The Jamaica stock market continues to consolidate, awaiting a dynamic development to push it decisively in one direction or another as the Bank of Jamaica quietly tightened the money supply further in January, drying up buying power in the short run. The first big likely move is unlikely to be a reduction of interest rates which is seemingly set to occur in the second quarter, but the reporting of substantially increased profits to flow from some companies.
Tropical Battery returns to the ICTOP10 list for this week with projected earnings of 30 cents for the current year, up from 15 cents last fiscal year and replaces Lasco Manufacturing which dropped out with a rise in price during the week as the supply of the stock has drooped sharply recently, with just 11 offers to sell now in the system.
Image Plus Consultants reported nine months results with revenues rising 27 percent in the November quarter to $248 million and 43 percent in the nine months to $803 million, while profit rose moderately to $24 million from $22 million in 2021 and for the nine months profits nearly tripled that of 2021 to reach $148 million. The company reported incorrect earnings per share for the periods, using the incorrect number of shares. As a result, rather than 29 cents per share for the quarter and $1.84, it is 2.3 cents and 15 cents for the nine months. Regardless, the stock is cheap based on these earnings and those to come.
Honey Bun rose 10 percent to $7.69, with the December quarter results due any time now, Lasco Financial gained 9 percent to $2.84 and Lasco Manufacturing gained 5 percent to $4.79. General Accident rallied 6 percent to $4.99. Image Plus Consultants entered the ICTOP10 after just one day of trading and fell to a low of $1.86 during the past week before rebounding to close this past week with a fall of 12 percent to $1.93, Caribbean Assurance Brokers lost 6 percent of its value to close at $2 and Paramount Trading fell 5 percent to $2.10.
All other movements in the Junior Market TOP10 were 3 percent or less. The Main Market Berger Paints popped 12 percent to $10.60, followed by a 9 percent rise for Jamaica Broilers to close at $31.50 and Guardian Holdings with a gain of 4 percent to $535. There were no notable losses.
At the end of the week, the average PE for the JSE Main Market TOP10 is 5.6, well below the market average of 15, while the Junior Market Top 10 PE sits at 6.5 versus the market at 12.6, critical indicators of the level of the undervaluation of the ICTOP10 stocks currently. The Junior Market is projected to rise by 211 percent and the Main Market TOP10 by an average of 274 percent to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the full interest of investor start to show.
The Junior Market has 15 stocks representing 31 percent of the market, with PEs from 15 to 29, averaging 21 compared with the above average of the market. The top half of the market has an average PE of 18, with prices of Fosrich and Future Energy adjusting downwards closer to the average of the TOP15. The above average shows the extent of potential gains for the TOP 10 stocks. The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 116, with an average of 27 and 20 excluding the highest valued stocks and 27 for the top half excluding the highest valued stock.
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 will likely 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.
Investors traded 324,227 shares for $1,944,573 compared to 368,174 stock units at $4,467,202 on Thursday.
Massy Holdings remained at $4.49 in trading 35,129 stocks, National Enterprises slipped 1 cent in closing at $3.69 with an exchange of 74,750 shares, National Flour Mills declined 5 cents to $1.50 and closed with 30,000 stock units passing through the exchange. NCB Financial remained at $4.30 with investors trading 33,398 stock units, One Caribbean Media dropped 1 cent to close at $3.10 after a transfer of 25,290 shares, Republic Financial fell 75 cents to end at $137.25 in trading 211 stocks Scotiabank ended at $77.95 after an exchange of 1,249 units, Trinidad & Tobago NGL dropped 8 cents in ending at $21.30 after switching ownership of 2,115 stocks, Trinidad Cement remained at $3.60 with the swapping of 993 units and West Indian Tobacco advanced 10 cents to $21.95 in finishing trading of 4,523 stock units.
Investors traded 368,174 shares for $4,467,202 compared with 543,121 units at $2,298,447 on Wednesday.
