6.4% Q1 growth for Jamaica

The Jamaican economy grew by 6.4 percent during the first quarter of 2022 over the first quarter of 2021 due to growth in both the Services and Goods producer sectors, the Planning Institute of Jamaica reported, which comes against a fall of 6.7 percent in the first quarter of 2021 due to the 9.9 percent fall in service industries. 

Tourism sector growth surged 107%.

Services and Goods Producing Industries recorded growth of 8.9 percent and 0.4 percent respectively, the Statin stated. All industries within the Services Industries grew. Growth in the Hotels & Restaurants was the most outstanding after surging 107.1 percent.
Wholesale and Retail Trade; Repairs; Installation of Machinery and Equipment, Transport, Storage and Communication increased by a more sedate 8.8 percent, Other Services rose by 12.4 percent.
Higher output levels were recorded for Agriculture, Forestry and Fishing up 8.2 percent, Manufacturing 4 percent and Construction 3.5 percent. The mining and quarrying industry declined by 60 percent.
The economy grew by 8.2 percent for the fiscal year ending March 2022 compared to the previous fiscal year but slipped by 1.2 percent against the 2021 fourth quarter.

Dolla Financial gains 32% on debut

Dolla Financial was listed on the Jamaica Stock Exchange Junior Market on Wednesday, with the price hitting the maximum permitted for the day at $1.32, up 32 percent from the IPO price of $1 with trading in only 63,940 shares after the online trading platform frooze up for some time preventing investors from interacting with the market for almost an hour. At the close of trading, there were 45 million units on the bid at $1.32, and just over 30 million at $1.30, with less than 300,000 on the offer below $2.
At the close of trading, the Main and USD Indices, Junior Market and the USD market all slipped moderately, with the JSE Combined Index falling 394.65 points to 395,090.66.
The All Jamaican Composite Index lost 332.58 points to 437,611.11, the JSE Main Index fell 219.82 points to 383,330.79, and the Junior Market index slipped 21.05 points to 4,077.96 and the SE USD market index dipped 1.02 points to close at 217.95.
Investors exchanged 16,183,710 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to a mere $79.8 million and in the JSE USD market, US$$34,212.
The market’s PE ratio ended at 23.6 based on 2021-22 earnings and 13.2 times those for 2022-23 at the close of trading.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to quickly assess the value of stocks based on this measure. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.

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.

 

SSL Venture Ownership change

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The majority shareholder of SSL Venture Capital Jamaica, switched this afternoon to MFS Acquisition Limited, an attorneys for the deal disclosed.
From all indications, Stocks and Securities were the only major seller with 69.08 percent of the shares. SSLVC traded on the Jamaica Stock Exchange at $1.80 on Wednesday, well up on the less than 10 cents the majority ownership was switched at.
This is the second time that the majority ownership in the company has shifted.

Decline for JSE markets again

The Jamaica Stock Exchange continues to fall following the release of first quarter results and closed trading on Wednesday. The JSE Combined Index dropped 4,941.31 points to 405,097.60, with all three markets closed for the day, with investors continuing to pull in their horns until late June or early July.
In the main market, the All Jamaican Composite Index dipped 5,169.29 points to 449,757.41. The JSE Main Index shed  4,912.09 points to close at 391,568.41, the Junior Market slipped for a fourth day by 38.57 points to 4,336.16 and the JSE USD market index dipped 0.32 points to 222.86.
Investors exchanged 18,816,440 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to $368.34 million and in the JSE USD market, US$15,594.
The market’s PE ratio ended at 25.6 based on 2021-22 earnings and 13.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.   
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.

Two JSE markets rise one fall

The Jamaica Stock Exchange three markets enjoyed mixed fortunes at the close of trading on Wednesday, with Main and Junior Markets recording gains, but the JSE USD market slipped modestly. The JSE Combined Index rose 1,616.71 points to close at 415,445.40.
The All Jamaican Composite Index climbed 2,293.01 points to 458,821.97, the JSE Main Index rallied 1,632.06 points to end at 401,425.56, the Junior Market rose 9.99 points to 4,462.21 and the JSE USD market index lost 1.15 points to end at 223.61.
Trading ended with an exchange of 24,826,294 shares in all markets. The value of stocks traded in the Main and Junior Markets totalled $446.3 million and the JSE USD market amounts to US$363,713.
The market’s PE ratio ended at 26.6 based on 2021-22 earnings and 14.6 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.

