Trading on the Jamaica Stock Exchange US dollar market ended on Tuesday, with an 82 percent fall in the volume of stocks changing hands after a minute decline in value compared with trading on Monday, resulting in 10 securities traded, compared to eight on Monday with three rising, two declining and five ending unchanged.
Overall, 26,137 shares were traded for US$3,700 compared to 144,256 units at US$3,922 on Monday.
Trading averaged 2,614 shares at US$370 down from 18,032 units at US$490 on Monday, with the month to date averaging 15,341 shares at US$1,303 compared with 22,412 units at US$1,821 on the previous day. May ended with an average of 43,350 units for US$2,759.
The US Denominated Equities Index popped 7.14 points to 241.46.
The PE Ratio, a measure used in computing appropriate stock values, averages 8.9. The PE ratio is computed based on the last traded price of each stock divided by projected earnings forecasts done by ICInsider.com for companies with their financial year ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows one stock ending with a bid higher than the last selling price and three with lower offers.
In trading, First Rock Real Estate USD share ended at 5 US cents after 15,226 shares were traded, Productive Business Solutions popped 1 cent in closing at US$1.86 while exchanging 10 stocks, Proven Investments dipped 0.5 of a cent to close at 16.5 US cents with investors trading 300 units, 
Investors exchanged 9,594 shares of Sterling Investments at 1.68 US cents. Sygnus Credit Investments popped 1.03 cents to 11.03 US cents in swapping 330 stocks, Sygnus Real Estate Finance USD share closed at 11 US cents with an exchange of 107 units and Transjamaican Highway rallied 0.05 of a cent to close at 1.25 US cents in an exchange of 364 stock units.
In the preference segment, Productive Business 9.25% preference share shed 65 cents in closing at US$12.50 after 200 shares were traded, Eppley 6% preference share ended at US$1.40 after a transfer of 1 share and JMMB Group 5.75% ended at US$1.90 in an exchange of 5 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Slim trading in JSE USD Market
Junior Market reclaims all of Monday’s loss
The Junior Market recovered all of Monday’s index loss on Tuesday at the close of trading on the Jamaica Stock Exchange on Tuesday, after a 52 percent fall in the volume of stocks traded at a 65 percent lower value than on Monday after trading took place in 41 securities compared with 46 on Monday and ended with 16 rising, 16 declining and nine closing unchanged.
Investors traded 5,101,812 shares for $15,733,543 compared to 10,566,673 units at $45,598,816 on Monday.
Trading averaged 124,434 shares at $383,745 down from 229,710 shares at $991,279 on Monday with a month to date average of 187,397 units at $612,549 compared to 206,379 stock units at $681,527 on the previous day. May closed with an average of 239,954 units at $648,811.
Lasco Distributors led trading with 1.08 million shares for 21.1 percent of total volume followed by Fosrich with 640,636 units for 12.6 percent of the day’s trade and ending with Lasco Manufacturing trading 442,365 units for 8.7 percent market share.
At the close, the Junior Market Index rose 46.87 points to end at 3,791.44.
