The Jamaican stock market saw quite a bit of volatility during the past week resulting from some sharp price movement of some stocks.
The pullback could well be that the market will soon be entering the period when institutional investors are likely to enter the market to reposition their portfolio ahead of the start of the new years and could result in a usual Santa Claus rally starting around the middle of the month.
In the end, Lasco Financial came under selling pressure and closed the week at $4.15 to reenter the TOP 10 list of the Junior Market and displaced Jamaican Teas TOP 10 last week. In the main market TOP 10 two changes took place with Sagicor Group having fallen to $41 and JMMB Group trading at $34 replacing Scotia Group that reported poor fourth quarter results and declining in price from the $60 region of the previous week to close at $54.05 while Grace Kennedy moved up in price and the earnings per share has been adjusted to $4.80 from $5.30 the combination of which pushed them from the TOP list.
The main market closed the week with the overall PE remains at 15.6, the PE of the Junior market remains at 15.9. The PE ratio for Junior Market Top 10 stocks average 8.8 and the main market PE is now 9.9. The top Junior market stocks are selling at a discount of 13 percent to those of the main market stocks even as the overall average PE for both markets are almost equal. This is an indication that there may be more gains to be had from these Junior Market stocks than those in the main market.
The TOP 10 stocks now trade at an average discount of 45 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
Scotia & Stanley Motta now in IC Top 10
Two changes took place in the main market TOP 10 and one in the Junior Market as market activity pushed out some stocks from the list this past week.
Palace Amusement and Barita Investments had big price gains during the week and exited the main market top list while Honey Bun reported full year profit of 18 cents per share and dropped out of the top tier stocks but it still showed strong signs of better days ahead as it starts the new fiscal year with increased volume sales.
New Entrants this week are, Stanley Motta and Scotia Group for the main market and Jamaican Teas for the Junior Market. Barita Investments jumped to a record $28 on Friday as investors continue to bid up the stock with talk on the road of positive developments surrounding the company. This publication expects good gains from the company’s investment portfolio and the performance of the stock market should also result in growth in the equity-based unit trust and therefo re boost fee income. In addition, word out is that they have acquired an investment portfolio that will add to revenues. At the current price, a stock split also seems assured for 2019.
During the week news broke that Scotia Group had entered into an agreement to sell their insurance arm to Sagicor Financial, the news helped to drive prices of Scotia Group, Sagicor Group and PanJam Investment up and created excitement in the market.
The main market closed the week with the overall PE remains at 15.7, the PE of the Junior market is at 15.9. The PE ratio for Junior Market Top 10 stocks average 8.8 and the main market PE is now 9.5.
The TOP 10 stocks now trade at an average discount of 45 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
Access & Iron Rock back into IC Top 10
Thee are no change to the TOP 10 main market list. The Junior Market has two changes with Iron Rock Insurance and Access Financial returning to the TOP 10, while Stationery and Office Supplies (SOS) and Dolphin Cove moved out.
IC Insider.com lowered the earnings per share for the two that moved out, based on the most recent release of interim results. In addition, SOS moved up in price following the release of nine months results.
Last week’s big new the entry, Scotia Group moved from $50 to close at $55.95 and now awaits the full year results which be out soon, for more direction. Based on IC Insider.com forecast Scotia is set to earn around $4.60 for the 2018 year to October with the PE at just 11 times earnings.
Earnings for General Accident have been adjusted down to 40 cents per share with the latest results now out, but it still holds on to the TOP 10.
The main market closed the week with the overall PE remains at 15.3, the PE of the Junior market is at 15.6 from the prior week.
The PE ratio for Junior Market Top 10 stocks average 9.4 and the main market PE is now 9.7.
The TOP 10 stocks now trade at an average discount of 40 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.