Market activity ended on Monday with the volume of shares trading being 17 percent more with a 44 percent lower value than on Friday as declining exceeded rising to close out trading on the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index popped 534.66 points to settle at 453,739.74, the JSE Main Index advanced 886.78 points to 401,041.75 and the JSE Financial Index gained 0.52 points to end at 96.80.
A total of 58 securities traded compared to 60 on Friday, with 22 rising, 26 declining and 10 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 17.2. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 15,556,075 shares traded for $127,688,648 versus 13,336,530 units at $229,123,211 on Friday. Wigton Windfarm led trading with 28 percent of total volume for an exchange of 4.35 million shares followed by Sagicor Select Manufacturing & Distribution Fund with 15.7 percent for 2.44 million units, Transjamaican Highway, 9.6 percent with 1.50 million units, QWI Investments, 8.6 percent after trading 1.33 million units and JMMB Group with 6.9 percent market share for 1.08 million units.
Trading averaged 268,208 units at $2,201,528 ompared to 222,276 shares at $3,818,720 on Friday and month to date, an average of 276,821 units at $2,890,711, versus 277,783 units at $2,967,730 on Friday. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows 11 stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, Berger Paints gained 56 cents to finish at $13 in an exchange of 78,492 shares, Caribbean Cement advanced $1.20 to close at $85.20 with 31,440 units clearing the market, Caribbean Producers fell 79 cents to $18.19 after trading 240,546 stocks. Eppley rose 90 cents to end at $34 with 262 stock units changing hands, Eppley Caribbean Property Fund shed $1.35 in closing at $41 with 10 stocks crossing the market, GraceKennedy declined $2.01 in closing at $103 with an exchange of 190,769 units. Jamaica Broilers lost 60 cents ending at $29.90 in switching ownership of 6,719 shares, JMMB Group rallied $2.50 to close at $44.50 after 1,080,129 stock units passed through the exchange, Kingston Properties shed 74 cents to end at $9 with the swapping of 3,538 units. 
Kingston Wharves fell $1.70 to $40.30 in trading 16,224 stocks, Margaritaville advanced $1.70 to $26.20 with 424 shares crossing the market, Massy Holdings gained $110 to $2,110 in transferring 3,365 stock units. MPC Caribbean Clean Energy popped $4 to close at $115 after an exchange of 56 shares, NCB Financial rallied 50 cents in closing at $129 with 59,377 stock units crossing the market, Palace Amusement declined $5 to $900 in trading 32 units. Portland JSX gained 45 cents to close at $9.15 with a transfer of 124 stocks, Proven Investments picked up 30 cents in ending at $33.80 with an exchange of 83,407 shares, Radio Jamaica fell 55 cents in closing at $3.70 in switching ownership of 616,794 units. Scotia Group declined $2.24 to $36.75 after trading 172,114 shares, Seprod lost 39 cents to settle at $61.01 with 26,004 units crossing the market and Sygnus Credit Investments rose 30 cents to end at $15.80 with an exchange of 114,556 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Several changes for ICTOP10 listings
Increased buying interest coupled with the release of new results created many changes for the ICTOP10 listings this week. Tropical Battery came from nowhere, with stunning first quarter results to December, with profits surging from just $19 million in 2020 to $56.7 million as revenues surged 46.8 percent to $662 million and investors reacted to it right out of the block driving the price up 18 percent for the day.
Even with an 18 percent rise in the stock price, Tropical moved right to the top of the Junior Market TOP10 stocks with the potential to double in price. Medical Disposables price slipped with the stock now back in the TOP 10 and so did Access Financial while Cargo Handlers joins the TOP10 in fifth position.
Moving out of the TOP10 are Lasco Financial that was boosted by rising profits and enjoyed a 19 percent bounce in the price for the week and Jetcon Corporation. Lasco Manufacturing (Lasm) price rose 2 percent but the company posted good results that suggest a much higher stock price ahead and Stationery & Office Supplies (SOS) had a 24 percent rise to $7.31 as increased buying interest came in for the stock. Both stocks remain in the 2022 ICTOP15 list, with SOS in at the 6th spot and LASM at 11.
The Junior Market index upward move slowed this past week with year to date gains moving from 16.3 percent last week to 17.1 percent to Friday, this week. The Main Market seems to be bubbling with the market index up more than 7,700 points for February and is worth watching.
