Main market stocks face major resistance

Main Market indices spiked on Thursday on reduced trading to close at the highest level since March 11 last year, with the All Jamaican Composite Index rocketed up 6,361.57 points to 458,032.39 and bettering the March 11 close of 556,092.64, still below the previous day’s 460,418.78 points close.

The parallel black lines form a channel for the JSE All jamaica Composite Index with the index now touching the top line. (Resistance).

The JSE Main Index spiked 5,470.02 points  425,630.09, just ahead of March 10, 2020, close, but below that of March 9 at 436,435.40 and the JSE Financial Index rose 1.42 points to settle at 105.90. The market is trading right up on the upper level of resistance of an upward sloping channel and could face major challenges in breaking through, in the short term.
A total of 48 securities traded against 47 on Wednesday, with 24 stocks rising, 14 declining and 10 closing unchanged. The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 16.3 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with the volume and value traded declining 30 percent and 75 percent, respectively compared to Wednesday as 8,415,642 shares changed hands for $105,241,816 versus 12,077,813 units at $416,350,090 on Wednesday. Wigton Windfarm led trading with 32.6 percent of total volume for 2.74 million shares, followed by Sagicor Select Financial Fund with 19.3 percent for 1.63 million units and Pulse Investments with 9.1 percent after 768,244 units changed hands.
Trading averaged 175,326 units at $2,192,538, compared to 256,975 shares at $8,858,513 on Wednesday. Trading month to date averages 193,705 units at $4,990,781, in contrast to 202,991 units at $6,404,631 on Wednesday. May closed with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has 14 stocks ending with bids higher than their last selling prices and five with lower offers.
At the close, Berger Paints dived $2.26 to $13.79 in an exchange of 4,220 shares, Caribbean Cement popped $4.29 to $90 after a transfer of 5,060 stock units, Eppley spiked $4.25 higher at $36.25 with 2 units changing hands. Grace Kennedy shed 47 cents to end at $89.45 in trading 19,101 stock units, Guardian Holdings climbed $15 to close at $760 after clearing the market with 70,560 shares. Jamaica Producers dropped $1.50 to $23 in trading 73,386 stocks, Kingston Properties gained 39 cents to close at $8.46 in switching ownership of 3,915 stock units, Kingston Wharves lost 30 cents to end at $46.20 with the swapping of 951 units. Mayberry Investments rallied 89 cents to $6.39 in exchanging 455 shares, NCB Financial ended 89 cents higher at $143.89 after 30,479 stocks crossed the market, Palace Amusement dropped $34.80 to $985.20 in an exchange of 28 units. Proven Investments climbed $1.49 to $37 with a transfer of 31,764 stocks. Sagicor Group rallied 75 cents to $52.75 in trading 19,901 shares. Sagicor Real Estate Fund hammered out a 64 cents gain to end at $8.99 with 435 shares changing hands. Seprod rose $1.02 to $74.02 in switching ownership of 9,931 units, Supreme Ventures lost 45 cents in ending at $19.55 with 8,939 stocks crossing the exchange. Sygnus Credit Investments gained 30 cents to settle at $15.30 in trading 25,434 stock units, Victoria Mutual Investments slipped 39 cents to $6.11 in the transfer of 185,406 shares and Wisynco Group popped 60 cents to $15.80 with the swapping of 130,777 stocks.
In the preference segment, Eppley 7.5% preference share spiked $2.31 to close at 52 weeks’ high of $9.50, trading 100 units and JMMB Group 7.15% – 2028 gained 43 cents ending at $3.25 with 59,930 stocks crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Main Market trading pops Wednesday

