Aug 2010 Financial News

JSE market cap fell in July, but MFP climbs 50%

Aug 04, 2010

THE Jamaica Stock Exchange's (JSE) market capitalisation lost $3.5 billion in July to close at $562.4 billion which slashed 0.56 per cent from the index, but one stock made gains nearing 50 per cent over the period.

Montego Freeport (MFP) was the top gainer in the month up 47.8 per cent to $2.44 followed by Berger Paints up 8.3 per cent to $3.00 and Gleaner Company up 7.4 per cent to $1.50. Comparatively top declining stocks were Pulse Investments down 39.8 per cent, Barita Investments down 10.5 per cent and Cable & Wireless Jamaica down 10.3 per cent to 35 cents. It indicated that the majority top advancing stock gains were small.

The JSE index stood at 85,849.9 points at July 30, 2010 which was down 0.56 per cent and 8.3 per cent when compared with the previous month and same period last year respectively.

Market capitalisation, is far below the $590 billion recorded in July 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 July 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.

Interestingly, in June, the 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. 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 August 4, 2010

http://www.jamaicaobserver.com/business/JSE-market-cap-fell-in-July--but-MFP-climbs-50_7852264