BEMOANING the negative impacts on its business brought on by continued volatility in financial markets, investment and management company QWI Investments Limited has expressed optimism that there will be some growth in its stock as pressure eases and demand improves in the not-too-distant future.

Speaking at the company’s recently held annual general meeting last Thursday, Chairman John Jackson assured indignant shareholders that the company, amid the harsh economic realities seen in the past few years, will steadily move back to profitability as market conditions improve.

“I think people just need to be a little more patient… I think there will be some improvement in the Jamaican market this year, going into the next, as I think interest rates are going to be reduced even as some companies struggle with making a profit while others do well and have their stock prices appreciate,” he said in response to queries from shareholder activist Orette Staple who questioned when he and fellow stockholders would begin to realise a sensible return on their investments.

“For this year to date we are in a profitable position and our second-quarter numbers are better than the first quarter, so we keep our fingers crossed that by the end of the financial year we will continue to show improved performance,” the chairman continued.

Listed on the Main Market of the Jamaica Stock Exchange since 2019 the company, which is a subsidiary of Jamaican Teas Limited, has its primary business in the holding of a number of securities.

Holding “magnificent seven” stocks in the US including Apple, Meta, Nvidia, these the company said have helped it to balance out some of the unrealised gains experienced over the reporting period, especially after its Jamaican investments continued to be plundered by adverse macroeconomic environment challenges such as high interest rates and unstable inflation, which have eroded investor confidence and reduced market volumes, resulting in a slower take-up of stocks.

Among its top 10 Jamaican investment holdings are stocks such as Caribbean Cement, JMMB Group, Stationery and Office Supplies, GraceKennedy, General Accident, Caribbean Producers, and others.

“The investment portfolio is currently in stocks that we believe have a very strong potential to deliver above-average growth in the 2024 fiscal year. The first quarter ended with positive returns and we are particularly pleased with our performance in the US market over the last 12 months to September. The high level of growth in that market served us well while the Jamaican market declined moderately,” Jackson further noted in his report to shareholders in the company’s recently published annual report.

Following a two-year profit plunge the investment company — up to the end of its six-month period ended March — welcomed realised gains of $152.6 million backed by net profit of $70.3 million. With this performance the company reversed a series of losses which, up the end of its last financial year, stood at $44.1 million.

“The trend has been improving since the end of last year and, while we’ll make no projections about where we will finish this September, we are optimistic that things will improve and this time next year we’ll find out if it’s true,” Chief Financial Officer Cameron Burnet stated.

Noting that its local portfolio remains well-positioned in stocks that have largely reported positive profit performances — despite being below market earnings — the company’s directors said they continue to be encouraged by some positive local economic indicators, including the strong rebound of visitor arrivals and the continued expansion of the local economy, which will all lead to brighter prospects for its larger Jamaican holdings.

Responding to questions about a proposed share buy-back and the return of dividend payments aagun brought to the fore by concerned shareholders, the chairman said that while both remain ambitious objectives, commencement would only come after the way has been made clear to do so.

“If the trend continues concerning the return of profitability, I think the directors will look at the possibility of a dividend during the latter part of this year, after our audits are completed in a favourable manner. We’ve been looking at the whole matter of having QWI being a stock that will both appreciate in value as well as providing reasonable and regular returns for our investors; this will help to change how people view the stock, making it more attractive,” Jackson said.