The All Jamaica and the Junior Market indices closed the week higher than the previous week but with the Junior Market trading at its lowest since early June this year. The Main Market index which includes overseas companies, slipped back during the week. Stocks measured by the All Jamaica Index recorded gains of 4,565 points from the end of October in the past week and traded at a near two months high and have been flashing bullish signals with a sharp breakout looking very likely.
Some positives are visible in the market, with a sharp decline in the volume of some stocks being sold. Scotia Group is one such stock, as it approaches the release of full year results and an announcement on dividends, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with a very limited supply of stocks on offer.
Even as the Main Market index rose in the past week, winners were hard to find the Main Market ICTOP10, with the highest riser up just 3 percent as Key Insurance dropped 20 percent to $2, followed by Palace Amusement down 14 percent to $1.12 and Sygnus Credit Investments declining 7 percent to $11.11.
The Junior Market has 6 stocks gaining, with Iron Rock Insurance jumping 20 percent to $2.65, Express Catering rallying 7 percent to $4 and AMG Packaging rising 4 percent to $2.59 while Caribbean Creamfell 16 percent to $3.10.
There was just one new addition to the ICTOP10 with a listing for the Junior Market with Access Financial dropping out of the list and replaced by Honey Bun, with projected earnings per share of 70 cents for the fiscal year ended September and $1 for 2024.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 12.9. The Main Market ICTOP10 is projected to gain an average of 302 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, over half of the market, with an average of 13.1. There are 15 stocks, or 30 percent of the market, with PEs from 15 to 49, averaging 20 that are well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 200 percent on or around May 2024.
Of import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. 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 on or around May 2024 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 and result 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 4,811,921 shares for $11,579,633 compared with 20,658,101 units at $44,997,586 on Thursday.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one with a lower offer.
Jamaican Teas lost 10 cents to close at $2.38 after 115 stocks crossed the exchange, JFP Ltd declined 17 cents to $1.41 with investors trading 290,287 units, KLE Group rose 15 cents to $1.64 while exchanging 11 stock units. Knutsford Express gained 19 cents in closing at $12.94 after a transfer of 933 shares, Limners and Bards shed 14 cents to end at $1.60 as investors traded 12,021 stock units, Lumber Depot dropped 18 cents to close at $2.39 with a transfer of 37,032 stocks. MFS Capital Partners rallied 38 cents to $2.48 after exchanging 70,032 units, 
Regency Petroleum fell 24 cents to close at $2.25 with investors transferring 1,064,663 stocks and Spur Tree Spices skidded 19 cents to end at $2.30 after an exchange of 39,063 shares.
At the close of trading, the JSE Combined Market Index popped 366.08 points to close at 328,951.43, the All Jamaican Composite Index climbed 1,439.55 points to end the final month of the year at 351,375.40, the JSE Main Index rose 521.37 points to close at 315,669.00. The Junior Market Index after it surged 76.62 points on Thursday, dipped 14.05 points to close at 3,757.04 on Friday as trading fell sharply in the market to start the final month of the year of trading negatively and the JSE USD Market Index dipped 1.01 points to wrap-up trading for the week at 226.85.
The market’s PE ratio, the most popular measure used to determine the value of stocks, ended at 21.8 on 2022-23 earnings and 14 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily charts provide investors with regularly updated information to help decision-making.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
At the close, the Junior Market Index advanced 76.62 points to lock up trading at 3,771.09 with the market closing 91.78 points lower than the October close and is down 5.4 percent for the year to date.
The Junior Market ended trading with an average PE Ratio of 13.4, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2024.
ISP Finance rallied 50 cents to close at $31.50, with a mere 2 stocks clearing the market, JFP Ltd increased 18 cents to $1.58 after exchanging 1,011,951 stock units, Knutsford Express climbed 55 cents to close at $12.75 with investors dealing in 24,601 shares. Lasco Distributors popped 20 cents and ended at $4.10 with a transfer of 31,102 stocks, Lasco Manufacturing declined 30 cents to end at $4.20 after an exchange of 16,971 units, Lumber Depot advanced 18 cents in closing at $2.57 with shareholders swapping 18,272 stock units. Main Event fell 35 cents to $13.55 and closed after an exchange of 11,214 stock units, MFS Capital Partners rose 9 cents to close at $2.10 with traders dealing in 169,754 shares, Paramount Trading gained 22 cents in closing at $1.70 after switching 11,000 stocks. 
