FosRich Company Limited has become the most valuable company on the Jamaica Stock Exchange’s Junior Market at the end of 2022 with a market capitalisation of $19.64 billion.

The PVC (polyvinyl chloride) manufacturer and lighting distributor saw its stock price increase by 332 per cent from $9.05 ($0.91 split adjusted) to $3.91 which also made it the best performing company on the JSE. This resulted in it making up 10.11 per cent of the Junior Market Index $194.29-billion market capitalisation.

The rapid rise in FosRich’s stock price saw it overtake Lasco Manufacturing Limited, which was the largest company on the Junior Market by market capitalisation for 11 consecutive years, dating back to its October 2010 listing. Future Energy Source Company Limited (Fesco), Fontana Limited, Derrimon Trading Company Limited, Lasco Distributors Limited, Express Catering Company Limited, Dolla Financial Services Limited, Access Financial Services Limited, and Jamaican Teas Limited are the other companies which make up the top 10 Junior Market companies by capitalisation. These make up 55.96 per cent of the Junior Market Index’s market capitalisation.

“In general, rising interest rates have made investors more risk averse. Consequently, stock prices have fallen, and this is reflected in the broader market indices. However, there are several listed companies that continue to produce robust profit, with strong cash flow and positive outlooks. Long-term investors can identify stocks that offer good value and use the current environment as a buying opportunity,” said deputy chief executive officer of GK Financial Group Limited Steven Whittingham recently.

This is the second consecutive year that FosRich’s is the best performing Junior Market stock following its impressive 2021 run in which it increased by 120 per cent from $4.11 to $9.05.

FosRich executed a 10 to 1 stock split on July 26, 2022, which pushed the number of outstanding ordinary shares to 5,022,755,550 units — the largest number on the JSE for any company. FosRich’s shareholder base also grew from 1,753 shareholders to 4,749 shareholders for the first nine months of 2022. Cecil and Marion Foster are the main principals of FosRich.

Apart from FosRich, MFS Capital Partners Limited (formerly SSL Venture Capital Limited), Stationery and Office Supplies Limited, and iCreate Limited were up by more than 126 per cent. Main Event Entertainment Group Limited, Fesco, Tropical Battery Company Limited, Cargo Handlers Limited, Paramount Trading (Jamaica) Limited, and Everything Fresh Limited were the other best performing stocks by price for 2022.

ISP Finance Services Limited was the worst performing stock on the Junior Market as its stock price declined by 54 per cent from $38 to $17.49. tTech, Mailpac Group, Jamaican Teas, The Limners and Bards Limited (LAB), Caribbean Cream Limited, Medical Disposables and Supplies Limited, General Accident, Ironrock Insurance Company, and Lasco Distributors were the other worst performing stocks for 2022.

Although FosRich became the largest company on the Junior Market by market capitalisation, the Lascelles Chin controlled Lasco Manufacturing and Lasco Distributors earned the most in net profit totalling $1.71 billion and $1.02 billion. Fontana, Access, Derrimon, Mailpac, General Accident, Fesco, Dolphin Cove, and Jamaican Teas are the other companies which earn the largest net profit on the Junior Market. Except for Access, Mailpac, and Jamaican Teas, every other company in the top 10 earned more net profit in 2022.

“Additionally, many Junior Market stocks have benefited from the wider economic reopening which has helped their bottom lines,” said NCB Financial Group’s (NCBFG) annual report.

While its stock price declined by seven per cent in 2022, Derrimon Trading had the largest total asset base with $13.99 billion as of September. Lasco Distributors, General Accident, Lasco Manufacturing, Access Financial, Express Catering, Dolphin Cove, Fontana, Jamaican Teas, and FosRich were the other companies with the largest asset bases.

The Junior Market Index increased by 16 per cent from 3,428.30 points to 3,986.44 points for 2022. with the total number of trades amounting to 234,321 trades, a whopping 137 per cent increase from 2021. May 11 saw the index peak at 4,564.38 points. Some 4.40 million units were traded in 2022, which amounted to $16.34 billion, 74 per cent higher than the $9.39 billion traded in 2019.

The market capitalisation increased by 23 per cent to $194.29 billion, which exceeds 2019 — the prior record year. The total number of companies listed on the market increased from 41 to 47 companies with six IPOs offered during the year. One-on-One Educational Services Limited’s listing resulted in the 100th actively listed company in the JSE’s history and Dolla’s IPO being the most oversubscribed to the tune of $4.762 billion. Dolla’s initial shareholder base of 14,981 shareholders meant it had the largest number of shareholders for any Junior Market company. Image Plus Consultants Limited’s IPO closed in 2022, which was more than 100 per cent oversubscribed. This was the largest issuance of shares in Junior Market history at $495.78 million.

“Equity financing will become more attractive as debt financing becomes more expensive due to the higher interest rate environment expected across all our territories. Against this background we anticipate more listings, particularly smallcap stocks, which will help drive stock market activity,” the NCBFG report closed.

Data compiled from JSE Trading History & Mymoneyja.com.