The markets are changing, with the Main Market up for three consecutive weeks but the Junior Market meandering for the last four weeks. Against this backdrop, there was one change to the TOP10, with iCreate coming in and Dolla Financial falling out, but Dolla and Honey Bun, that slipped out the previous week, sit immediately below the TOP10.
There were no significant winners for the past week in both markets’ TOP10 as losers dominated. The Junior market had Consolidated Bakeries falling 11 percent to $2.17 and general Accident down 10 percent to $5.40 and Lasco Distributors down 3 percent, with the stock selling at just 5.5 times 2023 estimated earnings and only 8.5 times the company’s nine month results. By any stretch, the stock is considerably undervalued and there are more profits to come in the current fiscal year.
Main Market stocks had a 13 percent fall in Key Insurance after the price closed at $3.08, Berger Paints contracted by 9 percent to $7.54 and 138 Student Living slipped 5 percent to $5.03, while Jamaica Broilers rose just 3 percent to $37.
Stocks are being prepped to rally, with early signals that interest rates will be declining across the board sooner than later. This stems from the continued slide of rates on BOJ CDs since March, that saw the rate falling by 23 percent to 8.11 percent against a background where inflation since November last year is running at less than one percent per annum.
At the week’s close, Image Plus released full year results showing profit after tax jumping 125.6 percent to $213 million or 21 cents per share. ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index this past week, with the supply of some stocks falling sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.8, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 257 percent and the Main Market TOP10 by an average of 280 percent to May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15to 27, averaging 21, well above the market’s average. The top half of the market has an average PE of 17, suggesting that this may currently be the lowest fair value for Junior Market stocks.
The 18 highest valued Main Market stocks are priced at a PE of 15 to 115, with an average of 29 and 20 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
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.
A total of 15,514,547 shares were traded for $64,737,290 compared to 9,660,257 units at $49,441,575 on Thursday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.8 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Pan Jamaica Group dropped $1.94 in closing at $54.50 after an exchange of 60,692 shares, Radio Jamaica jumped 50 cents to end at $2.25 after 1,483,903 stocks changed hands, Sagicor Group climbed $2.97 to $52 with the swapping of 218,681 stock units, Seprod fell $2 in closing at $73 as investors exchanged 15,401 units. Supreme Ventures dipped $1.46 to $28 in an exchange of 67,158 stock units, Sygnus Real Estate Finance rallied $1.50 to close at $10.89 after a transfer of 3,947 shares and Wisynco Group popped 56 cents to end at $17.45 with 236,080 stocks crossing the exchange.
138 Student Living preference share shed 65 cents in ending at $88, with 50 units crossing the market and Productive Business Solutions 9.75% preference share lost $9 in closing at $95 after exchanging 10 stock units.
A total of 9,660,257 shares were traded for just $49,441,575 versus 27,085,519 units at $325,797,894 on Wednesday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.6 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Kingston Properties rallied 85 cents to close at $7.50 after trading 123,711 stock units, Margaritaville dropped 38 cents in closing at $18.62 with the swapping of 451 stocks, Massy Holdings gained $2.50 to end at $88, with 64 stocks crossing the market. MPC Caribbean Clean Energy shed $12.75 to end at $72.24 in switching ownership of 156 shares, NCB Financial increased $1.50 to close at $73.53 after 27,308 stock units passed through the exchange, Sagicor Group dipped 97 cents in ending at $49.03 as 15,946 units passed through the market, Seprod advanced $5.30 in closing at $75 with an exchange of 30,340 stocks. Supreme Ventures climbed 57 cents to $29.46 and closed with an exchange of 96,813 stock units, Sygnus Real Estate Finance declined $1.61 to end at $9.39 in trading 2 units and Wisynco Group shed 41 cents to $16.89 trading 101,965 shares.
In the preference segment, Jamaica Public Service 7% gained $19.12 to close at $98.61 with investors transferring 1,183 shares. JMMBG 7.5% closed at a 52 weeks’ high of $1.18 after trading 27,760 shares.
A total of 27,085,519 shares were traded for $325,797,894 compared to 27,564,223 units at $93,817,986 on Tuesday.
The All Jamaican Composite Index climbed 1,936.55 points to 376,387.83, the JSE Main Index rallied, 1,767.62 points to finish at 334,833.76 and the JSE Financial Index popped 0.29 points to 77.09.
JMMB Group shed 75 cents in closing at $30.55 with the swapping of 62,383 units, Kingston Properties lost 45 cents in closing at $6.65 after exchanging 12,176 stocks, Margaritaville gained 99 cents after ending at $19 with 149 stock units clearing the market, NCB Financial dipped $2.96 to $72.03 and closed after trading 159,555 shares, Pan Jamaica Group rallied $4.44 to $56.44 in an exchange of 163 units and Supreme Ventures rose 89 cents to close at $28.89 as investors exchanged 550,580 stock units.
Jamaica Public Service 7% popped $16.24 to close at $79.49 as 538 shares passed through the market and Productive Business Solutions 9.75% preference share fell $3 in closing at $104 after a transfer of 658 stocks.
A total of 27,564,223 shares were traded for $93,817,986 compared to 20,926,744 units at $64,972,967 on Monday.
The All Jamaican Composite Index fell 1,353.85 to 374,451.28, the JSE Main Index slipped 1,349.09 points to 333,066.14 and the JSE Financial Index fell 0.37 points to 76.43.
