While the overall stock market has seen double-digit declines, different listed funds on the Jamaica Stock Exchange (JSE) have seen mixed performances in their financial performance and stock price.
The JSE Index was down 10 per cent up to September 8 with the index shrinking to 320,354.20 points valued at $1.6 trillion. This decline has also been manifested in the market statistics which show that the value traded for the first eight months of the year was down 59 per cent to $22.85 billion relative to the $40.76 billion traded in the same time period last year. The number of trades has also fallen 45 per cent with the average number of daily transactions moving from 1,017 to 771.
Apart from the JSE USD Equities Index. which represents securities traded on that market and two other indices, every other market index is down in 2023 with the JSE Financial Index recording the sharpest decline of 17.20 per cent year to date (YTD).
During the second quarter (April to June), QWI Investments Limited and Sagicor Select Funds Limited — Manufacturing and Distribution (SelectMD) were the only listed funds that saw net profits of $115.68 million and $38.20 million, respectively. The improved performance for QWI was attributed to the gains it benefited from unrealised gains in its Jamaican and overseas stock portfolios. SelectMD's performance was largely driven by its improved dividend income of $28.24 million, which was twice the unrealised market gains in the period.
Sagicor Select Funds Limited — Financial (SelectF) and Mayberry Jamaican Equities Limited (MJE) recorded net losses of $249.18 million and $43.08 million, respectively, during Q2. The further slide in the financial stocks of SelectF's portfolio and a 50 per cent cut in its dividend income pushed down the fund for the period while higher financing costs related to the expansion of its investment portfolio pulled MJE into a net loss.
While Q2 showed mixed performances, QWI was the only fund which showed a YTD net profit of $56.56 million relative to the other funds which all recorded net losses. However, only QWI and MJE's net asset value (NAV) was the only one to see an improvement during the period compared to the Select Funds, which were both down. The NAV represents the difference between the total assets and liabilities of a fund divided by the number of issued shares.
MJE's continued to grow its asset base which was up seven per cent to $26.09 billion relative to QWI, whose asset base was marginally down to $2.11 billion. SelectMD and SelectF's assets shrunk to $3.96 billion and $3.13 billion, respectively.
SelectMD is the only listed fund whose stock price has increased this year as it remains up eight per cent to $0.56. SelectF, QWI and MJE's stock prices are down between three per cent to 16 per cent year to date.
MJE's NAV peaked in 2022 but has the smallest discount relative to its stock price of 22 per cent compared to the other funds listed on the market which have discounts above 33 per cent. MJE's parent Mayberry Investments Limited purchased an additional 1,209,182 shares which took its ownership up to 682,568,382 shares or 56.83 per cent. PAM — Pooled Equity Fund and Claudine Murphy increased their interest in SelectF while PAM — Pooled Equity and Bull Investments Limited bought more shares in SelectMD. Jamaican Teas Limited hasn't bought additional shares in QWI, but top 10 shareholders Murphy and Amalgamated (Distributors) Limited bought more shares in QWI during the nine months.
ISP Finance Services Limited was the best-performing stock in August as it rose by 50 per cent from $24.09 to $36.17. Margaritaville (Turks) Limited (USD shares), Main Event Entertainment Group Limited, Stanley Motta Limited, Proven Group Limited (USD shares), Lasco Manufacturing Limited, Guardian Holdings Limited, and CAC 2000 Limited were the best-performing stocks in August.
Stationery and Office Supplies Limited was the worst-performing stock in August as it declined by 38 per cent from a split adjusted price of $2.99 to $1.85. Elite Diagnostic Limited, Lasco Financial Services Limited, Caribbean Cream Limited, Palace Amusement (1921) Company Limited, Blue Power Group Limited, MFS Capital Partners Limited, and JFP Limited were the other worst-performing stocks in August.
Ciboney Group Limited is the best-performing up to the end of August as it remains up 150 per cent from $0.56 to $1.40. ISP, TransJamaican Highway Limited (JMD shares), TransJamaica (USD shares), Lasco Distributors Limited, Regency Petroleum Co Limited, Caribbean Assurance Brokers Limited, and Consolidated Bakeries (Jamaica) Limited are the other stocks showing good performances.
FirstRock Real Estate Investments Limited (USD shares) is the worst-performing stock so far up to the end of August, with the stock down 49 per cent from US$0.0787 to US$0.0400. FosRich Company Limited, Elite Diagnostic, iCreate Limited, FirstRock Real Estate (JMD shares), Radio Jamaica Limited, Jamaica Stock Exchange Limited and EduFocal Limited are the other stocks showing big declines.