Caribbean stock market weekly report

The value of a well-diversified CARICOM portfolio was highlighted this week, as CARICOM stocks posted solid gains, whilst global stock markets were recording massive losses.

For the week ending August 5, 467,577,485 shares valued at US$40,277,105, crossed the floors of the six stock exchanges across CARICOM, with 70 stocks advancing, 14 declining and 41 remaining unchanged.

Jamaica Money Market Brokers was the volume leader with 450,100,479 shares being traded. Lasco Manufacturing posted the largest gain for the week of 12.9 per cent), while on the losing end, Ciboney fell 16.4 per cent.

For the week, 18 of the CSX 30 stocks advanced, seven declined and five were unchanged. The CSX 30 gained 1.7 points to close the week at 1,257.83, up 10.72 per cent year to date.

On the junior market, 11 stocks advanced and two declined as the CJSX gained 63.18 points to close the week at 1,438.10, up 23.37 per cent year to date. The group was led by a 12.88 per cent gain in Lasco Manufacturing, a 10.42 per cent gain in Honey Bun, a 9.64 per cent gain in Lasco Distributors and a 1.96 per cent gain in Jamaica Teas.

Table 1 provides a summary of the broad market indices for the week as well as some international reference points. While the S&P 500 is down 4.63 per cent year to date, our model portfolio, the CSX 30, is up 10.72 per cent.

SECTOR ANALYSIS

The CMSX enjoyed a solid week and advanced 0.58 per cent as 21 manufacturing stocks advanced, three declined and five were unchanged.

The group was led by Kingston Wharves, which advanced 9.93 per cent; Banks DIH, which gained 6.98 per cent; Demerara Distillers with a 6.56 per cent gain; Caribbean Cement with a 5.82 per cent gain and Unilever with a 3.1 per cent gain. The woes at Trinidad Cement continued with a 3.15 per cent decline.

The CIIX also enjoyed a decent week and also advanced 0.58 per cent as nine insurance and investments stocks advanced, three declined and five were unchanged. The group was led by Scotia Investments, which advanced 7.35 per cent, and Mayberry Investments with a gain of 3.75 per cent. There was a 2.27 per cent decline in Jamaica Money Market Brokers and a decline of 1.44 per cent in Pan Caribbean Financial Services. The CCUX advanced 0.55 per cent, as communications and utilities stocks were in positive territory after a spate of poor returns.

For the week, five CCUX stocks advanced, one declined and eight were unchanged. The group was led by a 4.44 per cent gain in One Caribbean Media, a 2.81 per cent gain in the Gleaner and a 1.27 per cent gain in Radio Jamaica.

The CBSX was also in positive territory as thirteen banking stocks advanced and nine were unchanged. The group was led by a 7.76 per cent gain in Republic Bank Guyana and a 4.04 per cent gain in Scotiabank Trinidad.

The other sector indices were essentially flat for the week. Table 2 provides a summary of the sector indices, followed by details on the performance of the stocks in each sector.

STOCKS ON THE MOVE

Tables three and four provide some widely used financial metrics on the biggest movers for the week. Readers should note that prices are in US dollars.

Prepared by the Department of Management Studies, UWI Cave Hill. justin.robinson@cavehill.uwi.edu.