The PE Ratio, a measure of computing appropriate stock values, averages 10.5. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with 
ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial shed $3.05 in closing at $22.30, with 300 shares crossing the market, Caribbean Cream climbed 52 cents to $4, with 11,692 stocks passing through the exchange, following the release of full year results to February this year, with a turnaround in profit. Dolla Financial dipped 10 cents to close at $2.62 after a transfer of 420,048 stocks, Dolphin Cove rallied $1.46 to end at $15.98 with 45,490 units being traded, Express Catering climbed 11 cents and ended at $4.99 as 122,381 stock units passed through the market, Future Energy Source declined 10 cents ended at $4.04 with a transfer of 176,726 shares, General Accident popped 58 cents to $5.05 with 7,700 stocks clearing the market,
Indies Pharma gained 24 cents in closing at $3.30 after investors traded 12,528 units, Iron Rock Insurance rose 35 cents to 2.35 in switching ownership of 500 stocks, ISP Finance lost $5.49 to end at $21 after an exchange of 2,212 shares, KLE Group shed 28 cents and ended at $1.65 as investors exchanged 2,208 units, Knutsford Express fell 28 cents to $11.50 in an exchange of 49 stock units, Lasco Distributors advanced 30 cents to close at $3.30 with 1,076,231 stock units changing hands, Mailpac Group lost 10 cents in closing at $1.85 after 164,015 stocks were exchanged, Main Event shed 69 cents to close at $14 with investors transferring 64,505 shares, Medical Disposables climbed 67 cents in closing at $4.85 with shareholders swapping 500 units, Paramount Trading rose 9 cents to $2.19 after an exchange of 2,663 stocks, Regency Petroleum rallied 8 cents to close at $2.98 while exchanging 83,796 shares, 
Stationery and Office Supplies dipped $1.01 to end at $15.99 in trading 9,503 stock units and Tropical Battery rose 18 cents and ended at $2.07 with an exchange of 149,371 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Bounce for Trinidad Stock Exchange
Stocks bounced in trading ended on the Trinidad and Tobago Stock Exchange on Tuesday, following a 79 percent increase in volume changing hands with the value jumping 122 percent over Monday’s activity, resulting in 21 securities trading compared with 17 on Monday, with seven stocks rising, eight declining and six remaining unchanged and leading to a rise in the primary market indices.
Investors exchanged 249,560 shares at $3,305,748 versus 139,700 stock units at $1,491,369 on Monday.
An average of 11,884 shares were traded at $157,417 compared with 8,218 shares at $87,728 on Monday, with trading month to date averaging 11,835 shares at $192,890 compared with 11,816 units at $206,947 on the previous day. The average trade for May closed with 23,500 for $216,502.
The Composite Index increased 11.04 points to close at 1,244.43, the All T&T Index popped 16.55 points to conclude trading at 1,901.75, the SME Index remained at 69.27 and the Cross-Listed Index rallied 0.72 points to end at 75.71.
Investor’s Choice bid-offer indicator shows two stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Agostini’s popped $2.50 and ended at a 52 weeks’ high of $69 with shareholders swapping 7,801 shares, Angostura Holdings rose 95 cents to end at $23.10 with a transfer of 2,235 stocks, 
Ansa McAl remained at $51 as investors traded 6,320 units, Ansa Merchant Bank rose 50 cents in closing at a 52 weeks’ high of $49 after 100 stock units were traded. Calypso Macro Investment Fund lost 18 cents to $21.80 after a transfer of 124 shares, First Citizens Group gained 5 cents to close at $46.05 after exchanging 2,640 stock units, FirstCaribbean International Bank shed 1 cent and ended at $7 in switching ownership of 2,359 units. GraceKennedy fell 5 cents to $3.50 with investors transferring 15,496 stocks, Guardian Media declined 10 cents in closing at a 52 weeks’ low of $2.20 in an exchange of 1,397 shares, JMMB Group climbed 2 cents to close at $1.40 with 1,500 stock units changing hands, Massy Holdings ended at $4.98 after 66,726 stocks crossed the market. National Enterprises remained at $3.55, with 24,754 units being traded, National Flour Mills rallied 1 cent in closing at $1.51 with an exchange of 6,881 stock units, NCB Financial ended at $3, with 15,700 shares crossing the market. 
Prestige Holdings dropped 50 cents to end at $8 after 40,718 stocks passed through the exchange, Republic Financial advanced 21 cents to $127.71 and closed after 3,215 units were traded, Scotiabank dipped 50 cents to close at $76.50 after an exchange of 3,734 stock units. Trinidad & Tobago NG ended at $18.25 while exchanging 2,018 shares, Trinidad Cement lost 28 cents in closing at a 52 weeks’ low of $2.50 with 2,505 stock units being traded, Unilever Caribbean dipped 20 cents to end at $14.80 in an exchange of 41,115 units and West Indian Tobacco remained at $13 with investors trading 2,222 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Sharp drop in JSE Main Market trading
The volume of stocks traded declined 60 percent with 53 percent lower value than on Friday, with trading taking place in 58 securities the same number as on Friday, with 18 rising, 26 declining and 14 ending unchanged in trading activity on the Jamaica Stock Exchange Main Market on Monday.
A total of 9,529,184 shares were traded for $38,472,860 compared with 24,040,809 units at $81,535,879 on Friday.
