THE Jamaica Stock Exchange (JSE) bull run continued in March as stocks gained up to 51 per cent during the month. Berger Paints’ stock price rise made it the top gainer for the first three months of 2009 when it moved upwards 123 per cent .

The top 10 advancing stocks gained from 24.4 to 51.4 per cent over the month of March, led by Mayberry Investments, followed by GraceKennedy, up 44 per cent; Hardware & Lumber, up 41.4 per cent; Berger Paints, up 34 per cent; Radio Jamaica, up 32.9 per cent; Kingston Wharves, up 32.7 per cent; Jamaica Producers Group, up 29 per cent; Seprod, up 26.7 per cent; Pan Caribbean Financial Services, up 26.67 per cent; and Supreme Ventures, up 24.4 per cent.

Market capitalisation stood at $564.1 billion on March 31, 2010, which is $45 billion more than a month earlier but $309 billion less than two years prior, based on JSE statistics analysed by the Business Observer. The two-year decline — from $873 billion in March 2008 to $564 billion — is equivalent to more than twice the US$1.27 billion ($113.6 billion) Government received as a Stand-by Arrangement from the IMF this year.

In the first three months of 2010 (year to date, or YTD), 22 of the 38 listed stocks advanced with the top 10 advancing stocks gaining from 34.8 per cent to 123 per cent. The rally meant that investors in Berger Paints’ stock — up 123 per cent YTD — earned an additional $1.2 million for every $1 million held in the stock over the review period.

The market improvement followed strong financials and the approved International Monetary Fund (IMF) Stand-by Agreement seen by some analysts as a pre-requisite to macroeconomic improvement. The top 10 advancing stocks have outperformed the JSE Index, which increased 3.2 per cent from 83,321 points at the end of 2009 to 86,010 points on March 31, 2010. The JSE Index is recovering from its worst decline in 14 years, from the 2008 high of 112,100 points in May. JSE general manager, Marlene Street-Forrest previously blamed the 2008 market decline on the global meltdown, high interest rates and its crippling spill-over effect on company earnings in 2008. In 2009, however, stocks were cheap relative to their improved earnings.

Berger Paints Jamaica’s stock price jumped following the release of favourable financials in February. The company recorded a 303 per cent jump in December 2009 year-end profits to $62.7 million with 75 per cent made in its fourth quarter alone due to a four-day work week that slashed operation costs. Profit in the fourth quarter was $44.7 million versus $25.1 million a year prior as the paint company benefited from the Christmas rush and increased efficiency. During that quarter, sales net of discount and rebates increased seven per cent to $542.5 million versus $506.6 million a year prior, but its increased efficiency really boosted profitability.

“Improved productivity and efficiencies, [such as] litres per man-hour, improved by 35 per cent in 2009 over 2008, emanating from the redeployment of its human resources, upgraded equipment and sourcing savings, all aided in the company’s improved performance,” stated the notes accompanying the financials endorsed by regional managing director Warren McDonald.

GraceKennedy’s stock price also jumped following favourable results. Its net profit for its financial year ending December 2009 jumped by 54 per cent over the previous year to $2.57 billion. All business segments improved during the year under review including the group’s retail and trading segment, which reported an $83-million pre-tax loss, but which was an improvement over a $440-million pre-tax loss the year before. The conglomerate’s banking and investments segment continued to trail behind the other growth segments, largely reflecting the impact of $1.77 billion in losses suffered from irregular bond trading over the course of 2008 and 2009. The segment did however, post a pre-tax profit of $105 million compared to $26 million the year before. For 2010, GraceKennedy said it would focus on strengthening the control systems of the group and complete its new distribution centre in Spanish Town by April 2010.

Scotia DBG Investments (SDBG) also released favourable results reporting net profit of $546 million over the period under review, a 42 per cent increase over the corresponding period the year prior.