ONLY five active stocks on the Jamaica Stock Exchange (JSE) made double-digit returns during the first six months of 2014.

Two of the top stocks made losses while another was engaged in a legal battle.

“We are not seeing a lot of activity in the local equities market among non-institutional investors,” Wade Mars, manager-equity trading and asset management at Mayberry Investments told the Observer in a phone interview on Wednesday.

The decline comes primarily as investors are seeking out US dollar instruments to protect against local currency depreciation.

The local currency lost 13 per cent of its value over 12 months to $112.31 to US$1.

“The devaluation affects interest in the market on a whole,” Mars said recalling few gains for the year to date.

Loss -making telecommunications company, LIME, led the market with a 103 per cent stock price increase over the first half of the year. Another loss maker, song publisher, C2W Music, saw its stock price increase by 44 per cent during the period.

Access Financial Services, which is currently engaged in a legal dispute over the CEO position, was up 12.5 per cent by June 30.

Hardware & Lumber, which recently returned to profit, had the second highest stock price increase, at 55 per cent, while Proven Investments, which recently raised US$10 million in a rights issue, saw its price increase 38 per cent over the period, on the US denominated market.

Mars argued that, aside from currency movements, investors are psychologically pulling away. He cited declines in solid performing stocks that earn US dollars including Caribbean Producers Jamaica which ended the six months flat at $2.70, Dolphin Cove which caters primarily to tourists up 0.9 per cent, and Lasco Financial which engages in remittances services down 21.8 per cent.

“These should be doing well in this market,” Mars retorted.

The price declines, however, means its a buyers market, which allows investors to purchase less risky, dividend rich stocks at cheaper prices, such as Carreras and Scotia.

Over six months, the main market index declined 12.2 per cent to 70,738 points at June 30, while the junior market index lost 4.8 per cent of its value.

The US denominated index increased 40 per cent to 130 points over six months ending June due in part to a new listing — Margaritaville Caribbean Limited — and the Proven rights issue.

LIME grew its customer base by 31 per cent for its year ending March 2014 and increased mobile service revenue growth by 28 per cent year on year. However total revenue fell by three per cent and the group made a net loss of $3.5 billion.

Cash strapped C2W Music recorded a net loss of US$24,800 for three months ending March 31, compared with a net loss of US$189,000 for the same quarter a year earlier.

The company raised some $129 million on the local stock exchange in May 2012. But its latest financials indicate that its holds a little over US$12,000 in cash and equivalents. Its accumulated deficits have surpassed US$1.2 million which depleted its total equity to US$17,000.