Trading averaged 164,296 shares at $663,325 versus 414,497 stocks at $1,405,791 on Friday and month to date, an average of 249,752 units at $1,016,812 compared with 294,006 units at $1,199,867 on the previous day. May closed with an average of 226,361 units at $1,362,447.
Wigton Windfarm led trading with 3.84 million shares for 40.3 percent of the total volume, Transjamaican Highway followed with 2.58 million units for 27 percent of the day’s trade and Radio Jamaica with 622,238 units for 6.5 percent market share.
The All Jamaican Composite Index dropped 1,262.06 points to close trading at 369,455.98, the JSE Main Index lost 279.16 points to settle at 335,318.38 and the JSE Financial Index lost 0.06 points and concluded trading at 75.19.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.4 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows seven stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, Berger Paints popped 60 cents in closing at $8.11 after an exchange of 1,059 shares, Caribbean Cement fell $3.85 to $52 after investors traded 22,874 stocks, Eppley Caribbean Property Fund dipped $2.60 to end at $40.40 with 184 stock units changing hands. Guardian Holdings dropped $2 to close at $480 in an exchange of 1,450 units, Jamaica Broilers declined 94 cents to $35, with 63,678 stocks crossing the market, Jamaica Stock Exchange increased 72 cents to $13.72 after 11,001 shares crossed the exchange. Key Insurance rallied 58 cents to close at $3.38 with shareholders swapping 100 stock units, Massy Holdings climbed $2 to end at $102, with 557 units clearing the market, 
MPC Caribbean Clean Energy rallied $1 to $71 in an exchange of 84 stocks. NCB Financial rose $1.15 to $69.75 with 40,595 stock units changing hands, 138 Student Living rallied 33 cents to $5.48 as investors traded 1,033 units, Pan Jamaica Group lost $4.04 in closing at $50.05 after 2,252 shares were traded, Sagicor Group shed $1 to end $49.50, with 16,683 stocks changing hands. Scotia Group dropped 65 cents to end at $34.10, with 36,625 stock units crossing the market, Seprod shed $1.46 to close at $68.54 with a transfer of 22,768 units, Supreme Ventures declined 30 cents to $26.50 as 111,196 shares passed through the market and Wisynco Group lost 39 cents and ended at $18.50 in switching ownership of 6,227 shares.
In the preference segment, Jamaica Public Service 7% fell $11.78 to close at $66.72 with investors transferring 191 stock units and JMMB Group 7.15% due 2028, dipped 32 cents in closing at $2.68 after an exchange of 20,041 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading slips on the JSE USD market
Trading on the Jamaica Stock Exchange US dollar market ended on Monday, with the volume of stocks changing hands rising 29 percent but with an 85 percent drop in value compared with that on Friday and resulted in eight securities trading, compared to seven on Friday with three rising, one declining and four ending unchanged.
A total of 144,256 shares were traded for US$3,922 compared with 112,013 units at US$25,887 on Friday.
Trading averaged 18,032 shares at US$490 compared with 16,002 units at US$3,698 on Friday, with a month to date average of 22,412 shares at US$1,821 compared to 25,916 units at US$2,885 on the previous day. May ended with an average of 43,350 units for US$2,759.
The US Denominated Equities Index slipped 3.84 points to end at 234.33.
The PE Ratio, a measure used in computing appropriate stock values, averages 8.8. The PE ratio is computed based on the last traded price of each stock divided by projected earnings forecasts done by ICInsider.com for companies with their financial year ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, First Rock Real Estate USD share remained at 5 US cents as 3,324 shares passed through the market, 
Productive Business Solutions climbed 0.50 of one cent to US$1.85 in an exchange of 49 stocks, Proven Investments advanced 0.9 of a cent and ended at 17 US cents in exchanging 9,000 stocks, Sygnus Credit Investments ended at 10 US cents in switching ownership of 1,749 units and Transjamaican Highway dipped 0.2 of a cent in closing at 1.2 US cents with 130,011 shares crossing the market.
