Caribbean stock market weekly report

For the week ended March 25, some 83,066,373 shares valued at $17.76 million crossed the floors of the six stock exchanges across Caricom, with 18 stocks advancing, 25 declining and 78 remaining unchanged.

National Commercial Bank Jamaica was the volume leader with 46,840,322 shares traded, Demerara Bank Limited posted the largest gain of 25 per cent for the week, while on the losing end, Pulse Investments fell 15.3 per cent.

For the week, 10 of the CSX 30 select stocks advanced, 10 declined and 10 were unchanged.

The CSX 30 gained 2.15 points to close the week at 1,139.3 - up 0.78 per cent year to date.

The junior market continued its recovery, with four of the CJSX stocks advancing, two declining and four remaining unchanged. The CJSX gained 2.17 points to close the week at 1,060.3 - down 7.42 per cent for the year. Table 1 provides a summary of the broad market indices for the week as well as some international reference points.

SECTOR ANALYSIS

Retail/distribution and banking stocks continued to perform well in 2011. For the week, four CRDX stocks advanced, one declined and five were unchanged.

AML Foods gained 9.17 per cent, Agostini's Limited advanced 5.64 per cent and St Kitts &Nevis Trading 4.12 per cent. As a result, the CRDX advanced seven points to close the week at 1,116.3 - up 1.57 per cent year to date.

In the banking sector, three stocks advanced, two declined and 17 were unchanged. Demerara Bank Limited led the group with a 25 per cent gain, while Bank of Bahamas gained 5.48 per cent. The CBSX advanced 2.26 points to close the week at 1,147.5 - up 3.14 per cent year to date.

Performance was quite mixed in the manufacturing and insurance/investments sectors, while the tourism/real estate group remained flat. In the manufacturing sector, five stocks advanced, six declined and 19 were unchanged.

Caribbean Cement Company and Kingston Wharves posted strong gains of 7.43 per cent and 4.37 per cent, respectively.

However, on the losing end, National Flour Mills posted losses of 10 per cent, Banks DIH 5.56 per cent, and Berger Paints Jamaica 4.55 per cent.

The CMSX advanced 0.08 points to close the week at 1,106.4 - down 3.04 per cent year to date.

In the investments/insurance sector, four stocks advanced, seven declined and six were unchanged. Eastern Caribbean Financial Holdings rose 7.84 per cent, National Enterprises Limited 1.3 per cent and Jamaica Money Market Brokers 1.16 per cent.

However, Pulse recorded a 15.33 per cent decline, Pan Caribbean Financial Services 9.51 per cent and First Jamaican Investments 6.48 per cent. The CIIX advanced 0.04 points to close the week at 970.7 - down 2.24 per cent year to date.

For the week there was a broad-based decline in communications/utilities and conglomerate stocks. In the communications and utilities sector, four stocks declined and 10 were unchanged.

Gleaner, Cable and Wireless Jamaica, Radio Jamaica and Cable Bahamas all posted losses of 6.48 per cent, 3.56 per cent, 3.34 per cent and 1.91 per cent, respectively.

The CCUX declined 5.95 points to close the week at 1,156.6 - up 8.34 per cent year to date.

In the conglomerate sector two stocks advanced, three declined and five were unchanged. Ansa McAl posted a strong gain of 9.17 per cent, but two large capitalisation stocks, Jamaica Producers and Banks Holdings, posted losses of 2.38 per cent and 1.27 per cent, respectively.

The CCSX declined marginally to close the week at 1,068.4 — down 1.05 per cent year to date. Table 2 provides a summary of the sector indices.

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. Prices are in US dollars.

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