National Enterprises increased 15 cents to $3.70 after an exchange of 14,827 units, National Flour Mills climbed 4 cents to end at $1.55 and closed with an exchange of 102,893 stocks, NCB Financial fell 26 cents in ending at a 52 weeks’ low of $4.30 as 17,300 stock units passed through the market. Point Lisas lost 43 cents at $3.07 with 3,450 stocks clearing the market, Prestige Holdings advanced 25 cents to $7, with 30,121 shares changing hands, Republic Financial climbed 55 cents to close at $138 in switching ownership of 18,697 units. Scotiabank ended at $77.95, with 575 stock units crossing the exchange, Trinidad & Tobago NGL declined 6 cents to end at $21.38 after a transfer of 18,937 units, Unilever Caribbean remained at $13.60 in trading 1,020 stocks and West Indian Tobacco increased 85 cents to close at $21.85 with an exchange of 6,444 stock units.
Investors exchanged 543,121 shares for $2,298,447 versus 174,158 stock units at $4,105,077 on Tuesday.
Guardian Holdings shed 25 cents ending at $27 with a transfer of 30 stock units, Guardian Media remained at $2.15 trading nine units, JMMB Group rose 15 cents to $2.15 after trading 59,815 units. L.J. Williams B share remained at $2.70 with an exchange of 730 shares, Massy Holdings dipped 1 cent to close at $4.49 as 11,683 stocks passed through the market, National Enterprises ended at $3.55 while trading 449,777 stock units. National Flour Mills ended at $1.51 with ten stocks crossing the market, Prestige Holdings remained at $6.75 after trading 1,545 shares, Republic Financial fell 55 cents to $137.45 after a transfer of 67 stock units. Scotiabank ended at $77.95 in switching ownership of 95 units, Trinidad & Tobago NGL advanced 19 cents in ending at $21.44 after 5,800 units crossed the exchange, Trinidad Cement remained at $3.60 in exchanging 1,386 stocks and West Indian Tobacco remained at $21 after 4,860 shares changed hands.
Investors traded 174,158 shares for $4,105,077, compared to 140,985 stock units at $3,593,567 on Monday.
Guardian Media remained at $2.15 with an exchange of 1,134 shares, JMMB Group dipped 3 cents to $2 in an exchange of 1,500 units, Massy Holdings advanced 2 cents to $4.50 in exchanging 71,712 stocks. National Enterprises ended at $3.55, with 615 stocks clearing the market, National Flour Mills ended at $1.51 after a transfer of 2,000 units, One Caribbean Media remained at $3.11, with 41,180 stock units crossing the market. Point Lisas ended at $3.50 while exchanging 559 shares, Prestige Holdings dropped 25 cents to $6.75 after an exchange of 1,267 stock units, Republic Financial popped 50 cents in closing at $138 with the swapping of 20,025 stocks. Scotiabank shed 4 cents ending at $77.95 after exchanging 718 shares, Trinidad & Tobago NGL lost 25 cents to close at $21.25 with a transfer of 545 units, Unilever Caribbean remained at $13.60 after 141 shares were traded and West Indian Tobacco shed 95 cents to $21 after an exchange of 9,164 units.
Investors traded 140,985 shares for $3,593,567 versus 166,546 stocks at $1,097,314 on Friday.
Guardian Holdings fell 25 cents to close at $27.25 as 560 units passed through the market, JMMB Group rose 3 cents in closing at $2.03 with an exchange of 8,914 units. Massy Holdings slipped 2 cents to end at $4.48 and closed after 54,822 stock units passed through the exchange, National Enterprises increased 15 cents to $3.55 in trading 30 shares, NCB Financial popped 6 cents after ending at $4.56, with 500 stocks crossing the market. One Caribbean Media rallied 1 cent to close at $3.11 in trading 800 stocks, Point Lisas gained 9 cents in closing at $3.50 with the swapping of 10 shares, Republic Financial remained at $137.50 with a transfer of 98 units. Scotiabank ended at $77.99 with investors transferring 63 stock units, Trinidad & Tobago NGL remained at $21.50, after 1,139 units crossed the market and West Indian Tobacco ended at $21.95 in switching ownership of 4,754 shares.
