The Jamaica Stock Exchange Main Market closed on Wednesday, with a big fall in the market as the volume and the value of stocks traded declined 27 percent from trading on Tuesday, leading to more stocks declining than rising.
The All Jamaican Composite Index dropped 3,995.89 points to settle at 420,325.65, the JSE Main Index declined by 3,019.85 points to 368,855.69 and the JSE Financial Index shed 1.03 points to settle at 87.45.
Trading ended with 53 securities compared to 57 on Tuesday, with 13 rising, 25 declining and 15 ending unchanged. Overall, 6,172,524 shares were exchanged for $81,213,738 versus 8,448,425 units at $63,984,241 on Tuesday. Trading averages 116,463 units at $1,532,335, compared to 148,218 shares at $1,122,531 on Tuesday and month to date, an average of 132,918 units at $1,319,982, compared to 148,218 units at $1,122,531 on the previous trading day. July closed with an average of 173,643 units at $1,683,017.
Transjamaican Highway led trading with 1.50 million shares for 24.3 percent of total volume followed by Wigton Windfarm with 1.16 million units for 18.9 percent of the day’s trade and Sagicor Select Financial Fund with 608,480 units for 9.9 percent of market share.
The PE Ratio, a formula to ascertain appropriate stock values, averages 13.7 for the Main Market. The JSE Main and USD Market PE ratios are computed based on ICInsider.com’s forecasted earnings for companies with financial years ending up to the close of August 2023.
Investor’s Choice bid-offer indicator shows 13 stocks ended with bids higher than their last selling prices and none with a lower offer.
At the close, Berger Paints fell 93 cents to $11 after trading 3,154 shares, Eppley Caribbean Property Fund climbed $2 to close at $40 after exchanging 310 stocks, Guardian Holdings lost $1 in ending at $505 after switching ownership of 926 units. Jamaica Producers advanced 50 cents to $21.25, with 8,534 stock units crossing the market, Jamaica Stock Exchange declined 88 cents to end at $18 while exchanging 8,835 units and Mayberry Investments rose 85 cents to close at $10.48, with 4,504 shares clearing the market. NCB Financial shed $6 in ending at a 52 weeks’ low of $90 with an exchange of 22,866 stocks, PanJam Investment dropped $5.80 in closing at $58.20 trading 5,506 stock units, QWI Investments lost 11 cents in closing at 74 cents after the price hit an intraday 52 weeks’ low of 59 cents as investors traded 282,628, Scotia Group popped 92 cents to end at $34.99 after an exchange of 32,705 units. Supreme Ventures increased $1.52 to $28.67, with 23,538 shares crossing the market, Sygnus Real Estate Finance rallied 86 cents to close at $12, with 2,860 stock units changing hands and Wisynco Group dropped 52 cents to end at $18.40 after an exchange of 92,999 stocks.
In the preference segment, 138 Student Living s preference share gained $1.29 after ending ends record high of $51.74 in an exchange of 4 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading jumps on the Trinidad Stock Exchange
August commenced with trading jumping on the Trinidad and Tobago Stock Exchange on Tuesday, with the volume of stocks changing hands surging 794 percent and the value climbing 380 percent above Friday’s outcome after 18 securities traded similar to Friday, with six rising, five declining and seven remaining unchanged.
A total of 1,623,314 shares traded for $8,273,469 up sharply from 181,625 units at $1,724,281 on Friday. An average of 90,184 units traded at $459,637 compared to 10,090 shares at $95,793 on Friday. The average trade for July ended at 28,304 units for $283.023.
The Composite Index dipped 5.13 points to 1,385.79, the All T&T Index fell 12.53 points to 2,051.42 and the Cross-Listed Index rose 0.39 points to settle at 94.29.