In the preference segment, Productive Business 9.25% preference share rallied 65 cents to end at US$13.15, with 15 stock units crossing the market, Eppley 6% preference share remained at US$1.40, with 4 units changing hands and JMMB Group 5.75% ended at US$1.90 in an exchange of 104 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Sharp jump in Junior Market trading
The Junior Market of the Jamaica Stock Exchange fell on Monday, with Stationery and Office Supplies trading more than 1.5 million, with most of it overhanging the stock for months, while Dolla Financial swelled the volume with 1.45 million units and Fosrich chipped in with 1 million shares resulting in the overall volume rising 107 percent and the value jumping 251 percent over Friday after trading occurred in 46 securities compared with 45 on Friday and ended with prices of 19 rising, 21 declining and six closing unchanged.
Investors traded 10,566,673 shares for $45,598,816, up sharply from 5,098,602 units at $13,005,135 on Friday.
Trading averaged 229,710 shares at $991,279 compared to 113,302 shares at $289,003 on Friday, with the month to date, averaging 206,379 stock units at $681,527 up from 194,453 shares at $523,209 on the previous day. May closed with an average of 239,954 units at $648,811.
Stationery and Office Supplies led trading with 1.51 million shares for 14.3 percent of total volume, followed by Dolla Financial closed with 1.45 million units for 13.7 percent of the day’s trade and Fosrich ended with 1.02 million units for 9.7 percent of the day’s trade.
At the close, the Junior Market Index declined 40.76 points to close at 3,744.57.
The PE Ratio, a measure of computing appropriate stock values, averages 10.5. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Access Financial climbed $2.85 and ended at $25.35 with shareholders swapping 6,986 shares, Cargo Handlers declined $1.39 to $19.20 as 1,062 stocks passed through the market, Caribbean Assurance Brokers rallied 14 cents to end at $2.54 after an exchange of 21,696 stocks. Caribbean Cream popped 28 cents to close at $3.48 after a transfer of 748,048 units, Caribbean Flavours lost 42 cents to end at $1.26 after investors ended trading 50,139 units, Dolphin Cove dropped 48 cents to $14.52 in trading 15,214 stock units, 
Elite Diagnostic gained 27 cents ended at $2.40, with 20,385 stocks crossing the market. Fontana rose 15 cents to close at $9.75 after 75,641 shares crossed the exchange, General Accident dipped 53 cents in closing at $4.47 in switching ownership of 1,000 units, Indies Pharma shed 34 cents to end at $3.06 10,893 shares clearing the market with, Iron Rock Insurance fell 10 cents to end at $2 in an exchange of 3,932 stock units. Knutsford Express increased 78 cents to close at $11.78 in exchanging 40,290 stocks, Lasco Distributors advanced 23 cents and ended at $3 with investors trading 70,083 stock units, Lasco Financial lost 12 cents to close at $2.34 after an exchange of 103,131 shares, Limners and Bards climbed 17 cents in closing at $2.39 with trading in 4,003 stocks. Lumber Depot increased 8 cents to $2.29, with 15,933 units changing hands, Main Event rose 39 cents to end at $14.69 in an exchange of 6,410 units, Regency Petroleum shed 8 cents to close at $2.90 with a transfer of 124,924 shares. 
Stationery and Office Supplies jumped $1.50 to $17 as investors exchanged 1,505,819 stock units and left just 1,880 units on offer between $17.96 and $18.75, with the next amount offered for sale being 42,277 shares at $34.97, all that could change on Tuesday when the wider investing public is updated on developments in trading on Monday. Tropical Battery dropped 11 cents in closing at $1.89 after trading 112,891 stocks and tTech advanced 29 cents to $2.49 after just one share crossed the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More declines for Trinidad Exchange stocks
The Trinidad and Tobago Stock Exchange lost ground again on Monday, as declining stocks beat out risers by a 4 to 1 ratio, following a 36 percent fall in the volume of stocks traded with a 42 percent fall in the value compared with Friday and resulting in trading in 17 securities compared with 18 on Friday, with prices of two stocks rising, eight declining and seven remaining unchanged.
Investors traded 139,700 shares for $1,491,369, down from 218,165 stock units at $2,569,756 on Friday.
An average of 8,218 shares were exchanged at $87,728 compared with 12,120 units at $142,764 on Friday, with trading month to date averaging 11,816 shares at $206,947 compared with 13,515 units at $263,247 on the previous trading day. The average trade for May closed at 23,500 for $216,502.
