Market activity ended on Monday, with the volume of stocks traded declining 69 percent and the valuing surging 185 percent over trading Friday at the close of the Jamaica Stock Exchange Main Market and ended with rising stocks just edged out by those declining.
The All Jamaican Composite Index dipped 44.74 points to 440,164.82, the JSE Main Index fell 1,246.97 points to 385,283.93 and the JSE Financial Index lost 0.22 points to settle at 91.53.
Trading ended with 59 securities up from 56 on Friday, with 24 rising, 25 declining and 10 ending unchanged.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14.5 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.
Overall, 10,717,973 shares were exchanged for $468,094,270 versus 34,028,346 units at $164,480,692 on Friday. Trading averages 181,661 units at $7,933,801, compared to 607,649 shares at $2,937,155 on Friday and month to date, an average of 274,067 units at $3,499,615, compared to 286,629 units at $2,896,811 on the previous trading day. May closed with an average of 238,645 units at $3,561,016.
Productive Business Solutions 9.75% preference share led trading with 3.63 million shares for 33.9 percent of total volume followed by Transjamaican Highway ended with 1.80 million units for 16.8 percent of the day’s trade and QWI Investments with 1.07 million units for 9.9 percent market share.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments declined $1.41 to end at $86.99, with 213,628 shares crossing the exchange, Berger Paints rallied $1 to close at $12 with an exchange of 11,736 stock units, Caribbean Cement shed $1.30 to $68.70 with the swapping of 25,573 stocks. Eppley jumped $7.90 in closing at $46 after trading two units, First Rock Capital gained $1.07 in ending at $13.07 and finishing trading with 6,954 units, Guardian Holdings fell $25 to close at $512 in switching ownership of 34 stocks. Jamaica Broilers dropped $1.49 in closing at $26 trading 73,934 stock units, Jamaica Producers lost 95 cents to end at $21.27 in an exchange of 1,736 shares, Jamaica Stock Exchange fell $1.60 to $18.35, with 4,545 stocks crossing the market. JMMB Group popped $1 in ending at $43 after an exchange of 149,358 stock units, Kingston Properties shed 40 cents to close at $7.51 while trading 15,395 shares, Massy Holdings advanced $1.50 to $94 after 47,901 units changed hands. Mayberry Investments climbed $1.50 to $10.50 with 532,238 stock units clearing the market, Mayberry Jamaican Equities declined 29 cents to $14.70, with 35,083 units crossing the market, MPC Caribbean Clean Energy lost $12.94 in closing at $95.01 after exchanging 10,624 shares. 138 Student Living dropped 43 cents in closing at $4.76, with 3,271 stocks changing hands, Palace Amusement dropped $78 to $910 in an exchange of 19 units, PanJam Investment rose 50 cents to $66 in exchanging 22 shares. 
Pulse Investments declined 59 cents to close at a 52 weeks’ low of $3.01 with 621,901 stocks changing hands, Sagicor Group rallied 90 cents to end at $56.90 in an exchange of 5,878 stock units, Scotia Group advanced $1.46 to close at $37.50 after exchanging 18,617 units. Stanley Motta climbed 40 cents in closing at $5.50 with the swapping of 3,590 shares and Supreme Ventures shed $1 to end at $29, with 113,240 stock units changing hands.
In the preference segment, Eppley 7.50% preference share lost $1.23 to end at $6, with 10,000 stocks crossing the market, 138 Student Living preference share fell 25 cents to $20.63 with 5 stock units changing hands and Productive Business Solutions 9.75% preference share gained $1.25 to $108.25 with 3,628,039 shares clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Modest slippage for Junior Market
Trading closed on the Jamaica Stock Exchange Junior Market Monday, with the volume ofJ stocks traded rising 18 percent and the value jumping 27 percent more than on Friday, resulting in slightly more stocks declining than those that gained.
A total of 44 securities were traded versus 40 on Friday, with 15 rising, 17 declining and 12 unchanged, resulting in the Junior Market Index losing 20.65 points to settle at 4,073.21.
The PE Ratio, a measure of computing appropriate stock values, averages 12.6. The PE ratios of the Junior Market incorporate ICInsider.com projected earnings for companies with year end that falls between November this year and August 2023.