Recently listed Spur Tree Spices continues to consolidate around the $3 price level while, Future Energy, surged this past week to an all-time high of $5.20, on profit results that rose strongly in the December quarter at PE of 50, the price seems well ahead of the market.
Other decent moves in the Junior Market this past week are Caribbean Assurance Brokers that closed at $3.28 for a rise of 6 percent, General Accident moved up 4 percent to $6.76, AMG Packaging lost 6 percent to end at $3.48 and Honey Bun slipped 4 percent to $9.70.
In the Main Market, Jamaica Broilers rose 13 percent to $30.50, while Proven Investments and VM Investments both rose 8 percent for the week. Radio Jamaica released results for the nine months to December, with a slight reduction of 2.5 percent in revenues or $35 million leading to a fall in profit from $194 million in the December quarter to $108 million and Jamaica Broilers were replaced in the TOP10 by Berger Paints and Carreras.
The sharp price movements in the Junior Market over recent weeks reduced the potential gains markedly, with the average increase projected for the TOP 10 Junior Market stocks now at 105 percent and is now lower than the Main Market at 122 percent. The top three stocks in the Junior Market are Tropical Battery followed by Caribbean Assurance Brokers and Lasco Distributors to gain between 111 and 124 percent, compared to 114 and 126 percent, previously.
The potential gains for Main Market stocks moved from 123 percent to this weeks’ 122 percent, with the top three being JMMB Group followed by Guardian Holdings and Sygnus Credit Investments all projected to gain between 161 and 186 percent versus 165 and 186 percent last week.
After trading at a big discount to the Main Market for two years, the average PE for Junior Market has moved to 17.8 based on ICInsider.com’s 2021-22 earnings and is ahead of the JSE Main Market at 16.4. In the process, the Junior Market has surpassed the average of 17 that was achieved at the end of March last year. The TOP 10 stocks trade at a PE of a mere 9.8, with a 45 percent discount to that market’s average. That means there is a lot of room for the TOP10 stocks to run between now and the end of March.
All the stocks in the Junior Market can gain 12 percent to March this year, based on an average PE of 20 that would take the index to 4,700 points. About a third of Junior Market stocks with positive earnings are trading at or above this level, averaging around 23.
The average PE for the JSE Main Market is 17.4 just 9 percent less than the PE of 19 at the end of March and 15 percent below the target of 20 to March this year. The Main Market TOP 10 average PE is 9.2 representing a 47 percent discount to the market and well below the potential of 20. Around 15 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
JSE Main Market jumps on Friday
More funds supported market activity on Friday but the volume of shares trading declined by 48 percent while the value climbed 23 percent higher than on Thursday on the Jamaica Stock Exchange Main Market as rising stocks exceeded those declining.
The All Jamaican Composite Index climbed 2,416.48 points to 453,205.08, the JSE Main Index soared 4,816.43 points in ending at 400,154.97 and the JSE Financial Index advanced 1.12 points to close at 96.28.
Trading ended with 60 securities up from 57 on Thursday, with 27 rising, 21 declining and 12 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 17. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 13,336,530 shares were exchanged for $229,123,211 versus 25,871,558 units at $185,994,733 on Thursday. Sagicor Select Financial Fund led trading with 24.5 percent of total volume in transferring 3.27 million shares followed by Wigton Windfarm with 20.2 percent for 2.69 million units, QWI Investments accounted for 11.7 percent for 1.56 million units and JMMB Group with 8.1 percent for 1.08 million units changing hands.
Trading averages 222,275 units at $3,818,720, versus 453,887 shares at $3,263,065 on Thursday and month to date, an average of 277,783 units at $2,967,730, compared to 285,039 units at $2,856,489 on Thursday. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows five stocks ended with the bid higher than their last selling prices and three with lower offers.
