Market Updates | Barita Insights | September 19, 2022

Local Equities Market

For the week ended September 16, 2022, the local stock market as measured by the Combined Index advanced marginally week-over-week by 0.23%. The Main Market Index increased by 0.19%, the JSE Junior Market Index advanced by 0.55%, and the JSE USD Equities Index increased by 2.66%. During the week, Main Event Entertainment Group was the largest gainer, rising 22.50% to close at $7.95. The biggest decliner was 138 Student Living, which fell by 18.83% to close at $5.56.

Year-to-date (YTD), with the ongoing rebound in the local economy, small-cap stocks, reflecting those listed on the Junior Market Index have continued the strong performance seen in 2021, growing by 22.68%, outpacing its Main Market counterpart which is down 9.51% YTD.

Overall, Market activity resulted from trading in 123 stocks of which 52 advanced, 59 declined and 12 traded firm. Market volume amounted to 134,205,895 units valued at over $915,882,112.91. The following companies represent the overall volume leaders:

1. ONE ON ONE EDUCATIONAL SERVICES LIMITED with 18,229,398 units (13.34%).

2. EXPRESS CATERING LIMITED with 11,425,601 units (8.36%)

3. JAMAICAN TEAS LIMITED with 9,275,952 units (6.79%)

Revisiting relevant news during the week:
Jamaica’s inflation is showing signs of entering a mulish phase that will likely not slow the actions of the Bank of Jamaica (BOJ) to cauterize the situation. While some of the drivers of higher inflation earlier in the year — fertilizer prices, spiking gas prices, some food prices and supply chain costs — are fading, a year of action by the central bank has so far done little to slow the pace of price increases.
Food prices keep inflation high

After enduring two hard years of travel restrictions, curfews and capacity constraints associated with the novel coronavirus, Knutsford Express Services Limited (KEX) is anticipating a rapid rebound in business to new highs as it realigns its focus on Jamaica with multimillion-dollar investments.
Knutsford Express ramps up capex as economy rebounds

Ciboney Group Limited, the listed entity which is being promoted for sale by the Financial Sector Adjustment Company Limited (Finsac), holder of 72 per cent shareholding, needs an injection of cash to remedy a shareholder’s net deficit which has been reported in the range of $6.7 million and $2.7 million between May 2022 and September 2022.
Ciboney may be running out of time

iCreate Limited has set September 26 as the record date for its upcoming $425 million rights issue to be executed next month as it pursues its acquisition of Visual Limited.
iCreate record date set for rights issue

Possibly laying the groundwork for a new capital raise as repayment of US$800 million in bond falls du e in 2024, Jamaica arranged a non-deal roadshow this month, hiring US-based Citibank to organize meetings with investors in New York and London. Jamaica tests market as US$800-million bond approaches payback hour As the microcredit sector becomes formalized and regulated by the Bank of Jamaica (BOJ) under the Microcredit Act 2021, Access Financial Services Limited and Dolla Financial Services Limited have hit the ground running to acquire competitors who are planning to exit the sector.
Battle lines drawn!

Unit Trust Fund 14/09/2022 08/09/2022 Week/Week Week/Week Return Year-to-Date Return 1 Year Return Yield
Capital Growth 95.60 95.85 -0.26% 3.97% 6.58% -
Money Market 15.401 15.6298 -1.46% 1.16% 1.83% 3.43%
Income Portfolio 100.00 100.00 - - - 4.31%
FX Bond Portfolio (US$) 1.3421 1.3442 -0.16% -2.63% -2.14% 3.55%
Real Estate Portfolio 3,810.31 3,806.79 0.09% 618.83% 604.25% -
FX Growth Portfolio 0.88 0.88 -0.06% -18.72% -16.80% -

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