The Composite Index dropped 7.28 points to 1,233.39, the All T&T Index lost 6.05 points to end trading at 1,885.20, the SME Index remained at 69.27 and the Cross-Listed Index dipped 1.20 points to close at 74.99.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Angostura Holdings shed 95 cents to end at $22.15 after a transfer of 100 shares, Calypso Macro Investment Fund fell 1 cent to $21.98 after an exchange of 39 stock units, 
First Citizens Group dropped $2.99 to $46 with investors exchanging 1,400 stocks, FirstCaribbean International Bank ended at $7.01 in switching ownership of 51,270 units. GraceKennedy fell 24 cents to $3.55 with 20,263 stocks being traded, Guardian Holdings gained 5 cents to end at $20.05 after exchanging 1,564 stock units, JMMB Group dipped 2 cents in closing at $1.38 as shareholders traded 2,541 units, Massy Holdings dipped 1 cent and ended at $4.98, with 20,323 shares crossing the market. National Enterprises endned at $3.55 after an exchange of 9,033 stock units, National Flour Mills ended at $1.50 with investors transferring 9 units, NCB Financial remained at $3 with 2,949 stocks changing hands 
One Caribbean Media ended at $3.71 after shareholders traded 100 shares. Prestige Holdings ended at $8.50 with an exchange of 306 stocks, Republic Financial lost 40 cents in closing at a 52 weeks’ low of $127.50 as 299 stock units pass through the market. Scotiabank increased $1 to end at $77 with a transfer of 5,216 shares, Trinidad & Tobago NGL ended at $18.25, with 1,946 units crossing the market and Unilever Caribbean dipped 30 cents to $15 while exchanging 22,342 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Profit returns for Caribbean Cream
Following a torrid 2022 fiscal year, with a loss before taxation of $13.7 million, Caribbean Cream delivered a much better performance in the fiscal year to February this year, with pretax profit of $41.8 million and $27 million after accounting for $14.7 million for taxes, up from a $9 million loss in 2022 in a year that finance cost almost doubled to $66 million from $34 million in 2022, from increased borrowings.
Sale revenues for the just completed year rose 20 percent to $2.5 billion from $2.1 billion in 2022. In the final quarter, revenues climbed 22.5 percent to $674 million from $553 million in 2022 and increased 17 percent over the $576 million in the November 2022 quarter. In contrast, revenues for the 2022 February quarter were 10 percent more than the $501 million generated in the November 2021 quarter. All in all, the 2023 fiscal year performance was well ahead of the year to February 2022, even as the year started with just $1.3 million in profit with cost of sales at 73.2 percent with the second quarter being slightly better with cost of sales down to 70.7 percent and profit improving to $7.2 million as both volume improvement and price adjustment to the output chipped in to help improve the bottom line.
Kremi, as the company is known, has had a checkered history with Profit meandering from 2015 to 2023. (See Chart)
Since 2020 the company has faced increased input costs that squeezed profit margin. In the latest fiscal year, cost of sales dropped to 64 percent in the final quarter compared to 69 percent for the year and 71 percent for the nine months to November. The jump in revenues in the fourth quarter over the November quarter would have helped to improve the margin, but it appears that raw material costs fell compared with the earlier months of the fiscal year. In 2022 cost of sales was 71.6 percent and 66.6 percent in 2021.
Cost of sales rose 16 percent, slower than sales in 2023, to $1.73 billion from $1.49 billion in 2022, with gross profit rising faster than revenues, a positive development with an increase of 31 percent to $593 million from $775 million in 2022. The cost of raw materials used in sales rose 16 percent to $1.17 billion, compared with a 33 percent rise in fiscal year 2022 over 2021. Milk solids, one of the primary raw materials, about 70 percent that is used in producing ice cream moved from an average of US$3,355 per ton in 2018 to US$5,067 in 2022 and is now $4,676 in 2023, down 9 percent. In 2022 the cost rose by 29 percent, these movements, coupled with exchange rate changes for the Jamaican dollar, would have pushed up the company’s production cost; also affecting cost would be a 7 percent movement in the exchange rate between the Jamaica dollar and the US dollar. If continued, falling commodity prices in 2023 will lower the cost for them and help improve profits. Also of note is that the price of crude oil is now 38 percent less than it was in 2023 at the start of June and that feeds directly into utility cost incurred in production, which was $166 million, 16 percent higher than 2022 and 19 percent more in Administration with $99 million versus $83 million in 2022.
