Apr 2015 Financial News

Bear market no longer — JSE recovers in first quarter 2015

Apr 08, 2015

FIFTEEN active stocks on the Jamaica Stock Exchange (JSE) made double-digit returns during the first three months of 2015, signalling a shift from the lacklustre performance of last year and possibly an end to the long bear market.

The two top stocks, Mayberry Investments and Paramount Trading, made gains of 38 and 37 per cent over three months respectively on the Main and Junior index.

Both companies benefited from strong financial performance which preceded the rise in prices. Mayberry's annual profits rose sevenfold to over $700 million based on the sale of its stake in Access Financial Services Ltd. But Mayberry would still have made greater profit year-on-year without the sale.

Meanwhile, Paramount made $49.2 million profit for its second quarter ending November 2014 or 160 per cent higher year-on-year due in part to new maintenance contracts.

Over three months, the main market index gained 9.7 per cent to close at 83,804 points for March 31, while the Junior market index gained 2.6 per cent of its value to 703 points.

On the negative side, the US-denominated index lost 4.7 per cent of its value over the period for its two listings -- that of Margaritaville Caribbean Limited and Proven Investments.

Other main market double-digit gainers included National Commercial Bank of Jamaica (NCB) up 35 per cent, JSE up 27.4 per cent, Radio Jamaica up 22 per cent, Supreme Ventures up 20 per cent, Salada Foods Jamaica up 18.4 per cent, Jamaica Broilers Group up 11.4 per cent and 138 Student Living Jamaica up 10 per cent.

Other Junior market double-digit gainers included Cargo Handlers Ltd up 25 per cent, AMG Packaging & Paper Company up 18.9 per cent, Blue Power Group Ltd up 17.5 per cent, Honey Bun Ltd up 11.7 per cent, Access Financial Services Ltd up 11.6 per cent, and Lasco Financial Services up 10.2 per cent.

The decline in the performance of the JSE indices for 2014 occurred against the background of "low investor appetite, despite positive macroeconomic developments throughout the year", according to the Bank of Jamaica (BOJ) in its recently released annual report.

These positive developments included the achievement of the fiscal and monetary targets and benchmarks under the International Monetary Fund programme.

"In addition, Standard & Poor's ratings agency upgraded Jamaica's outlook from stable to positive, and there was a substantial increase in Jamaica's ranking in the World Bank Doing Business Report," added BOJ.

Investors who spoke to the Jamaica Observer previously blamed the JSE decline in 2014 on investors searching for US dollar instruments to protect against local currency depreciation.

Last year, loss-making telecommunications company, LIME, led the market with a 200 per cent stock price increase over the year.

Source:
BY STEVEN JACKSON
Business reporter
jacksons@jamaicaobserver.com
Jamaica Observer
Wednesday April 8, 2015  

http://www.jamaicaobserver.com/business/Bear-market-no-longer---JSE-recovers-in-first-quarter-2015_18714399