Caribbean stock market weekly report

For the week ended April 22, some 33,018,578 shares, valued at $2,553,588, crossed the floors of the six stock exchanges across Caricom, with 27 stocks advancing, 14 declining and 80 remaining unchanged.

Cable and Wireless Jamaica was the volume leader with 20,224,782 shares being traded, Scotia Investments posted the largest gain of 30 per cent for the week, while on the losing end, Finance Corporation of The Bahamas fell 4.1 per cent.

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

The CSX 30 gained 9.43 points to close the week at 1,186.1, up 4.82 per cent year to date. On the junior market, four stocks advanced and six were unchanged. The CJSX advanced 7.76 points to close the week at 1,102.7, down 3.42 per cent for the year.

The CJSX was led by Lasco Manufacturing which posted a gain of 2.17 per cent. Table 1 provides a summary of the broad market indices for the week as well as some international reference points.

SECTOR ANALYSIS

The CBSX registered the largest gain for the week (1.10 per cent) as seven banking stocks advanced, two declined and 13 were unchanged. Solid gains by Bank of Bahamas (14.18 per cent), Capital and Credit Financial Group (7.03 per cent), Scotia Group Jamaica (6.72 per cent), National Commercial Bank Jamaica (6.30 per cent) and Bank of Nevis (4.55 per cent), overpowered losses of 4.13 per cent for Finance Corporation of The Bahamas and four per cent for Demerara Bank Limited, to see the CBSX advance 12.85 points for the week.

The CRDX posted the second largest gain for the week (0.92 per cent) as two retail and distribution stocks advanced, one declined and seven were unchanged. The CRDX was led by a string gain of 5.44 per cent in Cave Shepherd shares.

The CMSX was next with a 0.39 per cent gain. For the week six manufacturing stocks advanced, four declined and 20 were unchanged. Solid gains were posted by National Flour Mills (16.97 per cent), Demerara Distillers (3.77 per cent), Desnoes & Geddes (3.01 per cent) and Berger Paints Jamaica (2.65 per cent). These gains saw the CMSX advance 4.47 points to close the week at 1,165.

Performance continued to be mixed in the Insurance and Investments sector where three stocks advanced, five declined and nine were unchanged. Scotia Investments and Jamaica Money Market Brokers posted gains of 30.03 per cent and 2.11 per cent respectively, while Doctors Health Services, Mayberry Investments, Insurance Corporation of Barbados and First Jamaica Investments posted losses of 3.57 per cent, 2.44 per cent, 1.64 per cent and 1.30 per cent, respectively.

The net result was that the CIIX advanced 1.57 points for the week. The other sector indices were generally flat with Radio Jamaica of the CCUX posting a 6.38 per cent gain 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. Readers should note that prices are in US dollars.

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

Table 4: Declining Stocks, April 18-22

A value stock is typically defined as a stock that tends to trade at a lower price relative to its fundamentals - that is, dividends, earnings, sales, etc - and thus considered undervalued by a value investor.

Common characteristics of such stocks include a high-dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.

A value investor believes that the market isn't always efficient and that it's possible to find companies trading for less than they are worth.

justin.robinson@cavehill.uwi.edu

Table 3: Advancing Stocks: April 18-21