A mere 13 stocks recorded gains at the close of trading on Wednesday after investors drove down the prices of 23 stocks and left 11 unchanged, with 47 securities changing hands compared to 48 on Tuesday, with market activity resulted in the number of shares traded popping 68 percent and the value spiking 117 percent higher than on Tuesday on the Main Market of the Jamaica Stock Exchange.
The All Jamaican Composite Index declined 994.79 points to 451,670.82, the JSE Main Index lost 199.45 points to end at 420,160.07 and the JSE Financial Index gained 0.29 points to settle at 104.48.
The PE Ratio, a measure that determines an appropriate relative value of each stock, averages 16.2 based on ICInsider.com’s forecast of 2021-22 earnings.
At the close, 12,077,813 shares traded for $416,350,090 versus 7,206,318 units at $192,089,830 on Tuesday. Wigton Windfarm led trading with 20.6 percent of total volume after an exchange of 2.49 million shares followed by NCB Financial Group with 14.9 percent from 1.80 million units, Pulse Investments with 13.5 percent after trading 1.64 million units, Sagicor Select Financial Fund accounted for 12.2 percent for 1.48 million units and Mayberry Investments traded 8.9 percent with 1.08 million units.
Trading close with an average of 256,975 units at $8,858,513, compared to 150,132 shares at $4,001,871 on Tuesday. Trading month to date averages 202,991 units at $6,404,631, in contrast to 150,132 units at $4,001,871 on Tuesday. May closed with an average of 439,937 units at $4,698,961.
Investor’s Choice bid-offer indicator reading has 14 stocks ending with bids higher than their last selling prices and five with lower offers.
At the close, Barita Investments fell 34 cents to $85.25 with an exchange of 3,061 units, Caribbean Cement dropped $4.29 to $85.71 in exchanging 192,133 shares, Eppley declined $2 to $32 with 20,704 stock units crossing the market. Jamaica Broilers popped $1.50 to $35 in trading 70,249 shares, Jamaica Producers rallied 50 cents to $24.50 with 390,747 stocks changing hands, Margaritaville lost 25 cents to settle at $14 in trading 4,000 units, NCB Financial advanced $3 to $143 in switching ownership of 1,801,051 shares, Palace Amusement spiked $110 to $1,020 after an exchange of 271 units, PanJam Investment raced $3.96 higher to $69.96, with 46,517 stock units changing hands. Proven Investments climbed $1.01 to $35.51 in an exchange of 50,696 stocks, Sagicor Group slipped 33 cents to $52 with 64,684 shares crossing the exchange. Scotia Group rose $1.01 to $41 after trading 47,810 stocks, Seprod gained 20 cents to close at $73 with the swapping of 12,488 units, Stanley Motta shed 20 cents to close at $5.80 after exchanging 10,000 shares. Sterling Investments picked up 29 cents to finish at $3.29 in switching ownership of 1,000 units, Supreme Ventures rallied 20 cents to $20 in trading 61,340 shares and Wisynco Group shed 30 cents in ending at $15.20 after an exchange of 121,439 stock units.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

ICTOP10 – Guardian a better buy now

The average gains projected for the Junior Market fell from 225 percent last week to 218 percent as the prices of a number of the top 10 stocks rose during the past week, but with no new entrant to either Top 10 list. The average projected gains for the Main Market stocks move up from 162 to 169 percent helped in a big way by the fall of Guardian Holdings from $790 last week to $763.  

Guardian Holdings hit a low of J$750 on Friday.

The price slippage for Guardian shares below $790 provides investors a better value proposition, with the PE at 8.3 times, rather than 8.6 that the NCB Global offer price for the 2 million shares they are offering to the public.
The markets continue to face resistance this past week, with the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market sits a few thousand points away and facing turbulence in getting to the peak. With the two Lasco companies releasing results after the market closed on Friday it will be interesting to see what investors do with their prices. If they rise appreciable the resistance is likely to be broken and clear the way to move to a new yearly high in the weeks ahead.
The Junior Market closed the week at 3,329.50, up slightly from 3,324 at the end of the previous week. The JSE All Jamaica Composite Index ended at 454,375.81 on Friday, marginally lower than 454,479.33 at the close of the previous week.
The top three stocks in the Junior Market, remain unchanged for this week, with Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with the potential to gain between 255 to 303 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and Wisynco, with expected gains of 149 to 371 percent.
This week’s focus: RJR suffered badly from the effects of the curtailment of business in 2020 after showing signs of recovering from the prior years’ slow growth and high cost of operations. In 2020 they moved to deal with the pressure the fallout had and showed marked improvement in the second half of the calendar year. Importantly, there was significant cost cutting with the third quarter showing the effects with vastly improved results.
The impression given in the group’s December quarterly report is that the sharp fall in direct operating, selling and marketing costs were directly related to the fall off in revenues. That of course is only part of the story. The fall in cost has been far greater than the reduction in revenues suggesting that actual cost cutting was effected. ICInsider.com confirmed that the group that made some staff redundant also made changes by discontinuing unprofitable programs and publications. “Regarding cost reductions, some changes in the distribution network and workflows are permanent,” this publication was informed but revenues for some of the newspapers continue to run below pre Covid-19 levels.
The targeted PE ratio for the market averages 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 Market stocks and 19 times for the Main Market.
The Junior Market with an average PE 12.4 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17, this represents another 37 percent rise in the market that would equate to a rise of 61 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.4 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 7.8, some distance from the 19 the market ended March, suggesting a 17 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 48 percent of the PE of that market and 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.

