Business

JSE Main Market currently trading in record territory

BY DENNISE WILLIAMS
Observer writer

Wednesday, June 13, 2018

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John Jackson, investor guru and blogger of ICInsider.com , announced in January that selected stocks would continue to flourish. Chairman of Mayberry Investments Chris Berry says that we are in the third leg of a bull run and investors should keep an eye on companies that grow as the economy expands.

This recently concluded week on the stock market seems to bears witness to the two experts' viewpoints as the main market closed the week of June 9th with record highs.

Jamaica Stock Exchange (JSE) Main Market activity resulted from trading in 34 stocks, of which 17 advanced, 12 declined and 5 traded firm. Market volume amounted to 30.4 million units valued at more than $753 billion.

JSE Junior Market activity resulted from trading in 35 stocks, of which 17 advanced, 14 declined and four traded firm. Market volume amounted to 19.4 million units valued at over $115.8 billion.

Last week's winners were Scotia Group trading at $52.99 and JMMB Group at $28, the two being major contributors to the market rise. Wisynco Group traded at $9.80 and accounted for the largest block of shares with 5.356 million units of the stock traded.

The last time the All Jamaican Index (the largest stocks on the market) ended at a record closing high of 332,501.11 points was last month, on May 4.

For those looking to pick winners, according to Jackson, “Focus should be placed on stocks with the lowest price-to-earnings (PE) ratios. Rising stock prices increase the PE and falling prices will tend to reduce the PE. The crude rule of thumb is that stocks with the lowest PE ratios are better buys for maximum appreciation with the reverse being true. While investors should be looking for low PE stocks to invest in, some of the best stocks to invest in are those with rising income and profit; they could probably be very good stocks to invest in for a longer period and ensure a greater chance of long-term gains.”

JN Fund Managers (JNFM) has identified the following as its picks of stock market winners.

NCB

The NCB Financial Group (NCBFG) achieved net profit of $10.9 billion for the year-to-date second quarter ending March 31, 2018, an increase of 15 per cent over the prior year. NCBFG continues to place emphasis on strategic initiatives in restructuring its core business by seeking opportunities to grow organically and inorganically throughout the Caribbean by utilising technology to improve efficiency and enhance profitability.

JMMB

During the 12 months ended March 31, 2018, JMMBGL's net profit increased marginally to $3.6 billion from $3.35 billion for the corresponding period last year as result of a 7.93 per cent increase in net interest income relative to the prior period. JMMB continues to remain focused on operationalising their commercial bank and increasing their crossing-selling efforts. In alignment with JMMB's strategy to provide customised financial solutions, the company continues to see growth in their off-balance sheet products.

JETCON

Jetcon's financial performance continued to improve into Q1 2018. During the first quarter ended March 31, 2018 (Q1), Jetcon's net profit grew over 21 per cent year-on-year, moving from $37 million in Q1 2017 to $44.5 million in Q1 2018.

PAN JAM

Net profit at PanJam Investment Ltd for the quarter ended March 31, 2018 (Q1 2018) amounted to $827 million, an improvement relative to the $830 million recorded in Q1 2017. PanJam continues to benefit from its 31.5 per cent investment in Sagicor Group and increased property income.

SAGICOR REAL ESTATE X FUND

X Fund reported that net profit attributable to shareholders for the first quarter ending March 31, 2018 was $493 million, nine per cent lower than March 2017's net profit of $540 million. Despite this lower quarterly performance, the optimistic outlook for the travel and tourism sector in 2018 bodes well.

ACCESS FINANCIAL SERVICES

Net profit for the third quarter ended December 2017 increased to $504 million from $494.23 million when compared to the corresponding period last year. During the period under review, net operating income rose by approximately 18 per cent, primarily due to an increase in income from loans and net fees and commission.

KINGSTON WHARVES

KWL has been aggressively upgrading its facilities, seeking to integrate its logistics services and expanding its range of cargo services. For the quarter ended March 31, 2018, net profit increased by 11 per cent or $36 million, to $368 million from $332 million in Q1 2017.

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