Stocks got clobbered for a second day, with the All Jamaican Composite Index tumbling 7,500.40 points to 456,885.82, following on Monday’s more than 7,000 points fall. The JSE Main Index dropped 5,985.17 points to end at 419,563.41 and the JSE Financial Index shed just 1.18 points to 103.69 as activity ended on Tuesday on the Jamaica Stock Exchange Main Market after the volume of shares exchange dived 50 percent, while the value surged 109 percent compared to Monday.
Trading ended with 50 securities compared to 51 on Monday, with 17 rising, 21 declining and 12 remaining unchanged. The PE Ratio, a measure that determines an appropriate relative value stocks, averages 16.9 based on ICInsider.com’s forecast of 2021-22 earnings.
Trading concluded on Tuesday with 9,510,633 shares for $151,206,424 compared to 18,854,189 stock units at $72,201,390 on Monday. Wigton Windfarm accounted for 33.9 percent of total volume, with 3.22 million shares, to lead the volume traded, followed by QWI Investments 14.4 percent with 1.37 million units and Sagicor Select Financial Fund with 10.2 percent after an exchange of 972,238 units.
Trading averaged 190,213 units at $3,024,128, compared to 369,690 shares at $1,415,714 on Monday. Trading month to date averages 250,335 units at $3,911,541, in contrast to 253,353 units at $3,956,090 on Monday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has 12 stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments declined $1.10 to $80 with an exchange of 700,191 shares, Caribbean Cement slipped 50 cents to $94.50 after clearing the market of 155,541 stock units, Grace Kennedy fell $1 to $96.95, with 43,336 units crossing the market. Guardian Holdings dropped $30 to end at a JSE low of $650 with the swapping of 46,888 stocks, Jamaica Broilers rose 78 cents to $36.03 in exchanging 24,814 units, Jamaica Producers declined $1.25 to $23.50 after investors transferred 32,054 stock units. Jamaica Stock Exchange dipped 32 cents to $17, trading 17,228 stocks, Mayberry Jamaican Equities popped 34 cents to $9.09 after switching ownership of 17,300 shares. NCB Financial rose $1 to $142 with 68,867 units changing hands, 138 Student Living lost 25 cents to end at $5 with the swapping of 10,165 shares, Palace Amusement spiked $149.73 to $1,500 after trading 208 units, PanJam Investment declined $2 to $65 with a transfer of 50,915 stock units. Pulse Investments lost 24 cents to close at $4.10 with 75,022 shares clearing the market, Sagicor Group rallied 69 cents to close at $57 in an exchange of 65,202 stock units, Salada Foods shed 62 cents to close at $8, with 57,825 stocks crossing the market. 
Seprod gained 99 cents to finish at $74.49 with the swapping of 175,821 shares, Supreme Ventures declined 95 cents in closing at $19.95 after an exchange of 53,982 stocks and Wisynco Group lost 20 cents to close at $15.75 in transferring 50,623 units.
In the preference segment, Eppley 8.25% spiked 80 cents in closing at $6.85 with 157 units changing hands and JMMB Group 7.15% – 2028 gained 20 cents to end at $3.25 in trading 65,000 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big drop for JSE majors – Monday
Stocks suffered a big reversal at the close of trading on Monday with the market after stock prices fell twice as much as those that rose, with the value of stocks trading dropping 60 percent with marginally lighter volume compared to trading on Friday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index plunged 7,165.97 points to 464386.22, the JSE Main Index dived 5,561.25 points to 425,548.58, while the JSE Financial Index slipped just 2.42 points to 104.87. Trading ended with 51 securities compared to 48 on Friday, with 13 stocks rising, 25 declining and 13 remaining unchanged.
The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 17 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 18,854,189 shares trading for $72,201,390 versus 19,122,031 units at $179,348,158 on Friday. Wigton Windfarm led trading with 48.8 percent of total volume for an exchange of 9.20 million followed by Transjamaican Highway 15.6 percent with 2.94 million units, Sagicor Select Financial Fund cornered 10.5 percent, with 1.99 million units and Mayberry Investments with 9.5 percent for 1.79 million units changing hands.