 

Stocks slide but market rises

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Sagicor Select Manufacturing and Distribution Fund dominated the volume traded on Friday, accounting for an 871 percent rise in the number of shares traded, with the value jumping 363 percent higher than on Thursday, on a day when declining stocks beat out rising ones two to one on the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index rose 1,817.92 points to 454,375.81, the JSE Main Index gained 754.27 points to end at 422,066.55 and the JSE Financial Index gained 0.44 points to settle at 104.74.
At the close, 49 securities traded, compared to 48 on Thursday, with 13 stocks rising, 28 declining and eight ended unchanged. The PE Ratio ended with an average of 16.2 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 119,750,700 shares trading for $599,497,233 versus 12,330,202 units at $129,542,064 on Thursday. Sagicor Select Manufacturing and Distribution Fund accounted for 89.8 percent of total volume, with 107.57 million shares, followed by Sagicor Select Financial Fund with 2.9 percent for 3.49 million units, Transjamaican Highway with 2.2 percent for 2.58 million and NCB Financial Group with 1.7 percent for 2.13 million units changing hands.
Trading averages 2,443,892 stock units at $12,234,637  versus 256,879 shares at $2,698,793 on Thursday. Trading for the month to date averages 436,367 units at $4,623,132, in contrast to 326,458 units at $4,206,413 on Thursday. Trading in April ended with an average of 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator reading has ten stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Berger Paints advanced $1.80 to $16 with the swapping of 3,852 stocks, Carreras lost 25 cents to end at $10.25 with 87,730 stock units crossing the exchange, Eppley Caribbean Property Fund fell $2 to $42 after a transfer of 100 units, First Rock Capital gained 20 cents to settle at $16.39 with 16,146 stocks clearing the market. Grace Kennedy ended 59 cents lower at $88.41 with 36,654 units crossing the market, Guardian Holdings dropped $7 in closing at $763 in trading 192,040 stocks, Jamaica Broilers slipped 35 cents to $34 in transferring 249,442 shares. Jamaica Producers fell 20 cents to end at $24 after an exchange of 14,192 stock units, Jamaica Stock Exchange declined 90 cents to finish at $17 with 141,930 units changing hands, JMMB Group rose 48 cents to $32.48 in transferring 96,740 shares. Kingston Wharves lost 30 cents to close at $46.20 with an exchange of 13,784 shares. Margaritaville slid 75 cents to $14.25 in switching ownership of 7,698 units, PanJam Investment rose 95 cents to close at $67 in transferring 6,393 stocks. Pulse Investments gained 44 cents to end at $4.80 with 706,754 units crossing the market, Sagicor Group rose 74 cents to close at $52.75 in switching ownership of 12,435 stocks, Seprod advanced $1.49 to $75 after clearing the market with 27,751 shares, Sterling Investments shed 30 cents to close at $3 with an exchange of 94,051 stocks, Victoria Mutual Investments declined 5 cents to close at $6.96 after trading 137,328 stock units and Wisynco Group rose 65 cents to $15.75 with 28,000 shares changing hands.
In the preference segment, Community & Workers Credit Union preference share shed 21 cents to close at $1.69 in trading 119,727 units. Eppley 7.5% preference shares declined $3.81 to end at $7.19 with 548 units changing hands and Eppley 8.25% lost 19 cents to close at $6.80, trading 2,024 stock units.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Steady trading for JSE Main Market

