Jul 2010 Financial News

JSE market cap gained $1.5b in June

Jul 07, 2010

IN June, the Jamaica Stock Exchange's (JSE) market capitalisation gained $1.5 billion over the 30-day period to close at $565.9 billion following the first full month after the security force operations in west Kingston disrupted business in the corporate area.

Guardian Holding's stock was the top gainer in the month up 25.7 per cent to $220 followed by Salada Foods, up 7.4 per cent to $10.7,5 and Seprod, up 6.7 per cent to $23. It indicated that the top advancing stock gains were small. Comparatively top declining stocks were Mayberry, down 30.5 per cent to $2.01; Montego Feeport, down 18.3 per cent to $1.65; and Cable & Wireless, down 15.2 per cent to $0.39.

The JSE index stood at 86,333.6 points at June 30, 2010 which was up 0.37 per cent and 6.7 per cent when compared with the previous month and same period last year respectively.

Market capitalisation, although up slightly in the month, is still below the $602.1 billion recorded in June 30, 2009 based on JSE statistics analysed by the Business Observer. The JSE Index is recovering from its worst decline in 14 years, from the 2008 high of 112,100 points in May. The June 2010 market capitalisation when compared with March 2008 of $873 billion, represents a decline equivalent to more than twice 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.

The two-day unrest in May sparked by the confrontation between the security forces and gunmen loyal to Chirstopher 'Dudus' Coke, resulted in 73 civilian deaths and over $100 million in losses to manufacturing businesses in downtown Kingston, Jamaica Manufacturers' Association head, Omar Azan revealed two weeks ago. The JSE's office despite being closed to the public allowed brokers to trade electronically (outside the JSE), which enabled trading.


Source:
Jamaica Observer
Wednesday July 7, 2010

http://www.jamaicaobserver.com/business/JSE-market-cap-gained--1-5b-in-June_7777948