Starved of funds tied up in the OneonOne IPO issue, the Jamaica Stock Exchange continues to struggle with the Junior Market closing down on Wednesday and the Investor’s Choice bid-offer indicator flashing negative signs, with the volume and value of stocks traded declining 24 percent 14 percent, respectively, compared to Tuesday.
Investors ended trading 41 securities versus 42 on Tuesday and finished with 13 rising, 21 declining and seven closing unchanged, while one stock traded at a 52 weeks’ high and one at a one year low.
Investors traded 6,431,868 shares for $24,069,213 down from 8,431,893 units at $28,060,749 on Tuesday. Trading averaged 156,875 shares at $587,054 versus 200,759 shares at $668,113 on Tuesday with the month to date, averaging 370,451 units at $1,236,238 compared to 383,235 units at $1,275,094 on Tuesday the previous trading day. July closed with an average of 512,709 units at $2,574,304.
Future Energy Source led trading with 1.49 million shares for 23.1 percent of total volume, followed by Dolla Financial with 1.38 million units for 21.5 percent of the day’s trade and Everything Fresh with 701,381 units for 10.9 percent market share.
At the close, the Junior Market Index dropped 29.23 points to 4,090.42. The PE Ratio, a measure of computing appropriate stock values, averages 12.4. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and seven with lower offers.
At the close, AMG Packaging rose 34 cents to $4, finishing at 11 shares, CAC 2000 gained $1.70 after ending at $8.25 in trading 63 stock units, Caribbean Cream fell 10 cents to close at a 52 weeks’ low of $3.85, with 16,553 stocks units changing hands. Dolphin Cove dipped 65 cents in closing at $13.30 with a transfer of 158,429 units, EduFocal lost 20 cents to end at $2.40 after an exchange of 62,812 stocks, Everything Fresh popped 18 cents in closing at a 52 weeks’ high of $1.96, with 701,381 stock units crossing the exchange. Express Catering advanced 29 cents to $5.50 after 6,500 units changed hands, Fosrich declined 12 cents to close at $3.53 with investors transferring 265,001 shares, Honey Bun shed 92 cents to end at $7.18 as investors exchanged 5,718 units. Indies Pharma dropped 33 cents in ending at $2.87 after trading 6,705 shares, Iron Rock Insurance declined 27 cents to end at $2.73 in trading 1,117 stock units, Knutsford Express dipped 19 cents to $6.75 in exchanging 3,228 stocks. Main Event fell 97 cents to close at $6.80 in switching ownership of 20,708 units, Medical Disposables lost 28 cents in ending at $6.62 with an exchange of 244 stocks, MFS Capital Partners dipped 16 cents in closing at $4 after exchanging 117,585 shares. Paramount Trading rallied 14 cents to close at $1.94 with the swapping of 3,065 stock units and Stationery and Office Supplies shed $2 to $14.10 after transferring 15,743 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Consolidated visits ICTOP10
Consolidated Bakeries moves into ICTOP10 this week at a time when the local stock market was starved of funds tied up in the One on One IPO that came to the market on August 12 and helped the JSE markets to pull back in the past week, with several stocks suffering declines, but increased interest rates erroneously pushed by Bank of Jamaica seems to be a contributory factor as well.
The disclosure that Dolla Financial corresponded with Access Financial to explore merger talks, put new life into the former TOP10 stock, with increased buying in the stock this past week. Trading picked up with 115,359 units being exchanged during the week, up from 38,162 units the previous week, with the stock moving from $25 at the end of last week to $27.50 this past week.
ICTOP10 movers this past week are General Accident jumping 16 percent to $5.80. In comparison, CAC 2000 dropped 21 percent to $6.05, Medical Disposables slipped 18 percent lower at $5.71, Dolphin Cove with a decline of 8 percent to $13.65 and Caribbean Cream down 5 percent to $3.88.
The Main Market ended the week with Productive Business Solutions jumping 15 percent to US$1.15 while VM Investments popped 6 percent to $5.50, but Berger Paints lost 14 percent to $10.23 after posting six months results without second quarter numbers that would show reduced second quarter profits compared to the first quarter.
The Junior Market ICTOP10 welcomed Consolidated Bakeries, with projected earnings per share of 22 cents, with the company appearing to be breaking the old practice of limited revenue growth and small profits. See the latest profile of the company with full reporting and its prospects for the current year. General Accident says goodbye to the ICTOP10 following the recovery in the price. There were no changes in the Main market.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.8, while the Junior Market Top 10 PE sits at 5.8 versus the market at 12.7. The Junior Market is projected to rise by 260 percent and the Main Market TOP10 is projected to gain an average of 246 percent each to May 2023.
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, 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.
More changes to ICTOP10
While some investors were selling shares to buy into the latest IPO to hit the market, recent investors in the Junior Market listed Dolla Financial gave the market a shot in the arm following a disclosure that the company had corresponded with Access Financial to explore merger talks.
Investors reacted the first chance they had and drove the prices of both stocks higher on Friday.
The Ipo of OneonOne IPO opened on Friday morning and closed at the end of the day, as was to be expected, after attracting some 15,000 applications. The shares are likely to be listed before the end of August, with a name change to follow. ICInsider.com expects the stock will move into the $2 range sometime after listing.
The disclosure of the Dolla interest sent the TOP 10 listed Access up $5.79 or 25 percent to close at $25 on Friday, with the stock falling from the TOP10. Other big Junior Market TOP10 movers this past week are Caribbean Assurance Brokers, up 12 percent lower at $2.80, Paramount Trading with a rise of 9 percent, CAC 2000, up 6 percent to $7.65, while General Accident dropped 9 percent to a very attractive price of $5.
The Main Market ended the week with 138 Student Living jumping 23 percent to $5 and is likely to rise further, with the company posting solid results after the market closed, with earnings of 21 cents for the June quarter and 58 cents per share for the nine months to June. Berger Paints rose 8 percent to $11.93, VM Investments popped 4 percent to $5.20 and Guardian Holdings reversed most of the previous week’s gain by dropping a sharp 22 percent from $650 to $506.
The new entrants to the ICTOP listing are Iron Rock Insurance and Lasco Manufacturing, replacing Access Financial and Paramount Trading. There were no changes in the Main market.
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 5.9 versus the market at 12.8. The Junior Market is projected to rise 240 percent and the Main Market TOP10 an average of 235 percent each to May 2023.
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, 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.