There was just modest volume trading on the Jamaica Stock Exchange main market on Wednesday with the JSE All Jamaican Composite Index jumped 2,508.77 points to 322,941.94 and the JSE Index climbed 2,285.77 points to 294,236.60.
At the close, 24 securities traded, compared to 25 on Tuesday and ended with the prices of 16 stocks rising, 4 falling and 4 trading firm, in the main and US dollar markets.
At the close of trading Berger Paints jumped $1.02 to $19.22, Kingston Wharves jumped $4 to record closing high of $45, NCB Financial rose 98 cents to $05.99, PanJam Investment climbed $1.25 to $43, Scotia Group rose $1.03 to $52 and Seprod was up 99 cents to $34.
Main market activity ended with 4,971,238 units valued at $81,421,271 changing hands compared to 3,313,428 units valued at $132,584,977 on Tuesday. At the close of trading Carreras closed with the largest volume of 1,661,256 units, amounting to 33.42 percent of the overall volume traded, followed by Scotia Group with 647,818 shares or 13 percent of the volume traded and Radio Jamaica with 563,453 units or 11.33 percent of the day’s volume.
Trading resulted in an average of 216,141 units valued at an average of $3,540,055 for each security traded. In contrast to 138,060 units for an average of $5,524,374 on Tuesday. The average for the month to date is 897,409 shares with a value of $4,795,531 and previously 947,792 shares with a value of $4,897,207. In contrast, March closed with an average of 626,526 units with an average value at $20,492,207 for each security traded.
The US dollar market closed on Wednesday with Proven Investments finishing trading at 20 US cents after trading 30,955 shares for US$6,410. Trading ended with a rise of 3.31 points in the market index to 164.15 as the average price of Proven inched higher during the day.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 2 with a lower offers.
For more details of market activities see – JSE main market trading climbs – Wednesday.
Palace is back NCB out of TOP 10 stocks
Palace Amusement is back in among the top stocks, after falling out at the end of the previous week, with the stock now offered for sale at $1,120, below the last sale price of $1,300.
There is still no new entrants to the junior market TOP 10, for the second week in a row, as there has been only moderate price changes in that market.
A new element in the market this past week, is the payment to some former Cable & Wireless shareholders who collected nearly $2 billion in cash. Most of these funds are likely to go back into the market that is short on supplies.
The price of NCB Financial rose by the end of the week and moved out of the main market top stock list. Caribbean Cement that has languished just above the $30 level for months has broken into the $40 range and moved down to the second half of the list. The sharp price change follows an announcement that the company signed an agreement to buyback leased assets during this year. The buyback is set to save around $2 billion per annum before tax.
Palace Amusement revenues and profit, are getting a big lift from the strong showing of the Black Panther movie being shown currently. The stock’s attractiveness is not based solely on that development. Data shows the company’s revenues have been rising well since 2014 when it hit $833 million, rising to $916 million in 2015, while there was a slight dip in 2016 to $909 million, it rose 9 percent in 2017, to $990 million. Revenues for the half year to December last year grew 11 percent to $493 million and profit rising 138 percent, continuing the normal annual growth. Revenues will hit the billion mark for the first time in the company’s history, for the current fiscal year and remain over that level going forward. The performance of the economy is critical to the future fortunes and to a lesser degree, the quality of films. Data shows that with tight economy, patronage in Kingston suffered badly with the fall in the economy from in 2008 onwards. At the same time strong growth said to be around 7 percent per annum in the Montego Bay economy, shows up in strong revenues gains there compared to Kingston. With the overall economy recovering, Palace is benefitting.
PanJam Investment for 2017, reported a 29 percent rise in profit to $4.13 billion and in earnings per share of $3.93 from continuing operations. The group is expected to continue to enjoy increased earnings in 2018 and the focus on expansion of new projects will be beneficial to them going forward.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.3 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings. The main market PE is 6.8 for the top stocks compared to a market average of 12.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be, 20 times earnings and main market stocks traded at a discount of 44 percent to the market.
Entities associated with IC Insider.com owns shares in Palace Amusement Company and Caribbean Cement.
Palace, Grace out NCB & PanJam in TOP 10
There were no entrants or exists from to the Junior Market TOP 10 list but Palace Amusement more than doubled during the week rising 132 percent and left the list along with Grace Kennedy that rose to $51.50. The two are replaced by NCB Financial and PanJam Investment.
PanJam released 2017 audited financial statements with increased earnings of 29 percent to $4.13 billion, from ongoing operations resulting in earnings per share of $3.93. The group is expected to continue to enjoy increased earnings in 2018.
The main market hit record highs during the week but pulled back as the market move closer to resistance level in a long term channel. It just a matter of time for the break out to take place, regardless the channel points upwards for the market. Profit results for 2018 first quarter, will be important in helping to fuel the break out but with Treasury bill rates falling to 3.16 percent on the 182 days instrument during the past week, an important leg for a rally to come, is in place.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.3 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings. At the same time the main market ended the week with a PE of 6.7 for the top stocks compared to a market average of close to 12.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be, of 20 times earnings and main market stocks traded at a discount of 45 percent to the market