 

Junior Market pulls back from record high

Trading closed on the Jamaica Stock Exchange Junior Market on Tuesday, with the volume of stocks traded diving by 59 percent and the value dipping 61 percent lower than on Monday, leading the market into a decline after 43 securities were traded, similar to trading on Tuesday and ended with 14 rising, 23 declining and six closing unchanged.
The Junior Market Index dropped 33.11 points to  4,452.22 after reaching a record intraday high of 4,543.70 within an hour of opening.
The PE Ratio, a measure of computing appropriate stock values, averages 14. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial years closing up to the end of August 2023.
Overall, 13,201,837 shares traded for $72,767,087 up from 31,884,375 units at $188,460,185 on the Monday. Spur Tree Spices led trading with 2.42 million shares for 18.3 percent of total volume, followed by Future Energy Source with 2.33 million units for 17.7 percent of the day’s trade, Elite Diagnostic with 1.90 million units for 14.4 percent market share and Derrimon Trading with 1.05 million units for 7.9 percent market share.
Trading averaged 307,019 shares at $1,692,258 in contrast to 741,497 shares at $4,382,795 on Monday with month to date, averaging 524,258 units at $3,037,526 compared to Monday trades. April closed with an average of 449,923 units at $1,781,786.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Blue Power advanced 26 cents in closing at $3.85, with 6,369 shares clearing the market, CAC 2000 increased 65 cents to close at $6.75 after exchanging 65 stock units, Dolphin Cove fell 60 cents to $21.40 in trading 48,298 units. Elite Diagnostic climbed 30 cents in ending at $3.90 after trading 1,902,202 stocks, Fontana fell 75 cents to end at $10.50 with 127,121 stocks changing hands, Fosrich rose $1.37 in closing at a 52 weeks’ high of $34.97 after an exchange of 575,546 units. Future Energy Source gained 28 cents to end at $6.78, with 2,333,516 shares changing hands, Honey Bun lost 20 cents to close at $9.27 in switching ownership of 15,379 stock units, iCreate shed 24 cents after ending at $3.24 trading 319,360 stock units. Iron Rock Insurance dropped 30 cents to $3.30 in exchanging 140 stocks, ISP Finance fell $7.49 to close at $22 with the swapping of 941 units, KLE Group lost 65 cents to end at $1.95 after trading 5,054 shares. Knutsford Express declined 10 cents to $7.90 in an exchange of 59,645 shares, Lasco Manufacturing shed 48 cents in ending at $5.10, with 57,949 stock units crossing the market, Mailpac Group rallied 13 cents in closing at $3.17 with an exchange of 137,725 units. Main Event dropped 87 cents in closing at $9 while exchanging 61,254 stocks, Medical Disposables declined 79 cents to close at $6 after 574,571 shares crossed the exchange, Spur Tree Spices fell 27 cents to end at $3.80 in exchanging 2,417,836 stocks. Stationery and Office Supplies lost $1.25 to close at $8.25, with 16,626 stock units changing hands and tTech popped 16 cents ending at $3.95 in trading 34,234 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Unemployment at record levels in Jamaica

As Jamaica’s economy continues to recover from the negative effects of Covid-19, with a sharp drop in the number of persons unemployed and the number of persons employed is 16,000 less than the previous highest previous level in January 2020, according to data released by the Statistical Institute of Jamaica (Statin)
“In January 2022, there were 1,257,100 employed persons, an increase of 57,800 or 4.8 percent over January 2021”, Statin reported. But the 2022 numbers lag that of January 2020 with 1,273 million persons employed. With a full labour force of 1.34 million only 83,000 persons were regarded as unemployed as of January, the lowest on record with an unemployment rate of 6.2 percent bettering the previous lowest rate of 7.1 percent in October last year and much better than 8.8 percent for the same quarter of 2021.
While the unemployed numbers have fallen, the number of persons in the workforce declined from 1.373 million in 2020 to 1.34 million in 2022 a drop of 39,000. The job seeking rate declined to just 3.9 percent in the latest survey down from 4.9 percent in January 2020.
The largest increase in employment by occupation group was in ‘Clerks’. There were 120,500 persons employed in the occupation group ‘Clerks’ in January 2022, increased by 22,100 or 22.5 percent compared to January 2021.
Real Estate and Other Business Services had the largest increase by industry group compared to January 2021.

The Hampshire Apartments complex a Guardian Life project.

There were 126,600 persons employed in this industry group in January 2022, an increase of 25,200 or 24.9 percent versus the 2021 quarter. The second highest increase was in ‘Accommodation and Food Service Activities’, which employed 13,900 more persons.
The number of persons classified as Outside the Labour Force was 755,600 in January 2022, a decrease of 22,400 or 2.9 percent from 778,000 in January 2021.
Of import, the data would have done at a period when the tourism sector was operating at around 30 percent capacity as well as some other businesses that were yet to recover fully from the decline since 2020, as such the next reading could result in another fall in the unemployment rate and a strong possibility that total employment could get to record levels.

Profit bolts 43% at Lasco Manufacturing

Profit popped 43 percent in the December quarter to $403 million at Lasco Manufacturing, from $281 million in 2020. For the nine months to December, profit climbed 16 percent to $1.19 billion from $1 billion in 2020 resulting in earnings per share of 10 cents for the quarter and 29 cents for the year to date.

Lasco Manufacturing dominated Junior Market trading with 3.3 million shares.