A total of 8,135,173 shares traded for $31,415,140 up from 6,905,892 units at $24,772,346 on Friday. Trading averaged 184,890 shares at $713,980 in contrast to 172,647 shares at $619,309 on Friday, with the month to date, averaging 239,285 units at $995,375 compared to 246,694 units at $1,033,707 on the previous trading day. May closed with an average of 376,907 units at $1,638,631.
SSL Venture led trading with 1.91 million shares for 23.5 percent of total volume, followed by Tropical Battery with 695,314 units for 8.5 percent of the day’s trade and Spur Tree Spices with 648,106 units for 8 percent market share.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, AMG Packaging advanced 12 cents to $3.70, with 172,080 shares crossing the exchange, CAC 2000 rose 40 cents to close at $7.40 after trading 5,186 units, following the release of solid half year results. Cargo Handlers rallied $1.10 in closing at $12.10 with an exchange of 8,498 stocks. Caribbean Cream gained 10 cents in ending at $4.85 while exchanging 7,000 stock units, Caribbean Flavours increased 8 cents to end at $1.98 in switching ownership of 65,293 units, Elite Diagnostic shed 10 cents in closing at $3.30 after exchanging 4,783 shares. Express Catering lost 20 cents to close at $5.60, trading 183,500 stock units, Fontana popped 13 cents to end at $9.75, with 123,110 stocks crossing the market, Future Energy Source fell 9 cents to $5.80 in an exchange of 413,185 shares. Honey Bun climbed 30 cents in ending at $8.80 after 416,278 stock units crossed the market, Iron Rock Insurance declined 8 cents to $3 with the swapping of 298 stocks, Jamaican Teas increased 10 cents in closing at $2.97 after trading 317,167 units. Knutsford Express rose 50 cents to $8.50, with 40 stocks changing hands, Lasco Manufacturing rallied 24 cents to end at $5 after exchanging 89,244 stock units, Main Event dropped 9 cents to close at $8.80, with an exchange of 16,539 shares. 
Medical Disposables lost 45 cents in closing at $7, with 13,300 units clearing the market, Paramount Trading fell 10 cents to $1.90 after exchanging 365 stocks, Spur Tree Spices dipped 15 cents to close at $3.55 while trading 648,106 units and SSL Venture climbed 35 cents to $2.19 while exchanging 1,913,234 stock units.
In the preference segment, CAC 2000 9.5% preference share advanced 15 cents to end at $1.16 after exchanging 12,425 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Modest changes to JSE market indices – Monday
Trading on the Jamaica Stock Exchange on Monday ended with more declines in Main and Junior markets, with a marginal increase in the JSE USD market, with the JSE Combined Index slipping 1,350.76 points rally to close at 396,879.03.
The All Jamaican Composite Index shed just 44.74 points to 440,164.82, the JSE Main Index fell 1,246.97 points to close at 385,283.93, the Junior Market index slipped 20.65 points to 4,073.21 and the SE USD market index added a mere 0.09 points to close at 220.48.
Investors exchanged 18,885,506 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to $499.50 million and in the JSE USD market, US$4,111.
The market’s PE ratio ended at 23.9 based on 2021-22 earnings and 12.9 times those for 2022-23 at the close of trading.
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 and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use 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. 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. 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. 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 the 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.
Rule changes likely at JSE
Investors have been agitating about the circuit breaker that seems to have stimulated the Jamaica Stock Exchange into action. Feedback received by this publication, suggests that investors could see changes in the length of time the freeze in trading last, with the possibility that it could drop from the current one hour to a lesser period.
The stock exchange is definitely not going to remove the circuit breaker Marlene Street-Forrest advises. That seems to be supported by the findings of the World Federation of Exchanges research that found, “on average, stock returns stabilize, selling pressure resolves, and prices become more informative after trading resumes from the market-wide trading halts.”
The report also states that a recent survey by the World Federation of Exchanges indicates that a large majority – 86 percent of exchanges in the world have circuit breakers, although their design and calibration vary to answer the needs of different individual market structures.
But the JSE is undertaking studies to garner pertinent information on the triggering of the circuit breaker in the past that can be used to guide decision making in any change to the rules.