At the close, Berger Paints dropped 56 cents ending at $12.44 in exchanging 139 units, Caribbean Cement fell 99 cents to close at $84 with a transfer of 71,819 stocks. Caribbean Producers shed 78 cents in closing at $18.98 after trading 558,563 stock units, Eppley declined $2.90 to end at $33.10 with 2,091 units clearing the market, Eppley Caribbean Property Fund advanced $4.25 to end at $42.35 in switching ownership of 19 stocks. First Rock Capital rose $1.05 to close at $12.10 with 2,137 shares changing hands, GraceKennedy rallied $2.01 to end at $105.01 in switching ownership of 62,574 units, Guardian Holdings climbed $8.99 to $578.99 after 507 shares crossed the market. Jamaica Broilers advanced $3.45 to $30.50 with the swapping of 58,755 stock units, Jamaica Stock Exchange lost 69 cents to end at $17.25 in trading 16,499 units, Key Insurance popped 43 cents to settle at $4.39 with an exchange of 28,000 stocks. Margaritaville fell 50 cents to $24.50 with 5,489 stock units changing hands, Massy Holdings climbed $53 to close at $2,000 in trading 11,152 shares, Mayberry Investments rallied 44 cents to finish at $7 in an exchange of 29,439 units. NCB Financial lost 50 cents to close at $128.50 with the swapping of 795,819 stock units, 138 Student Living advanced $1.69 to $7.35 after 6,027 shares crossed the exchange, PanJam Investment fell $1.79 to end at $66.25 in transferring 12,602 stock units, Portland JSX gained 80 cents to close at $8.70 with 301 shares crossing the market. 
Proven Investments lost 30 cents to end at $33.50 in trading 29,164 units, Sagicor Group fell $2.04 in closing at $53.11 in trading 40,318 stocks, Salada Foods slipped 30 cents to $7.30, with an exchange of 52,146 units. Scotia Group rose $2.99 to end at $38.99 with 97,722 units changing hands, Seprod gained 40 cents to close at $61.40 with a transfer of 4,664 shares, Stanley Motta rose 63 cents to $5.98 in switching ownership of 5,167 stock units and Wisynco Group popped $1.33 in closing at $19.83 with the swapping of 274,079 stocks.
In the preference segment, 138 Student Living preference shares gained 80 cents to end at $7.75 with an exchange of 533 stock units, Eppley 7.25% preference share lost 38 cents ending at $20 in exchange of 389 units and Jamaica Public Service 9.5% rallied $655.36 to close at a record high of $3,128.43 trading one share.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Pickup for JSE Main Market
Market activity ended on Thursday with the volume of shares rising 62 percent but with a 30 percent lower value than on Wednesday on the Jamaica Stock Exchange Main Market as rising stocks exceeded those declining and a big rise in the All Jamaican Composite Index.
The All Jamaican Composite Index rallied 2,955.58 points to 450,788.60, the JSE Main Index gained 760.73 points to close at 395,338.54 and the JSE Financial Index lost 0.01 points to end at 95.16.
Similar to Wednesday 57 securities traded on Thursday, with 24 rising, 19 declining and 14 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.6. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 25,871,558 shares were exchanged for $185,994,733 compared to 15,992,883 units at $265,261,579 on Wednesday. Wigton Windfarm led trading with 57.5 percent of total volume for an exchange of 14.88 million shares followed by QWI Investments, 10.4 percent with 2.7 million units, Sagicor Select Financial Fund, 6.9 percent with 1.79 million units, Transjamaican Highway accounted for 6.3 percent for 1.63 million units and Caribbean Producers with 4.8 percent after trading 1.23 million units.
Trading averages 453,887 units at $3,263,065, compared to 280,577 shares at $4,653,712 on Wednesday and month to date, an average of 285,039 units at $2,856,489, compared to 261,098 units at $2,798,840 on the previous day. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows 14 stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Caribbean Cement advanced $4.99 to close at $84.99 with a transfer of 11,101 stock units, Caribbean Producers gained 68 cents in ending at $19.76 with the swapping of 1,233,626 stocks. First Rock Capital fell $1.09 to $11.05 with 16,263 units clearing the market, Guardian Holdings popped $20 to end at $570 with an exchange of 8,531 stocks, Jamaica Broilers shed 80 cents to end at $27.05 in trading 56,874 stock units. Jamaica Producers lost 50 cents in ending at $23 with 4,161 shares crossing the market, JMMB Group fell $1 to $42 in transferring 788,619 units, Kingston Properties rallied 83 cents to close at $9.74 with the swapping of 3,823 stock units. Kingston Wharves advanced $1.98 in closing at $41.98 after exchanging 10,228 stocks, Massy Holdings rose $2 to end at $1,947 with 2,568 units changing hands, MPC Caribbean Clean Energy declined $8.50 to $111 in switching ownership of 50 shares. NCB Financial climbed $3 to close at $129 with a transfer of 553,955 stocks, 138 Student Living gained 66 cents in closing at $5.66 in exchanging 601 shares, Palace Amusement declined $5 to $905 in trading 6 units, PanJam Investment advanced $2.24 to $68.04 with 1,504 shares changing hands. 
