Last year was a mixed one for investors in the Jamaican stock market. On the one hand, Investors in Main Market stock enjoyed gains of more than 30 percent for the second year in a row, but Investors in Junior Market Stocks had far less to cheer about with a market rise of 3 percent.
Ten JSE Main Market stocks doubled in price in 2019 with the Jamaica Stock Exchange ordinary share leading the group with a gain of 177 percent with the Main market rising 34.3 percent for the year, upon the 31.7 percent rise in 2018.
VM Investments rose 120 percent to hold down the number two spot followed by Sygnus Credit Investments, Wisynco Group and Radio Jamaica. All three ended up on the worse 10 performing stocks in 2018 along with Proven Investments, the 10th best performer in 2019, with a 93 percent gain. Palace Amusement stock gained 100 percent, in 2019 and is the only 2018 TOP 10 stock to reappear in the top 10, in 2019. In 2018, it came in at number 3 best performing stock, compared to eight position in 2019. Palace has a remarkable record of more than doubling in each year, from 2016 to end in the TOP 10 for all of them
9 JSE Main Market stocks double in 2019
5 new IC TOP 10 BUY RATED
The past week, was fairly quiet for Jamaica Stock Exchange with earnings season for the second quarter just about ended.
In the process, both markets reached new highs before pulling back to close the week below the record highs achieved earlier. The market activity led to a number of changes to the TOP 10 list. Consolidated Bakeries reported disappointing results for the June Quarter from strong growth in revenues and resulted in a downgrade in projected earnings, the stock along with CAC2000 and Caribbean Flavours fell from the Junior Market TOP 10. General Accident reported strong revenues and profit increase for the June quarter and half-year, resulting in earnings upgrade to 80 cents per share for the year and putting it back in the TOP 10 along with Caribbean Cream and Lasco Financial that fell under $5 on Friday.
In the Main Market TOP 10, late bloomer, Sygnus Investments fell in price along with Seprod and return to the main market TOP 10, replacing by Pulse Investments and Palace Amusement.
The three most attractive Junior Market stocks are, Caribbean Producers with projected gains of 240 percent, followed General Accident with projected gains of 171 percent and by Iron Rock with likely gains of 167 percent.
Radio Jamaica with projected gains of 198 percent leads the main market followed by Berger Paints and Carreras with potential gains of 121 percent each.
The main market closed the week with the overall PE of 17 and the Junior Market inched higher to 12.8 current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.1 and the main market PE is now 10 3. These levels, point to big upside for TOP 10 stocks over the next 12 months and Junior Market stocks in particular as they lag, the values of the main market by a third.
The TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.
This report is compiled by persons who may have an interest in the securities commented on.
Several IC TOP 10 changes
The Jamaica Stock Exchange saw new record highs for the main and Junior Market, with attention moving decisively in favour of the latter that lagged the main market for the greater part of the year.
Prices of Consolidated Bakeries and Caribbean Flavours rose, pushing them out of the Junior Market Top 10. They were replaced, by Caribbean Cream that closed the week, with the price down at $4.25 and Everything Fresh.
In the Main Market TOP 10, Victoria Mutual Investments jumped to a record high of $9, after the company reported 9 cents in earnings per share for the June quarter and 17 cents for the half-year, just below IC Insider.com forecast of 50 cents for the full year. The stock closed at a record high of $8.20 and exited the TOP 10. Pulse Investments climbed to close the week at $3.26 and fell from the top list. Earnings for Sterling Investments were revised downwards to 23 cents per share, resulting in it leaving the TOP 10. New entrants are Grace Kennedy, Proven Investments and Scotia Group.
In the past week, the main market continued its record-breaking run, closing the week at an all-time high on its way to over 800,000 points for the All Jamaica Index as momentum continues to move the market away from long-term resistance at 520,000 points. The Junior Market rose during the week and recovered all of the 2019 losses and surpassing the previous all-time high of 3,436 points in September last year. Technical indicators point to the record be taken out soon and could happen this week with more results due. The market closed over 3,500 points for the first time in the past week.
The three most attractive Junior Market stocks are Caribbean Producers with projected gains of 233 percent, followed by Iron Rock with projected gains of 196 percent and tTech with possible gains of 167 percent.
Berger Paints heads the main market with potential gains of 122 percent followed by Radio Jamaica with 122 percent and Palace Amusement in third spot and likely to gain 92 percent by March next year.
The main market closed the week with the overall PE at 16.4 and the Junior Market moved up from 11.4 last week to 12.3 as the market shifts from consolidation in the first half of the year to be bullish now. The PE ratio for Junior Market Top 10 stocks averages 8.3 versus 7.6 last week and the main market PE is now 10 4 compared to 9 at the start of last week. These levels, point to big gains for TOP 10 stocks over the next 12 months and Junior Market stocks in particular as they lag, the values of the main market by a third.
The TOP 10 stocks now trade at an average discount of 33 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.
This report is compiled by persons who may have an interest in the securities commented on.
Sunshine Palace opens tomorrow
Palace Amusement latest cinema house – Sunshine Palace, opens its doors tomorrow Wednesday, July 24 to moviegoers in the Portmore community.
IC Insider.com was informed, that the opening is highly anticipated by persons in the community. Sunshine Palace is located at 7 Braeton Parkway in the prime commercial district in Portmore area.
Sunshine Palace is said to boast silver screens, improved legroom, reclining seats, VIP service, improved concession stands, and laser projection that creates a brighter light for picture and is also environmentally friendly.
The Disney blockbuster, The Lion King, featuring Beyonce, Donald Glover, Chiwetel Ejiofor and James Earl Jones, will be integrally tied to the history of Sunshine Palace as it will be the opening movie that will be the showcase event of the season.
Sunshine Palace comprises 4 movie auditoriums with seating for 674 patrons.
Limited showing of Green Book at Palace
Green Book the story of the unlikely friendship between a bigoted bouncer and a virtuoso black musician, was named the Best Picture of the year at the 91st Academy Awards recently.
The film also copped wins for: Best Original Screenplay, and Best Supporting Actor- Mahershala Ali, bringing its total to three wins. This is Ali’s second Oscar win. The movie returns to Palalce Amusement cinemas two days showing only as of Wednesday. Showtime at Palace Cinceplex at Soverign Centre is at 5:05 pm, Carib in Cross Roads at 5:40 pm and Palace Multiplex in Montego Baty at 5:50 pm.