Caribbean stock market weekly report

Strong gains on Pegasus Hotels and the junior market saw Caribbean stocks surge by over 10 per cent for the week ended October 21, as 48,478,451 shares valued at US$12,497,307, crossed the floors of the six stock exchanges across Caricom.

For the week, 58 stocks advanced, 14 declined and 54 remained unchanged. Pegasus was the volume leader with 37,027,055 shares being traded, Pulse Investments posted the largest gain for the week (23.1 per cent), while on the losing end, First Caribbean Jamaica fell six per cent.

For the week, 19 of the CSX 30 stocks advanced, six declined and five were unchanged. The CSX 30 gained 7.16 points to close the week at 1,308.20, up 14.66 per cent year to date. On the junior market, nine stocks advanced, four were unchanged and one declined as the CJSX gained 32.15 points to close the week at 1,664.20, up 38.32 per cent year to date.

There were gains for Honey Bun (seven per cent), Jamaica Teas (6.85 per cent), AMG Packaging (5.57 per cent), Lasco Financial (4.76 per cent), Dolphin Cove (4.73 per cent), Lasco Manufacturing (3.31 per cent) and Caribbean Producers (2.98 per cent). Table 1 provides a summary of the broad market indices for the week as well as some international reference points.

SECTOR ANALYSIS

The tourism and real-estate index gained 12.44 per cent as four CTRX stocks advanced, two declined and three were unchanged. The group was led by a 17.25 per cent gain on Montego Freeport and a 12.445 gain on Pegasus. Pegasus is the largest CTRX stock by market capitalisation in Caricom, hence a 12 per cent move in that stock has a major impact on the indices.

The CBSX advanced 1.57 per cent as 11 banking stocks advanced, four declined and seven were unchanged. There were gains for Scotia Group Jamaica (15.51 per cent), NCB Jamaica (2.88 per cent) and Scotia Bank TT (1.42 per cent). There was also a 3.69 per cent loss for FirstCaribbean Jamaica. 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. Tables three and four provide some widely used financial metrics on the biggest movers for the week. Prices are in US dollars.

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