Investors pumped vastly more money into the Main market of the Jamaica Stock Exchange on Wednesday, with Jamaica Broiler, PanJam Investment and Seprod commanding the bulk of the funds, resulting in slightly more shares than on Tuesday but all market indices declined at the close of the market.
At the close of trading, the market ended with an exchange of 27,399,448 shares in all three markets, up from 26,376,227 units, with a value of $839.28 million, up solidly from $286 million previously traded. Trading on the JSE USD market resulted in investors exchanging shares for US$14,617 compared to US$5,401 on Tuesday.
The JSE Combined Market Index dropped 1,435.72 points to 344,658.46, the All Jamaican Composite Index fell 2,054.55 points to 374,358.38, the JSE Main Index shed 1,507.91 points to end at 331,439.19, the Junior Market slipped 3.33 points to 3,864.40 and the JSE USD Market Index shed 0.85 points to end at 231.30.
The market’s PE ratio ended at 19.3 based on 2021-22 earnings and 12.5 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate many investment options 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 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 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 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 also show the closing volume pertaining to the bids and offers for each company.
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.
Big surge in money entering JSE
Low level trading for JSE USD Market
Trading was steady on the Jamaica Stock Exchange US dollar market on Tuesday, with little change in the volume of stocks changing hands having a 33 percent lower value than Monday, and resulting in five securities being traded, compared to seven on Monday with two rising, no declining and three ending unchanged.
Overall, 48,512 shares were exchanged for US$5,401 compared to 48,673 units at US$8,035 on Monday.
Trading averaged 9,702 units at US$1,080 versus 6,953 shares at US$1,148 on Monday, with a month to date average of 8,605 shares at US$3,103 compared with 8,422 units at US$3,440 on the previous day. February ended with an average of 43,793 units for US$2,015.
The JSE USD Equities Index gained 1.58 points to end at 232.15.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.8. The PE ratio is computed based on the last traded price of each stock divided by projected earnings forecasts done by ICInsider.com for companies with their financial year ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than the last selling prices and none with a lower offer.
At the close, Productive Business Solutions gained 0.1 of a cent to end at US$1.90, with investors exchanging 14 shares, Proven Investments remained at 18.5 US cents after 17,747 stocks changed hands, Sygnus Credit Investments USD share ended at 9.8 US cents with 17,431 stock units crossing the market and Transjamaican Highway ended at 0.96 US of a cent in trading 13,300 units.
In the preference segment, Productive Business 9.25% preference share rallied 30 cents to close at US$12.40 after exchanging 20 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Solid trading gains for JSE markets
The Jamaica Stock Exchange markets traded mixed at the close of trading on Tuesday with Junior and USD markets gaining moderately and the Main Markets declining as trading levels jumped sharply over that on Monday.
At the close of trading, the market ended with an exchange of 26,376,227 shares in all three markets, up from 15,864,894 units, with a value of $286 million, up solidly from $140 million previously traded. Trading on the JSE USD market ended with investors trading shares for US$5,401 compared with US$8,035 on Monday.
The JSE Combined Market Index dropped 1,061.92 points to 346,094.18, the All Jamaican Composite Index dropped 2,901.00 points to 376,412.93, the JSE Main Index slipped 1,239.98 points to close at 332,947.10, the Junior Market rose 10.03 points to 3,867.73 and the JSE USD Market Index popped 1.58 points to end at 232.15.
The market’s PE ratio ended at 19.5 based on 2021-22 earnings and 12.6 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate many investment options 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 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 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 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 also show the closing volume pertaining to the bids and offers for each company.
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.
Trading down on JSE USD Market
Trading on the Jamaica Stock Exchange US dollar market ended on Monday, with the volume of stocks changing hands declining 54 percent with the value 14 percent lower than on Friday, resulting from trading of seven securities, compared to eight on Friday with prices of two rising, three declining and two ending unchanged leading to the JSE USD Equities Index losing 1.93 points to end at 230.57.
Overall, 48,673 shares were traded for US$8,035 down from 105,350 units at US$9,368 on Friday.
Trading averaged 6,953 units at US$1,148 versus 13,169 shares at US$1,171 on Friday, with a month to date average of 8,422 shares at US$3,440 compared with 8,869 units at US$4,137 on the previous day. February ended with an average of 43,793 units for US$2,015.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.8. The PE ratio is computed based on the last traded price of each stock divided by projected earnings forecasts done by ICInsider.com earnings for companies with their financial year ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than the last selling prices and none with a lower offer.