Proven Investments gained 30 cents to end at $33.80 after 55,829 stock units crossed the exchange, Sagicor Group rallied $2.15 to $55.15 in trading 121,084 units, Salada Foods lost 39 cents to close at $7.60 with the swapping of 25,068 stock units. Scotia Group rose 48 cents to $36 with 81,966 shares clearing the market, Seprod fell $2 in closing at $61 in exchanging 21,975 stocks, Sygnus Credit Investments popped 50 cents to finish at $15.70 with a transfer of 131,484 shares and Wisynco Group fell $1.30 to settle at $18.50 in trading 181,755 stock units.
In the preference segment, Eppley 5% preference share rose $1.50 in ending at a 52 weeks’ high of $22.50 with 100 units crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Pull back for JSE Main Market
The Jamaica Stock Exchange Main Market slipped on Wednesday with the volume of shares trading declining moderately, with the value 73 percent greater than on Tuesday as declining stocks exceeded those rising by a two-to-one ratio sending the market indices down.
The All Jamaican Composite Index dropped 3,410.71 points to close at 447,833.02, the JSE Main Index dived 3,555.14 points to 394,577.81 and the JSE Financial Index slipped 1.10 points to 95.17.
Trading ended with 57 securities compared to 56 on Tuesday, with 13 rising, 27 declining and 17 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.5. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 15,992,883 shares were exchanged for $265,261,579 versus 16,430,568 units at $153,703,292 on Tuesday. QWI Investments led trading with 29.8 percent of total volume after exchanging 4.76 million shares followed by Wigton Windfarm with 28.3 percent for 4.52 million units and Transjamaican Highway, 15.1 percent with 2.41 million units changing hands.
Trading averages 280,577 units at $4,653,712, compared to 293,403 shares at $2,744,702 on Tuesday and month to date, an average of 261,098 units at $2,798,840, compared to 257,879 units at $2,492,383 on the previous day. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments lost 49 cents to end at $91.50 in exchanging 27,856 shares, Berger Paints fell 40 cents in closing at $13.10 after trading 740 units, Caribbean Cement shed $1 in ending at $80 with 31,142 stocks crossing the exchange. Caribbean Producers declined 82 cents to finish at $19.08 with 226,511 stock units clearing the market, GraceKennedy shed $1.98 to close at $103 in switching ownership of 531,538 stock units, Guardian Holdings climbed $14 to close at $550 with the swapping of 4,120 shares. Jamaica Broilers gained 35 cents after ending at $27.85 trading 25,929 stocks, Jamaica Producers rose 59 cents to $23.50 with 28,773 units changing hands, Kingston Properties shed 83 cents in closing at $8.91 after a transfer of 100 stocks. Massy Holdings declined $5 to end at an all-time low of $1,945 in switching ownership of 67,225 stock units, Mayberry Investments lost 50 cents to end at $6.55 with 2,026 shares crossing the market, NCB Financial advanced $7 in closing at $126 with the transfer of 44,264 units. Palace Amusement dropped $15 to $910 with an exchange of 56 units, Portland JSX fell $1.25 to $7.90 in trading 350 stocks, Salada Foods lost 51 cents to close at $7.99 with the swapping of 164,190 shares. 
Scotia Group fell $1.48 to $35.52 in switching ownership of 204,060 stock units, Seprod rallied $2 to $63 in exchanging 16,367 stocks, Stanley Motta shed 68 cents in closing at $5.30 in trading 2,251 stock units and Wisynco Group popped 30 cents to close at $19.80 with 304,609 shares clearing the market.