It could be that the exchange may do away with the two tiered rule of 15 percent and 30 percent and instead have just a 30 percent limit that could sharply reduce the high number of interruptions that occurred over the past three months, primarily in the Junior Market that has been much more bullish than the main market.
The Exchange is also looking at the possibility of extending trading hours, which could well add an hour to the current trading session, feedback from the exchange suggest, bringing the local exchanges more in line with many exchanges worldwide. This may well be merited with the increasing number of listings on the market with the possibility that there could be another six added listings during the rest of the year, in addition to the imminent listing of Dolla Financial.
No timeline seems to be set for the above changes, but it could well take place before the year ends if approved by the JSE board.
8 Junior Market stocks that should split
Stock splits and bonuses are two tools companies have in their tool kit to deliver value to their shareholders if used appropriately. Interestingly while the Scotia Group has used these tools repeatedly for the past several decades, Directors at NCB Group have frowned on the practice seeing no value to the group.
The critical point is that directors run a company for the benefit of shareholders not solely for the benefit of the company. Shareholders are kings and queens of the companies they own shares in and directors should not lose sight of that factor.
Some companies have split their stocks and investors love the results of these splits as they see where the values have mostly gone up, before and after the split. Some companies like the Lasco group have handled the split badly by overdoing it and creating too much liquidity that kills the value of the stock for years. The split is also an indication that a company’s profit is likely to grow short term which would cause the stock to struggle as the price gets more expensive without the split.
A look at the Junior Market shows 27 of the 45 companies listed trading below four dollars, with seven priced at more than twice $4. The price differential between the two groups suggests that a stock split is warranted if management is serious about the minority shareholders as well as creating the liquidity in the stock to maximize publicity from listing.
The seven companies are Access Financial, with only 270 million issued shares, with a stock split well overdue that will result in improved liquidity and build interest in it. Cargo Handlers at $11.50 has limited liquidity and needs a split to build back excitement into trading it. Dolphin Cove is the third one with the price at $15.25 and recently much higher, but the majority owner may not be so inclined to go the route of a split, but one never knows as local shareholders could well prevail on them to do so. Fosrich now trading around $27, is proposing a 10 to 1 stock split at the Annual General Meeting (AGM) this month. Honey Bun trading at $8.50 has the potential to move up to the $20 region later this year or early in 2023 and warrants a second split, having done one a few years ago.
Fosrich to vote on a 10 to 1 stock split at the coming AGM this month.
Back in 2020, management of ISP Finance had indicated that a split was on the cards, but even with the stock at more than $22 and highly illiquid with less than 3 percent of shares freely available for regular trading action to split the stock is nowhere in sight. Main Event is just at the borderline at $8.20 so a split may be in the future when it has fully recovered from the loss in business, with the advent of the covid-19 pandemic. There are 300 million shares issued with the top 10 holdings accounting for 93.5 percent. Stationery and Offer Supplies hinted at a past AGM that they had looked at it but felt the time was not right. The time may well be very close with the price trading recently around the $12 region with record profits expected this year a split could well happen with the AGM coming up later this year. The company has only 250 million shares issued of which 90 percent are held by the Top10 shareholders. Medical Disposables trades at $7-8 region, with the price not yelling for a split just yet but if management is smart they would split the stock with only 263 million shares issued, a two for one basis as rising profit this fiscal year will probably put the price to around $5 after such a split when all is said and done.
Volume jumps on JSE Main Market
Trading on the Jamaica Stock Exchange Main Market ended on Friday, with the volume of stocks traded jumping 221 percent and 21 percent higher than on Thursday as declining stocks continue to exceed those rising.
The All Jamaican Composite Index shed 510.21 points to settle at 440,209.56, the JSE Main Index gained 102.53 points to close at 386,530.90 and the JSE Financial Index declined 0.06 points to settle at 91.75. Trading ended with 56 securities compared to 54 on Thursday, with 17 rising, 21 falling and 18 ending unchanged.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14.6 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.
