Caribbean stock market weekly report

For the week ended March 18, some 16,211,252 shares crossed the floors of the six stock exchanges across Caricom, with 24 stocks advancing, 16 declining and 71 unchanged.

Capital and Credit Financial Group was the volume leader with 2,263,816 shares traded, Bank of The Bahamas posted the largest gain of 11.7 per cent for the week, while on the losing end, Salada Foods fell 24.6 per cent.

For the week, seven of the Caribbean Select Index (CSX) 30 select stocks advanced, eight declined and 15 were unchanged. The CSX 30 declined 7.53 points to close the week at 1,137.4, but was still up 0.62 per cent year to date.

The junior market rallied for a second straight week, with four of the Caribbean Junior Share Index (CJSX) stocks advancing, two declining and four remaining unchanged. The CJSX advanced 12.81 points to close the week at 1,058.2 - down 7.62 per cent for the year. Table 1 provides a summary of the broad market indices for the week.

SECTOR ANALYSIS

Conglomerates was the only sector index to advance, by a meagre 0.64 points, while the banking sector and tourism-real-estate indices were essentially flat.

For the week, three conglomerate stocks advanced, two declined and five were unchanged. The Caribbean Communications and Utilities Index (CCUX) was led by Jamaica Producers which posted a 2.14 per cent gain for the week.

Among the banking stocks, six advanced, one declined and 15 were unchanged. Bank of The Bahamas gained 11.71 per cent, Citizens Bank 11.11 per cent, and Bank of The Bahamas 7.69 per cent. However, these are relatively small capitalisation stocks and the Caribbean Banking Index (CBSX) was dragged down by a 1.95 per cent decline in the relatively large National Commercial Bank of Jamaica.

Communications and utilities sector stocks had their worst week to date with the Caribbean Insurance and Investments Index (CIIX) declining 34.5 points to close at 1,162.5. For the week, one stock advanced, three declined and 10 were unchanged.

A 10.1 per cent gain on Gleaner shares was overpowered by a 15 per cent decline in One Caribbean Media Shares on negative earnings news - 2010 loss of TT$180m - a 7.64 per cent decline in Cable Bahamas, and a 3.43 per cent decline in Cable and Wireless Jamaica.

The rally in retail-distribution sector stocks was halted this week, with the Caribbean Retail and Distribution Index (CRDX) declining 1.14 points to close at 1,113.8. For the week, one retail-distribution stock advanced, two declined and seven were unchanged. Despite a 1.46 per cent gain on Carreras shares, the CRDX was dragged down by an 8.11 per cent loss on St Kitts & Nevis Trading and a 1.05 per cent decline in Cave Shepherd.

Stocks in the insurance-investments sector continued to experience mixed returns. For the week, four stocks advanced, four declined and nine were unchanged.

Investors in Pan Caribbean Financial Services enjoyed a good week as that stock posted a 5.33 per cent gain. However, Guardian Holdings posted a 3.99 per cent decline, Mayberry Investments a 2.47 per cent decline and Jamaica Money Market Brokers was down 1.09 per cent. These declines pushed the CIIX down by 5.95 points.

In the manufacturing sector, six stocks advanced, five declined and 19 were unchanged. Kingston Wharves gained 2.14 per cent, Caribbean Cement 1.95 per cent, Demerara Distillers 1.82 per cent and Unilever 1.72 per cent. But these gains were unable to match the 24.5 per cent decline in Salada Foods, the 11.65 per cent decline in Barbados Farms and the 5.34 per cent decline in Desnoes and Geddes. As a result, the Caribbean Manufacturing Index fell 5.54 points for the week.

Table 2 provides a summary of the sector indices, followed by details on the performance of the stocks in each sector.

STOCKS ON THE MOVE

Tables three and four provide some widely used financial metrics on the biggest movers for the week. The 10 biggest gainers and losers for the week are highlighted. Prices are in US dollars.

Prepared by the Department of Management Studies, UWI Cave Hill.justin.robinson@cavehill.uwi.edu