For the past week, activity in the Jamaican stock market was mostly stable following the Barita Investments and Tropical Battery successful public offers. Buying interest increased for Caribbean Flavours and Jamaican Teas stocks, both with pending stock splits.
Caribbean Flavours a Derrimon’s subsidiary
This week’s focus: Caribbean Flavours (CFF), a former IC TOP 10 listed stock, ten for one stock split becomes effective Tuesday. This stock is worth watching this week. After the split, the company will have just under one billion shares issued. Many investors foolishly position themselves to buy stocks after the split at a higher value than before. It is almost a certainty that the price of CFF will move higher after Tuesday’s split. The company reported a 42 percent rise in second-quarter revenues and an increased profit of 25 percent, with profit for the half-year up by 23 percent. The forecast for earnings per share is $1.15 for 2020 and $1.75 in 2021. The PE ratio at the current price of $19.65 the stock traded at on the Junior Market on Friday is 17 times the 2020 earnings and 11 times 2021 earnings.
For a fifth consecutive week, there were no changes in the companies on the IC TOP 10 listings, but that could change with some results set for release during the week. 
The markets moved moderately higher to close at their highest levels since mid-August for the. The Main Market closed the past week higher than the previous one, but the Junior Market closed the week lower than the prior one.
The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 281 to 726 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year profit, projected to recover from reduced profit for the 2020 financial year. 
With expected gains of 152 to 240 percent, the top three Main Market stocks are Berger Paints, followed by JMMB Group and Carreras. Radio Jamaica is now down to the fifth spot with slightly lower earnings per share of 15 cents from 20 cents previously.
The local stock market’s targeted average PE ratio is 20 based on companies’ profits reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, indicating the potential gains. The JSE Main Market ended the week, with an overall PE of 15.4 and the Junior Market 11.3, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6.1 at just 54 percent to the overall Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.4 or 55 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 279 percent and 145 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in the selection process in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
At the close, the All Jamaican Composite Index lost 739.29 points to settle at 406,841.95, the Main Index lost 674.19 points to finish 371,394.93, the JSE Financial Index shed 0.06 points to end at 97.37.
Trading concluded with an average of 234,385 units changing hands at $1,296,760 for each security, compared to an average of 101,034 shares at $1,503,956 on Thursday. The average trade for the month to date ended at 239,879 units at $1,628,974 for each security, in contrast to 240,756 units at $1,681,973 on Thursday. Trading for the month to date compares adversely to September’s average of 265,170 at $3,271,625.
Eppley shed $1.75 to close at $19 with 1,435 units trading, First Rock Capital fell 50 cents to finish at $12.40 with investors transferring 29,575 stocks, Key Insurance rose 57 cents to settle at $9.50 with an exchange of 38,491 stocks. Kingston Wharves dropped $1.90 to end at $47 with 13,114 stock units changing hands, Mayberry Investments gained 58 cents to close at $5.95 trading 11,797 shares, MPC Caribbean Clean Energy declined $1 to finish at $169 with investors transferring 59 stock units. PanJam Investment climbed 50 cents to settle at $70.50 with 1,000 units passing through the market, Pulse Investments fell 38 cents to end at $4.20 with an exchange of 2,378,564 stock units, Scotia Group lost $1.47 to close at $48.50 with 13,037 stocks changing hands. Seprod dropped 49 cents to settle at $55.50 after trading 14,388 stock units and Wisynco Group climbed 84 cents to finish at $16.19 with 10,818 units crossing the exchange.
At the close, the All Jamaican Composite Index climbed 2,751.31 points to 407,581.24, the Main Index rose 2,789.03 points to 372,069.12 and the JSE Financial Index added 0.62 points to settle at 97.43.
The average trade for the month to date ended at 240,756 units for $1,681,973 for each security, in contrast to 268,050 units at $1,716,749. Trading for the month to date compares to September’s average of 265,170 units at $3,271,625.
