Both the Junior and Main Market continue to consolidate ahead of a bullish period to come, as trading activities were calmer during the past week on the Jamaican Stock Exchange after a surge in prices towards the end of November. There were no major price movements this past week, but the price of Grace Kennedy pulled back from $67 to close at $64 at the end of the week while JMMB Group moved up to $35 from $34 last week.
Wisynco squeezes back into ICInsider TOP 10.
Fontana closed trading $5.35 and that was enough to move it out of the IC TOP 10. Honey Bun, with its earnings now based on the fiscal year ending September 2021 replaced Fontana. Stanley Motta is out of the Main Market TOP 10, with the stock rising to $5.35 and replaced by Wisynco Group, in at tenth position.
Profit after tax at Honey Bun, rose a healthy 76 percent to $54 million from $31 million in the fourth quarter over the similar period in 2019, bettering the 21 percent rise in the June quarter, to $20.4 million from $16.7 million. For the year to September, profit increased just 6.6 percent to $167 million from $156 million in 2019, from sale revenues that rose 15.5 percent for the quarter, to $432 million from $374 million but rose 8.5 percent for the year, to $1.675 billion from $1.544 billion in 2019. Earnings projection for the 2021 fiscal year is 55 cents, up from 35 cents for 2020 giving the stock a PE of 10.
Wisynco Group’s performance was on a roll, with revenues up 27.5 percent in the nine months to March this year, and 24 percent in the March quarter, but gross profit margin slipped in the March quarter while rising Administration and other expenses squeezed profits even more. Sales dipped slightly in the June and September quarters, but the September 2019 quarter, includes sales of $503 million from a discontinued operation, leaving flat sales from ongoing operations. Net Profits Attributable to Stockholders from continuing operations was $851 million or 23 cents per stock unit compared to $932 million or 25 cents per stock unit for the corresponding period of the prior year. Revenues for the quarter from continuing operations of $8.1 billion fell 6.1 percent from $8.6 billion in the 2019 quarter. 
The company expects to have lower energy costs with the successfully commissioning of the Cogeneration plant in July 2020, with the company seeing a positive contribution from the implementation through reduced energy costs.
The top three stocks in the Junior Market with the potential to gain between 239 to 400 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Limber Depot. With expected gains of 147 to 252 percent, the top three Main Market stocks are, Berger Paints followed by Radio Jamaica, Carreras and Sygnus Credit Investments tied for the third position.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 16.1 and the Junior Market 13.1, based on ICInsider.com’s projected 2020-21 earnings. 
The PE ratio for the Junior Market Top 10 stocks average a mere 6.9 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9 or 56 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 210 percent and 133 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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.
At the close, the All Jamaican Composite Index advanced 1,075.26 points to end at 434,348.23, the Main Index rose 973.03 points to 396,423.72 and the JSE Financial Index gained 0.50 points to settle at 104.13.
Trading averaged 635,024 units at $28,925,756 for each security, compared to an average of 190,187 shares at $1,780,784 on Thursday. The average trade for the month to date is 289,116 units at $7,973,059 for each security, in contrast to 179,176 units at $1,313,675. November averaged 623,120 units at $6,686,047.
Salada Foods climbed $2.98 to $28.98, with 50 stocks crossing the exchange, Scotia Group lost 50 cents to finish at $44.50 trading 734,994 shares, Seprod rose $1.98 to end at $65.99, clearing the market with 20,865 stock units. Sterling Investments shed 35 cents to end at $2.85 trading 1,439,187 shares, Supreme Ventures lost 69 cents to close at $17.11, with investors swapping 4,059 units, Sygnus Credit Investments gained 99 cents to settle at $16.99 after investors switched ownership of 278,419 shares and Wisynco Group lost 40 cents to end at $16.10, in exchanging 62,549 shares.
The market indices declined for a second consecutive day, with the All Jamaican Composite Index dropped 1,756.26 points to 433,272.97, the Main Index fell by 1,431.23 points to 395,450.69 and the JSE Financial Index lost 0.44 points to settle at 103.63.
Trading averaged 190,187 units at $1,780,784 for each security, compared to an average of 169,420 shares at $1,098,311 on Wednesday. The average trade for the month to date is 179,176 units at $1,313,675 for each security, in contrast to 173,476 units at $1,071,877. November averaged 623,120 units at $6,686,047.
Sagicor Real Estate Fund climbed $1.22 to $8.97 after exchanging 19,020 units, Seprod shed 99 cents to finish at $64.01, with 5,814 units changing hands, Sterling Investments lost 40 cents in closing at $3.20 after trading 11,775 units. Supreme Ventures gained 30 cents to end at $17.80, trading 33,788 stock units, Sygnus Credit Investments shed $1 to end at $16, after 550,563 shares crossed the exchange and Wisynco Group settled at $16.50, with gains of 47 cents as investors swapped 67,571 shares.
At the close, the All Jamaican Composite Index declined by 1,097.37 points to 435,029.23, the Main Index shed 989.18 points to 396,881.92 and the JSE Financial Index lost 0.31 points to settle at 104.07.