Trading averaged 369,690 units at $1,415,714, down from 398,376 shares at $3,736,420 on Friday. Trading month to date averages 253,353 units at $3,956,090, in contrast to 247,075 units at $4,093,190 on Friday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has nine stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments dipped 89 cents to $81.10 in trading 4,968 shares, Eppley dropped $1.35 to $42.65 in switching ownership of 610 stock units. First Rock Capital shed 75 cents to end at $15.50 in trading 5,122 shares, Jamaica Broilers closed $1.25 lower at $35.25 in exchanging 27,743 units, Jamaica Producers spiked $1.25 to $24.75 with 17,202 shares crossing the exchange, Kingston Properties slashed 92 cents off to end at $7.50 after a transfer of 18,357 units, Kingston Wharves dropped $3 to finish at $47 in switching ownership of 101,493 shares. Mayberry Investments rallied 73 cents in closing at $6.38 with an exchange of 1,794,042 stock units, Mayberry Jamaican Equities dipped 26 cents to $8.75 in trading 120,742 shares. NCB Financial declined $2 to $141 with the swapping of 33,912 stock units, Palace Amusement surged $175.27 to $1,350.27 with 324 units changing hands, PanJam Investment ended $1.84 lower at $67 with a transfer of 23,513 shares. Proven Investments shed 81 cents to close at $34.21 in trading 44,330 units, Sagicor Group dropped $2.30 to $56.31 after exchanging 19,889 stocks. 
Scotia Group fell 60 cents to $41 with the swapping of 10,820 units, Seprod slipped $1 to $73.50 trading 6,685 stocks, Sterling Investments lost 20 cents to close at $2.80 with 300,000 shares crossing the exchange and Supreme Ventures spiked $1.10 to $20.90 in switching ownership of 30,505 stocks.
In the preference segment, Eppley 8.25% lost 55 cents to end at $6.05 with the swapping of 774 stocks and JMMB Group 7.25% popped 40 cents to $1.50 in an exchange of 11 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JMMB moves to #2 in Main Market ICTOP10
The two main Jamaica Stock Exchange markets may have broken loose from the area of resistance, but they continue to be hemmed in around current trading levels, with Junior Market closing below last week’s close with three days of decline and the
Main market had three days of decline but ended the week with a fall of points after recording a strong rise the previous week.
Caribbean Cream is back with earnings per share now at 70 cents for the current year, while Future Energy Source reached new highs during the week and is out of the IC Junior Market TOP10. In the Main Market, there was no change in the list, but earnings per share for JMMB Group is upgraded to $6 for the current year and the stock is now the second best main market stock, with potential to gain over 200 percent for the next twelve months.
There are still several stocks that are severely undervalued, with the scope to record above average gains up to the first half of 2022.
This past week the average gains projected for the Junior stocks slipped from 207 percent last week to 204 percent and the Main Market stocks moved up from last week’s 166 percent up to 172 percent with the upgrading of JMMB earnings.
The top three stocks in the Junior Market continue to be Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Medical Disposables, with the potential to gain from 254 to 276 percent, after the range fell from 247 to 300 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 171 to 379 percent versus last weeks’ 160 to 391 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year based on 2020 earnings. For the market to trade at the historical average, the PE Ratio would have to rise by 31 percent and require a rise of 52 percent to March 2022 to reach the targeted PE of 20.
The Junior Market Top 10 stocks average PE is a mere 6.8, just 51 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, a little distance from the 19 the market ended at in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. 
The Main Market TOP 10 trades at a PE of 7.9 or 46 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely 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 movements in and out of the lists weekly. 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.
Mixed trading for JSE Main Market
Market activity ended Friday, with the All Jamaican Composite being the only major index of the Main market to rise following a 141 percent spike in the volume of shares traded with the value climbing 98 percent higher than on Thursday at the close of Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index sprung 2,108.95 points higher to 471,552.19, the JSE Main Index fell 623.96 points to end at 431,109.83 and the JSE Financial Index slipped 0.23 points to 107.29.
Trading ended with 48 securities similar to Thursday, with 19 stocks rising, 16 declining and 13 remaining unchanged. The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 17.1 based on ICInsider.com’s 2021-22 earnings forecast.
At the close, 19,122,031 shares traded for $179,348,158 versus 7,921,981 units at $90,793,813 on Thursday. Wigton Windfarm dominated trading with 66.1 percent of total volume after trading 12.63 million shares, followed by Transjamaican Highway 7.6 percent, with 1.46 million units and QWI Investments 5.2 percent, with 985,428 units changing hands.
