaican Teas with 220 percent likely capital growth.
Radio Jamaica still holds on to the lead for Main Market stocks, with an expected increase of 236 percent, followed by Pulse Investments in the number two spot with projected growth of 205 percent and Sygnus US dollar-denominated stock with likely gains of 186 percent, is next.
The JSE Main Market closed the week, with an overall PE of 20.6 and the Junior Market at 14.3, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 9.1 with the Main Market PE at 10.1.
The TOP 10 stocks now trade at a discount of 36 percent of the average for Junior Market stocks and the Main Market stocks trade at a discount of 51 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year, are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Forecasted values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in securities included in the commentary.

Junior Market in steady trading – Wednesday

Junior Market trades

Trading on the Junior Market of the Jamaica Stock Exchange concluded trading on Wednesday with 29 securities changing hands, similar to that on Tuesday and resulting in an exchange of 4,941,772 units valued at $18,218,972 compared to 4,509,195 units valued at $22,460,102 on Tuesday.
At the close of market activities, the prices of 10 securities advanced, 10 declined and 9 remained unchanged. The Junior Market Index advanced by 4.29 points to close at 3,397.75.
Trading ended with an average of 170,406 units for an average of $628,240 in contrast to 155,489 units for an average of $774,486 on Tuesday. The average volume and value for the month to date amounts to 103,587 units valued at $517,504 and previously 97,569 units at $507,531 for each security traded. In contrast, September closed with an average of 954,574 units valued at $2,612,695 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 5 with lower offers.
At the close of the market, Access Financial ended with a loss of $1 at $34 with 7,626 stock units changing hands, AMG Packaging ended trading with 1,408,582 shares, after rising 2 cents to end at $2, Blue Power lost $1.12 with an exchange of 96,819 units at $6.38, Caribbean Flavours climbed 50 cents and exchanged 7,000 shares at $13.50. Caribbean Producers fell 9 cents in trading 20,000 units at $4.70. Consolidated Bakeries climbed 5 cents and exchanged 33,869 shares at $2, Fontana declined 12 cents in trading of 50,493 units at $7.88, General Accident climbed 10 cents in exchanging 9,605 shares to end at a 52 weeks’ closing high of $7.50, Honey Bun closed 15 cents higher at $6.97, with 15,700 stock units trading. iCreate ended trading with 1,532 shares, after rising 5 cents to end at 73 cents, Jamaican Teas climbed 5 cents and exchanged 3,474 shares to end at $6.35, Jetcon Corporation lost 10 cents trading of 706,870 units at $1.80, Knutsford Express closed 87 cents higher at $10.99, with 100 stock units trading. Lasco Financial lost 13 cents in with 390,000 shares changing hands to close at $4.60, Lasco Manufacturing ended market activity in exchanging 35,286 shares to close at $4.95 after falling 4 cents, Limners and Bards ended trading 187,195 shares to close at $2.50 after falling 5 cents. Main Event climbed 25 cents and exchanged 1,459,754 shares at $5.50, Stationery and Office Supplies lost $1.34 in trading 2,687 units, at $11.16 and SSL Venture closed 10 cents higher at $1.20, with 51,000 stock units changing hands.

Prices of securities trading for the day are those at which the last trade took place.

Big drop in Junior Market index – Thursday

At the close on Thursday, the Jamaica Stock Exchange Junior Market pulled back from the record high reached on Wednesday and indications at the close suggest more declines are likely on Friday.
The market index dropped 50.86 points to close at 3,612.08, but the fall is not a sign that the market is heading to 4,300 points before moving on to 5,000 that technical indicators point to.
Securities trading on the Junior Market dipped to 32 from 31 on Wednesday, as prices of 13 rose, 16 declined and 3 remained unchanged. For the second trading session, the IC bid-offer indicator was flashing negative signs for the Market for the following trading day.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 3 stocks closing with higher bids than their last selling prices and 7 closed with lower offers.
Market activities resulted in an exchange of 5,865,706 units valued at $32,690,340 compared to 5,851,203 units valued at $22,568,503 trading on Wednesday.
The average trade for the day was 183,303 units for an average of $1,021,573 in contrast to 188,748 units for an average of $728,016 on Wednesday. The average volume and value for the month to date amounts to 182,669 units valued at $837,814 and previously 182,591 units valued at $815,284 for each security traded. July ended with an average of 138,412 units at $563,215 for each security traded.
Stocks ending with price changes| Access Financial lost 20 cents in trading of 5,621 units at $43, AMG Packaging declined by 17 cents in trading 71,500 units to close at $2.08, Blue Power closed trading of 69,292 units and gained 82 cents to end at $9, Caribbean Cream fell 60 cents in trading of 13,435 units at $4.60. Caribbean Producers closed trading of 10,448 units and gained 15 cents to end at $4.70, Express Catering closed with a loss of 12 cents at $6.37, in swapping 55,653 shares, Everything Fresh shed 7 cents in trading 14,800 units at $1.63, Elite Diagnostic fell 33 cents in trading of 113,448 units at $7.02. Fontana lost 25 cents in trading of 1,169,703 units in closing at $8.25, General Accident lost 58 cents in exchanging 1,036,720 units to end at $5.01, GWest Corporation closed 10 cents higher at $1.21, with 12,119 stock units trading, Honey Bun exchanged 119,616 shares, after rising 74 cents to end at $6.50. iCreate closed with a loss of 5 cents at 75 cents in swapping 82,674 shares, Indies Pharma shed 45 cents in trading of 78,680 units to settle at $3.50. ISP Finance jumped $5 to end at $21, trading 1,500 shares, Jamaican Teas exchanged 66,384 shares to close at $5.60 after falling 22 cents. Jetcon Corporation dipped 20 cents in trading of 75,436 units at $1.80, Knutsford Express fell 10 cents in trading of 500 units at $11.10. Limners and Bards traded 803,097 shares, after rising 10 cents to end at $3.20, Lasco Financial fell 50 cents in trading of 1,244,222 units at $5.50 after the company posted slightly lower first quarter profits, Lasco Manufacturing ended with a loss of 1 cent at $5.50 with 179,107 stock units changing hands. Stationery and Office Supplies fell 25 cents in trading of 17,150 units at $15.50 and tTech Limited climbed 49 cents in exchanging 166,068 shares at $7.99.

Prices of securities trading for the day are those at which the last trade took place.

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