At the close, MPC Caribbean Clean Energy popped 2.33 cents to 69 US cents with an exchange of 51 shares, Proven Investments shed 0.5 of a cent to end at 18.5 US cents with an exchange of 8,600 units, Sygnus Credit Investments J$ share dipped 0.01 of a cent to close at 10.2 US cents with the swapping of 550 stocks. Sygnus Credit Investments USD share lost 0.19 of a cent in closing at 9.8 US cents as 4,400 stock units passed through the market and Transjamaican Highway rallied 0.06 of a cent to 0.96 US of one US cent with 29,938 stocks clearing the market.
In the preference segment, JMMB Group 5.75% remained at US$2.01 after a transfer of 58 shares and JMMB Group 6% ended at US$1.09 with a transfer of 5,076 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
3 new ICTOP10 stocks after week’s gains
The Main Market gained 1.3 percent and the Junior Market 2.4 percent over the previous week, the first sign that stocks may be coming back to life, following the end of earning season with a mixed bag of results and the sounding of prospects for a better period ahead, with cost pressures that existed last year in stockpiling supplies to meet demand that squeezed margins have started to recede, with the promise of higher profit margins ahead.
The period saw many companies reporting solid gains in profit that investors are yet to award with better prices than the results demand, which is not expected to last for long as supplies of many stocks have been declining in recent weeks.
ICTOP10 has three new additions to the Junior Market TOP10 while the Main Market remains steady.
The week closed with rising stocks dominating the Junior Market TOP10. Paramount Trading fell 9 percent in the prior week, led rising stocks this past week, with a gain of 18 percent to $2.35, followed by Main Event, put on 15 percent to land at a new high of $12.39, Lasco Distributors and Lasco Manufacturing rose 8 percent to $2.81 and $4.30, respectively. Iron Rock Insurance fell 13 percent to $2.08 and Tropical Battery dipped 4 percent to $2.20.
Six stocks rose in the Main Market TOP10, with 138 Student Living rising 10 percent to $5.50, the price of Jamaica Broilers rose 9 percent to $36 as investors warmed to the stock following release of outstanding second quarter numbers and the price having a long way to run. Caribbean Producers, that is undervalued, rose 6 percent to $10 as selling pressure eased somewhat.
Price changes resulted in Paramount Trading, Main Event and Lasco Manufacturing exiting the Junior Market TOP10 and replaced by AMG Packaging, Everything Fresh and Stationery and Office Supplies.
AMG Packaging enjoyed improved profit margin in the November quarter compared with that in 2021, even as sales fell slightly in the latest quarter to November, which augurs well for increased profit in the current year, with revenues projected to rise in the year with more business opportunities as the economy continues to grow at a healthy pace. Everything Fresh and Stationery and Office Supplies (SOS) earnings reflect that for the current year. Everything Fresh now heads the Junior market TOP10, having reported profit for an entire year in 2022 for the first time since they released a depressed $16 million profit in 2018. Profit came in at $48 million before tax for 2022, a modest change from $47 million reported for the nine months to September after finance costs rose 43.5 percent in the December quarter over the nine months to September. With 2023 setting up to be the strongest tourist season since 2019, the company is set to see a big jump in business from that sector and profit in 2023, that should see the company earned 30 cents per share, that is why it is in ICTOP10. SOS posted record profits for 2022 with a 169 percent increase before tax from a 55 percent jump in revenues. Of note are a 35 percent increase in fourth quarter revenues and a deal struck with a company in Trinidad to cross sell products that should add to revenues in 2023 and push earnings to $2 per share for the year. With improving profits and shrinking supplies outside of the TOP 10 shareholders, who control 91 percent of the issued shares, the stock is setting up for a stock split that cannot be far off and, when given, will catapult the stock price upwards.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.9, while the Junior Market Top 10 PE sits at 6.1 compared with the market at 11.8. The differences are important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 240 percent and the Main Market TOP10 by an average of 284 percent to May 2024, now that TOP10 stocks earnings are based on 2023 profits.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 26, averaging 19.5, well above the market’s average. The top half of the market has an average PE of 17. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 12 highest valued stocks priced at a PE of 15 to 115, with an average of 32 and 23 excluding the highest valued stocks and 21 for the top half excluding the highest valued stocks.
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.