PEGASUS Hotel made the only double-digit price gain in November on the Jamaica Stock Exchange.

Pegasus’ stock price was up 16.7 per cent whilst five stocks double-digit dipped on the stock market, reflecting overall weak results.

It meant that investors in Pegasus made gains of $167,000 for every $1 million held in the stock over 30 days, according to the just released JSE monthly statistics report. These gains, although lower than in early parts of the year, are still above the double-digit returns under the hyped unregulated investment schemes which eventually collapsed.

Pegasus’ stock price rose following the recent announcement that local hotelier, Kevin Hendrickson, would buy a majority stake in the Kingston-based hotel. The hotel subsequently posted a $14.6-million loss in its September quarter, reversing the $11.4-million profit made a year earlier due to mounting expenses.

Other advancing stocks in November didn’t post gains even close to Pegasus, only making gains between 8.0 and 1.4 per cent. Compare that with the top-10 declining stocks led by Ciboney, down 60 per cent; Pulse Investments, down 17.2 per cent; Salada Foods, down 15 per cent; Radio Jamaica, down 12.4 per cent; and Palace Amusement, down 11.5 per cent.

Salada Foods Jamaica saw a 22.7 per cent slip in net profit for the third-quarter ended June 30, 2010 compared to the corresponding period last year. The firm was impacted by the recession which haa ravaged the operations of similar entities over the period.

Pulse Investments, a modelling and entertainment company, posted a 23 per cent decline in operating profit at J$170.4 million for the year ended June 30, 2010 due to the contraction in advertising revenue besetting the entire industry. Whilst radio giant Radio Jamaica (RJR) saw a 53 per cent decline in net profit for the group following costs rise and income declined.

RJR’s reported $29.5 million in net profit for the three months to June 30, 2010, compared to $62.78 million during the comparative period last year.

Interestingly, despite the weak results of key players, the JSE market capitalisation overall gained $7 billion in November to close at $553.1 billion, which increased the index by 1.3 per cent. The JSE index stood at 84,466.5 points at November 30, 2010.

The JSE Index is recovering from its worst decline in 14 years, from the May 2008 high of 112,100 points. The November 2010 market capitalisation when compared with that of March 2008 of $873 billion, represents a decline equivalent to three times the US$1.27 billion Government received as a Stand-by Arrangement from the IMF this year.

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.