Growth & Jobs | Look to equities market; real estate, hospitality, entertainment also rich with opportunities - Dylan Coke

DYLAN COKE, deputy general manager, JN Fund Managers, says that despite the crippling economic effects of the COVID-19 pandemic, opportunities still exist for persons wanting to invest in Jamaica.

He noted, for example, that there are opportunities in the equities market, where in recent times, many companies have posted good results.

“One place for investors to look is in the equities market. You would have seen in recent times a number of companies posting really good results. While I do not want to call specific names, I think it is fair to say that there are a number of companies on the main market that are trading at attractive multiples, so there might be opportunities there for an investor with at least three years (of investment period),” he said.

However, he stressed that the investor should ensure that they are informed, that they do their research and include their broker and financial adviser in their deliberations before investing, and also be prepared for a medium- to long-term foray. He pointed out that there are numerous economic and geopolitical forces at play, such as the ongoing war between Ukraine and Russia, which have affected oil prices and logistics supply chains.

Coke made the recommendations while addressing the Jamaica Stock Exchange’s (JSE) virtual forum ‘Invest in Jamaica’, which was recently hosted in collaboration with the Consul General of Jamaica.

He noted that the industries and sectors where opportunities are likely to be are in the real estate, hospitality, and entertainment sectors, given real estate’s ability to act as an inflation hedge and as the restrictions under the Disaster Risk Management Act (DRMA) have now been lifted.

He also forecast that the manufacturing and distribution industries are expected to continue to do well. Coke, noted, however, that smaller companies in those sectors may come under pressure, but larger companies are expected to fare better.

“One way to invest, and do so in a way where you get the benefits of expert management, is to invest in a collective investment scheme like a mutual fund, which is easy to get into and easy to exit whether wholly or partially, which gives you the benefits of diversification and exposure to asset classes you want to be exposed to, whether it is either debt or equity or a mix thereof. So that is one easy way to get that exposure,” he advised.

Coke noted that real estate also provides an opportunity for investors, but he underscored that it was important to do the necessary research before purchasing to ensure that one is making a sound investment.

“Real estate has remained strong right throughout the pandemic, so there may be opportunities there,” he said. “Especially for real estate, take a medium- to long-term perspective, and one of the interesting market dynamics in Jamaica is that the demand for housing far outstrips the supply and has done so for many years, and I expect that will continue to be the case and will tend to support real estate prices in the longer term,” he stated.