Sales revenues rose 16 percent for the quarter, to $2.4 billion from $2.1 billion in 2020 and increased 14 percent for the year to date, to $7 billion from $6.2 billion in 2020.
Profit margin rose in the December quarter to 38 percent from 36 percent in 2020 and slipped from 38 percent in 2020 to 37 percent for current the year to date.  The effect, gross profit rose 22 percent in the quarter to $920 million from $754 million and increased 11.7 percent for the year to date, to $2.6 billion from $2.35 billion in 2020.
Administrative and other expenses rose marginally by 4 percent to $327 million in the quarter and slipped 3 percent in the nine months to $950 million from $983 million in 2020. Finance cost declined in the quarter, to $11 million from $15 million in 2020 and from $46 million in 2020 to $40 million for the nine months. Corporate taxes jumped 45 percent to $194 million from $134 million in the 2020 December quarter and by 87 percent to $521 million for the nine months from $279 million.
Gross cash flow brought in $1.4 billion but changes in working capital, loan repayment and the paying of $300 million in dividends, moved the cash position up by $331 million and resulted in cash funds on hand at $2.2 billion.
At the end of December, shareholders’ equity stood at $8.8 billion with long term borrowings at just $8 million and short term loans at $455 million. Current assets ended the period at $6.6 billion including trade and other receivables of $2.5 billion, cash and bank balance $2.56 billion. Current liabilities ended the period at $1.95 billion. Net current assets closed out the year at $4.7 billion.
IC Insider.com forecast is for earnings of 40-45 cents per share for the fiscal year with a PE of 11 times current year’s earnings at the last traded price of $4.60 on the Junior Market of the Jamaica Stock Exchange.
ICInsider.com assigns its coveted ICBUYRATED accolade on this stock.

Junior Market slips with robust trading

Trading activity picked up on Thursday, with the volume of stocks traded rising 24 percent and the value climbing 23 percent higher than on Wednesday and ended with rising stocks just edging out those that declined at the close of the Jamaica Stock Exchange Junior Market, with Future Energy Source hitting a new record high of $5.02.

Future Energy new Beechwood Avenue service station

Overall, 40 securities traded against 41 on Wednesday with 18 rising, 17 declining and five ending unchanged. At the close, the Junior Market Index declined 4.00 points to settle at 4,009.93.
The PE Ratio, a measure used to compute appropriate stock values, averages 18. The PE ratio of each stock in the chart below is based on ICInsider.com earnings forecast for companies with financial years up to August 2022.
A total of 16,237,588 shares traded for $73,819,286 up from 13,064,259 units at $60,163,205 on Wednesday. Future Energy Source dominated trading with 7.16 million shares for 44.1 percent of total volume followed by Spur Tree Spices with 2.09 million units for 12.9 percent of the day’s trade and Mailpac Group with 1.24 million units for 7.6 percent market share and Lumber Depot ended with 1.19 million units changing hands for 7.4 percent market share.
Trading averaged 405,940 shares at $1,845,482 up from 318,640 shares at $1,467,395 on Wednesday and month to date, an average of 422,158 units at $1,736,927, compared to 424,334 units at $1,722,356 previously. January closed with an average of 319,395 units at $1,181,136.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and one stock with a lower offer.
At the close, Access Financial lost $1.48 to $20.02 in finishing at 16,240 shares, Blue Power dropped 19 cents to close at $3 exchanging 37,408 units, Caribbean Assurance Brokers gained 16 cents ending at a 52 weeks’ high of $3.40 as 204,605 stocks passed through the exchange. Dolphin Cove climbed 16 cents in closing at $29.95 after exchanging 182,924 stock units, Elite Diagnostic shed 23 cents to end at $3.26 with the swapping of 27,759 units, Express Catering fell 15 cents to $5.85 in switching ownership of 157,512 stocks. Fontana declined 50 cents to $10.50 and closed, with 413,248 stock units changing hands, Fosrich declined 10 cents to end at $14.20, with 21,133 shares crossing the market, Future Energy Source advanced 23 cents in closing at 52 weeks’ high of $5.02 after trading 7,159,766 units up to $5.20. Honey Bun lost 22 cents to close at $10.07 in an exchange of 157,085 stocks, Iron Rock Insurance rose 51 cents to $3.95 in swapping of 102,513 shares, Jamaican Teas shed 22 cents to close at $4.08, with 334,737 stock units changing hands. Lasco Financial rallied 46 cents to $3.78 with an exchange of 383,158 stock units, Lasco Manufacturing dipped 25 cents to $4.60, with 321,152 stocks clearing the market, Lumber Depot increased 26 cents to end at $3.89 1,194,535 units changing hands. Medical Disposables popped 35 cents to $7.10 in exchanging 2,810 shares, SSL Venture advanced 14 cents to $1.94 while exchanging 16,160 stock units, Stationery and Office Supplies increased 30 cents in closing at $7.30 with an exchange of 34,711 units and tTech fell 20 cents to close at $3.91 after 121,488 shares crossed the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.