Trading climbed on the Jamaica Stock Exchange Main Market on Tuesday with investors exchanging 37 percent more shares with the value surging 327 percent more than on Monday, from trading in 56 securities down from 59 on Monday, with 23 rising, 19 declining and 14 unchanged.
Investors traded 20,246,503 shares for $297,780,461 up from 14,762,179 units at $69,659,072 on Monday.
Trading averaged 361,545 units at $5,317,508 versus 250,206 shares at $1,180,662 on Monday and month to date, an average of 187,496 units at $2,112,843 compared to 175,080 units at 1,884,230 on the previous day. January closed with an average of 205,236 units at $1,805,558.
Wigton Windfarm led trading with 10.78 million shares for 53.3 percent of total volume followed by Wisynco Group with 2.50 million units for 12.3 percent of the day’s trade, Massy Holdings with 2.09 million units for 10.3 percent and Jamaica Broilers with 1.52 million units for 7.5 percent market share. The All Jamaican Composite Index shed 79.68 points to end at 375,406.28, the JSE Main Index dropped 105.61 points to settle at 332,427.42 and the JSE Financial Index lost 0.06 points to close at 79.33.
The PE Ratio, a formula to ascertain appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios incorporate earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows 12 stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Berger Paints jumped $1.65 to $9.90 after exchanging 53 shares, Caribbean Cement popped $1.24 to end at $58 after trading 7,068 stocks, Guardian Holdings rallied $4 to $515 with investors transferring 802 units. Jamaica Broilers advanced $2.78 to a 52 weeks’ high of $34 in switching ownership of 1,516,920 stock units, Jamaica Producers gained $1.65 in ending at $21.85 with the swapping of 14,000 stock units, Kingston Wharves rose $1.49 to close at $31.99 with seven shares changing hands. Mayberry Jamaican Equities fell 79 cents to end at $11.21 in switching ownership of 4,264 stocks, NCB Financial dipped 49 cents to close at $77.50 with the exchange of 15,205 units, Palace Amusement lost $1 in closing at $2,699 with a transfer of 439 stocks. Portland JSX rose 90 cents to $10.90 after an exchange of 17,347 shares, Proven Investments declined $1.22 in closing at $28 as investors traded 14,642 units, Sagicor Group shed 50 cents to $52.50, with 14,971 stock units crossing the market. Scotia Group advanced $1.75 to $34 with an exchange of 307,103 stocks, Sterling Investments popped 44 cents to close at $2.90 after trading 79,998 shares, Supreme Ventures gained 80 cents to finish at $26 after 32,071 units passed through the market and Wisynco Group popped 89 cents to end at $17.50 as investors exchanged 2,495,740 stock units.
In the preference segment, Productive Business 10.50% preference share climbed $50 in ending at $1,200 after a transfer of 240 stock units, Jamaica Public Service 7% advanced $2 to close at a 52 weeks’ high of $12 with 2,000 stocks changing hands and 138 Student Living preference share rallied $6 to $76 in an exchange of 33 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More ICTOP10 additions
ICTOP10 has two new additions this week, all are Junior Market stocks, following modest price changes in the listings this past week, but the Main Market had mostly significant losses as that market hit a new low for the year during the week.
In closing out the week, Lasco Distributors rose 6 percent to $2.75, while Tropical Battery gained just 4 percent to $2.40. Iron Rock Insurance fell 15 percent to $2.03, the only declining stock above one percent.
Four stocks rose in the Main Market TOP10, with NCB Financial and Jamaica Broilers increasing 4 percent to $77.99 and $33.90, respectively. Caribbean Producers plunged 10 percent to $9.72 as investors reacted negatively to a near US$2m negative swing in second quarter profit on higher revenues that were up 16 percent in the period, JMMB Group lost 8 percent to close at $30.80, Key Insurance fell 7 percent to $3, but 138 Student Living and Scotia Group dropped 4 percent to $4.80 and $32.95 respectively.
Honey Bun rose modestly for the week and, along with Tropical Battery, climbed out of the Junior Market ICTOP10, allowing Lasco Manufacturing and Paramount Trading to return to the ICTOP10.
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 13.6, while the Junior Market Top 10 PE sits at 6.3 compared with the market at 12, important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 220 percent and the Main Market TOP10 by an average of 288 percent to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the full interest of investor start to show.
The Junior Market has 14 stocks representing 29 percent of the market, with PEs from 15 to 28, averaging 20 compared with the above average of the market. 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 17 highest valued stocks priced at a PE of 15 to 90, with an average of 33 and 25 excluding the highest valued stocks and 25 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.
Four new ICTOP10 stocks
ICTOP10 has four new additions this week. The changes followed release of new company results that saw upward and downward movements in earnings per share, while the price of one stock rose to exit the list.
At the end of the week, Paramount Trading jumped 17 percent to $2.58 after the supply of stocks in the market fell sharply during the week as the stock hit a 52 weeks’ intraday high of $2.95 before pulling back by the end of the week and Honey Bun rose 4 percent to $7.35. Lasco Manufacturing fell 8 percent to close at $4.33, General Accident slipped 6 percent to $4.70, Lasco Distributors lost 5 percent to end at $2.60 and Iron Rock Insurance fell 4 percent to $2.39.
Stocks rising in the Main Market TOP10 were hard to come by as losers outgunned winners. Jamaica Broilers jumped 8 percent to close at 52 weeks’ high of $32.50, but 138 Student Living dropped 10 percent to $5.00, as investors reacted negatively to a board decision to raise added capital by issuing more shares to the public. Radio Jamaica fell 7 percent to $1.90 after reporting poor results to December, while Caribbean Producers and Sygnus Investments fell 6 percent to $10.80 and $12.25, respectively, followed by a 5 percent decline for Guardian Holdings to close at $505.70.
Tropical Battery returns to ICTOP10 after a one week absence, Main Event posted better than expected full year results and moved into the TOP10 with projected earnings of $1.45 for the 2023 fiscal year and One on One Education moved into the TOP10, while Lasco Manufacturing moved out followed by Lasco Financial and Paramount Trading. In the Main Market, Radio Jamaica slipped out of the TOP10 and Scotia Group reentered after a brief respite.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.7, while the Junior Market Top 10 PE sits at 6.6 compared with the market at 12.3, important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 207 percent and the Main Market TOP10, an average of 280 percent, to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the total interest of investor start to show.
The Junior Market has 15 stocks representing 31 percent of the market, with PEs from 15 to 30, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 18. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 90, with an average of 27 and 22 excluding the highest valued stocks and 27 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.