Market Updates | Barita Insights | August 19, 2024

For the week ending August 16, 2024, the local stock market, measured by the Combined Index, declined by 1.11%. The Main Market Index declined by 1.15%, the Junior Market Index declined by 0.66%, and the JSE USD Equities Index decreased by 1.01%. During the week, During the week, VM investments Limited was the largest gainer, rising by approximately 27.00% to close at $3.34. ICreate Limited was the biggest decliner, which fell by 15.69% to close at $0.43.

Small-cap stocks, reflecting those listed on the Junior Market Index are underperforming on a YTD basis, decreasing by 6.33%, relative to its Main Market counterpart which has declined by 5.93%.

For the week ending August 16, 2024, overall market activity resulted from trading in 120 stocks of which 36 advanced, 71 declined and 13 traded firm. Market volume amounted to 154,531,248 units valued at over $569,172,262.59. TransJamaican Limited 8% was the volume leader with 39,746,499 units (22.96%), followed by TransJamaican Limited USD with 17,599,113 units (10.17%), and by Radio Jamaica Limited with 12,857,174 units (7.43%).

Revisiting relevant news during the week:

80 per cent delinquency
Equityline SPV Limited Partnership, a company that buys and holds short-term residential real estate mortgages in Canada, has been placed in receivership following revelations from a recent Canadian judgement that revealed it had 70-80 per cent delinquency in its mortgage portfolio. The company is listed on the Jamaica Stock Exchange (JSE) but was suspended recently after its auditors requested to withdraw its audit report.
80 per cent delinquency

SOS sees 15% surge in SEEK sales
Stationery and Office Supplies Limited (SOS), the producer of the SEEK brand, is already reporting a 15 per cent growth in book sales this summer compared to the same period last year, as parents prepare their children for the upcoming academic year.
SOS sees 15% surge in SEEK sales 

NCB notes slowdown in loan growth
With interest rates continuing to climb in the general marketplace National Commercial Bank Jamaica Limited (NCBJ) is observing a slowdown in loan growth, particularly in the auto and home lending segments.
NCB notes slowdown in loan growth

Spur Tree Spices furthers diversification with fried chicken mix
Spur Tree Spices Jamaica Limited has tapped into the sizzling local demand for fried chicken with its newly launched fry chicken mix as the company seeks to develop new products with reduced reliance on climate-vulnerable materials.
Spur Tree Spices furthers diversification with fried chicken mix

Inflation slows for sixth-straight month
Investors are anticipating that the monetary policy committee (MPC) will keep interest rates at its current level after its two-day meeting, which starts today and ends August 19, but that stance may change come September with the latest inflation data showing price increases continue to settle within the preferred range of the Bank of Jamaica (BOJ).
Inflation slows for sixth-straight month

Inflation slows for sixth-straight month
Investors are anticipating that the monetary policy committee (MPC) will keep interest rates at its current level after its two-day meeting, which starts today and ends August 19, but that stance may change come September with the latest inflation data showing price increases continue to settle within the preferred range of the Bank of Jamaica (BOJ).
Inflation slows for sixth-straight month

Reinsurance spike bites
The growing threat of climate changes continues to put pressure on the Caribbean as reinsurance costs spike for general insurance companies, a scenario that has led to a sharp spike in insurance costs for regular consumers.
Reinsurance spike bites