All three markets of the Jamaica Stock Exchange rose on Friday following b gains on Thursday with trading exceeding Thursday’s levels as rising prices overwhelmed those declining on the final day of the year but that was powerful enough to erase declines in the market for the year.
At the close of trading 107,792,193 shares, were traded in all three markets, up from 65,137,916 units on Wednesday.
The value of stocks traded on the Junior and Main markets totalled $952.3 million, up from $857.26 billion on Thursday. The JSE USD market closed after 367,867 shares were traded, for US$23,662 compared to 31,154 units at US$662 on Thursday.
Main Market trading was dominated by Wigton Windfarm with 25.03 million shares being exchanged by investors, followed by NCB Financial with 8.03 million units, Radio Jamaica contributed 7.49 million units, Sagicor Group with 1.64 million shares, Barita Investments closed with 1.34 million units and Transjamaican Highway with 1.30 million shares.
In the Junior Market, Tropical Battery led trading with 21.15 million shares, followed by Future Energywith 10.21 million units, Regency Petroleum with 4.69 million shares, EduFocal 2.96 million units , Image Plus traded 2.89 million shares and Fosrich with 2.25 million units.
At the close of the market, Main Market stocks rallying were Barita Investments climbing $5.98, Sagicor Group up $3.52, Eppley Caribbean Property rising $3.10, Caribbean Cement with a gain of $3.04, AS Bryden rising $3.01, NCB Financial up $2.49 and Seprod climbing $2.01.
Declining Main Market stocks were Guardian Holdings down $23 and Eppley with a fall of $2.10.
Rising Junior Market stocks include Knutsford Express up $1.25 and Dolphin Cove up $1.
At the close of trading, the JSE Combined Market Index jumped 4,534.94 points to close at 339,158.12, the All Jamaican Composite Index jumped 6,563.17 points higher to 367,017.85, the JSE Main Index popped 4,228.16 points to 325,699
The Junior Market Index surged 65.03 points to 3,848.33, off by 3.5 percent for the year and the JSE USD Market Index rose 6.84 points to 231.19.
In the preference segment, Eppley 7.75% preference share rose $3 to $22 and 138 Student Living preference share advanced $33.10 in closing at $130.
The market’s PE ratio, the most popular measure used to determine the value of stocks, ended at 21.6 on 2022-23 earnings and 15 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.
Junior Market delivered 2022 JSE best
The eleven best performing stocks on the Jamaica Stock Exchange for 2022 to the end of September, all came from the Junior Market with Fosrich, a company that expanded into manufacturing, put in an incredible run of 326 percent, the 2022 listed Spur Tree Spices was second with gains of 285 percent and Tropical Battery coming in at tenth position with gains of 99 percent.
Future Energy, distributors of gasoline, produced a rise of 96 percent to cap a spectacular two year run. 1834 Investments climbed 83 percent to be the best performing main market stock, after the company agreed to be acquired by Radio Jamaica, followed by Portland JSX, with 52 percent and Supreme Ventures the gaming company came next at 46 percent, in a period when the main market declined in value.
Everything Fresh jumps 44% last week
Last week’s stock to watch, Everything Fresh, climbed 43.5 percent from $1.17 to close the week at $1.68 and should move higher and Future Energy Source, that reported fabulous results for the first quarter, was one to watch. The stock added to the $5.29 price it closed the previous week at and closed on Friday at $5.63, with a PE ratio of 22.5.
This week, Consolidated Bakeries is added to the list, following excellent half year results, with prospects of more gains ahead, but General Accident is out following a bump in claims in the second quarter that squeezed profit. Also added to the list is ONE on ONE Education Services, which should list this month and enjoy a significant price hike.
138 Student Living reported strong June results but hardly moved in a week that the markets suffered declines. Meanwhile, Stationery and Office Supplies pulled back a bit as demand weakened following good half year results.
This week’s other ICInsider.com watch listings are Caribbean Assurance Brokers, Caribbean Producers, Dolphin Cove, Express Catering, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering and Everything Fresh will be major beneficiaries of the strong rebound in tourist arrivals, now back to 2019 levels.
Refunds should start returning to investors from ONE on ONE Education Services this week now that allocations in the recent IPO are determined. That could make a big difference to the market as investors deploy those funds in the market.
Fesco crushes expectations
FESCO recorded stunning first results that crushed expectations, with revenues surging 238 percent to $6.46 billion, up from $1.9 billion in 2021 and drove gross profits up a robust 294 percent higher at $216 million for the quarter from $161 million year over year. June quarter gross profit came in 36 percent more than the $137 million generated in the March quarter this year from revenues for the quarter of $4.76 billion.
