From the Bulls to the Bears…. Year to Date Review

At the end of 2021, market optimism began to rise again after the 0.14% growth of the Jamaica Stock Exchange’s (JSE) Main Market index, along with the 29.69% growth of the JSE Junior Market Index. Investors kept up the bullish stance at the start of the New Year, perceiving the market would continue on the same trajectory with the relaxation of COVID-19 restrictions. Fast forward eight months into the year… the market sentiment has changed to a bearish tone, underpinned by rising global prices and geopolitical tensions that has had a significant impact on domestic inflation and interest rates.

Highlights

QUARTER 1 2022 (JAN-MAR)

The JSE Main Market Index declined 1.26% by 4,923.65 points; the Junior Market Index advanced by 795.03 points (18.82%) and the JSE USD Equities Index advanced by 11.34 points (5.48 %).

The following companies represent the overall volume leaders for the quarter:

Main market

• Wigton Windfarm Limited Ordinary Shares with 312,477,224 units (23.66%)
• Sagicor Real Estate X Fund Ltd. With 194,369,917 units (14.72%)
• TransJamaican Highway Limited with 132,033,690 units (10.00%) Junior Market
• Spur Tree Spices Jamaica Limited with 317,997,915 units (25.65%)
• Future Energy Source Company Ltd Ordinary Shares with 166,481,336 units (13.43%)
• JFP Limited with 101,739,579 units (8.21%)

FESCO saw the largest percentage increase in stock price, increasing 53% from 2.88 to 6.14 by quarter end. This was followed by TROPICAL increasing 52% from 1.26 to 2.60.

The Trinidad and Tobago-based Massy Holdings Limited (MASSY) cross-listed while Spur Tree Spices (SPURTREE) listed its shares on the JSE in January. JFP Limited (JFP) and EduFocal Limited released their prospectuses inviting applications to purchase shares in the companies during the quarter. The offerings were oversubscribed.

QUARTER 2 2022 (APRIL-JUNE)

The JSE Main Market Index declined 1.26% by 4,838.57 points while the Junior Market Index advanced by 60.12 points ( 3.68 %)

The following companies represent the overall volume leaders for the quarter Ending June 30:

Main Market

• Mayberry Jamaican Equities Limited with 191,532,618 units (16.74%)
• TransJamaican Highway Limited with 176,770,303 units (15.45%)
• Wigton Windfarm Limited Ordinary Shares with 144,945,170 units (12.67%)

Junior Market

• Dolla Financial Services Limited with 175,770,654 units (15.91%)
• Jamaican Teas Limited with 102,346,311 units (9.26%)
• JFP Limited with 75,731,731 units (6.86%)

ICREATE saw the largest percentage increase in stock price 81% from$0.85 to $4.50. This was followed by FOSRICH increasing 45% from 17.60 to 32.21.

Kingston Properties Limited (KPREIT) raised $1.50 billion in additional capital through lead arranger and broker VM Wealth Management Limited.

The market experienced a brief sell off following the release of the Dolla Financial Limited (Dolla) Junior Market Initial Public Offering (IPO) prospectus on May 20. This was a record breaking IPO, led by VM Wealth, that was 10x oversubscribed.

Through lead broker VMIL, MFS Acquisition Limited (MFS) acquired a 79.08% stake of SSL Venture Capital Limited (SSLVC).

QUARTER 3 2022 (JULY –SEPT)

The JSE Main Market Index declined 1.26% by 4,838.57 points while the Junior Market Index declined by 119.90 points (2.83 %)

The following companies represent the overall volume leaders for the quarter ending September 30:

Main Market

• Sagicor Real Estate X Fund Ltd. with 474,305,184 units (27.59%)
• Pulse Investments Limited with 381,476,766 units (22.19%)
• JMMB Group 7.25% VR JMD CR Preference Shares with 176,493,595 units (10.27%)

Junior Market

• Future Energy Source Company Ltd Ordinary Shares with 308,447,383 units (23.71%)
• Dolla Financial Services Limited with 142,805,934 units (10.98%)
• MFS Capital Partners Limited with 132,648,761 units (10.20%)

On the days following the effecting of the company’s 10:1 stock split, FOSRICH traded 5.51M units, its highest volume year-to-date (July 27).

The first trading day of August saw all JSE indices trading down. JSE Market declined by 1.2% and the junior by 0.33%.

A number of stocks traded to a new 52-week low this quarter.

• GK – 70.10
• JP- 17.10
• PAL- 625.81
• RJR- 1.95
• SML- 4.02
• MASSY- 74.00
• TJH8.0- 1.47
• EPLY7.75- 19.80
• MPCCEL- 65.78
• SGJ- 30.11
• KEY- 3.36
• SRFJMD- 9.00
• BRG – 9
• CCC- 55.12
• NCBFG- 88.00
• JMMBGL5.75C – 1.7
• CFF- 1.55
• ROC- 2.00
• KPREIT – 5.95
• SELECTF- 0.39
• SCIUSD- 0.090
• MAILPAC- 2.13
• JMMBGL7.35 – 2.68
• KEX- 6.00
• FIRSTROCKUSD – 0.0395
• JAMT – 2.41
• LASD- 2.81
• SRFJMD – 9.00

While a number of stocks traded to a new 52-week high this quarter

• PBS9.75 – 165
• 138SLVR- 59.5
• EPLY7.75- 21
• EPLY5 – 23.90
• BIL-115.05
• PURITY 2.95
• TJH8.0- 2.2
• 138SLVR- 65.00
• DOLLA – 3.83
• EFRESH- 2.22

In August, Investors reacted strongly to news that Dolla Financial Services Limited (DOLLA) expressed interest in acquiring Access Financial Services Limited. This news sparked a “bidding war” among investors for both stocks, and by the end of trading, AFS had gained 32.17%, while DOLLA had gained 15.66%.

E-learning provider, One on One Educational Services planned to raise over $358 million, in its initial public offer (IPO). One n One was 8 times oversubscribed.

Through its holding company, JMMB Group Limited (JMMBGL) acquired a 100% stake in Dominican Republic Banco Multiple Bell Bank S.A. The acquisition is expected to expand JMMBGL’s operations in the Dominican Republic, but the news has had no impact in sustaining the company’s stock price.