Mayberry Investments shed 62 cents to end at $5.37, with investors switching ownership of 3,540 units, Mayberry Jamaican Equities lost 36 cents after ending at $7.65 with an exchange of 12,210 stock units, NCB Financial gained 50 cents to close at $130.50, after crossing the exchange with 26,856 shares. 138 Student Living rose 35 cents to close at $4.85 while exchanging 1,330 units, Palace Amusement jumped $74.93 in closing at $1,375, after transferring a mere 4 units, Sagicor Group fell 50 cents to $44.50, with 16,230 stock units changing hands, Salada Foods rose 71 cents to $27.99 trading 233 units. Scotia Group climbed $3.59 to settle at $49.97, with 525,487 shares passing through the market, Seprod closed at $55.99, after rising $2.89 after 6,843 units crossed the market, Sygnus Credit Investments gained $1.05 to settle at $18.90, in exchanging 11,324 stock units and Wisynco Group slipped 55 cents to $15.35, after crossing the exchange with 64,560 shares. In the preference segment of the Main Market, 138 Student Living Preference shares gained 90 cents to close at $6.88, after exchanging 72 units.
At the close, the All Jamaican Composite Index gained 582.72 points to 404,829.93, the Main Index advanced 480.87 points to 369,280.09, while the JSE Financial Index advanced 0.25 points to settle at 96.81.
The average trade for the month to date ended at 268,050 units at $1,716,749 for each security, in contrast to 250,330 units at $1,500,353. Trading, month to date, compares well to September’s average of 265,170 units at $3,271,625.
Kingston advanced by $3 to $49, with investors swapping 47 units. 138 Student Living lost 39 cents to close at $4.50, in exchange of 408 units, PanJam Investment settled at $70, with gains of $1 after trading 2,655 units, Proven Investments lost 51 cents to end at $39.99, in clearing the market with 3,991 units, Sagicor Group rose 89 cents to end at $45, after an exchange of 1,008 units. Salada Foods shed 71 cents to finish at $27.28, in trading 42 units, Scotia Group declined $3.40 to end at $46.38, with 53 929 shares trading, Seprod finished at $53.10, after losing $2.90 and exchanging 34,828 shares and Sygnus Credit Investments declined by $1.15 to end at $17.85 trading 38,411 shares.
Jamaica Stock Exchange Main Market ended trading on Tuesday with the market still higher than the close on Friday after posting strong gains on Monday.
Trading ended with an average of 233,942 units changing hands at $1,118,524 for each security compared to an average of 363,530 shares at $1,811,446 on Monday. The average trade for the month to date ended, with 250,331 units at $1,500,353 for each security, in contrast to 256,184 units at $1,636,720. Trading month to date compares adversely to September’s average of 265,170 units at $3,271,625.
Mayberry Investments rose 59 cents to $5.99 after trading 15,997 stock units, Mayberry Jamaican Equities lost 50 cents to close at $8 trading 419 shares, Pan Jam Investment shed 50 cents to settle at $69, with 3,600 units changing hands. Proven Investments advanced $4.50 to close at $40.50, with 8,687 stock units clearing the market, Sagicor Group finished at $44.11, with a loss of 89 cents after 12,417 stock units passed through the market, Scotia Group climbed $3.47 to finish at $49.78, in trading 4,006 units Seprod rose $1 to close at $56, in exchanging 10,611 stock units, Stanley Motta gained 43 cents to end at $5.13, with 4,000,000 shares crossing the market and Sygnus Credit Investments lost 49 cents in closing at $19, with 5,376 stock units changing hands.
Trading month to date compares adversely to September’s average of 265,170 units at $3,271,625.
JMMB Group gained 40 cents to close at $29.50, with an exchange of 145,377 shares, Kingston Wharves gained 85 cents to finish at $50, with 8,689 units crossing the market. Mayberry Investments shed 74 cents to end at $5.40, with 3,052 units changing hands, Mayberry Jamaican Equities rose 50 cents to $8.50, in transferring 57,660 shares, MPC Caribbean Clean Energy jumped $7 to $170, after exchanging 428 units. Pan Jam Investment climbed $1.50 to $69.50, with 15,507 shares crossing the market, Portland JSX closed $1.14 higher at $8.19, in transferring 10,378 stock units, Sagicor Group gained 90 cents to settle at $45, with 20,241 stocks changing hands. Scotia Group dropped $3.17 to finish at $46.31 trading 55,877 shares, Sygnus Credit Investments gained 49 cents in closing at $19.49, with an exchange of 8,778 units and Wisynco Group lost 39 cents to close at $15.60 transferring 150,994 shares.