Administrative expenses rose 17 percent to $598 million from $512 the previous year. Marketing and sales expenses increased by 18 percent to $72 million from $61 million in 2022 and depreciation came in at $100 million, marginally down from $102 million in 2022. Some $930 million is tied up in construction in progress at the end of the fiscal year and will result in the charge rising appreciably in the 2024 fiscal year when those assets are transferred to fixed assets but will reduce the actual taxation payable as capital allowances in the first year, will reduce the actual tax liability that will be payable. Finance cost jumped 91 percent to $66 million from $34.5 million in 2022, but a significant portion of the loans have interest rates capped and will not result in increases in the current period.
Gross cash flow generated $195 million from operating activities, up from just $53 million in 2022. Funds internally generated were augmented by loan inflows of $353 million and funds at the start of the year amounting to $145 million, which helped to fund additions to fixed assets of $541 million.
The total Current assets ended the year at $535 million inclusive of trade and other receivables of $157 million, cash and bank balances of $67 million, down from $146 million in 2022. Current liabilities ended at $389 million, up from $313 million and net current assets ended the period at $167 million, down from $212 million in 2022.
At the end of December, shareholders’ equity stood at $826 million, with long term borrowings at $920 million, up from $603 million in 2022 and short term at $107 million against $67 million in 2022. The increased borrowing helped to fund additions to fixed assets amounting to $542 million during the year, of which $490 million is construction in progress.
Earnings per share came out at just 7 cents for the year, with a steep PE of 45.7, but earnings for the current year are expected to jump well over that for 2023. IC Insider.com forecasts a considerable increase of 90 cents per share for the fiscal year ending February 2024, with a PE of 3.6 times the current year’s earnings based on the price of $3.20 the stock traded at on the Jamaica Stock Exchange Junior Market and a net asset of $2.18.
The company did not pay a dividend in 2022 but 6.94 cents in 2021.
The company may have faltered over the last two years, but it has shown in the past that it can recover. Additionally, it is not going away anytime soon. It will recover lost ground as they invest in its manufacturing operations to generate cost reductions, greater efficiency, and improved profit. The first quarter results due by July should show the first signs of this robustness as the company reports a significant profit improvement over the 2022 first quarter and a better than the 2023 February quarter.
What should investors do? Investors should buy the stock that is selling well below potential as investors reacted negatively to poor results reported in 2022 before the release of the 2023 results.
Kremi tops ICTOP10 Lasco Manufacturing in
Iron Rock Insurance ended the past week up 14 percent to $2.25 and Lasco Distributors climbed 11 percent to $2.77 after both jumped 34 percent and 21 percent, respectively, earlier in the week, with two new stocks entering the Junior Market ICTOP10. At the same time, the Main Market TOP10 delivered moderate up and down movements.
The Lasco Distributors price movement follows release of full year results with earnings of 38.5 cents per share, with ICInsider.com projecting earnings of 55 cents for the fiscal year ending March 2024, leaving much room for solid upside price movement in the months ahead.
Lasco Manufacturing (LasM) and Caribbean Cream (Kremi) released improved full year results over those for 2022. Importantly, ICInsider.com forecast for the 2024 fiscal year is 70 cents per share for LasM and 90 cents for Kremi, with both entering the TOP10 this week, with one at the top and one at the bottom. Iron Rock Insurance and Edufocal fell from the Junior Market TOP10 to make way for the two stocks.
The stock rising in the ICTOP10 Junior Market, apart from those mentioned in the opening paragraph, is Consolidated Bakeries, with an increase of 4 percent to $2.27. At the same time, Caribbean Assurance Brokers, iCreate and One on One dipped 4 percent to $2.40, $1.26 and $1.10 respectively.
The price of Main Market listed Caribbean Producers, popped 5 percent in closing at $10.06, Key Insurance fell 11 percent to $2.80 and 138 Student Living lost 8 percent in value to close at $5.15.
