The volume of stocks traded declined 60 percent with 53 percent lower value than on Friday, with trading taking place in 58 securities the same number as on Friday, with 18 rising, 26 declining and 14 ending unchanged in trading activity on the Jamaica Stock Exchange Main Market on Monday.
A total of 9,529,184 shares were traded for $38,472,860 compared with 24,040,809 units at $81,535,879 on Friday.
Trading averaged 164,296 shares at $663,325 versus 414,497 stocks at $1,405,791 on Friday and month to date, an average of 249,752 units at $1,016,812 compared with 294,006 units at $1,199,867 on the previous day. May closed with an average of 226,361 units at $1,362,447.
Wigton Windfarm led trading with 3.84 million shares for 40.3 percent of the total volume, Transjamaican Highway followed with 2.58 million units for 27 percent of the day’s trade and Radio Jamaica with 622,238 units for 6.5 percent market share.
The All Jamaican Composite Index dropped 1,262.06 points to close trading at 369,455.98, the JSE Main Index lost 279.16 points to settle at 335,318.38 and the JSE Financial Index lost 0.06 points and concluded trading at 75.19.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.4 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2023.
Investor’s Choice bid-offer indicator shows seven stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, Berger Paints popped 60 cents in closing at $8.11 after an exchange of 1,059 shares, Caribbean Cement fell $3.85 to $52 after investors traded 22,874 stocks, Eppley Caribbean Property Fund dipped $2.60 to end at $40.40 with 184 stock units changing hands. Guardian Holdings dropped $2 to close at $480 in an exchange of 1,450 units, Jamaica Broilers declined 94 cents to $35, with 63,678 stocks crossing the market, Jamaica Stock Exchange increased 72 cents to $13.72 after 11,001 shares crossed the exchange. Key Insurance rallied 58 cents to close at $3.38 with shareholders swapping 100 stock units, Massy Holdings climbed $2 to end at $102, with 557 units clearing the market, MPC Caribbean Clean Energy rallied $1 to $71 in an exchange of 84 stocks. NCB Financial rose $1.15 to $69.75 with 40,595 stock units changing hands, 138 Student Living rallied 33 cents to $5.48 as investors traded 1,033 units, Pan Jamaica Group lost $4.04 in closing at $50.05 after 2,252 shares were traded, Sagicor Group shed $1 to end $49.50, with 16,683 stocks changing hands. Scotia Group dropped 65 cents to end at $34.10, with 36,625 stock units crossing the market, Seprod shed $1.46 to close at $68.54 with a transfer of 22,768 units, Supreme Ventures declined 30 cents to $26.50 as 111,196 shares passed through the market and Wisynco Group lost 39 cents and ended at $18.50 in switching ownership of 6,227 shares.
In the preference segment, Jamaica Public Service 7% fell $11.78 to close at $66.72 with investors transferring 191 stock units and JMMB Group 7.15% due 2028, dipped 32 cents in closing at $2.68 after an exchange of 20,041 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Kremi tops ICTOP10 Lasco Manufacturing in
Iron Rock Insurance ended the past week up 14 percent to $2.25 and Lasco Distributors climbed 11 percent to $2.77 after both jumped 34 percent and 21 percent, respectively, earlier in the week, with two new stocks entering the Junior Market ICTOP10. At the same time, the Main Market TOP10 delivered moderate up and down movements.
The Lasco Distributors price movement follows release of full year results with earnings of 38.5 cents per share, with ICInsider.com projecting earnings of 55 cents for the fiscal year ending March 2024, leaving much room for solid upside price movement in the months ahead.
Lasco Manufacturing (LasM) and Caribbean Cream (Kremi) released improved full year results over those for 2022. Importantly, ICInsider.com forecast for the 2024 fiscal year is 70 cents per share for LasM and 90 cents for Kremi, with both entering the TOP10 this week, with one at the top and one at the bottom. Iron Rock Insurance and Edufocal fell from the Junior Market TOP10 to make way for the two stocks.