Trading averaged 398,376 units at $3,736,420, compared to 165,041 shares at $1,891,538 on Thursday. Trading month to date averages 247,075 units at $4,093,190, in contrast to 238,979 units at $4,112,281 on Thursday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has twelve stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments rallied 39 cents to $81.99 with an exchange of 4,792 shares, Caribbean Cement advanced $2.18 to $95 after a transfer of 6,763 shares, Eppley rose $1 to $44 with 1,515 units crossing the market. Eppley Caribbean Property Fund spiked $2.90 to $44.90 in trading 11,396 stocks, First Rock Capital rallied 25 cents to $16.25, with 3,435 clearing the market, Grace Kennedy fell 95 cents to $98 with 9,117 stocks changing hands. Guardian Holdings dropped $5 to an all-time low of $680 in switching ownership of 185,472 shares, Jamaica Broilers popped 50 cents to $36.50 with 21,212 stock units crossing the market, Jamaica Producers shed $1.50 to close at $23.50 in exchanging 63,154 shares, Kingston Properties ended $1.65 lower at $8.42 with the swapping of 8,250 units. Kingston Wharves spiked $3.50 to $50 in exchanging 104,631 shares, Margaritaville shed 65 cents at $13.60 with 3,233 units crossing the market, NCB Financial fell $1.95 to $143 after trading 23,105 shares, Palace Amusement rose $1 to $1,175 in transferring 177 units, Pan Jam Investment surged $3.84 to $68.84 in switching 3,770 stock units. 
Portland JSX sprung 61 cents higher to $9.41 with 948 units changing hands, Proven Investments shed 37 cents to close at $35.02 in trading 20,407 stocks, Sagicor Group dived $4.23 to $58.61, with 267,469 shares clearing the market, Stanley Motta gained 25 cents to close at $5.90 with an exchange of 68,437 stocks, Sterling Investments rallied 20 cents to $3 with 973 stock units changing hands and Wisynco Group popped 49 cents higher to $15.98 in trading 176,609 shares.
In the preference segment, Eppley 8.25% dipped 30 cents to end at $6.60 after trading 754 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Down day for JSE majors
In Thursday’s stock market activity, declining stocks dominated market activity with the market declining after falling stocks outnumbered rising ones three to two, with a 24 percent decline in the volume of stocks trading, 
with the value plunging 34 percent from Wednesday’s levels, at the close of the Jamaica Stock Exchange Main Market.
At the close, the All Jamaican Composite Index dropped 3,424.63 points to 469,443.24, the JSE Main Index declined 3,894.62 points to end at 431,733.79 and the JSE Financial Index fell 1.12 points to 107.52.
Trading ended with 48 securities compared to 49 on Wednesday, with 15 stocks rising, 22 declining and 11 remaining unchanged. The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 17.1 based on ICInsider.com forecast of 2021-22 earnings.
The market closed with 7,921,981 shares trading for $90,793,813 down from 10,422,317 units at $137,283,960 on Wednesday. Wigton Windfarm led trading with 16.6 percent of total volume after exchanging 1.32 million shares, followed by Sagicor Select Financial Fund 15.1 percent with 1.20 million units and JMMB Group 7.25% preference share 11.9 percent, with 939,170 units.
Trading averaged 165,041 units at $1,891,538, compared to 212,700 shares at $2,801,713 on Wednesday. Trading month to date averages 238,979 units at $4,112,281, in contrast to 243,159 units at $4,237,836 on Wednesday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator shows 13 stocks ending with bids higher than their last selling prices and none with lower offers.