At the end of trading, the Investor’s Choice bid-offer indicator reading for the market shows five stocks ending with bids higher than their last selling prices and one with a lower offer.
Pan Jam Investment ended $1.49 lower at $62.01, after exchanging 9,913 stock units, Proven Investments gained $1 to close at $37, with 3,309 units changing hands, Stanley Motta gained 35 cents to finish at $5.35, in trading 2,180 stocks. Supreme Ventures rose 47 cents to $17.50 in an exchange of 13,504 stock units, Sygnus Credit Investments advanced $1 to $17, with a transfer of 37,765 shares and Victoria Mutual Investments gained 34 cents in closing at $6.10 after investors switched ownership of 113,575 units.
Investor’s Choice bid-offer indicator reading for the market shows nine stocks ending with bids higher than their last selling prices and two with lower offers.
Supreme Ventures gained 40 cents to close at $17.03, after the swapping of 21,899 stock units and Sygnus Credit Investments shed $1.31 in ending at $16, with a transfer of 53,907 shares.
Trading averaged 341,117 units at $3,482,298 for each security, compared to 5,591,567 shares at $5,529,709 on Friday. Month to date, the average ended at 623,120 units at $6,686,047 for each security, in contrast to 639,789 units at $6,875,412. October averaged 398,200 units at $4,622,532.
Pan Jam Investment advanced by $2.90 to close at $70, with 142,736 shares crossing the exchange, Sagicor Group rose $1 to $52 trading 1,647,769 shares, Salada Foods closed at $27, with a loss of $1 in trading 5,498 units. Scotia Group fell by $1.99 to $46 in exchanging 210,312 shares, Seprod gained $1.10 to end at $65.10, with a transfer of 18,206 units, Supreme Ventures shed 87 cents to finish at $16.63, with 23,840 stock units changing hands and Sygnus Credit Investments lost 69 cents trading 181,280 shares to end the day’s trade at $17.31.
Access Financial, Caribbean Producers, Express Catering, Elite Diagnostic, 
The local stock market’s targeted average PE ratio is 20based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.5, The Junior Market 13.3, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 54 percent to the average of the Junior Market. The Main Market TOP 10 stocks trade at a PE of 9 or 58 percent of the PE of that market.
based on 2020-21 earnings, indicating greater likely gains for Junior Market stocks than the Main Market.
At the close, the All Jamaican Composite Index advanced 3,600.36 points to 435,722.68, the Main Index climbed 3,258.67 points to 397,474.41 and the JSE Financial Index gained 0.83 points to settle at 104.25.
Trading averaged 5,591,567 units at $5,529,709 for each security, versus 316,046 shares at $4,811,167 on Thursday. Month to date average ended with 639,789 units at $6,875,412 for each security, compared to 382,145 units at $6,945,430. October averaged 398,200 units at $4,622,532.
Key Insurance closed at $10.35 and rose to $1.75 after trading 287,658 shares, MPC Caribbean Clean Energy declined by $4.50 to $145.50, in crossing the market with 224 units, Pan Jam Investment fell $1.05 to $67.10 trading 25,670 stock units. Proven Investments climbed $2.22 to $39.02, with an exchange of 56 units, Scotia Group advanced $2.89 to $47.99, with investors swapping 45,993 stock units, Stanley Motta shed 80 cents to close at $4.70, in crossing the market with 5,500 units and Supreme Ventures loss of 50 cents to end at $17.50, after 145,808 shares passed through the market.
Transjamaican Highway with 16.3 percent market share for 1.96 million units and Wisynco Group accounted for 14.6 percent with 1.75 million units changing hands.
Kingston Wharves climbed $2.75 to $48.45, with 1,375 shares changing hands, Mayberry Jamaican Equities closed 36 cents higher at $8.15 in exchanging 12,000 stock units, NCB Financial climbed $2.50 to $148.50, with a transfer of 58,915 shares. Palace Amusement jumped $100 to $1,200 after an exchange of 34 units, PanJam Investment gained $1.05 to close at $68.15, trading 31,652 stock units, Proven Investments fell by $1.88 to $36.80 after switching ownership of 9,831 shares. Sagicor Group rose 89 cents to $51, with 2,172,115 shares changing hands and Supreme Ventures gained $1.52 to close at $18 trading 45,204 shares.
Pan Jam Investment finished at $67.10, with gains of 60 cents after clearing the market with 18,832 units, Proven Investments lost 36 cents to settle at $38.68, with the swapping of 14,106 stock units, Pulse Investments ended at $4.58 after losing 31 cents and exchanging 443,745 shares. Salada Foods fell $1 to $28, in transferring 24,249 stock units, Scotia Group declined $1.71 to $45.14, in clearing the market with 11,685 units, Seprod shed 50 cents to settle at $64, with 1,163 stocks passing through the market. Sterling Investments gained 50 cents to end at $3.70, with the switching of 330 units, Supreme Ventures gained 48 cents to finish at $16.48 after trading 162,359 shares and Wisynco Group closed 49 cents higher at $16, with 437,353 stocks passing through the market.