Investing in the Junior Market in 2010 gave investors far better returns than the money market, with average gains quadrupling fixed income investments in 2010.

Investors gained on average 37 per cent on the Junior Market investments, which bettered the single-digit returns on fixed income securities. Comparatively, the Junior Market gains also outpaced the movement on the All Jamaica Composite up some 14 per cent from January 1 to December 31.

The top advancing stocks on the Junior Market were Lasco Manufacturing and Dolphin Cove gaining 130 per cent and 45 per cent respectively at the close of year from their listing price in 2010.

The gains meant that $1 million invested in Lasco Manufacturing would have earned an additional $1.3 million. A similar investment in fixed income securities would have earned under $100,000 due to the yield on the six-month treasury bill in November falling to 7.6 per cent. The lowest in three decades.

All the eight junior stocks closed the year with gains with six of them making double-digit gains ranging between 18.6 per cent to 130 percent when compared with the 2010 listing price or low.

In 2010, seven stocks were listed on the Junior Market representing the highest number in 25 years according to analysed data in the Statistical Digest published by the Bank of Jamaica.

JSE general manager Marlene Street-Forrest anticipates at least 10 more companies to list on the Junior Market in 2011. Street-Forrest told the Business Observer in December that the listings would help to revive the ailing Jamaican economy.

The top advancing stocks on the JSE were Berger Paints Jamaica Ltd, Carreras and Gleaner Co up 68 per cent, 51 per cent and 47 per cent respectively on the Jamaica Stock Exchange (JSE) but 16 other stocks made double-digit returns in 2010. Contrastingly 14 stocks made double-digit declines led by Ciboney, Pulse and Pegasus down 70 and 58 and 40 per cent respectively.

Jamaican companies outperformed Trinidad and Barbados listed companies in 2010. Specifically, trading activity between January 01 to December 31 saw the JSE All Jamaican Composite ( Jamaican companies only) advancing 13.80 per cent to close at 80,793 points. However the JSE Market Index (which includes Jamaican and foreign stocks) advanced only 2.3 per cent to close at 85,220 points which was a reduction from the four per cent gained in 2009.

Deirdre Witter, analyst at Stocks & Securities Ltd explained last week in her Observer column that this was partially due to “the prolonged recession resulting in most large or mature companies have registering flat or declining revenue and earnings growth. In addition, she said the “lower interest rate environment resulted in a significant fall-off in Interest Income, which traditionally represented an important revenue stream for many chompanies”.