At the close, Caribbean Cement declined $2.18 to $92.82 in trading 18,118 shares, Eppley spiked $4.90 to $43 in switching ownership of 1,100 units, Eppley Caribbean Property Fund gained 25 cents in closing at $42 after a transfer of 11,510 shares, First Rock Capital rose 50 cents to $16 with 10,546 units changing hands. Grace Kennedy shed 50 cents to close at $98.95 with the swapping of 45,461 stocks, Guardian Holdings ended $25.99 lower at a new low of $685 with 10,021 stock units crossing the market, JMMB Group fell 50 cents to $38 in an exchange of 465,053 shares, Margaritaville gained 25 cents to close at $14.25 in transferring 955 units. Mayberry Investments lost 49 cents to end at $5.65 with the swapping of 2,000 stocks, NCB Financial rallied $1.93 to finish at $144.95 after 22,820 shares cleared the market. Palace Amusement shed $1 to close at $1,174 in switching ownership of 138 units, Pan Jam Investment declined $4.49 to $65 with an exchange of 60,000 stocks, Portland JSX popped 62 cents to $8.80, trading 80,100 shares. Sagicor Real Estate Fund fell 55 cents to $8.50 after an exchange of 290 units, Scotia Group advanced $1.70 to $41.70 in switching ownership of 39,847 stock units, Sterling Investments shed 20 cents to close at $2.80 with the swapping of 221,807 shares,
Supreme Ventures rallied 41 cents to $19.80 in an exchange of 249,511 shares and Wisynco Group shed 35 cents to close at $15.49 after and exchange of 56,894 stocks.
In the preference segment, JMMB Group 7.25% lost 40 cents to close at $1.10 after exchanging 939,170 stock units and Productive Business Solutions 9.75% preference share dropped $4.89 to $100.11 in trading 10,000 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Slippage for JSE Main Market
Market activity ended on Wednesday with the market declining after an even number of stocks advanced and declined, with 14 percent more shares trading with slightly greater value than on Tuesday at the close of the Jamaica Stock Exchange Main Market.
At the close, the All Jamaican Composite Index dipped 361.17 points to 472,867.87, the JSE Main Index fell 704.18 points to 435,628.41 and the JSE Financial Index slipped 0.54 points to 108.64.
Trading ended with 49 securities compared to 51 on Tuesday, with 20 stocks rising, 20 declining and nine remaining unchanged. The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 17 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 10,422,317 shares trading for $137,283,960 versus 9,136,559 units at $130,802,962 on Tuesday. Wigton Windfarm led trading with 23.3 percent for an exchange of 2.41 million shares, followed by Transjamaican Highway with 21.3 percent after trading 2.21 million units and JMMB Group 10.7 percent with 1.11 million units.
Trading averaged 212,700 units at $2,801,713, compared to 179,148 shares at $2,564,764 on Tuesday. Trading month to date averages 243,159 units at $4,237,836, in contrast to 245,024 units at $4,325,798 on Tuesday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has ten stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments shed 70 cents in closing at $81.70 after a transfer of 84,209 shares. Eppley dropped $5.90 to $38.10 in exchanging 363 units, Eppley Caribbean Property Fund ended 25 cents lower at $41.75 after trading 11,081 stocks, First Rock Capital shed 50 cents to close at $15.50 with 6,009 units changing hands. Guardian Holdings drifted $9 down to $a new low of $710.99 with 2,589 stock units clearing the market, Jamaica Producers popped 47 cents to $25 with 28,477 shares changing hands, Mayberry Investments rallied 54 cents to $6.14 with an exchange of 178 units. NCB Financial lost 51 cents in closing at $143.02, with 27,056 shares crossing the exchange, Palace Amusement rallied $75 to $1,175 with a transfer of 918 stocks, Pan Jam Investment spiked 89 cents to $69.49 in trading 8,563 shares. Proven Investments fell 98 cents to $35.50 in exchanging 5,002 stocks, Sagicor Real Estate Fund rallied 73 cents to $9.05 with the swapping of 27,282 units, Scotia Group fell $1.95 to $40 after 963,945 shares crossed the exchange,
Sterling Investments gained 19 cents to end at $3 in switching ownership of 15,954 stocks, Supreme Ventures advanced $1.74 to $19.39 with 37,373 stock units changing hands.
In the preference segment, 138 Student Living Preference share dropped $1.41 to $6.50 in trading 250 stock units, Eppley 8.25% rose 85 cents to $6.90 with 1,505 stocks crossing the market and JMMB Group 7.25% rallied 35 cents to $1.50 in a transfer of 40,000 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Down day of JSE Main Market stocks
Market activity ended on Tuesday with declining stocks having the upper hand on rising stocks as the volume of shares exchanged rose 39 percent and the value 98 percent above Monday’s outturn, leaving the market indices languishing with losses at the close of Jamaica Stock Exchange Main Market.
