Stocks closed the week in narrowing of the gap between winning and losing stocks but still ended with the bias towards losers on the Trinidad and Tobago Stock Exchange with 7 stocks gaining and 11 declining compared with 7 rising and 13 in the previous week, resulting in the All Trinidad and Tobago and the Combined Indices falling between 0.7 and 1.2 percent in the week.
The average PE ratio of the market closed at 7.7 based on 2023 earnings compared to 7.36 last week and 5.54 based on estimates of the 2024 earnings. The difference graphically illustrates the market’s current undervalued level and the potential gains ahead.
In another week of mostly moderate price movements, Endeavour Holdings beat the trend by climbing $1 to a 52 weeks’ high of $20 followed by Prestige Holdings up 39 cents to close the week at $11.30.
The financial sector dominated the list of major losers, with three out of six listings falling. Scotiabank lost $1.74 to end at $54.06, Ansa McAl dived $1 to $58, Angostura Holdings dropped 49 cents to $14, Unilever Caribbean lost 38 cents in closing at $10.81 and Republic Holdings fell 34 cents in closing at $113.51 and First Citizens Bank declined 35 cents to end the week at $41.65.
Stocks with the potential to gain more than 100 percent when the market comes back to life, include CIBC Caribbean Bank with a possible gain of 200 percent, the severely undervalued Guardian Holdings, with a 430 percent potential, Republic Holdings at 135 percent, First Citizens Bank 100 percent, Massy Holdings 50 percent, Trinidad Cement with 350 percent. Eric Solis with a 90 percent potential gain and One Caribbean Media with 315 percent.
Investors should watch Prestige Holdings with the potential to gain 80 percent and Trinidad and Tobago NGL with a potential gain of 240 percent.