Investor’s Choice bid-offer indicator shows two stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Agostini’s dropped 10 cents to close at $45.75 in trading 21 shares, Angostura Holdings ended unchanged at $26.99 after exchanging 594 stock units, Clico Investment Fund fell 20 cents to end at $28.70 while 9,427 units changed hands. First Citizens Group finished at $49.99 after trading 8,884 stocks, FirstCaribbean International Bank advanced 4 cents to $5.06 with an exchange of 4,500 units, GraceKennedy shed 5 cents in closing at $5.40, with 650 shares crossing the exchange. Guardian Holdings remained at $27.26 with the swapping of 33,900 stock units, JMMB Group gained 3 cents to close at $2.34, with 1,668 stocks crossing the market, Massy Holdings slipped 5 cents to $5, with 353,604 stocks changing hands. National Enterprises declined 1 cent to end at $3.19 in exchanging 1,176,247 shares, National Flour Mills ended at $1.65 after transferring 21 units, NCB Financial Group popped 5 cents in ending at $5.30 in trading 6,914 stock units. Point Lisas finished at $3.39 with ten shares changing hands, Republic Financial Holdings popped 14 cents to close at $141.14 in an exchange of 575 stocks, Scotiabank rose 11 cents in closing at $77 in switching ownership of 6,789 stock units. Trinidad & Tobago NGL increased 1 cent in closing at $21.50, with 15,211 units crossing the market, Trinidad Cement remained at $3.81 with 120 units clearing the market and West Indian Tobacco ended unchanged at $23.40 while exchanging 4,179 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Falling prices dominant on JSE USD Market
Trading closed on the Jamaica Stock Exchange US dollar market on Tuesday, with the volume of stocks traded declining 86 percent at marginally less valued than on Friday, resulting in 11 securities traded, compared to 10 on Friday with no rising, six falling and five ending unchanged.
The JSE US Denominated Equities Index lost 0.78 points to end at 209.09.
The PE Ratio, a measure used to compute appropriate stock valuations, averages 8.7, The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending up to August 2023.
Overall, 243,827 shares were traded for US$33,140 compared to 1,735,411 units at US$33,791 on Friday. July ended with an average of 49,665 units for US$3,449.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and none with a lower offer.
At the close, First Rock Capital USD share ended at 6.5 US cents after an exchange of 75,715 shares, Margaritaville closed at 14.98 US cents after exchanging 148 units, MPC Caribbean Clean Energy remained at US$1.30 in exchanging two stock units. Proven Investments shed 0.25 of a cent in ending at 22.75 US cents after trading 118,758 stocks, Sterling Investments lost 0.13 of one cent to 1.95 US cents, with 11,599 stocks crossing the exchange, Sygnus Credit Investments USD share declined 0.87 of a cent to 11.12 US cents with the swapping of 1,061 stock units. Sygnus Real Estate Finance USD share fell 1 cent to close at 12 US cents, with 67 shares crossing the market and Transjamaican Highway dipped 0.08 of a cent in closing at 0.88 of one US cent with an exchange of 36,230 units.
In the preference segment, Eppley 6% preference share lost 14.6 cents to end at US$1.15 in switching ownership of 110 stock units, JMMB Group 5.75% remained at US$2.05 with one stock clearing the market and JMMB Group 6% finished at US$1.10 in an exchange of 136 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
First quarter profits surge 39%
Profit in the first quarter of this year surged 39 percent over the same period in 2021 for all listed companies on the Jamaica Stock Exchange, data released by the companies show a 21 percent increase in revenues.
The final numbers include results of Guardian Holdings, Massy Holdings two companies with primary listings in Trinidad as well as the recently listed Dolla Financial. Excluding results for the two Trinidad based companies, profit rose 49 percent for the rest, from a 26 percent rise in revenues.
Profits exclude exceptional one off items and do not include other comprehensive income. NCB Financial Group, JMMB Group and Scotia Group suffered major unrealized losses in their investment portfolio as a result of increased interest rates in 2022 while the two Mayberry companies saw a major reversal of investment losses incurred in 2021. The investment losses for the banking groups are shown in other comprehensive income and if included reduces the strong operating profit substantially.
Contributing to the strong rise in overall profit are companies that suffered losses or sharply reduced profits in the 2021 period and are recovering in 2022 from an economy that was mired in restrictions on trade within the local economy.
The results to date show the educational sector with just two companies growing by 1,880 percent but with a mere $12 million in profit, with revenues that grew 155 percent to $107 million. Medical & Pharmaceutical revenues rose a strong 30 percent to $1.43 billion with profits climbing 80 percent to $167 million. The Restaurant sector’s profit rose 100 percent to $342,000, up from a loss of $184 million in 2021 as revenues rose 240 percent to $691 million. Banking profit is up 104 percent to $12.5 billion, from a 33 percent rise in revenues to $116 billion, with all the gains in profit flowing from NCB.