The Company’s gross profit for the quarter amounts to 55.2 percent of the gross profits achieved for the fiscal year ended March, exceeding the entire year. Gross profit margin jumped sharply from 2.87 percent in 2021 to 3.36 percent in the June quarter this year. The Company benefitted from two new service stations that came on stream during the period compared to the 2021 fiscal period, with the popular Beachwood avenue station owned and operated by them.
For the quarter ended June 2022, profits after taxes surged 280 percent to $152 million from just $40 million in 2021, with indications that the six months result should see profits exceeding the $258 million realized in 12 months to March this year.
Operating and administrative expenses rose 216 percent to $65 million in the quarter, with the bulk of the increase being direct operating costs for the self-owned run gas station.
Gross cash flow brought in $158 million, but $358 million was spent for the addition of fixed assets and resulted in net cash outflows of $221 million, thus reducing the $1.1 billion at the start of the fiscal year to $900 million at the end of the quarter.
Current assets ended the period at $1.64 billion, including trade and other receivables of $468 million, cash and bank balances of $903 million. Current liabilities stood at $1.3 billion, with Payables at $947 million, current portion of loans at $345 million, and long-term loans at $908 million.
Shareholders’ Equity stood at $922 million at the end of June, or 37 cents per share and the stock trades at a premium of 1,334 percent above net asset value.
Earnings per share came out at 6 cents for the 2022 quarter, up from 1.65 cents in 2021. IC Insider.com is forecasting 26 cents per share for the entire year bringing the PE ratio to 20 times earnings and is now in line with the market at the last traded price of $5.29 on the Junior Market of the Jamaica Stock Exchange on Friday. The Company will pay 16 cents per share dividend on October 28.
The Company added the 17th service station under its brand in St Elizabeth, which will add to future revenues and profits. According to the directors’ report,” the Company continues to make investments in real assets and equipment to support expanding its service station businesses, its industrial client business, as well as its promised entry into the LPG industry.”
Gambling with stocks
What is happening with 138 Student Living preference share trading at a record high of $50 on Tuesday and hitting a new high of $51.74 after trading a mere four shares? There is just no rational explanation for this.
The stock pays interest at 3 percent above the 180 days Treasury bill rates, currently, the rate payable is just over 10 percent before tax. At the current price, the annual yield is a mere 2 percent. So why are investors buying the stock at such an elevated price and why are there more sellers?
A better perspective is gleaned from the stock price last year at just $5.43 resulting in an increase of 853 percent. Last year investors pushed Salada Foods to an unrealistic $10, with several investors lapping up large numbers of the shares. Now the stock is in the $4 range, the same thing is happening at Fesco where investors where the price was pushed to $8.49 and is now at $5.50 as it slowly adjusts to reality, but seems set to fall some more.
Investing in stocks is far easier than some think. Buy low and sell high is a recipe for making money. Momentum trading where investors buy into those stocks that are rising can make money for investors but many end up guessing when to sell before a correction starts.
Newer investors will save themselves much headache if they buy low PE stocks of companies whose profits are growing and sell ones with extended PE ratios well over the market average.
Record close for Jamaica Stock Exchange Junior Market
Junior Market stocks closed at yet another record closing high on Thursday after hitting an all-time intraday high of 4,098.08 shortly after the market opened and ended with a rise of 49.51 index points to 4,072.56, with the market up almost 19 percent for the year to date, with Future Energy hitting a new record of $7.19 with a PE of 72 and Derrimon Trading closing at $2.99 after posting a lower profit for 2021 than in 2020 and earnings per share of just 9.4 cents for a PE of 30.
Jamaica Stock Exchange Main Market stocks closed lower on Thursday, with the Combined Index falling 2192.36 points to 400241.78, the All Jamaican Composite Index diving 3,622.18 points to 440,922.44 and the JSE Main Index dropping 2,805.01 points to 388,891.73.
The market’s PE ratio ended at 18.5 based on 2021-22 earnings and 11.9 times those for 2022-23 at the close of market activity on the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart along with the more detailed daily report charts, provide investors with regularly updated information to help with decision making.
Investors should make use of the chart to help make rational investment decisions, by investing in stocks that are close to the average for the sector and not going too far from it, unless there are compelling reasons to do so. 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. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange and shows companies grouped on an industry basis, allowing for easy comparisons between same sector companies as well as the overall market.
The net asset value of each company is reported as a guide to easily 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 payable and yields for each company are shown in the Main and Junior Markets daily report charts that show closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.