In the preference segment, 138 Student Living preference shares shed $1.75 to end at $6.95 with an exchange of 2,250 units, Eppley 7.50% preference share fell 72 cents to $5.95 in trading 1,830 shares and JMMB Group 7.25% preference share gained 34 cents in ending at $2.64 with a transfer of 2,399 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More gains for JSE Main market on Tuesday
The volume of shares trading slipped moderately on Tuesday with the value ending 24 percent higher than on Monday at the close of the Jamaica Stock Exchange Main Market, with rising stocks exceeding those declining.
The All Jamaican Composite Index gained 994.99 points to end at 451,243.73, the Main Index slipped 12.55 points to 398,132.95 and the JSE Financial Index lost 0.12 points to close at 96.27.
Trading ended with 56 securities compared to 58 on Monday, with, 22 rising, 18 declining and 16 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.7. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 16,430,568shares were exchanged for $153,703,292 versus 17,366,999 units at $123,870,428 on Monday. QWI Investments led trading with 29.4 percent of total volume after a transfer of 4.83 million shares followed by Wigton Windfarm with 21.9 percent for 3.60 million units, Transjamaican Highway with 8.5 percent for 1.39 million units and Carreras with 6.6 percent market share for 1.09 million units.
Trading averages 293,403 units at $2,744,702, compared to 299,431 shares at $2,135,697 on Monday and month to date, an average of 257,879 units at $2,492,383, compared to 250,996 units at $2,443,491 on the prior day. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows 12 stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments declined 99 cents to close at $91.99 in trading 19,797 units, Caribbean Cement advanced $2 to $81 with the swapping of 37,613 stock units. Eppley rose $1.75 to $36 in exchanging 1,598 stocks, Eppley Caribbean Property Fund fell $3.90 to $38.10 after transferring 777 shares, GraceKennedy rose $1.48 to close at $104.98 with 56,839 units changing hands. Guardian Holdings lost $39 after ending at $536 with a transfer of 1,849 stocks, Jamaica Broilers gained 50 cents in closing at $27.50 in switching ownership of 96,266 stock units, Jamaica Stock Exchange rallied 30 cents to $18 after trading 1,674 shares. JMMB Group popped $1.10 to end at $43 in switching ownership of 631,294 stock units, Kingston Wharves fell $1.98 to close at $40 with an exchange of 5,447 stocks, Massy Holdings dropped $44 after ending at a 52 weeks’ low of $1,950 with 6,497 units clearing the market. MPC Caribbean Clean Energy rose 33 cents in closing at $119.50 after an exchange of 137 units, NCB Financial dropped $11.01 to end at $119 with the swapping of 325,401 stocks, 138 Student Living gained 36 cents in closing at $4.96 with 39,625 shares clearing the market, Palace Amusement declined $5 to $925 after an exchange of 2 stock units. 
Portland JSX advanced $2.23 to $9.15 in transferring one share, Sagicor Group fell $1.98 to close at $53.02 in switching ownership of 16,348 stocks, Salada Foods popped $1.60 to $8.50 in trading 475,812 shares. Scotia Group rose $1.49 in closing at $37 with 3,732 stock units crossing the market, Seprod shed 50 cents after ending at $61 with 12,953 units changing hands and Wisynco Group gained 47 cents to end at $19.50 with 272,939 stocks traded.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Gains for JSE Main Market
Market activity ended on Monday with the volume of shares rising 35 percent with a moderately lower value than on Friday on the Jamaica Stock Exchange Main Market as rising stocks were less than those declining.
The All Jamaican Composite Index advanced 1,714.09 points to 450,248.74, the JSE Main Index rallied 1,343.48 points to end at 398,145.50 and the JSE Financial Index slipped 0.08 points to settle at 96.39.
Trading ended with 58 securities compared to 59 on Friday, with 20 rising, 16 declining and 22 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.5. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
Overall, 17,366,749 shares were exchanged for $123,870,428 down from 12,877,557 units at $136,432,061 on Friday. 
QWI Investments led trading with 28.4 percent of total volume for an exchange of 4.93 million shares followed by Wigton Windfarm, 13.2 percent with 2.29 million units, Sagicor Select Financial Fund, 11.7 percent, with 2.03 million units, Transjamaican Highway accounted for 11 percent with 1.91 million units, JMMB Group 7.25% preference share with 7.1 percent for 1.23 million units and Carreras with 6.8 percent after trading 1.18 million units.
