The Jamaica Stock Exchange main market declined for a third consecutive day at the close on Wednesday with less volume and value traded on Tuesday.
Trading ended with 39 securities changing hands in the main and US dollar markets with 10 advancing, 19 declining and 10 trading firm. The market closed with the JSE All Jamaican Composite Index declining 2,717.19 points to close at 557,689.78. The JSE Index dropped 2,465.01 points to 507,546.85 and the JSE Financial Index lost 0.69 points to close at 138.52.
Main market activity ended with 36 securities trading resulting in 31,141,186 units valued at $368,051,491 in contrast to 44,023,689 units valued at $758,570,804 from 36 securities trading on Tuesday.
Stanley Motta led trading with 13 million units for 42 percent of total volume, followed by Wigton Windfarm with 6 million units accounting for 19 percent of the day’s trade and Sagicor Select Funds with 4 million shares for 13 percent of the market’s trade. Other stocks trading more than a million shares were QWI Investments with 3 million units after trading at the lowest level of $1.15 since listing and Barita Investments with 2.7 million shares.
The Market closed with an average of 865,033 units valued at an average of $10,223,653 for each security traded, in contrast to 1,222,880 units for an average of $21,071,411 on Tuesday. The average volume and value for the month to date amounts to 1,111,651 shares at $11,432,416 for each security traded and previously 1,147,595 units valued at $11,637,677 for each stock traded. The market closed out September with an average of 1,585,081 units valued at $14,071,562 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 11 stocks ended with bids higher than their last selling prices and 3 with lower offers.
In main market activity, Carib Cement closed $2.54 lower after 13,753 shares changed hands to end at $76.82. Eppley Caribbean Property Fund lost $1 trading 6,280 shares to settle at $35, Eppley gained 80 cents, after exchanging 21,211 shares, to close at $1. Grace Kennedy closed $1 lower to $69 with 14,245 shares traded, Jamaica Broilers ended with a loss of $2.01, closing at $34 as 22,233 shares changed hands. Jamaica Stock Exchange gained 99 cents, after exchanging 11,378 shares to settle at $29.99, JMMB Group dropped $2, closing at $43 after trading 114,321 shares, Kingston Wharves added $2 to settle at $62, after exchanging 18,100 shares. Mayberry Equities lost 47 cents to close at $11.03 with 11,364 shares traded, NCB Financial declined by $2 to close at $202 while exchanging 65,660 units, Sagicor Group closed $1.19 lower in swapping 11,515 shares to end at $68.80. Salada Foods dropped $3 to $29 with 15,000 shares changing hands, Seprod advanced $3 to end at $54 with an exchange of 6,291 shares and Supreme Ventures gained 49 cents to close at $27.49 with 208,741 shares traded.
Trading in the US dollar market ended with 28,241 units valued US$17,055 with the market index falling 0.45 points to close at 198.46. Proven Investments exchanged 13,756 shares, to close at 27 US cents, after slipping a fraction of a cent, JMMB Group 6% preference share traded 13,485 units, to end at 99 US cents and Sterling Investments rose 0.3 cents and closed at 3.3 US cents with 1,000 units changing hands.
Bun & Teas in IC TOP 10 BUY RATED
Buy Rated Junior Market stocks have two new entrants this week with Honey Bun and Jamaican Teas returning to the top listing. Both companies’ fiscal year ended September, with earnings for the 2020 fiscal year, used in valuing them.
The new listings are expected to benefit from growth in the core business, with Honey Bun continuing to benefit above the norm from the expansion of the factory late last year and new products being manufactured while Jamaican Teas could benefit from investment gains from the portfolio of QWI Investments.
Dropping from the Junior Market TOP 10 are Elite Diagnostic and Express Catering. There were no changes to the main market TOP 10.
Market activity, left Caribbean Producers with projected gains of 240 percent as the leading Junior Market stock with likely gains, followed by Iron Rock Insurance with potential gains of 204 percent and Medical Disposables with projected gains of 184 percent.