Trading ended with 51 securities versus 52 on Monday, with 16 stocks rising, 25 declining and 10 remaining unchanged.
The All Jamaican Composite Index declined 2,380.68 points to 473,229.04, the JSE Main Index fell 2,360.07 points to end at 436,332.59 and the JSE Financial Index lost 0.54 points to 109.18.
The PE Ratio, a measure that determines an appropriate relative value for a stock, averages 17 based on ICInsider.com forecast of 2021-22 earnings.
A total of 9,136,559 shares traded for $130,802,962 versus 6,571,725 units at $66,082,456 on Monday. Wigton Windfarm led trading with 47.9 percent of total volume, after trading 4.38 million shares, followed by JMMB Group with 14.6 percent and 1.34 million units and Ciboney Group 7.2 percent, with 655,651 units.
Trading averaged 179,148 units at $2,564,764, compared to 126,379 shares at $1,270,816 on Monday. Trading month to date averages 245,024 units at $4,325,798, in contrast to 249,510 units at $4,445,708 on Monday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has eight stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Barita Investments shed 55 cents ending at $82.40 in switching ownership of 30,405 shares, Caribbean Cement rose $1.20 to end at $95 with 14,582 stocks crossing the market, Eppley Caribbean Property Fund rallied $4 to $42 after exchanging 654 units, Grace Kennedy ended 55 cents lower at $99.45 with the swapping of 149,969 shares. Guardian Holdings declined $5.02 in closing at the lowest point since listing locally at $719.99 in exchanging 19,385 stocks, Jamaica Broilers rose $1 to $36 in trading 74,092 units, JMMB Group lost 25 cents to finish at $38.50 with the swapping of 1,337,495 shares, Kingston Properties rallied 32 cents to $10.07 in trading 150 stock units. Kingston Wharves fell $1.45 to $46.50 with 5,086 units changing hands, Mayberry Investments shed 40 cents to settle at $5.60 with the swapping of 1,408 stock units. NCB Financial declined $1.18 to $143.53 with 19,656 shares crossing the market, Pan Jam Investment spiked 60 cents to $68.60 in switching ownership of 8,581 shares. Portland JSX declined $1.32 to end at $8.18 with an exchange of 3,500 stocks, Proven Investments popped $1.45 to $36.48 in trading 12,686 stock units, Sagicor Group gained 55 cents to end at $63.05 in transferring 403,583 shares. 
Sagicor Real Estate Fund shed 48 cents in closing at $8.32 in an exchange of 5,008 stocks, Scotia Group rose 95 cents to $41.95 with 10,552 stocks crossing the market, Seprod closed 50 cents lower at $74.50 after exchanging 8,923 units and Supreme Ventures fell $1.85 to $17.65 in trading 79,972 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Q2 profit jumps 22% at Scotia Group
Profit for the April quarter rose a decent 22 percent to $2.73 billion from $2.23 billion for the same period last year for Scotia Group, helped by lower staff cost and steeply reduced credit loss provision, with net interest income sagging sharply.
Scotia Group Kingston Branch
Net profit of $4.5 billion for the six months to April 2021 is up by $463 million or 11.5 percent compared to the corresponding period last year.
Net interest income dropped 13 percent from $6.3 billion to $5.5 billion in the quarter and for the half year, it slipped 9.5 percent to $11 billion from $12.48 billion. After providing expected credit losses, net interest income for the six-month period was slightly up to $9.9 billion from $9.8 billion in 2020, as expected credit losses were cut by $1.3 billion from $2.67 billion down to $1.4 billion. Other income increased $1 billion or 11 percent for the half year to $10.2 billion from $9.2 billion and increased by 11 percent from $4.29 billion for the April quarter to $4.78 billion. Foreign exchange gains contributed most to the rise in other income, with the April quarter enjoying a 39 percent bounce to $2.56 billion from $1.84 billion and for the half year an increase of 28 percent from $3.55 billion to $4.55 billion.