At the end of the week, the average PE for the JSE Main Market TOP10 is 5.9, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 259 percent, to May 2024, based on 2023 forecasted earnings.
The 15 most highly 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 18 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.3 compared with the market at 10.5. There are 10 stocks representing 21 percent of the market, with PEs from 15 to 24, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently. Junior Market is projected to rise by 295 percent to May 2024.
Lasco’s ICool drinks.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the level of likely gains for ICTOP10 stocks.
In the market generally, Investors continue to nibble away at a number of stocks and, in the process, gradually reduce the supply of several stocks that are attractively priced as the market moves toward the summer months, the start of the stock market year.
A look behind the supply chain shows an ever decreasing number of stocks on offer. The list includes Caribbean Assurance Brokers with strong buying interest between $1.88 and $2.40, but limited selling above $2.50, Caribbean Cement, Caribbean Producers (CPJ), Fontana, Dolphin Cove, Honey Bun, Main Event, 
Massey Holdings, Seprod, Transjamaican and Wisynco have started to look positive. Supplies of some stocks are being quietly sucked out of the market, setting the stage for a sustained rally sometime down the road. 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 are likely to 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.
Declining stocks dominate JSE Main Market
Trading activity on the Jamaica Stock Exchange Main Market ended on Friday with a 170 percent jump in the volume of stocks traded valued 54 percent more than on Thursday, following trading occurring in 58 securities compared to 54 on Thursday, with 13 rising, 27 declining and 18 ending unchanged.
A total of 24,040,809 shares changed hands amounting to $81,535,879 up from 8,887,886 units at $52,849,273 on Thursday.
Trading averaged 414,497 shares at $1,405,791 up from 164,590 shares at $978,690 on Thursday. Trading month to date, averaged 294,006 units at $1,199,867 compared to May with an average of 226,361 units at $1,362,447.
Transjamaican Highway led trading with 16.84 million shares for 70.1 percent of total volume followed by Wigton Windfarm with 4.06 million units for 16.9 percent of the day’s trade and Sagicor Select Financial Fund with 812,016 units for 3.4 percent market share.
The All Jamaican Composite Index lost 2,090.32 points to end at 370,718.04, the JSE Main Index dropped 2,685.82 points to 335,597.54 and the JSE Financial Index slipped 0.94 points to close at 75.25.
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 traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to 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.
At the close, Barita Investments declined $1.20 to close at $75, with an exchange of at 11,174 shares, Caribbean Cement gained $1.85 to close at $55.85, with investors trading 868 stock units, Eppley Caribbean Property Fund increased $2.60 in closing at $43 after a transfer of 267 units, Guardian Holdings dropped $3 and ended at $482, with 2,277 stocks crossing the market, Jamaica Producers shed 49 cents to end at $20 after 17,454 units passed through the market, Jamaica Stock Exchange rallied 95 cents in closing at $13 in trading 228 stock units, 
JMMB Group advanced $1.24 to close at $29.99 in an exchange of 4,998 stocks, Key Insurance dipped 49 cents to $2.80, with 24,924 shares changing hands, Massy Holdings lost $4.50 to end at $100 after an exchange of 105,204 stock units, MPC Caribbean Clean Energy fell $1 to $70 in switching ownership of 6 shares, NCB Financial lost $1.39 in closing at $68.60 with shareholders swapping 124,916 units, 138 Student Living dipped 36 cents to close at $5.15 after an exchange of 4,229 stocks, Pan Jamaica Group declined $2.90 ended at $54.09 while 12,829 units were exchanged, Portland JSX shed 54 cents to close at $11 with a transfer of 1,603 shares, Sagicor Group climbed $2.25 to end at $50.50 with an exchange of 8,854 stock units and Stanley Motta popped 30 cents to $5.40, with 15,163 stocks crossing the market.
In the preference segment, Productive Business 10.50% preference share rose $25 to $1250 as investors exchanged 300 stocks, JMMB Group 7.25% preference share fell 64 cents to close at $3.61 in an exchange of 12,880 stock units and 138 Student Living preference share dropped $1.25 to end at $88 with 83 shares clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