Radio Jamaica (RJR) share price slipped during the week to a low of $1.35 but bounced to close the week at $1.60, pushing projected gains to 213 percent, to remain the leading main market stock. RJR is benefiting from increasing revenues, resulting from a more buoyant economy, the rollout of new services, the signing of an agreement with Flow that will add to revenues without the added cost and lower costs in a number of areas, with more to come. Carreras sits at the number two spot with projected gains of 125 percent with the price slipping a bit during the week and Berger Paints with projected gains of 115 percent in next.
The main market, closed the week with the overall PE of 17.1 down from 17.7 the previous week and the Junior Market is at 11.1 from 11.7 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.7 compared to 7.9 the previous week and the main market PE remains at 10.4.
The TOP 10 stocks now trade at an average discount of 31 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 to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. 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.
IC TOP 10 focus on QWI
Attention by investors seems set to be focused on QWI Investments, which commences trading on Monday, but being the end of the month, investors could be seeing other stocks recording interesting movements.
Buy Rated stocks had few changes with Elite Diagnostic and Express Catering climbing back into the Junior Market TOP 10 with the price of Elite dropping to $5.40 from $5.60 at the end of the previous week while Seprod returns to the main market list at the expense of Scotia Group.
Slipping out of the IC TOP 10 listing is Jetcon Corporation that remained at $1.80, Main Event earnings were adjusted down with the decline of profit reported in the July quarter due to increased cost that exceeded revenues and Scotia Group rose to $60 from $57.50 and dropped out of the TOP 10.
Market activity, resulted in Caribbean Producers with projected gains of 244 percent being the leading Junior Market stock with potential gains, followed by Iron Rock with likely gains of 200 percent and Medical Disposables with projected gains of 186 percent.
Radio Jamaica closed the week with projected gains of 194 percent as the leading main market stock with the price falling to $1.70 from $1.90 during the week. Berger Paints sits at the number two spot with projected gains of 132 percent as more interest comes in for this stock coupled with reduced selling ahead of the most important quarter coming up when sales exceed all other quarters and Carreras with projected gains of 112 percent.
The main market closed the week with the overall PE of 17.7 up from 16.7 the previous week and the Junior Market is up to 11.7 from 11.3 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.9 compared to 7.8 the previous week and the main market PE remains at 10.4. These levels of PE ratios point to big upside for TOP 10 stocks.
The TOP 10 stocks now trade at an average discount of 32 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 41 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. 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.
QWI Investments list on Monday
The latest initial public offering of shares QWI Investments was approved for listing on the main market the Jamaica Stock Exchange on Friday and will be listed on Monday.
The offer of shares was initially for 600 million units but was upsized to 900 million after the issue was oversubscribed. The issue saw more than 4,000 applicants applying for more than 1.6 million shares and pulled in just over $2 billion with more investors who never caught the IPO wanting shares.
As a result of the oversubscription, applicants from the General Public received the first 100,000 units plus 31.2188 percent of the excess applied for. NCB Capital Markets and Directors of QWI Investments get the full allotments. All other applicants got a portion of what they applied for with a minimum of 76,000 units for applicants in the Jamaican Teas and KIW International pool.
QWI Investments IPO oversubscribed
NCB Capital Markets advised that the invitation for subscription of 600 million shares with an option to upsize to 900 million units by QWI Investments closed on Wednesday morning.
The share offer was by way of a prospectus dated September 9, 2019, in respect of ordinary shares at the price of $1.35 to the general public, with shares reserved at discounted prices of $1.20 and $1.25 for some investors. The issue attracted more than 4,134 applicants but more than 4,550 applications for an estimated $1.5 billion at an interim count stage with a number of persons who wanted to buy in not being able to do so. With the level of oversubscription, the company exercised the option to upsize the issue to 900 million to raise just under $1.3 billion.
QWI Investments is an investment company that will be added to the JSE Financial Index JSE sources say.
IC Insider.com is reliably informed, that there are two pending IPOS coming to the market soon. JMMB Group and the Lumber Shop both sought and got approval from shareholders to arise added capital and these could be the next two to come but Tropical Battery should not be far off. There could be two others before the year closes.