Segment results show a mixed picture for the half year, with Banking Treasury showing less income of $1.98 billion compared to $2.22 billion in 2020, with segment results of $833 million versus $1.08 billion. Retail banking saw a major about turn with a profit of $537 million from revenues of $9.5 billion against a loss of $139 million from revenues of $9.7 billion in 2020. Corporate and Commercial banking kicked in with revenues of $5.7 billion and profit of $2.18 billion from $5.45 billion and profit of $2.2 billion in 2020. Investment Management Services saw income and profit rising appreciably after generating $1.73 billion and contributed a profit of $1.3 billion to April this year versus $1.23 billion in revenues and profit of $627 million last year. Insurance revenues decreased by $700 million or 30.3 percent to $2.05 billion from $2.75 billion in 2020, while profit fell from $2 billion to $1.35 billion. The directors state that the fall is “due to the reduction in premium income stemming from the pandemic as well as lower actuarial reserve releases.”
Salaries and staff costs fell from $2.7 billion in the 2020 quarter to $2.49 billion and six months from $5.45 billion to $5.05 billion. Total operating expenses ended down at $5.59 billion from $5.88 billion and for the half year, cost rose from $13 billion to $13.36 billion.
The improved results are of import and the higher increase in the April quarter, encouraging. Still, the fall in net interest income suggests that major recovery in the Group’s core business may be some distance off, especially with contraction in the loan portfolio from $221 million at the end of October to $217 in January. Now $215 billion in April, the trend, however, suggests a slowing in the rate of decline. With, strong recovery in the tourism sector, the last major leg of the economy to recover, the bank may find new opportunities for increased lending and possible recovery of loan losses.
Before the impact of Covid-19 on the group’s operations, loans net of provision for credit losses was growing at a decent clip with an increase of 7 percent in 2020 to $216 billion, for 2019 loans grew 13 percent to $202 billion, in 2018 growth was 10 percent to $179 billion there was no growth in 2017 with $162 billion after an increase of 8 percent in 2016 and 7 percent in 2015.
Stockholders’ Equity rose to $118.4 billion from $112.4 billion at the end of April 2020. Deposits by the public grew to $361 billion from $334 billion at the close of April 2020 and Investment Securities remained at $145 billion as of April, similar to the same time last year, while cash resources jumped from $92 billion at the end of April 2020 to $136 billion at the end of the latest quarter, but down from $141 billion at the end of October last year.
What seems clear is that customers are using the Branches less to transact business and this is set to lead to reductions in costs in the future and help improve profitability and the bank’s image.
The group approved an interim dividend of 35 cents per share, payable on July 21, to stockholders on record on June 29. The stock traded at $41 on Monday at PE between 10 and 12 times 2021 estimated earnings.
JSE Main Market continues to rise
Stocks surged 7,426 points at the opening of the market on Monday, with the All Jamaican Composite Index (AJI) shooting to 480,813.71, the highest level since the market close at just over 481,605 on March 5 last year, trading activity cooled off with the Jamaica Stock Exchange Main Market closing higher than on Friday with just over 2,200 points added to the AJI at the close.
Trading ended with 52 securities compared to 56 on Friday, with 22 stocks rising, 26 declining and four remaining unchanged.
At the close of trading, the All Jamaican Composite Index rose 2,222.03 points to 475,609.72, the JSE Main Index ended with a rise of 1,370.55 points to end at 438,692.66 and the JSE Financial Index added 0.57 points to finish at 109.72.
The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 17 based on ICInsider.com forecast of 2021-22 earnings.
The volume of shares traded fell 31 percent and value 21 percent compared to Friday as 6,571,725 shares changed hands valued at $66,082,456 versus 9,586,037 units at $83,876,641 on Friday. Transjamaican Highway led with 23.9 percent of total volume for 1.57 million shares, followed by Wigton Windfarm 21 percent, with 1.38 million units and Mayberry Investments with 14.5 percent for 952,369 units.