Market activity ended on Thursday with only the All Jamaican Composite rising after more stocks advanced than declined, with an exchange of 55 percent fewer shares valued 83 percent lower than on Wednesday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index gained 109.54 points to 452,557.89, the JSE Main Index shed 184.88 points to 421,312.28 and the JSE Financial Index lost 0.05 points to settle at 104.30.
Trading ended with 48 securities, similar to Wednesday, with 23 stocks rising, 17 declining and eight remaining unchanged. The PE Ratio averages 16.3 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 12,330,202 shares trading for $129,542,064 versus 27,181,743 units at $767,234,675 on Wednesday. Pulse Investments led trading with 25.6 percent of total volume after an exchange of 3.16 million, followed by Wigton Windfarm with 18.3 percent for 2.26 million units and Jamaica Broilers 8.6 percent with 1.06 million.
Trading averaged 256,879 units at $2,698,793, compared to 566,286 shares at $15,984,056 on Wednesday. Trading month to date averages 326,458 units at $4,206,413, in contrast to 330,401 units at $4,291,851 on Wednesday. April closed with an average of 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator shows ten stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Berger Paints fell $2.19 to $14.20, with an exchange of 14,388 shares. Caribbean Cement shed $1.48, ending at $88 in transferring 13,449 stock units, Eppley Caribbean Property Fund advanced $2 to close at $44 with 275 units changing hands, First Rock Capital gained 29 cents to close at $16.19 with 1,948 stock units crossing the market. Grace Kennedy rose $1 to $89 after exchanging 30,663 stocks, Jamaica Broilers closed 35 cents higher at $34.35 in transferring 1,062,269 shares, Jamaica Producers rose $1.10 to $24.20 with 2,972 units changing hands. JMMB Group shed 91 cents to finish at $32 with a transfer of 56,649 stocks, Mayberry Investments picked up 30 cents to end at $5.95 with investors switching ownership of 50,238 stock units, Mayberry Jamaican Equities gained 29 cents to close at $8.10, trading 78,268 stocks. MPC Caribbean Clean Energy advanced $7 to $127 in trading 40 units, 138 Student Living rose 40 cents to $5.50 with the swapping of 147,219 shares, Palace Amusement climbed $60 to close at $970 in an exchange of 44 shares, PanJam Investment fell $1.90 to $66.05 after 6,502 shares crossed the exchange. Proven Investments declined $1.99 to $35.01 with 251,559 stock units clearing the market, Seprod gained 51 cents in ending at $73.51 and switching ownership of 12,312 stocks, Stanley Motta lost 29 cents in closing at $5.95 with the swapping of 2,480 units, Sterling Investments gained 20 cents to end at $3.30 with an exchange of 172,032 shares. Sygnus Credit Investments finished 23 cents higher at $15.43 in transferring 21,885 stocks and Wisynco Group shed 77 cents to close at $15.10 with an exchange of 179,935 units.
In the preference segment, Eppley 8.25% rose 62 cents to close at $6.99 in exchanging 500 shares.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Guardian dominates JSE trading

Guardian Holdings dominated market activity after trading 713,248 shares, with a value of just over $549 million, after a drop in the price by $19.50 to a new low of $770 on Jamaica Stock Exchange Main Market on Wednesday, with the market losing ground for a second consecutive day after advancing stocks beat out declining ones 3 to 2 with an exchange of 116 percent more shares valued 348 percent higher than on Tuesday.

Guardian Holdings hit a 52 weeks’ high of $30 on Tuesday.