Regency Petroleum rallied 20 cents to end at $2.49 after 3,431,680 units changed hands, Spur Tree Spices rose 24 cents and ended at $2.49 as investors exchanged 3,151,885 stock units and tTech advanced 12 cents to $2.22 in trading 11 shares.
The JSE Combined Market Index popped 2,530.12 points to finish at 328,585.35, at the same time the All Jamaican Composite Index jumped 2,968.81 points to 349,935.85, the JSE Main Index rallied 1,982.67 points to 315,147.63. The Junior Market Index surged 76.62 points to lock up trading at 3,771.09 and the JSE USD Market Index lost 0.40 points to end at 227.86.
In the preference segment, there were no stocks trading with notable price movements.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Investors traded 54,284,961 shares at $125,759,136 compared to 6,118,187 units at $16,249,732 on Tuesday.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and six with lower offers.
Jamaican Teas rallied 13 cents to $2.44 and closed with an exchange of 51,685 units, Knutsford Express rose $1.05 in closing at $12.20 after investors traded 1,254 stocks. Lasco Distributors lost 8 cents to end at $3.90 with a transfer of 11,870 shares, Lasco Manufacturing rallied 23 cents and ended at $4.50 while trading 1,009 stock units, Lumber Depot declined 22 cents to $2.39 after 102,843 stocks were traded. Mailpac Group popped 10 cents to $2.15 with an exchange of 30,116 units, Main Event increased 89 cents to close at $13.90 with 311 shares clearing the market, Medical Disposables dipped 12 cents to end at $2.90 after an exchange of 16,201 stock units. MFS Capital Partners fell 8 cents in closing at $2.01 with investors transferring 21,500 units, Paramount Trading shed 19 cents and ended at $1.48 in switching ownership of 25,028 stocks, 
Regency Petroleum climbed 8 cents to $2.29, with 392,399 units crossing the exchange and Spur Tree Spices gained 15 cents to close at $2.25 with traders dealing in 41,230 shares.
At the close of trading, the JSE Combined Market Index rose 793.44 points to close at 326,055.23, the All Jamaican Composite Index declined by 193.70 points to 346,967.04, the JSE Main Index gained 939.00 points to finish at 313,164.96. The Junior Market Index shed 9.97 points to end trading at 3,694.47 and the JSE USD Market Index climbed 4.49 points to end at 228.26.
In the preference segment, 138 Student Living preference share rallied $17.21 to close at $106.49.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Investors traded 6,118,187 shares for $16,249,732 compared with 2,456,405 units at $5,558,360 on Monday.
The Junior Market ended trading with an average PE Ratio of 13, based on last traded prices in conjunction with earnings projected by ICInsider.com for the financial years ending around August 2024.
Honey Bun climbed 10 cents to $6.10 with an exchange of 1,155 stocks. iCreate shed 9 cents to end at 61 cents after 103,596 units passed through the market, Image Plus fell 9 cents in closing at $1.91 in an exchange of 8,390 stock units, Iron Rock Insurance skidded 60 cents and ended at $2.05 after trading 306,500 shares. Jamaican Teas declined 14 cents to close at $2.31 after a transfer of 187,281 units, Lasco Distributors lost 12 cents to end at $3.98 in switching ownership of 10,021 stocks, Limners and Bards rose 13 cents to end at $1.74, with 14,349 stock units crossing the market. Main Event skidded 98 cents in closing at $13.01 in an exchange of 40,000 shares, 
MFS Capital Partners gained 25 cents and ended at $2.09 with 888,888 stocks changing hands and Spur Tree Spices fell 10 cents to close at $2.10 with a transfer of 107,170 units.
At the close of trading, the JSE Combined Market Index dropped 3,283.21 points to 325,261.79, the All Jamaican Composite Index dived 3,930.88 points to cease trading at 347,160.74, the JSE Main Index shed 3,454.22 points to 312,225.96. The Junior Market Index shed 4.96 points to cease trading at 3,704.44 and the JSE USD Market Index shed 3.22 points to conclude trading at 223.77.
The market’s PE ratio, the most popular measure used to determine the value of stocks, ended at 21.5 on 2022-23 earnings and 14 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily charts provide investors with regularly updated information to help decision-making.
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.
For the half year, profit jumped 76 percent to $234 million as loan granted borrowers rose almost $600 million to $5.36 billion from $4.76 billion in September 2022 and the same amount since March this year. The company had more than $760 million available to lend plus cash flows from profit that should pushed lending up around 25 percent year over year and helped to swell profits for the year substantially above the six months levels.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on full year’s earnings.