Thu | Oct 18, 2018

JSE doubles profit as listings spike

Published:Friday | August 10, 2018 | 12:00 AM
JSE Managing Director, Marlene Street Forrest.

Jamaica Stock Exchange Limited, JSE Group, doubled its net profit in the June quarter buttressed by new listings that are tracking ahead of target, with more to come.

JSE Group made $90 million in June, up 97 per cent year-on-year. At half-year, profit was up 88 per cent to $191 million on revenue of $666 million. The company earns revenue from a cess on stock trades, fees and its e-campus courses.

Managing Director Marlene Street Forrest said the exchange had budgeted for 14 listings for the year, but so far 16 securities have joined the market since January, driving capitalisation to $1.25 trillion. Half of the listings were preference stocks. The 16 also included five USD stocks and a bond.

Street Forrest declined to comment on the number of listings in the pipeline for the rest of the year, but noted the potential for future earnings.

"New listings bring new investors and more activities in the market. The group fee income is derived primarily from listing, trustee, registrar and trade fees. This encompasses our traditional business and our diversification strategy which have yielded tremendous benefits to the group and our customers," said the JSE boss.

"The exchange will continue to grow as businesses raise funds via IPO and structured products. We also anticipate growth with the increase in trading volumes and values, which is a consequence of the growth in the number of securities listed," she said.

The new companies joining the market this year include Elite Diagnostic and Everything Fresh on the junior index, Sygnus Credit Investments, which had four listings on the main market and USD indices; and Mayberry Jamaican Equities on the main market.

Listings for Indies Pharma and Stanley Motta are pending following their successful IPOs, which would push new listings to 18.

As of this month, the number of securities listed on the JSE is 107.

avia.collinder@gleanerjm.com