Stocks surged on Wednesday to erase most of Tuesday’s sharp fall on the Main Market of the Jamaica Stock Exchange as advancing stocks just outnumbering declining ones.
At the close, JSE All Jamaican Composite Index advanced 6,965.33 points to close at 552,785.17, the JSE Market Index gained 6,206.67 points to 503,311.77 and the JSE Financial Index rose 1.34 points to close at 136.27.
The market closed with 40 securities changing hands in the main and US dollar markets with 15 advancing, 14 declining and the prices of 12 closed unchanged. Main market activity ended with 37 securities accounting for 26,501,648 units for $237,434,671, in contrast to 9,259,581 units valued at $69,761,481 on Tuesday from 38 securities.
138 Student Living dominated trading with 13 million shares for 49 percent of the day’s trade followed by Sagicor Select Funds with 4.5 million shares and 17 percent of volumes traded and Wigton Windfarm with 3.9 million shares for 14.7 percent market share.
The market closed with an average of 716,261 units at $6,417,153 for each security traded, in contrast to 255,401 units valued at an average of $1,835,828 on Tuesday. The average volume and value for the month to date amounts to 359,075 units valued at $5,438,139 units for $5,438,139 and previously, an average of 383,292 units valued at $5,297,192 for each security changing hands. The market closed out November with an average of 653,621 units valued at $8,699,916 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 12 stocks ending with bids higher than their last selling prices and 2 with lower offers. The PE ratio of the market ended at 19.1, with the JSE Main Market ending at 18.8 times the current year’s earnings.
In the prime market, Barita Investments lost 50 cents to settle at $70, with an exchange of 7,942 shares, Berger Paints gained $1.90 to close at $18.40 trading 4,810 shares, Caribbean Cement lost 50 cents to end at $76, with 855 units changing hands, Eppley Caribbean Property Fund slid $1.30 to $38.20, after transferring 1,200 shares. Eppley closed 95 cents lower to $14, in switching ownership of 15,290 shares, Jamaica Broilers added $1.73 to end at $38.10, with 30,558 shares crossing the exchange, Kingston Wharves gained $1.50 to settle at $61, in trading 5,888 units, Mayberry Investments lost 60 cents to end at $9, with 3,060 units changing hands. MPC Caribbean Clean Energy dived $30 to $200, after exchanging a mere 150 units, NCB Financial Group gained $2 to close at $199, in swapping 93,674 shares. 138 Student Living dropped $1.22 to close at $3.80, with 13,020,000 shares crossing the exchange, Proven Investments lost $3.05 to settle at $44.45, in trading 19,416 units, Pulse Investments closed with a gain of 30 cents at $4.85, with 69,492 units changing hands and Scotia Group gained 50 cents to settle at $57.50, in transferring 19,585 shares.
Trading in the US dollar market closed with 358,568 units valued at US$108,806, with the market index climbing 1.67 points to 212.77. Margaritaville traded at a 52 weeks’ high of 30 cents after rising 3 cents with 100 units changing hands, Proven Investments exchanged 234,488 to close with a loss of 2 cents at 30 US cents, Sygnus Credit Investments exchanged 103,080 shares at 14 US cents and JMMB Group 6% preference share closed at US$1.01, with 21,000 units changing hands.
MailPac drops out of IC TOP 10
Newly listed MailPac Group more than doubled in price, trading as high as $2.60 but closed the week at $2.22 and dropped out of the TOP Junior Market listing.
IC Insider.com has upgraded the average targeted PE to March 2020 based on the valuation of more than 22 times earnings, that the market has placed on several stocks currently.
Honey Bun also jumped ship after posting strong growth with full-year results showing profit rising 67 percent to hit $157 million from a 17 percent rise in revenues to $1.54 billion. The stock closed at $8, up from $7 last week, but traded at a record high of $9.20 on Friday. Honey Bun entered the TOP 10 in the first week in October at $6.15 and left with a gain of 30 percent, but it still has more gains ahead of it. tTech price fell to $5.35 and re-entered the TOP 10 along with Caribbean Flavours, with its price dropping from $17.90 last week to close at $15.64 to return to the TOP 10. PanJam Investment moved into the JSE Main Market Top 10 at the expense of Stanley Motta.
The past week was generally good for stocks as the JSE Main Market rose 4,691 points and the Junior Market climbed 89 points. The Junior Market movement was partially helped by the steep rise in the price of MailPac, from the IPO price of $1. Importantly, the Junior Market has made a sharp break out of a downward sloping channel that started after the market peaked in Mid-August. It now seems to be heading higher, with a healthy break out of the channel.
IC Insider.com has upgraded the target PE ratios to 25 with several stocks trading at that around 22 currently. The average projected gains for the IC TOP 10 stocks are 187 percent for Junior Market stocks and 145 percent for JSE Main market Top 10 shares.
Medical Disposables lead the top three Junior Market stocks with projected gains of 257 percent, followed by Main Event with potential profits of 246 percent and Lumber Depot with 233 percent.
Radio Jamaica is the lead stock with projected gains of 247 percent, followed by Pulse Investments in the number two spot with a projected growth of 164 percent and Carreras with a likely increase of 111percent is next.
The JSE Main Market closed the week, with an overall PE of 21.5 and the Junior Market at 14.6, an improvement over the previous week’s 14.2, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.9 from 8.7 last week with the Main Market PE at 10.5.
The TOP 10 stocks now trade at a discount of 39 percent to the average for Junior Market stocks and JSE 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. Possible 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 the securities commented on.
Continued stability for IC TOP 10
With the closing of the two initial public offers of MailPac Group and Lumber Depot last week, things started to return to more normally in the market this past week with the two main markets recording net gains for the week.
At the close of a week when the JSE Main Market put on125 points and the Junior Market rose 46 points there was minimal change to the IC TOP 10 list this week with just one change as Fontana returns to the top flight after a brief absence, replacing Caribbean Flavours with the price jumping to $17.90 on Friday. One important development at the end of the week was the release of full-year results, for Honey Bun, with profit rising 67 percent to hit $157 million from a 17 percent rise in revenues to $1.54 billion. Importantly, the company is on the way to earn 70 cents per share for 2020.
The average gains for the IC TOP 10 stocks are 136 percent for Junior Market stocks and 96 percent for JSE Main market Top 10 stocks.
The top three Junior Market stocks, is now led by Main Event with projected gains of 183 percent, followed by MailPac Group with 180 percent and Medical Disposables with potential gains of 167 percent.
Radio Jamaica remains the lead stock with projected gains of 186 percent, followed by Pulse Investments in the number two spot with projected growth of 138 and Berger Paints with likely gains of 120 percent and percent is next.
The JSE Main Market closed the week with the overall PE of 19 up from 18.8 and the Junior Market at 14.2, an improvement over the previous week’s 13.8, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 18.7 from 7.8 last week with the Main Market PE at 10.6 up from 10.4.
The TOP 10 stocks now trade at a discount of 39 percent to the average for Junior Market stocks and main market stocks trade at a discount of 44 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. Potential 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 the securities commented on.