The All Jamaican Composite Index fell 1,023.18 points to 452,448.35, the JSE Main Index declined 1,934.22 points to 421,497.16 and the JSE Financial Index shed 0.86 points to settle at 104.35.
Trading ended with 48 securities down from 49 on Tuesday, with 24 rising, 17 declining and seven remaining unchanged. The PE Ratio averages 16.1 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 27,181,743 shares trading for $767,234,675 versus 12,559,445 units at $171,180,809 on Tuesday. Sagicor Select Financial Fund led trading with 69.9 percent of total volume for an exchange of 18.99 million shares, followed by Pulse Investments with 6.4 percent for 1.74 million units, Wigton Windfarm chipped in with 5.1 percent for 1.37 million units and NCB Financial Group with 4.2 percent for 1.15 million units changing hands.
Trading averaged 566,286 units at $15,984,056, compared to 256,315 shares at $3,493,486 on Tuesday. Trading month to date averages 330,401 units at $4,291,851, in contrast to 316,230 units at $3,589,441 on Tuesday. April closed with an average of 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator shows 16 stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Berger Paints rose $1.39 to $16.39 in exchanging 2,654 stock units, Caribbean Cement closed $1.98 higher at $89.48 with a transfer of 1,089 stocks. Carreras gained 25 cents to finish at $10.50 with 85,097 shares clearing the market, Eppley Caribbean Property Fund declined $2.99 to $42 with 115 units changing hands, First Rock Capital shed 50 cents to $15.90 with 10,162 stocks clearing the market. Grace Kennedy rose 30 cents to close at $88 in trading 49,741 stock units, Jamaica Broilers climbed $1.40 to $34 with the swapping of 13,768 units. Jamaica Producers shed $1.40 to end at $23.10 in trading 26,348 shares, JMMB Group finished 91 cents higher at $32.91 with 125,312 stocks clearing the market. Margaritaville rose 75 cents to $15 in switching ownership of 200 stock units, Mayberry Investments gained 38 cents to close at $5.65 in transferring 72,379 shares. Mayberry Jamaican Equities picked up 27 cents to settle at $7.81 after crossing the exchange with 143,942 units, MPC Caribbean Clean Energy climbed $18.19 to $120 with 244 stocks changing hands, NCB Financial Group advanced $2.50 to $140 trading 1,149,802 shares. Palace Amusement dropped $20 to $910 in switching ownership of 219 stocks, Pan Jam Investment advanced $2.95 to $67.95 after trading 1,139 units, Scotia Group gained 20 cents in ending at $40 with 133,171 stocks crossing the market, Seprod lost 59 cents to finish at $73 in exchanging 10,376 stock units. Stanley Motta gained 24 cents in closing at $6.24 after exchanging 17,000 units, Sterling Investments
shed 23 cents to $3.10 with a transfer of 182,875 stock units, Supreme Ventures dipped 49 cents to $20.01 after exchanging 196,302 shares and Victoria Mutual Investments increased 4 cents to close at $7 after trading 110,475 stocks.
In the preference segment, Eppley 8.25% fell 62 cents to close at $6.37 with 5,127 shares crossing the exchange.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

JSE Main Market stocks fell

The majority of Main Market stocks fell on Tuesday after the market reopened for the Labour day holiday activity ended 49 securities trading with prices of 16 rising, 26 declining and seven remained unchanged, with the seven percent fewer shares trading at double the value of stocks trading on Friday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index dropped 1,007.80 points to  453,471.53, the JSE Main Index fell 871.80 points to 423,431.38 and JSE Financial Index slipped 0.12 points to 105.21.
At the close, the PE Ratio averages 16.2 based on ICInsider.com’s forecast of 2021-22 earnings.
Trading accounted for 12,559,445 shares for $171,180,809 compared to 13,537,949 units for $85,630,782 on Friday.
Trading ended with an average of 256,315 units at $3,493,486 compared to 282,041 shares at $1,783,975 on Friday. Trading month to date averages 316,230 units at $3,589,441, in contrast to 320,145 units at $3,595,710 on Friday. April closed with an average of 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator shows 14 stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Berger Paints slipped $1.39 to $15 with the swapping of 5,190 shares, Carreras fell 45 cents to $10.25, with 183,936 stocks crossing the exchange. Eppley advanced $1 to $34 with 1,040 units changing hands, First Rock rose 55 cents to $16.40 trading 1,100 shares, Grace Kennedy lost 30 cents in trading 47,364 shares at $87.70, Guardian Holdings lost 50 cents to close at $789.50 after trading 6,164 shares, Jamaica Broilers fell $2.10 to $32.60 in a transfer of 36,324 shares. Jamaica Producers rose $1.50 to $24.50, with 880,287 stocks crossing the market, Kingston Wharves rose 31 cents to $46.31 after trading 3,528 shares, Margaritaville fell 35 cents to $14.25 trading 26,300 stock units, NCB Financial Group shed $1 to end at $137.50 in a transfer of 521,766 units, Palace Amusement rose $4 to $930 with 82 stock units changing hands, PanJam Investment dropped $6.60 to $65 after exchanging 16,245 stocks, Sagicor Group lost 70 cents to close at $52 in switching ownership of 525,679 stocks, Sagicor Real Estate Fund lost 30 cents to close at $8 while trading 2,030 shares, Scotia Group fell $1 to $39.80 in exchanging 28,625 units, Supreme Ventures fell $1.25 to $20.50 in trading 58,706 stocks and Wisynco gained 39 cents to finish at $15.89 after exchanging 23,510 stocks.

 Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Guardian Holdings in ICTOP10

Guardian Holdings moved into the IC TOP 10 following the release of a prospectus from NCB Global that is offering 2 million shares to the public at $790 each, with the stock price falling immediately, after by more than $110, to be in line with the public offer price, valuing the company’s shares at 8 times 2021 projected earnings.

Guardian Holdings now in ICInsider.com’s TOP10.

Elsewhere, with the passage of earnings season, the markets have lost most of their recent firepower to drive prices forward at a time when the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market is a few thousand points away and in facing much turbulence in attempting to break through the peak.
At the start of the past week, the Junior Market pulled back from last Friday’s close, to sit just above the 3,300 level but climbed on each succeeding day of the week, but pulled back slightly on Friday to close at 3,324 points just a few points higher than at the end of the previous week. At the same time, the JSE Main Market made attempts to come close to the 460,000 mark of the All Jamaica Composite Index but was rebuffed on each occasion and ended the week at 454,479.33, up from 451,713.66 at the close of the previous week.
The Junior Market has to decidedly break through the upper limit of the trading channel, to free it to move on to the next area of resistance, just over 4,000 mark, but the Main Market has room to run for a few thousand points before it hits the channel top at 460,000 points.
There is a shakeup of the top three stocks in the Junior Market, this week. Elite Diagnostic heads the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by Wisynco and PanJam Investments, with expected gains of 151 to 344 percent.
The targeted PE ratio for the market averages 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. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months or so.
The Junior Market with an average PE 12.5 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, this represents another 36 percent rise in the market that would equate to a rise of 60 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.2 at just 50 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 48 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 225 percent and 162 percent for the JSE Main Market, based on 2021-22 earnings. 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.

Main Market loses ground to close out week

Demand for stocks declined on Friday in trading on the Jamaica Stock Exchange Main Market, with the volume of stocks trading falling 48 percent and the value of stocks exchanged dropping 82 percent lower than Thursday’s market activity leading to a slight dip in the main market indices with the advancing stocks just edging out those declining.
The All Jamaican Composite Index shed 202.86 points to 454,479.33, the Main Index fell 257.00 points to 424,303.18 and the JSE Financial Index lost 0.04 points to close 105.33.
Trading ended with 48 securities compared to 50 on Thursday, with 19 stocks rising, 18 declining and 11 remaining unchanged. The PE Ratio closed with an average of 16.3 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 13,537,949 shares trading for $85,630,782 down sharply from 26,264,484 units at $470,763,094 on Thursday. Sagicor Select Financial Fund led trading with 38.9 percent of total volume for an exchange of 5.26 million shares, followed by Wigton Windfarm with 20.2 percent after 2.74 million units were traded and Pulse Investments with 7.3 percent for 988,208 shares changing hands.
Trading closed with an average of 282,041 units at $1,783,975, compared to 525,290 shares at $9,415,262 on Thursday. Trading month to date averages 320,145 units at $3,595,710, in contrast to 322,750 units at $3,719,589 on Thursday. Trading in April averaged 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator shows eleven stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Berger Paints slipped $1.61 to $16.39 with the swapping of 5,003 shares, Caribbean Cement lost 42 cents to close at $87.50 with 4,856 units changing hands, Carreras ended 20 cents lower at $10.70 after crossing the exchange with 382,401 stocks. Eppley Caribbean Property Fund advanced $4.18 to close at $44.98 with the swapping of 1,700 units, Jamaica Broilers fell 80 cents to $34.70 in a transfer of 129,900 shares. Jamaica Producers lost 50 cents to close at $23, with 200,170 stocks crossing the market, Margaritaville lost 40 cents in closing at $14.60 trading 26,126 stock units, Mayberry Investments gained 20 cents to end at $5.50, with 196,336 shares changing hands. MPC Caribbean Clean Energy rose $2 to $102 in trading 5 stocks, NCB Financial Group shed 50 cents to end at $138.50 in a transfer of 46,041 units, 138 Student Living shed 49 cents to settle at $4.90 with 3,975 stock units changing hands, Pan Jam Investment climbed $5.55 to $71.60 after exchanging 86 stocks. Proven Investments fell 90 cents to $37 with the swapping of 61,769 units, Sagicor Group lost 30 cents to close at $52.70 in switching ownership of 21,793 stocks, Scotia Group gained 80 cents to end at $40.80 in exchanging 5,309 units. Seprod shed $1.50 to close at $73.50 with an exchange of 44,685 stock units, Supreme Ventures rose $1.55 to close at $21.75 in trading 98,472 stocks and Sygnus Credit Investments gained 40 cents to finish at $15.61 after exchanging 313,497 stocks.
In the preference segment, Eppley 8.75% preference share fell 99 cents to close at $6.51 with a transfer of 347 shares.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