Trading averages 299,431 units at $2,135,697, compared to 218,264 shares at $2,312,408 on Friday and month to date, an average of 250,996 units at $2,443,491, compared to 238,836 units at $2,520,773 on the prior trading day. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows seven stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, Caribbean Cement advanced $4 to $79 in exchanging 16,503 shares, Caribbean Producers rallied $2.13 to end at $19.98 with 369,059 units crossing the market, First Rock Capital popped 43 cents in closing at $12.15 with 23,142 stock units changing hands. Jamaica Producers gained 76 cents in ending at $22.95 with the swapping of 2,993 stocks, Kingston Wharves rose $1.67 to close at $41.98 after 10,926 units crossed the exchange, Massy Holdings dropped $56 in closing at an all-time low since it was listed on the local exchange at $1,994 with a transfer of 5,737 stocks. Mayberry Investments gained 94 cents to finish at $7.05 in trading 9,070 stock units, MPC Caribbean Clean Energy shed 83 cents to close at $119.17 in switching ownership of 5 shares, NCB Financial fell $2.48 to $130.01 after trading 126,999 stock units.
Proven Investments picked up 48 cents in ending at $33.48 after exchanging 67,415 shares, Sagicor Group rose $1 to close at $55 in transferring 129,595 units, Scotia Group declined $2.09 to end at $35.51 with 14,043 stock units changing hands. Seprod lost 60 cents to settle at $61.50 after 7,226 stock units crossed the market, Supreme Ventures popped 30 cents in closing at $18.30 in trading 179,005 shares, Sygnus Credit Investments lost 43 cents to end at $14.80 with the swapping of 61,345 stocks. Victoria Mutual Investments rallied 36 cents to $7.10 in switching ownership of 237,292 units, Wisynco Group shed 97 cents in closing at $19.03 with 286,810 shares clearing the market.
In the preference segment, 138 Student Living preference shares advanced $2.10 to end at a 52 weeks’ high of $8.70 in trading 28 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Juniors recover from covid Main Market suffering
On Monday 24 of January, the Junior Market index reached to 3,700 mark for the first time and went on to record seven consecutive days of record closing highs, with the close on the 27 at 3,669.73 and peaking for that week at 3,717.45 on Friday, January 28, by Friday last week, the market which hit an intraday record high of 4,051.04 ended at a new closing high of 3,985.87 to be up 16.3 percent for the year to date and up just 37 percent from the pre-pandemic crash and 96 percent from the low in March 2020.
On the surface, the Junior Market has had a full recovery from the 2020 Covid-19 induced collapse that saw the index collapsing from 2,900 points at the end of February to 2,534 points on March 6 and bottoming out at 2,031.79 points on March 18 for a plunge of 39 percent from the start of 2020, and much more after peaking at 3,662 points in mid-August 2019.
A closer look at the market indicates there are elements of the market that are not back, with many stocks still trading below their pre-covid-19 levels. This group includes Access Financial that was at $32.94, just before the collapse, and is now at $25, Blue Power at $4.52 then and is now at $3.20, CAC2000 ordinary share then at $12.50, now $8.25, Consolidated Bakeries at $1.79, and now trading at $1.05, Jetcon Corporation at a $1.31, currently 94 cents, Knutsford Express at $11 in 2020, presently at $8, Main Event at $5.79 and now trades at $4 and Stationery and Office Supplies $8.86 it last traded at to be $6.
While the Junior Market has made great strides since hitting the 2020 low, the same is not the case for the heavily financially weighted Main Market that continues to be mired in depression following the initial sharp fall in March 2020 when the market fell precipitously to 375,091.09 points on the All Jamaican Composite Index from 529,722.22 at the end of February, for a 29.2 percent decline. As o Friday last the market is only up 20 percent from the March 2020 market bottom and 15 percent below the end of February 2020 level, and still well below the all-time high of 584,697.71 it closed on August 8, 2019. The major reason for the prolonged decline is primarily due to falling in stocks such as a Jamaica Stock Exchange, Kingston Wharves, NCB Financial, PanJam Investment, Proven Investments, Palace Amusement, Sagicor Group, Sagicor Select Funds, Scotia Group, Supreme Ventures, Sygnus Credit Investments, Wighton Windfarm. Strong gains in Barita Investments, Grace Kennedy, Caribbean Cement, Caribbean Producers, Salada Foods, Seprod and Radio Jamaica could not negate the effect of the big decliners.
