Caribbean stock market report

Published: Wednesday | February 16, 2011 Comments 0

FOR THE week February 7-11, some 17.648 million shares traded on the six stock exchanges across the Caribbean Community (CARICOM), with 33 stocks advancing, 16 declining and 72 unchanged.

Cable and Wireless Jamaica was the volume leader with 9.255 million shares traded, followed by Neal and Massy 1.265 million, Gleaner 1.169 million, National Commercial Bank Jamaica 746,184 and Scotia Group Jamaica 620,881 shares traded.

Caribbean Cement Company posted the largest gain of 11.74 per cent for the week, while on the losing end, Doctors Health Services fell 12.5 per cent.

It was a week of mixed sentiment across CARICOM, as investors on the TTSE turned quite bullish, while the bears were dominant on the JSE and BISX.

While the Caribbean Select Index, the CSX 30, was essentially flat for the week, falling 1.5 points, a number of stocks across the region suffered major losses, with the Caribbean AllShare Index, or CASX, falling 76.5 points and the junior market continuing its decline from last week with the Caribbean Junior Share Index, or CJSX, falling a further 34.6 points. Table 1 provides a summary of the broad market indices for the week.

For the week, 14 of the CSX 30 stocks advanced, four declined and 12 were unchanged.

The CSX 30 was led by Caribbean Cement, which posted gains of 11.74 per cent, Prestige Holdings Limited, up 8.49 per cent, and Mayberry Investments, up 6.82 per cent.

On the junior market, two of the 10 CJSX stocks advanced, four declined and four were unchanged. Access Financial Services posted gains of 1.82 per cent, and Jamaican Teas 0.25 per cent, but the CJSX had another tough week being dragged down by declines in Dolphin Cove, -6.52 per cent and Lasco Distributors, -5.95 per cent. Table 2 provides some details on the best performing stocks for the week.

SECTOR ANALYSIS

The misery in tourism and real-estate stocks got worse this week with the Caribbean Tourism and Real Estate Index, or CTRX, falling 73.7 points. While two of the eight CTRX advanced and seven were unchanged, the index was dragged down by the 8.41 per cent decline in the shares of Pegasus hotels.

The Retail and Distribution stocks enjoyed the best week across the sectors with the Caribbean Retail and Distribution Index, or CRDX, advancing 9.3 points. For the week, three of the 10 CRDX stocks advanced and the remainder were unchanged.

The CRDX was led by Prestige Holdings which posted gains of 8.49 per cent, Carreras 0.69 per cent, and the St Kitts Nevis and Anguilla Trading and Development Company 0.07 per cent.

Manufacturing and Conglomerate stocks held their own this week with the Caribbean Manufacturing Index, or CMSX, advancing six points and the Caribbean Conglomerate Index, or CCSX, 7.05 points. Ten of the 30 CMSX stocks advanced, 19 were unchanged and one declined.

For a second week, the CMSX was led by Caribbean Cement which posted an 11.74 per cent gain. Strong gains were also posted by Jamaica Broilers Group, up 4.06 per cent, Berger Paints Jamaica 3.25 per cent, and Unilever 2.47 per cent, while Point Lisas Development posted a 2.11 per cent decline.

Three of the 10 CCSX stocks advanced and the remainder were unchanged. Neal and Massy Limited led the CCSX with a 2.41 per cent gain, followed by Pan Jamaican Investments with 2.07 per cent.

Performance across the insurance and investments sector continues to be mixed with the Caribbean Insurance and Investments Index, or CIIX, essentially unchanged for the week. However, while the index was slightly down, eight of the 17 CIIX stocks advanced, six were unchanged and only three declined.

Mayberry Investments had another good week, leading the CIIX with a gain of 6.82 per cent, and there were strong gains posted by Pan Caribbean Financial Services, up 5.88 per cent, Jamaica Money Market Brokers 5.21 per cent, and First Jamaica Investments 2.69 per cent.

However, the index was dragged down by a 12.5 per cent decline in Doctors Health Services and a 3.35 per cent decline in Guardian Holdings. The banking sector stocks were also mixed with the Caribbean Banking Index, or CBSX, falling 0.9 points for the week.

Three of the 22 CBSX stocks advanced, four declined and 15 were unchanged. Scotia Group Jamaica turned in the strongest performance with a gain of 0.97 per cent. However, Bank of the Bahamas posted a 9.8 per cent decline and Capital and Credit Financial Group fell 3.23 per cent.

Communications and utilities stocks took a breather this week as the Caribbean Communications and Utilities Index, the CCUX, suffered its first weekly decline for the year, falling 3.9 points. None of the 14 CCUX stocks posted gains, 11 were unchanged and three declined.

There was a 10.29 per cent decline in Gleaner shares, a 3.12 per cent decline in Cable and Wireless Jamaica shares and a 1.7 per cent decline in Radio Jamaica shares. Table 3 summarises the sector indices.

How is your portfolio doing relative to these indices? What purchases and sales should you be considering to get the most out of your Caribbean portfolio?

Prepared by the Department of Management Studies, University of the West Indies, Cave Hill. Email justin.robinson@cavehill.uwi.edu

Table 1: Broad Market Indices Feb 4-11

IndexFeb 11Change% ChangeYTDCASX944.2-76.55-7.50%-6.35%

CSX 301,147.4-1.50.13%1.49%

CJSX1,157.3-34.6-2.91%1.21%

Table 2: Five Best Performing Stocks: Jan 31-Feb 4

StockExchangeReturnVolumeCaribbean CementJSE11.74%29,230Prestige HoldingsTTSE8.49%16,594Mayberry JSE6.81%188,345Pan CaribbeanJSE5.88%41,036JMMBJSE5.20%47,700

Table 3: Sector Indices Feb 7-11

IndexPointsChange% ChangeYTD

CBSX1,124.1-0.9-0.08%1.07%

CCSX1,0747.050.66%-0.54%

CCUX1,198-3.9-0.32%11.83%CIIX985.8-0.1-0.21%-0.70%CMSX1,154.86.00.52%1.20%CRDX1,123.59.30.84%6.78%

CTRX790.5-73.7-8.53%-7.16%

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