The stock rising in the ICTOP10 Junior Market, apart from those mentioned in the opening paragraph, is Consolidated Bakeries, with an increase of 4 percent to $2.27. At the same time, Caribbean Assurance Brokers, iCreate and One on One dipped 4 percent to $2.40, $1.26 and $1.10 respectively.
The price of Main Market listed Caribbean Producers, popped 5 percent in closing at $10.06, Key Insurance fell 11 percent to $2.80 and 138 Student Living lost 8 percent in value to close at $5.15.
At the end of the week, the average PE for the JSE Main Market TOP10 is 5.9, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 259 percent, to May 2024, based on 2023 forecasted earnings.
The 15 most highly valued Main Market stocks are priced at a PE of 15 to 110, with an average of 28 and 19 excluding the highest PE stocks and 18 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.3 compared with the market at 10.5. There are 10 stocks representing 21 percent of the market, with PEs from 15 to 24, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently. Junior Market is projected to rise by 295 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the level of likely gains for ICTOP10 stocks.
In the market generally, Investors continue to nibble away at a number of stocks and, in the process, gradually reduce the supply of several stocks that are attractively priced as the market moves toward the summer months, the start of the stock market year.
A look behind the supply chain shows an ever decreasing number of stocks on offer. The list includes Caribbean Assurance Brokers with strong buying interest between $1.88 and $2.40, but limited selling above $2.50, Caribbean Cement, Caribbean Producers (CPJ), Fontana, Dolphin Cove, Honey Bun, Main Event, Massey Holdings, Seprod, Transjamaican and Wisynco have started to look positive. Supplies of some stocks are being quietly sucked out of the market, setting the stage for a sustained rally sometime down the road. 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 are likely to 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.
Insurance companies head ICTOP10
The JSE Main Market gained more than 7,000 points in the past week, but the Junior Market just closed a few points north of the prior week’s close, resulting in sizable changes in both markets’ ICTOP10 as insurance companies head TOP10.
Elsewhere the only other news of note was the passing of the Chairman and majority owner of the Lasco companies, the addition of two new directors at ISP Finance and the Bank of Jamaica issue of $35 billion in 28 days CDS with investors offering to buy just $35.24 billion, BOJ took up less than the amount offered with $34.45 billion being sterilized the amount offered and moved the total amount of CDs outstanding to a record $111.45 billion up from $109 billion the week before. The average interest rate climbed back above 8 to 8.24 percent.
Investors are nibbling at stocks that seem to be the market signal being sent, with gains in some of the ICTOP10 listings. Notable amongst them are Caribbean Assurance Brokers with solid buying interest between $1.88 and $2.09 but limited selling above $2.50, Caribbean Producers (CPJ), Dolphin Cove Massey Holdings, Transjamaican, and Wisynco have started to look positive. Supplies of some stocks are being quietly sucked out of the market and setting the stage for a sustained rally sometime down the road. Investors should look to July as an important month that could trigger a change in mood as investors anticipate second quarter results.
Action in the markets this past week resulted in four ICTOP10 Junior Market stocks recording significant losses of 6 to 26 percent, with only 2 with 4 percent gains. Everything Fresh dropped out of the TOP10 and iCreate returns after a brief absence. Main Market stocks were mixed, with one noted loss and two gains of note.
Stocks rising in the ICTOP10 Junior Market are Everything Fresh and One on One, which increased 4 percent to $$1.72 and $1.15, respectively. Iron Rock Insurance dropped 26 percent to $1.85, Consolidated Bakeries shed 10 percent to $2.19, while Dolphin Cove and Lasco Distributors lost 6 percent to end at $15.50 and $2.50, respectively.
The price of Main Market listed Transjamaican rose 6 percent to close at $2.02, Caribbean Producers popped 5 percent in closing at $9.54 and Key Insurance fell 14 percent to $3.15.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.9, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 252 per cent, by May 2024, based on 2023 forecasted earnings.
The 15 most highly valued Main Market stocks are priced at a PE of 15 to 93, with an average of 29 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 10.9. There are 11 stocks representing 23 percent of the market, with PEs from 15 to 25, averaging 19, which is well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently. Junior Market is projected to rise by 265 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 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.