Barita Insights: Weekly Newsletter November 13, 2020

Local Equities Market

For the week ended Friday, our local stock market closed higher week-over-week. The Main MarketIndex increased by 2.47%, the JSE All Jamaican Composite Index increased by 2.50%, the JSE Junior Market Index decreased by 0.26%, the JSE Combined Index increased by 2.26%, and the JSE USD Equities Index decreased by 1.35%.

The biggest winner this week is Sagicor Group Jamaica rising by 17.00% to close at J$49.25. The biggest loser was CAC 200 Limited falling by 42.37% to close at J$8.50.

Year to date, all the major equity indexes are still down by high double digits (see, the table below); and three months since March, has been relatively flat.

Overall Market activity resulted from trading in 100 stocks of which 35 advanced, 48 declined and 17 traded firm.

Market volume amounted to 125,837,084 units valued at over $1,255,445,946.34. Wigton Windfarm Limited Ordinary Shares was the volume leader with 26,294,323 units (20.90%) followed by Lasco Manufacturing Limited with 23,107,444 units (18.36%) and Mailpac Group Limited with 13,069,476 units (10.39%) .

Jamaica Teas Group will be embarking on a multimillion-dollar plant expansion at its Bell Road, Kingston 11 headquarters, the details of which will be known in the coming months. See Article

Buoyed by strong third quarter results, Sagicor Jamaica President Chris Zacca is boasting that the local financial conglomerate has not had any capital flight, even with growing concerns about asset quality in the financial sector. See Article

JMMB Group Limited (JMMBGL) has indicated its intention to raise more capital at the start of 2021 in the form of a preference share offering. See Article

Electrical and lighting company FosRich has formally set up a new firm, Blue Emerald Limited, and is seeking to have it registered under the Special Economic Zone Authority. See Article

Wisynco Group, one of Jamaica’s premier food and drink distribution company, is reporting mixed blessings for its just ended September quarter in which exports jumped by 43 per cent to earn $56 million. See Article

 

Unit Trust Performance

Barita’s Collective Investment Schemes (“CIS”) offer the opportunity for investors to remain invested in the market at this delicate stage of the market cycle; moreover, there is a diversification benefit and opportunity to have a professional portfolio manager make the best-in-class professional judgements on your behalf.

The F.X. Growth Fund, which is benchmarked against the S&P 500, has been in-line with it’s benchmark with a 6.03% year to date performance relative to S&P 500’s performance of 10.83% . This fund helps investors to gain exposure to the U.S. equities market, without taking on the risk of directly investing in a single company.

The Money Market Fund increased 0.09% week-on-week, the FX Bond Portfolio had decreased by 0.21%, the F.X. Growth Portfolio increased by 0.98% in value, and the Real Estate Portfolio decreased by 2.52% in value. The Capital Growth Fund increased by 1.10% week over week.

The Capital Growth Fund suffered the same fate as our local equity market but remains above the year to date

performance of the combined index. This is as attractive as securities were also oversold during the March sell-off and represented an attractive entry point to be capitalized on. The FX Bond Portfolio remains an attractive fixed-income portfolio, especially taking into consideration the large retreat from emerging market (E.M.) securities. With investors seeking “safe haven” in a more developed market (D.M.) securities and essentially selling down their positions in E.M. securities, opportunities were exposed for our fund managers to capitalize on.

Unit Trust Fund 11/11/2020 6/11/2020 Week/Week Return Year-to-Date Return 1 Year Return Yield
Capital Growth 80.8862 80.01 1.10% -16.43% -11.37% -
Money Market 14.8217 14.8080 0.09% 3.17% 2.93% 2.01%
Income Portfolio 100.00 100.00 - - - 1.83%
FX Bond Portfolio (US$) 1.3145 1.3173 -0.21% -2.06% -1.29% 1.89%
Real Estate Portfolio 5,313.12 5,450.58 -2.52% 3.27% 16.95% -
FX Growth Portfolio 0.9498 0.9406 0.98% 6.03% 9.14% -

Conclusions

Sagicor Jamaica President Chris Zacca is boasting that...

Sagicor Jamaica President Chris Zacca is boasting that the local financial conglomerate has not had any capital flight, even with growing concerns about asset quality in the financial sector.

JMMB Group Limited (JMMBGL) has indicated...

JMMB Group Limited (JMMBGL) has indicated its intention to raise more capital at the start of 2021 in the form of a preference share offering.

Wisynco Group, one of Jamaica's premier...

Wisynco Group, one of Jamaica’s premier food and drink distribution company, is reporting mixed blessings for its just ended September quarter in which exports jumped by 43 per cent to earn $56 million.

Stocks build on gains following vaccine news...

Stocks build on gains following vaccine news. Most of the major benchmarks added to the previous week’s sharp gains, bolstered by positive vaccine news. All of the major indexes touched all-time intraday highs in early trading Monday but surrendered much of their gains at midweek, before rebounding again on Friday. The narrow Dow Jones Industrial Average and the smaller-cap benchmarks performed best, while slower-growing value shares easily outperformed their growth counterparts. Relatedly, the technology-heavy Nasdaq Composite Index lagged, and tech shares within the S&P 500 Index trailed most other sectors. The small real estate and materials sectors were also weak, while energy shares recorded solid gains.

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