JSE Main market bounces back

Market activity ended on Thursday, with the market recovering almost all of the losses of the previous two days after advancing stocks edged out declining ones, with the overall traded volume and value climbing 211 percent and 357 percent respectively compared to Wednesday on the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index climbed 3,237.08 points to 454,682.19, the Main Index advanced 2,716.72 points to 424,560.18, and the JSE Financial Index gained 0.97 points to settle at 105.37.
Trading ended with 50 securities compared to 47 on Wednesday, with 18 stocks rising, 16 declining and 16 remaining unchanged. The average PE Ratio, based on ICInsider.com’s 2021-22 forecast of earnings, is 16.1.

At the close 26,264,484 shares traded for $470,763,094 versus 8,440,224 units at $102,931,227 on Wednesday. JMMB Group 7.25% led trading with 33.9 percent of total volume for 8.91 million shares followed by Sagicor Group with 27.6 percent in trading 7.25 million units, Sagicor Select Financial Fund 13.6 percent, with 3.58 million units, Pulse Investments with 5.2 percent for 1.37 million units and Transjamaican Highway with 3.9 percent for an exchange of 1.04 million shares.
Trading averaged 505,086 units at $9,053,136, compared to 179,579 shares at $2,190,026 on Wednesday. Trading month to date averages 321,833 units at $3,709,022, compared to 307,218 units at $3,282,804 on Wednesday. April averaged 234,200 units at $1,772,561.
Investor’s Choice bid-offer indicator reading has nine stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments advanced $1.98 to $85.98 with 70 shares changing hands, Berger Paints rose $1.35 to end at a 52 weeks’ closing high of $18 with 14,433 stocks crossing the market, Carreras gained 90 cents to close at end at 52 weeks’ closing high of $10.90 in switching ownership of 519,508 shares, Grace Kennedy ended 99 cents higher at $88 in exchanging 14,115 units, Jamaica Broilers gained 50 cents to close at $35.50 in trading 21,359 stocks. Jamaica Stock Exchange lost 20 cents to settle at $17.80 in switching ownership of 6,010 units, JMMB Group declined $1 to $32 with a transfer of 76,488 stock units, Key Insurance gained 34 cents to end at $5.35 in trading 295,925 stocks. Kingston Wharves fell $1 in closing at $46 with the swapping of 11,543 shares, MPC Caribbean Clean Energy dropped $24 to end at 52 weeks’ closing low of $100 after exchanging 21 stock units, NCB Financial Group shed $2 to finish at $139 while exchanging 78,790 shares. 138 Student Living rose 85 cents to close at $5.39 in switching ownership of 13,853 stock units, Palace Amusement dropped $29 to end at $926 in swapping 111 stocks, PanJam Investment declined $5.85 to finish at $66.05 with 26,162 shares clearing the market, Proven Investments closed 75 cents higher at $37.90, with 5,272 units crossing the market, Sagicor Group climbed $2 to end at $53 trading 7,248,980 shares, Seprod slipped 90 cents to $75 after exchanging 41,954 units. Stanley Motta lost 34 cents in ending at $5.90 in switching ownership of 6,907 stock units, Supreme Ventures gained 20 cents to end at 52 weeks’ closing high of $20.20 in trading 193,925 shares and Wisynco Group ended 45 cents lower at $15.45 in switching ownership of 153,549 stock units.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.