Producers fell 97 cents to $20.73 after a transfer of 5,505 units. Key Insurance shed 58 cents in closing at $3.07, with 11,880 stock units changing hands, Kingston Properties rallied 48 cents to $7.10 as investors exchanged 246 stocks, Margaritaville dipped 38 cents to $18.01 while trading 147 units, Massy Holdings dropped $1.50 after ending at $85.50, with 4,330 stock units changing hands. NCB Financial jumped $1.99 to $74.99 trading 40,853 units, Pan Jamaica Group declined $4.79 to close at $52 and closed, with an exchange of 8,100 shares, Proven Investments lost 50 cents in closing at $25.50 in trading 57,800 stock units. Sagicor Group dipped 50 cents to end at $50 in an exchange of 12,050 units and Seprod dipped $2.79 after ending at $69.71 with a transfer of 3,039 shares.
Jamaica Public Service 7% rose $13.25 to close at $63.25 with the swapping of 700 shares and 138 Student Living preference share gained $14.65 in closing at $88.65 with an exchange of 2 units.
A total of 20,926,744 shares were traded for $64,972,967 compared to 9,481,950 units at $117,605,489 on Friday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded price of stocks and earnings forecasts done by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
MPC Caribbean Clean Energy lost $1.26 to close at $84.99, with 13 stock units clearing the market, Proven Investments shed 50 cents to end at $26 and closed with 4,006 units changing hands, Sagicor Group gained 50 cents after ending at $50.50 with a transfer of 83,160 stock units, Seprod jumped $3.50 in closing at $72.50 after investors traded 59,198 stocks and Sygnus Real Estate Finance gained $1 after ending at $11 as investors exchanged 26 shares.
Jamaica Public Service 9.5% rallied $150 to close at $3000 with an exchange of just two shares.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index this past week, with the supply of some stocks falling sharply.
The 16 highest valued Main Market stocks are priced at a PE of 15 to 114, with an average of 31 and 21 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
A total of 9,481,950 shares were traded for $117,605,489 versus 20,316,713 units at $95,105,433 on Thursday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.7 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last sale prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Massy Holdings lost $2.75 to close at $85.25, with 214,948 shares clearing the market, Pan Jamaica Group advanced $3.79 to end at $56.79 with investors trading 2,692 stocks, Proven Investments gained 66 cents in closing at $26.50 after an exchange of 1,150 shares, Seprod fell $1 to $69 in swapping 4,703 stocks, Supreme Ventures rallied 89 cents to end at $27.89 with investors transferring 50,497 units and Sygnus Real Estate Finance rose 70 cents in closing at $10 with an exchange of 2,000 stock units.
In the preference segment, Jamaica Public Service 7% gained $3.35 after ending at $39 as investors exchanged 1,000 shares and Jamaica Public Service 9.5% dipped $150 to close at $2850 in trading 15 stock units.
A total of 20,316,713 shares were traded for $95,105,433 compared to 19,169,248 units at $107,354,551 on Wednesday.
the JSE Main Index climbed 275.12 points to close at 331,585.25 and the JSE Financial Index increased 0.15 points to settle at 76.24.
JMMB Group climbed 74 cents in closing at $31.48 with swapping of 37,477 stocks, Kingston Properties shed 84 cents to end at $6.51 in an exchange of 5,231 units, Kingston Wharves advanced $1.11 to close at $32.11, with 3,358 shares crossing the market, Massy Holdings lost $3 to end at $88 after exchanging 2,776 units, NCB Financial rallied $1 in closing at $72.50 with an exchange of 21,741 stock units, Pan Jamaica Group dropped 90 cents to close at $53 after an exchange of 176,780 stocks, Sagicor Group popped $1 to $50 in an exchange of 8,988 stock units, Seprod increased $3 after ending at $70 with a transfer of 4,187 stocks, Supreme Ventures gained 50 cents after ending at $27 with 9,242 shares crossing the exchange and
Wisynco Group increased 56 cents in closing at $17.34 while exchanging 20,623 units.
A total of 19,169,248 shares were traded for $107,354,551, up from 8,067,288 units at $74,863,539 on Tuesday.
The All Jamaican Composite Index dipped 2,286.40 points to 369,887.60, the JSE Main Index dropped 3,351.63 points to 331,310.13 and the JSE Financial Index fell 0.79 points to finish at 76.09.
Jamaica Producers dipped $1 after ending at $21, after 106,910 shares passed through the market, Jamaica Stock Exchange gained 65 cents to end at $14.15 in trading 53,190 units, Kingston Wharves declined $2.75 to $31 with a transfer of 2,136 stock units, NCB Financial lost $2.99 to close at $71.50 while exchanging 82,898 stocks. Sagicor Group shed $2 in closing at $49, after 9,582 stock units switched owners, Scotia Group increased 97 cents to end at $34.99 as investors exchanged 194,297 shares, Seprod climbed $3.30 to end at $67 with investors transferring 6,342 stocks. Supreme Ventures lost 93 cents to end at $26.50 with an exchange of 16,835 units and Sygnus Real Estate Finance declined 85 cents to close at $9.30 with 10,185 stocks clearing the market.
JMMB Group 7% preference share dropped 60 cents to $1.93 after an exchange of 1,473 stock units and 138 Student Living preference share shed $3.08 after ending at $74 and trading 42 stock units and Transjamaican Highway 8% fell 41 cents in closing at $3.09 with an exchange of 25,095 shares.