Iron Rock Insurance jumped 19 percent to $2.40, Lasco Manufacturing gained 13 percent to $4.55 and Paramount Trading climbed 11 percent to $2.20, after release of strong second quarter results that showed continued improvement in profit, jumping 212 percent for the half year to $149 million. Caribbean Cream reported improving results but the overall profit was light and the stock fell 20 percent to $3.20, Lasco Financial shed 8 percent to $2.60 and General Accident slipped 7 percent to $4.71. All other movements in the Junior Market TOP10 were 3 percent or less. The Main Market only major mover was Berger Paints with an 11 percent loss to $9.50.
The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 104, with an average of 32 and 23 excluding the highest valued stocks and 27 for the top half excluding the highest valued stock.
Investors exchanged 109,751 shares for $1,918.588 versus 1,042,442 stock units at $2,896,299 on Wednesday. An average of 7,317 units were traded at $127,906 down from 69,496 shares at $193,087 on Wednesday, with trading month to date averaging 38,561 shares at $284,221 versus 41,041 units at $296,627 on the previous day. The average trade for December amounts to 42,745 at $474,822.
JMMB Group popped 5 cents in closing at $2, with 25,000 shares changing hands. Massy Holdings gained 10 cents in ending at $4.60 after switching ownership of 29,332 stock units, Point Lisas remained at $3.41 trading 470 stocks, Prestige Holdings increased 30 cents to close at $7 after an exchange of one stock unit. Republic Financial shed 50 cents to end at $137.50 with a transfer of 4,589 stocks, Scotiabank ended at $77.95 with 3,074 shares clearing the market, Trinidad & Tobago NGL rallied 39 cents to $21.64 after a transfer of 609 units. Trinidad Cement advanced 20 cents to close at $3.85 after one share was traded, Unilever Caribbean climbed 30 cents in closing at $13.15 in an exchange of 33,145 stock units and West Indian Tobacco rose 94 cents to end at $21.94 in trading 7,104 stocks.
Investors traded 1,042,442 shares for $2,896,299 versus 134,782 stock units at $2,965,690 on Tuesday. An average of 69,496 units were traded at $193,087 compared with 8,985 shares at $197,713 on Tuesday, with trading month to date averaging 41,041 shares at $296,627 versus 38,588 units at $305,553 on the previous day. The average trade for December amounts to 42,745 at $474,822.
Guardian Holdings declined 45 cents in ending at $27 after a transfer of 300 stock units, Guardian Media remained at $2.50 with investors transferring 38 shares. JMMB Group ended at $1.95 after trading 8,000 stocks, Massy Holdings ended at $4.50 in exchanging 38,629 units, National Enterprises shed 10 cents in closing at $3.40 in trading 10,000 stocks. National Flour Mills ended at $1.50 as 641,654 units passed through the market, Scotiabank remained at $77.95 while exchanging 960 shares, Trinidad & Tobago NGL lost 10 cents in ending at $21.25 in switching ownership of 4,571 stock units. Trinidad Cement fell 20 cents to close at $3.65 after trading 302,000 stocks, Unilever Caribbean increased 5 cents to end at $12.85 with the swapping of 154 stock units and West Indian Tobacco popped $1 to $21, with 4,826 units crossing the market.
Investors traded 134,782 shares for $2,965,690 versus 1,083,353 stock units at $6,284,101 on Monday. An average of 8,985 units were traded at $197,713 compared to 77,382 shares at $448,864 on Monday. Trading month to date averaged 38,588 shares at $305,541 versus 41,381 units at $315,727 on the previous day. Trading in December averaged 42,745 at $474,822.
Massy Holdings increased 3 cents to end at $4.50, with 21,998 stocks changing hands. National Enterprises ended at $3.50 after exchanging 961 units, Point Lisas remained at $3.41 as 1,060 shares passed through the market, Republic Financial climbed 25 cents to close at $138 after finishing trading 16,264 shares. Scotiabank gained 44 cents in ending at $77.95 with 1,942 units crossing the market Trinidad & Tobago NGL declined 15 cents in closing at $21.35 as investors exchanged 9,133 stocks, Trinidad Cement ended at $3.85 with 15 stock units clearing the market and West Indian Tobacco remained at $20 with a transfer of 94 stock units.