Trading averaged 126,379 units at $1,270,816, compared to 171,179 shares at $1,497,797 on Friday. Trading month to date averages 249,510 units at $4,445,708, in contrast to 258,696 units at $4,682,573 on Friday. May ended with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has 8 stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Barita Investments shed 54 cents in closing at $82.95 with an exchange of 32,000 shares, Berger Paints rose 24 cents to $14.09 in trading 930 units. Caribbean Cement lost 20 cents to settle at $93.80 with the swapping of 1,033 stock units, Carreras rallied 20 cents to $9.50 after transferring 8,405 stock units, Eppley Caribbean Property Fund popped $1.99 to $38 with 420 stocks crossing the market, First Rock Capital picked up 20 cents to finish at $16 in swapping 19,316 units. Grace Kennedy climbed 54 cents to a 52 weeks’ high of $100, with 193,690 shares crossing the exchange, Guardian Holdings dropped $19.99 to a 52 weeks’ closing low of $725.01 in switching ownership of 9,328 units, Jamaica Broilers shed 97 cents to $35 transferring 37,072 stocks. Jamaica Producers popped 51 cents to $24.51, trading 12,114 shares, JMMB Group gained 30 cents in closing at a 52 weeks’ high of $38.75 with an exchange of 164,979 stocks, but only after trading at an intraday year’s high of $40. Kingston Properties closed 32 cents lower at $9.75, trading 4,000 units, Kingston Wharves spiked $1.45 to $47.95 in exchanging 12,832 stock units, Mayberry Jamaican Equities rose 97 cents to $9.48 with the swapping of 1,051 stocks. MPC Caribbean Clean Energy rallied $32.27 in closing at $148.50 after exchanging 59 units, NCB Financial dipped $2.29 to $144.71 in switching ownership of 21,120 shares, 138 Student Living lost 20 cents ending at $5.25 with an exchange of 4,194 stocks, Palace Amusement dived $65 to $1,100 with the transfer of 445 stock units. 
Pan Jam Investment fell $1 to $68 after 13,115 shares crossed the market, Proven Investments fell $1.87 to $35.03 with 14,943 stock units changing hands, Sagicor Group slipped $1 to $62.50 in exchanging 47,781 shares after trading at a 52 weeks’ high of $68. Sagicor Real Estate Fund rose 48 cents to $8.80 in trading 1,742 units, Scotia Group shed $1 to end at $41 in switching ownership of 2,691 stocks. Seprod popped $1 higher at $75 in exchanging 10,899 stock units, Supreme Ventures declined $1.58 to $19.50 with a transfer of 248,201 shares and Sygnus Credit Investments gained 20 cents to close at $15.20 with 47,134 stock units crossing the market.
In the preference segment, Eppley 8.25% shed 89 cents to end at $6.05, after 6,027 stocks were traded, JMMB Group 7% lost 40 cents to close at $1.60 in an exchange of 320 units and JMMB Group 7.25% finished 34 cents lower to a 52 weeks’ low of $1.10 with the swapping of 125,000 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
New ICTOP10 entrants
In a week when the main and junior markets of the Jamaica Stock exchange broke loose from resistance, with the Junior Market just creeping away and the Main market surging more than 14,000 points up, as investors appear more bullish than they have been for some time.
Scotia Group, along with Caribbean Cream, fell out of the TOP10 based on downward revisions to their earnings for the coming financial year ends. Moving into the Junior Market TOP10 is ISP Finance with the price dropping to $15.60 on Friday and the Main Market listed, Berger Paints moving back in the TOP10 with the price at $13.85 on Friday.
JMMB Group came outwith solid results for the full year to March, leading to a revision of the projection for the 2022 fiscal year, making the stock a solid buy even after it rose 12 percent to $38.45 from $32.50 last week, Grace Kennedy jumped 5 percent from $94.97 last week to close at $99.46, PanJam Investment moved up 11 percent from $54.50 to $69 and Future Energy Sources closed the week at a 52 weeks’ high of $1.10, to be marginally up for the week from $1.07.
The average gains projected for the Junior Market slipped from 210 percent last week to 207 percent as the market slowly rises. The average projected gains for the Main Market stocks dropped last week from 170 to 166 percent as the market gained 3 percent for the week.
The top three stocks in the Junior Market continue to be Elite Diagnostic heading the list, followed by Medical Disposables and Caribbean Assurance Brokers, with the potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and JMMB Group, with expected gains of 160 to 391 percent.
The targeted PE ratio for the market remains an average of 20 based on profits of companies reporting full year’s results up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. One reason why the Junior Market stocks have outperformed Main Market ones since last year can be seen from the big difference between the valuations of both markets, with the latter values close to maturity, based on present valuation metrics.
The Junior Market, with an average PE 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, for the market to get to last year average, would require a 32 percent rise in the market, that would equate to a rise of 54 percent to March 2022 if it were to reach the targeted PE of 20. 
The Junior Market Top 10 stocks average a mere 6.7 at just 51 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, a little distance from the 19 the market ended in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 46 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.