One of the more outstanding segments was Financial Services, with 20 companies delivering a 30 percent revenue increase to $57 billion and a 46 percent rise in after tax profit to $16.3 billion. Distribution revenues climbed 29 percent to $33.6 billion and profit rose 52 percent to $2.3 billion from just $1.5 billion last year.
Conglomerates were disappointing, with no growth in profits of $5.8 billion from a 13 percent rise in revenues to $113 billion and Manufacturing managed a 22 percent rise in profit to $4.8 billion from a 23 percent increase in revenues to $55 billion from $45 billion in 2021.
Media with just two entities delivered revenues of $1.75 billion up a mere 4 percent year over year but grew profit an attractive 68 percent to $152 million.
Revenues for the Insurance group rose just 3 percent to $86 billion and delivered a 17 percent increase in profits to $8.2 billion.
Revenues for Entertainment companies rose 23 percent to $13.5 billion with profit rising 130 percent to $1 billion with Supreme Ventures dominating with profit jumping 68 percent to $996 million.
Real Estate saw a 20 percent drop in profit from a 54 percent rise in revenues to $3.46 billion delivering a profit of $1.27 billion.
The Transportation sector saw a 71 percent increase in revenues at $10.6 billion delivering a 38 percent increase in profit to $1 billion.
ICTOP10 picks remove dreaming
The ICTOP listing is meant to remove dreaming from investors’ arsenal of investment tools and place them on more solid grounds. The performance of Fosrich last week illustrates that vividly, with the stock hitting the pre-split equivalent of $54.20 on Wednesday only for the price to fall back to a low of $3 on Friday or the equivalent of $30 on a pre-split basis.
The above shows that many investors are groping in the dark, hoping that a stock with the wind behind its back must be one to buy to make money. They ignore the simple but profound principle of buying low and selling high. The other factor that shows up in the judgement is why buy the stock after the split when it is more expensive than if purchased before. this is an age-old issue where investors feel that they are buying the stock cheaper than before but in fact, they are paying more for it and therefore reduce potential profit.
Fosrich may have a bright future but what about the many stocks that are undervalued in the market, why chase expensive ones? When Fosrich reports second quarter earnings this coming week investors will get a glimpse to see whether it was smart to buy the stocks at the elevated prices last week. Investors made the same error with Salada Foods buying it at $10 when it was not worth much more than $3 now the stock is slowly adjusting to reality. Investors in Fesco at $8 are feeling the paid as the stock slowly retreats and is now under $6. Investors in SSL Venture Capital will soon discover some nastiness of speculating in the dark.
There was one change to the Junior Market TOP10 listings this past week, with General Accident returning at the expense of Dolphin Cove which rose 6 percent during the week to $15.93, the former price dropped to $5.07 from $5.99 at the close of the previous week.
Elite Diagnostic fell 9 percent to $3.21 and CAC 2000 dipped 3 percent to $8.25. Jetcon Corporation rose 9 percent to $1.27 and Caribbean Assurance Brokers rallied 8 percent to $2.60 after the company reported six months results showing a profit of $4.45 million, up from a loss of $31 million last year for the same period, ICInsider.com upgraded earnings to 45 cents per share, from 40 cents previously. The Main Market ended the week, with no significant price changes.
Investors should keep a careful watch on Caribbean Assurance Brokers, Dolphin Cove, Express Catering, General Accident, Jamaica Broilers, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Stationery and Office Supplies and Paramount Trading. Dolphin Cove, Caribbean Producers, Express Catering will be major beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks, but investors may be reluctant to pile into the stock ahead of the hurricane season.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.9, while the Junior Market Top 10 PE sits at 6 versus the market at 12.9. The Junior Market is projected to rise by 238 percent and the Main Market TOP10 is projected to gain an average of 235 percent each to May 2023.
The prospectus for One on One IPO is out with just over 125 million shares earmarked for the wider public. The PE ratio based on the company’s projections to August 2022 is just under 7 cents per share before tax for a PE ratio of around 14.5 just above the market average of 12.9. Based on where recent IPOs are valued investors can look for a price after listing around $1.50 but investors have priced many of them closer to 30 times 2022 earnings in which case a price of $2 is not out of the reckoning.
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 to highlight winners from the rest, allowing investors to focus on potential winning 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 and result 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.