For a fourth consecutive week, there were no changes in the companies on the IC TOP 10 listings. The markets moved moderately higher to close at their highest levels since mid-August for the junior Market. The Main Market closed at its highest level at the close of September since the beginning of July gave up all the gains on Wednesday and Tuesday to close back at mid-September level on Friday.
This week’s focus: Jamaican Teas came in for increased buying during the past week after the company advised the Jamaica Stock Exchange that the board of directors will meet to determine a new record date for the sub-division of the Company’s shares, following the deferral at the Annual General meeting. The stock traded at $4.30 on September 29 and closed at $4.83 on Wednesday, with 161,040 units changing hands, with the offer at $4.50. The volume ballooned to over one million units on Thursday, with the price hitting $5.55 during the day. The company completed the 2020 fiscal year at the end of September.
The market’s targeted average PE ratio is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.1 and the Junior Market 11.2, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6.1 at just 54 percent to the overall Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.2 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 283 percent, and 153 percent for the JSE Main Market, based on 2020-21 earnings, indicates potentially greater gains in the Junior Market than in the Main Market.
Friday’s fall, along with a big decline on Thursday, wiped out all of the 9,745.94 points gains recorded by the All Jamaican Composite Index on Wednesday.
The average trade for the month to date ended at 198,584 units at $1,542,965 for each security, in contrast to September’s average of 265,170 units at $3,271,625.
MPC Caribbean Clean Energy advanced by $28 to $163, after trading only one stock unit, NCB Financial fell $1 in closing at $130 and clearing the market with 91,324 shares, PanJam Investment climbed $2 to close at $68, in trading 24,433 stock units. Sagicor Group dropped $2.30 to $44.10, with investors switching ownership of 9,874 units, Seprod shed 90 cents to finish at $55, in exchanging 15,520 shares. Supreme Ventures declined by $1.25 to settle at $14.75, in transferring 120,086 units, Sygnus Credit Investments fell 50 cents to close at $19, after clearing the market with 23,747 stock units and Wisynco Group gained 47 cents to settle at $15.99, in trading 1,215,482 shares.
At the close, the All Jamaican Composite Index dived 4,940.46 points to 411,986.10; the Main Index declined 4,741.22 points to 375,684.76 and the JSE Financial Index shed 1.90 points to settle at 98.55.
Trading ended with an average of 174,792 units changing hands at $1,114,224 for each security compared to an average of 363,264 shares at $4,595,186 on Wednesday. Trading in September averaged 265,170 units at $3,271,625.
Mayberry Investments declined 95 cents to close at $5.30 while exchanging 10 shares. Mayberry Jamaican Equities closed at $8, with a loss of 30 cents after 1,007,542 stocks passed through the market, MPC Caribbean Clean Energy fell $15 to $135, in trading 361 units, PanJam Investment fell $3.50 to $66, with investors switching ownership of 4,329 units. Proven Investments finished $2.45 lower at $36, with 20,251 stock units crossing the market, Pulse Investments shed 47 cents in ending at $4.53, with investors switching ownership of 277,932 shares, Scotia Group lost 40 cents to end at $49.48 after exchanging 9,525 stock units. Stanley Motta dropped 42 cents to $4.70, in transferring 10,411 units, Supreme Ventures rose $2 to $16, in trading 222,950 shares and Wisynco Group lost $1.38 to settle at $15.52, in exchanging 49,570 stock units.
</Trading month to date compares adversely to, August with an average of 497,441 units at $3,201,918.
MPC Caribbean Clean Energy dropped $5 to settle at $150, with 1,605 stock units passing through the market, PanJam Investment carved out a gain of $3.49 in closing at $69.50, with 24,108 stock units passing through the market, Portland JSX dropped 45 cents to close at $7.05 with investors switching ownership of 106,892 shares. Sagicor Group carved out a gain of $2.10 to settle at $46.40 while exchanging 1,571,769 units, Stanley Motta climbed 47 cents to close at $5.12, with 33,715 stocks clearing the market. Supreme Ventures dropped 40 cents in closing at $14, with 5,437 shares changing hands, Sygnus Credit Investments advanced $1.70 and ended at $19.40 in exchanging 93,341 shares and Wisynco Group advanced 45 cents to close at $16.90 trading 55,901 stock units.