More changes for ICTOP10 listings
The Junior Market closed at record highs on each of the last seven days, fueled by an upsurge in trading, with several days ending with all listed securities trading driving the volume and value traded upwards to levels not seen in months and resulting in several stocks reaching new 52 weeks’ highs.
The Main Market showed some bullishness this past week with the JSE All Jamaican Composite Index climbing 6,525.97 points to the highest level since late October last year. More than two thirds of the gains came on Friday helped by gains by heavyweights, Sagicor Group putting on $1, Scotia Group popping $1.60 and Wisynco jumping $2.25 after reporting strong increased profit for the December quarter.
The Junior Market Index is up a remarkable 16.3 percent for the year to Friday that is more than half of all of the 2021 gains, with the average rise in prices even greater at 19 percent. That quick upward movement is equivalent to an annualized gain of 194 percent and may result in investors questioning its sustainability.
Spur Tree Spices seems to have reached a peak for now but the previously last listed Junior Market stock, Future Energy, gained new life and sprinted to an all-time high of $4.50, no doubt driven by investors’ views that the increased price of gasoline will drive up sales and margins. While sales will rise in dollar terms margin may not. The party was not only for the gasoline supplier, Fontana in the TOP10 for the week ending the 21st of January at $7.40 hit new record highs this week up to $12.49 for an increase of 69 percent in a matter of weeks.
Two high performing stocks pulled back this week Dolphin Cove hit a record high of $30 during the week but pulled back to $22 on Friday while former ICTOP10 listed Caribbean Producers hit a record high of $25.99 earlier in the week, pulled back to $16 on Thursday before closing the week at $17.85. December results should be out for this stock during the coming week and will have benefitted from the resurgence in tourist arrivals.
Medical Disposables gained 12 percent this past week to end at $7.55 and exited the Junior Market TOP10 listing, with Elite Diagnostic having traded at a 52 weeks’ high of $4.40 two weeks ago and ended the previous week at $3.73, suffered more losses this past week and is back to the TOP10. In the Main Market, Scotia Group rose nine percent to $37.50 and was replaced in the TOP10 by Jamaica Broilers.
Lasco Distributors jumped 15 percent to $3.73 ahead of third quarter results due out shortly and General Accident moved up 7 percent to $6.50, while Honey Bun and Jetcon Corporation both rose 5 percent in the week. AMG Packaging rose 3 percent to end at $3.70 and so did Caribbean Assurance Brokers that closed at $3.10.
Guardian Holdings climbed 5 percent to close at $575, JMMB Group held on to a 2 percent rise for the week and traded at a 52 weeks’ high of $44.61 on Friday but closed at $41.99. Pan Jam Investment and Radio Jamaica settled with a 5 percent rise for the week, while Proven Investment lost 8 percent to close at US$0.21 and Sygnus Credit Investments slipped 4 percent to $15.23.
The sharp price movements in the Junior Market over the recent past weeks reduced the potential gains markedly, with the average increase projected for the TOP 10 Junior Market stocks now at 104 percent versus 114 percent last week and is now lower than the Main Market at 128 percent.
The top three stocks are Caribbean Assurance Brokers followed by Lasco Financial and Lasco Distributors to gain between 114 and 126 percent, compared to 128 and 148 percent, previously.
The potential gains for Main Market stocks moved from 131 percent to this weeks’ 128 percent, with the top three being JMMB Group followed by Guardian Holdings and Sygnus Credit Investments all projected to gain between 165 and 186 percent from 155 and 193 percent last week.
After trading at a big discount to the Main Market for two years, the average PE for both the JSE primary markets has virtually merged just below 17 times 2021 earnings.
The Junior Market closed the week, with an average PE of 16.8 based on ICInsider.com’s 2021-22 earnings and is currently below the target of 20 and now virtually at the average of 17 that was achieved at the end of March last year. The TOP 10 stocks trade at a PE of a mere 9.8, with a 42 percent discount to that market’s average. That means there is a lot of room for the TOP10 stocks to run between now and the end of March.
