Declining stocks exceeded those rising by three to two on the Jamaica Stock Exchange Main Market on Tuesday as the volume of stocks traded fell 40 percent, with a modest rise in the value traded over Monday’s activity.
The All Jamaican Composite Index lost 4,175.98 points to close at 438,261.99, the JSE Main Index dropped 4,103.95 points to 384,123.36 and the JSE Financial Index fell 1.26 points to settle at 90.33.
Trading ended with 53 securities compared to 54 on Monday, with 15 rising, 22 declining and 16 ending unchanged.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14.5 for the Main Market. The JSE Main and USD Market PE ratios use earnings forecasted by ICInsider.com’s for companies with financial years ending up to the close of August 2023.
A total of 8,858,814 shares were traded for $90,095,210 versus 14,684,649 units at $86,847,608 on Monday. Trading averages 167,147 units at $1,699,910, compared to 271,938 shares at $1,608,289 on Monday and month to date, an average of 248,355 units at $1,775,667, compared to 268,374 units at $1,794,355 on the previous trading day. May closed with an average of 238,645 units at $3,561,016.
Transjamaican Highway led trading with 2.27 million shares for 25.6 percent of total volume, followed by Wigton Windfarm with 1.68 million units for 18.9 percent of the day’s trade and Mayberry Jamaican Equities with 798,271 units for 9 percent of market share.
The Investor’s Choice bid-offer indicator shows 12 stocks ending with bids higher than their last selling prices and six with lower offers.
At the close, Caribbean Cement rose $8 to end at $74 in an exchange of 68,331 shares, following an announcement by the company to recommend the payment of a dividend of $1.50 per share to the annual general meeting. Eppley dropped $9.99 to $39.01, with 2,000 units crossing the market, Eppley Caribbean Property Fund climbed $2.25 to close at $45 in trading 4,486 stocks. GraceKennedy rallied 47 cents in closing at $108 31,333 stock units after crossing the market, Guardian Holdings popped $13, ending at $533 while exchanging 1,849 stock units, Jamaica Broilers declined $1 to $26, trading 32,400 units. Jamaica Producers fell 95 cents in closing at $21.80 with the swapping of 36,235 shares, Kingston Properties shed 41 cents to close at $7.49 in exchanging 4,499 stocks, Mayberry Investments dropped 50 cents in ending at $9.45 with an exchange of 39,766 units. NCB Financial fell 50 cents to end at $101 with the trading of 77,865 shares, Palace Amusement dropped $2 in ending at $988 after an exchange of just one stock, Portland JSX declined $2.06 to end at $6.50 after the exchange of 1,055 stock units. Proven Investments lost 36 cents to end at $37.45 as 232,629 units changed hands, Sagicor Group gained $3.23 in closing at $57 in switching ownership of 167,268 shares and Seprod shed 48 cents to close at $71.02 with 11,725 stocks clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
One new entry to ICTOP10
Prices of several stocks rebounded this past week as the selloff to fund the Dolla Financial IPO receded, but the changes had little impact on changing stocks in the TOP10, with just one new entrant to the listing.
Following last week’s 330 points fall, the Junior Market index recovered 143 points by the end of the week, while the Main Market All Jamaica Index lost 211 points on top of the 5,954.55 points given up in the previous week.
This week’s market performance resulted in mostly gains for TOP10 stocks. In the Junior Market, Medical Disposables rose 12 percent to $7.85, while Access Financial gained 9 percent to close at $21.80 and Lasco Financial rallied 6 percent to $3.50, following the release of full year results to March, with profit doubling to $306 million for earnings per share of 24 cents. Elite slipped 6 percent in closing at $3.40 and Caribbean Cream fell 5 percent to $4.69.
For the TOP10 Main Market stocks, Productive Business Solutions gained 15 percent to US$1.15, VM Investments rose 13 percent to $5.87, Berger Paints rallied 6 percent to $11.30, followed by QWI Investments up 5 percent to 89 cents. Sygnus Credit Investments declined 5 percent to $14.80 and JMMB Group slipped 4 percent to $44 following the release of full year results.
Jetcon Corporation price dipped to $1.32 and squeezed out General Accident from the Junior Market TOP10.
Medical Disposables reported full year results to March, on Thursday, with profit before tax surging 938 percent to $143 million and profit due to the parent company shareholders before extraordinary gains in 2021 of $62 million, rising to $105 million, from $7.5 million, with revenues up 42 percent over the previous year.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.1, while the Junior Market PE for the Top 10 is six versus the market at 13.4. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
Watch these stocks that are sitting just outside the TOP10, the list includes Key Insurance, followed by Caribbean Producers, Scotia Group and Sagicor Group from the Main Market and in the Junior Market, Dolphin Cove, General Accident and Iron Rock Insurance.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks 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, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result 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.
Paramount Trading joins ICTOP10
Dolla Financial Services IPO was heavily oversubscribed, and it is unlikely that investors will be able to buy the stock in the secondary market at a price that would place it in the TOP10 after day two of listing. Accordingly, the stock has been moved to the sideline, but it seems set to reach the $3 region sometime after listing.
The shifting of Dolla Financial out of the TOP10 resulted in Paramount Trading entering the TOP10 with the price falling to $1.75 in a week that saw investors selling stocks to raise funds to get into the IPO issue.
The past week was volatile, with the Junior Market index dropping more than 330 points or 7.6 percent from the close of the previous week to Wednesday, as investors sought funds to go into the Dolla IPO. The selloff was visible from May 12 with a near 100 points fall on that day as there was talk in the market of the pending issue.
This week’s pullback of the market resulted in mostly declines in the TOP10 Junior Market stocks. Medical Disposables dropped 13 percent to $7, while Access Financial also dropped 13 percent to close at $20, Elite Diagnostic slipped 9 percent in closing at $3.60 and Lasco Financial dipped 7 percent to $3.30.
For the TOP10 Main Market stocks, Berger Paints fell 13 percent to $10.63; Radio Jamaica declined 11 percent to $2.55, VM Investments lost 7 percent, followed by QWI Investments down 6 percent to 85 cents. There were no meaningful gains.
During the week, General Accident reported first quarter results with profit due to shareholders of the parent company rising 36 percent to $49 million, Friday after trading, Lasco Distributors reported profit increasing 12 percent for the full year to $1 billion but the final quarter being up 35 percent to $241 million and Lasco Manufacturing rising 45 percent in the March quarter to $522 million and the full year up 24 percent to $1.7 billion.ICInsider.com upgraded earnings for Lasco Distributors to 50 cents from 45 cents, but the others remain as previously stated. All three stocks are trading below ten times 2022 earnings and therefore have huge potential to appreciate.
Results for Access Financial and Medical Disposables to March are awaited.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.4, while the Junior Market PE for the Top 10 sits at 5.9 versus the market at 13.1. The Junior Market TOP10 is projected to gain an average of 245 percent to May 2023 and the Main Market 241 percent.
Watch these stocks that sit just outside the TOP10 that investors should watch. They include Key Insurance, followed by Caribbean Producers and Scotia Group from the Main Market. In the Junior Market, Iron Rock Insurance, Dolphin Cove, Jetcon Corporation, Stationery and Office Supplies and Lasco Manufacturingreported strong fourth quarter results to March this year.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023. They are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result 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.