No losers just winners
The volume of stocks traded surged 1,375 percent higher on Friday than on Thursday with 58 percent greater value on the Jamaica Stock Exchange US dollar market ended, resulting in 10 securities trading, compared to five on Thursday with six rising, none declining and four ending unchanged.
Overall, 1,735,411 shares traded for US$33,791 up from 117,636 units at US$21,357 on Thursday. Trading averaged 173,541 units at US$3,379, compared to 23,527 shares at US$4,271 on Thursday, with the month to date averaging 49,665 shares at US$3,449 versus 40,062 units at US$3,454 on the previous day. June ended with an average of 71,901 units for US$8,793. The JSE US Denominated Equities Index gained 3.86 points to end at 209.88.
The PE Ratio, a measure used in computing appropriate stock values, averages 9. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending, up to August 2023.
Investor’s Choice bid-offer indicator shows none ended with a bid higher than the last selling prices and two stocks with lower offers.
At the close, First Rock Capital USD share finished at 6.5 US cents in switching ownership of 744 shares, Margaritaville remained at 14.98 US cents after exchanging 19 stocks, MPC Caribbean Clean Energy ended unchanged at US$1.30 in trading 13 stock units. Proven Investments increased 0.95 of one cent to close at 23 US cents, with 56,462 units crossing the exchange, Sterling Investments ended unchanged at 2.08 US cents after trading 509 stocks, Sygnus Credit Investments USD share rose 0.88 of a cent to end at 11.99 US cents in exchanging 43,476 stock units and Transjamaican Highway gained 0.06 of a cent in closing at 0.96 US cents while exchanging 1,634,177 units.
In the preference segment, Equityline Mortgage Investment preference share climbed 18 cents to US$1.85 after trading nine shares, JMMB Group 5.75% advanced 2 cents to close at US$2.05 in an exchange of one stock unit and JMMB Group 6% popped 5 cents to US$1.10 with the swapping of one share.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Falling stocks hit TTSE
Trading ended on the Trinidad and Tobago Stock Exchange on Friday, with the volume of stocks changing hands rising 11 percent with a 32 percent lower value than on Thursday after 18 securities traded compared to 19 on Thursday, with three rising, ten declining and five ending unchanged.
A total of 181,625 shares traded for $1,724,281 compared with 164,026 units at $2,517,874 on Thursday. An average of 10,090 units traded at $95,793 compared to 8,633 shares at $132,520 on Thursday, with trading month to date averaging 28,304 units at $283,023 versus 29,249 units at $292,735 on the previous trading day. The average trade for June amounts to 55,705 units at $392,249.
The Composite Index popped 0.02 points to 1,390.92. the All T&T Index rallied 4.65 points to 2,063.95 and the Cross-Listed Index shed 0.69 points to settle at 93.90.
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, Agostini’s remained at $45.85, with 5,200 shares crossing the market, Ansa Merchant Bank rallied 88 cents to $43 after an exchange of 25 units, Clico Investment Fund finished at $28.90 trading 2,220 stocks. First Citizens Group ended at $49.99, with 2,928 stock units clearing the market, GraceKennedy declined 5 cents to $5.45 in an exchange of 425 shares, Guardian Holdings fell 4 cents to close at $27.26 after exchanging 3,300 stocks. Guardian Media lost 6 cents in ending at $3.04, with 1,872 stock units changing hands, JMMB Group shed 3 cents to $2.31 in trading 1,900 units, L.J. Williams B share dropped 14 cents to end at $2.01 while exchanging 42 stocks. Massy Holdings declined 5 cents to $5.05 with the swapping of 134,980 units, National Enterprises remained at $3.20 in switching ownership of 125 shares, National Flour Mills ended at $1.65 after exchanging five stock units. NCB Financial Group fell 5 cents to $5.2, with 932 shares crossing the exchange, Prestige Holdings slipped 9 cents to $6.71 with an exchange of 11,800 units, Republic Financial Holdings shed $1 to close at $141 in an exchange of 100 stocks. Scotiabank dropped 11 cents to $76.89, with 750 stock units crossing the market, Trinidad & Tobago NGL popped 20 cents to $21.49 and closed with 12,021 stock units changing hands and West Indian Tobacco increased 90 cents to end at $23.40 with an exchange of 3,000 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.