Overall, 34,028,346 shares were exchanged for $164,480,692 versus 10,590,832 units at $135,566,664 on Thursday. Trading averages 607,649 units at $2,937,155, compared to 196,127 shares at $2,510,494 on Thursday and month to date, an average of 286,629 units at $2,896,811, compared to 239,071 units at $2,890,834 on the previous trading day. May closed with an average of 238,645 units at $3,561,016.
JMMB Group 7.35% preference share due 2028 led trading with 27.48 million shares for 80.7 percent of total volume, followed by Jamaica Broilers with 1.1 million units for 3.2 percent of Friday’s trade and Transjamaican Highway with 970,028 units for 2.9 percent market share.
The Investor’s Choice bid-offer indicator shows ten stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Caribbean Cement rose $9 to close at $70 with the swapping of 1,296 shares, Caribbean Producers rallied 33 cents to $14.50 with an exchange of 40,540 stocks, Eppley fell $8.90 to $38.10, with 10,859 stock units crossing the exchange. Eppley Caribbean Property Fund declined $1.50 to $43.50 with 1,045 units changing hands, First Rock Capital shed $1.10 in ending at $12 while exchanging 51,837 shares,GraceKennedy climbed $1 to close at $106 in switching ownership of 32,735 units. Guardian Holdings advanced $26 to $537 with 2,783 stock units clearing the market, Jamaica Broilers lost 49 cents in ending at $27.49 after exchanging 1,098,934 stocks, Jamaica Stock Exchange gained $1.95 to end at $19.95, with 400 stock units crossing the market. JMMB Group dropped $1 in closing at $42 with 273,211 units changing hands, Key Insurance increased 25 cents to $4.20 while exchanging one share, Kingston Wharves popped $2.49 to end at $38.99 in trading 1,474 stocks. 
Massy Holdings dropped $1.50 to $92.50 with 266 units changing hands, Mayberry Investments shed $1.06 to close at $9 in exchanging 254,204 shares, NCB Financial lost $2 in closing at $101 in an exchange of 106,486 stock units. PanJam Investment rose $1 to $65.50 after trading 8,419 stocks, Proven Investments declined 77 cents to end at $37.05 after 13,981 stocks passed through the market, Sagicor Group fell 90 cents in closing at $56 with the swapping of 81,399 units. Stanley Motta fell 40 cents to close at $5.10 in trading 8,000 shares and Supreme Ventures dropped 25 cents to $30 after exchanging 75,133 stock units.
In the preference segment, Eppley 7.25% preference share lost $1.95 to end at $20.05 in switching ownership of 801 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Volume climbs on JSE USD market Friday
Trading on the Jamaica Stock Exchange US dollar market ended on Friday, with the volume of stocks traded rising 995 percent and the value jumping 1,406 percent more than on Thursday, resulting in a decline in the market index.
A total of six securities traded, compared to eight on Thursday, with one rising, two declining and three ending unchanged. The JSE US Denominated Equities Index slipped 0.06 points to end at 220.39.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.4. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending up to August 2023.
Overall, 247,506 shares traded, for US$57,518, up from 22,611 units at US$3,819 on Thursday.
Trading averaged 41,251 units at US$9,586, up from 2,826 shares at US$477 on Thursday, with a month to date average of 112,119 shares at US$4,929 versus 119,712 units at US$4,430 on the previous day. May ended with an average of 47,916 units for US$3,528.
Investor’s Choice bid-offer indicator shows two ended with higher bids than the last selling prices and none with a lower offer.
At the close, First Rock Capital USD share rose 0.1 of a cent to 7.5 US cents with 5,313 shares clearing the market, 
Margaritaville ended unchanged at 15 US cents in trading 10,006 stocks, Proven Investments lost 0.1 of one cent to end at 26 US cents in switching ownership of 210,953 units. Sterling Investments fell 0.2 of a cent to 2 US cents after exchanging 7,000 stock units, Sygnus Credit Investments USD share finished at 12.39 US cents while exchanging 1,990 stocks and Transjamaican Highway remained at 0.98 of one US cent after trading 12,244 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading drops on stable Junior Market
Trading closed on the Jamaica Stock Exchange Junior Market Friday, with the volume of stocks traded declining 57 percent and the value 72 percent lower than on Thursday, leading to 40 securities trading versus 41 on Thursday, with 16 rising, 15 declining and nine closing unchanged.