The Junior Market can gain 19 percent to March this year, based on an average PE of 20 that would take the index to 4,700 points. About a third of Junior Market stocks with positive earnings are trading at or above this level, averaging around 23.
The average PE for the JSE Main Market is 16.4 just 16 percent less than the PE of 19 at the end of March and 22 percent below the target of 20 to March this year. The Main Market TOP 10 average PE is 8.9 representing a 46 percent discount to the market and well below the potential of 20. A total of 14 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Big rise for JSE Main Market
Market activity ended on Friday with the volume of shares rising 20 percent more and the value 15 percent higher than on Thursday on the Jamaica Stock Exchange Main Market as rising stocks beat out those declining leading the market indices to make a sharp turn higher at the close.
The All Jamaican Composite Index jumped 4,451.26 points to 448,534.65, the JSE Main Index rallied 2,102.47 points to close trading at 396,802.02 and the JSE Financial Index slipped 0.17 points to end at 96.47.
A total of 59 securities traded versus 58 on Thursday, with 28 rising, 17 declining and 14 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 16.4. The PE ratio for the JSE Main and USD Market closing quotes are based on ICInsider.com earnings forecasts for companies with financial years ending up to August 2022.
A total of 12,877,557 shares were exchanged for $136,432,061 up from 10,750,192 units at $118,283,579 on Thursday. Sagicor Select Manufacturing & Distribution Fund led trading with 16.4 percent of total volume in transferring 2.11 million shares followed by QWI Investments with 14.6 percent for 1.87 million units, 
Sagicor Select Financial Fund with 12 percent for 1.55 million units, JMMB Group 7.5% preference share accounted for 9.6 percent with 1.24 million units and Transjamaican Highway, 1.07 million units with 8.3 percent market share.
Trading averages 218,264 units at $2,312,408, up from 185,348 shares at $2,039,372 on Thursday and month to date, an average of 238,836 units at $2,520,773, compared to 245,893 units at $2,592,246 previously. January closed with an average of 235,328 units at $2,397,571.
Investor’s Choice bid-offer indicator shows six stocks ending with a bid higher than its last selling price and four with lower offers.
At the close, Barita Investments rallied $2.50 to close at $93 in trading 3,172 shares, Caribbean Cement rose $4.95 to end at $75 with a transfer of 135,496 stock units, Caribbean Producers fell $2.05 to $17.85 with 325,734 units clearing the market. Eppley Caribbean Property Fund shed 98 cents ending at $42 after exchanging 34 stocks, First Rock Capital lost 30 cents in closing at $11.72 with 7,582 stock units changing hands, GraceKennedy rose $1.90 to $103.50 after a transfer of 82,660 shares. Guardian Holdings climbed $40 to close at $575 with the swapping of 3,638 units, Jamaica Producers lost 81 cents and closed at $22.19 in switching ownership of 69,771 shares, Jamaica Stock Exchange gained 95 cents after ending at $17.95 with 116,988 stock units crossing the market. JMMB Group shed $1.01 to end at $41.99 with the swapping of 455,271 stocks, Margaritaville rose $1.05 to close at $25 in exchanging 662 units, Massy Holdings dropped $50 ending at a low since listing of $2,050 after 8,308 shares crossed the market. 
Mayberry Investments shed $1.09 to settle at $6.11 with 8,258 stocks changing hands, Portland JSX fell $2.08 to end at $6.92 in switching ownership of 10,001 shares, Proven Investments popped 99 cents to $33 with 8,854 units traded. Sagicor Group climbed $1 to $54 in an exchange of 35,143 stock units, Scotia Group advanced $1.60 to $37.60 with 25,221 units crossing the exchange, Seprod rallied $3.10 to $62.10 with the swapping of 24,328 shares. Supreme Ventures gained 30 cents after ending at $18 with 247,772 stock units clearing the market, Sygnus Real Estate Finance advanced $2.70 in closing at $18.20 with an exchange of 780 stocks and Wisynco Group popped $2.25 to close at a 52 weeks’ high of $20 in trading 703,826 shares.
In the preference segment, Eppley 7.50% preference share gained 30 cents after closing at $6.90 in switching ownership of 900 stock units and JMMB Group 7.25% preference share lost 70 cents to end at $2.30 with an exchange of 34,582 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