At the close, the Junior Market Index slipped 1.52 points to 4,093.86.
The PE Ratio, a measure of computing appropriate stock values, averages 12.9. The Junior Market PE ratios incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
A total of 6,905,892 shares traded for $24,772,346 compared to 16,085,002 units at $88,518,673 on the Thursday. Trading averaged 172,647 shares at $619,309 in contrast to 392,317 shares at $2,158,992 on Thursday, with a month to date average of 246,694 units at $1,033,707 compared to 257,160 units at $1,092,280 on the previous trading day. May closed with an average of 376,907 units at $1,638,631.
JFP Limited led trading with 1.03 million shares for 15 percent of total volume, followed by Jamaican Teas with 909,489 units for 13.2 percent of the day’s trade and Lumber Depot with 846,346 units for 12.3 percent market share.
The Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Access Financial gained 90 cents to end at $20.45 after trading 645 shares, Cargo Handlers dropped $1.52 to end at $11 in switching ownership of 77,669 units, Elite Diagnostic fell 37 cents in closing at $3.40 with 198,827 stocks changing hands. Everything Fresh increased 8 cents to $1.25 with an exchange of 58,263 stock units, Fontana fell 22 cents to close at $9.62 in exchanging 193,395 shares, Fosrich advanced 30 cents to close at $27.30 after trading 20,105 units. Honey Bun declined 47 cents and ended at $8.50, with 36,486 stocks crossing the exchange, iCreate popped 38 cents to $2.89 with 430,232 stock units changing hands, Indies Pharma rallied 10 cents to end at $3.10, with 6,294 shares clearing the market. Jamaican Teas shed 10 cents to $2.87 with the swapping of 909,489 stocks, Jetcon Corporation climbed 16 cents in closing at $1.26 after exchanging 343,454 stock units, Knutsford Express declined 40 cents to $8 after 15,047 units crossed the market.
Lasco Distributors shed 14 cents to $3.30 in trading 37,117 stock units, Lasco Manufacturing dropped 24 cents to end at $4.76 with an exchange of 2,656 shares, Main Event rose 69 cents to close at $8.89 with 1,000 stocks changing hands and Stationery and Office Supplies lost 98 cents to end at $11 after an exchange of 10,159 units.
In the preference segment, CAC 2000 9.5% preference share fell 15 cents to close at $1.01, trading 2,510 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Small changes in JSE markets – Friday
There were just small changes to the Jamaica Stock Exchange in closing out Friday and the week with the JSE Combined Index reflecting the mode of the market with an 82.50 points rally to close at 398,229.79.
The All Jamaican Composite Index shed 510.21 points to 440,209.56, the JSE Main Index rose 102.53 points to 386,530.90, the Junior Market index slipped 1.51 points to 4,093.86 and the JSE USD market index eased a mere 0.06 points to close at 220.39.
A total of 41,181,744 shares were traded in all markets, with the value of stocks traded in the Main and Junior Markets amounting to $189.25 million and in the JSE USD market, US$57,581.
The market’s PE ratio ended at 24 based on 2021-22 earnings and 12.9 times those for 2022-23 at the close of trading.
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 and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use 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. 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. 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. 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 the 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.
Barita to pay $666M in dividend
Barita Investments will be paying an interim dividend of 54.6 cents per stock unit on June 30, 2022, the company advised.
The company’s Board of Directors approved a Resolution on June 9, 2022, for the payment to shareholders on record at the close of business on June 23, 2022, and will cost $666.3 million. The stock will trade ex-dividend on June 22, 2022. The company last paid a dividend of $3.029 per stock unit on October 7, last year, to shareholders on record at the close of business on September 23, 2021.
.
Elsewhere, Scotia Group reported financial results with a net income of $4.4 billion for the six months ending April 2022, down from $4.48 billion in 2021 for the same period.
The Directors of Scotia Group approved a dividend of 35 cents per stock unit in respect of the second quarter, payable on July 20, to stockholders on record on June 28. The dividend amounts to $1.09 billion amounting to 42 percent of the profit on 83 cents per share in the April quarter.
