Energy stock led the way with big forward movement
Durrant Pate/Contributor
The stock market, as measured by the growth of the Combined Index, appreciated by 8.1% during the first quarter.
This represented a significant acceleration over the 1.7% decline recorded in Q1 2025. However, the 8.1% appreciation was largely influenced by the addition of West Indies Petroleum Terminal (WIPT) to the market and its subsequent meteoric rise, as its price surged 759.5% during the quarter, as intense buying interest and very low volumes available for trading pushed its valuation to extreme heights.
Excluding the outsized influence of WIPT, the market’s rise would have been a more modest 2.2%. Supporting this growth were the Energy, Building Materials, Consumer Staples and Logistics Infrastructure (BMCL) stocks led the march, while tourism stocks trailed the parade, hung over from the impact of Hurricane Melissa.
Energy stocks emerged as the queens of the parade, finishing the quarter up 12.6%. However, the biggest individual equities were Future Energy Source Company (FESCO:+30.4%) and Regency Petroleum (RPL: +11.1%).
Energy stocks romping on
They benefited from post-Melissa relief and recovery as widespread power outages drove higher demand for petrol and LPG to run generators and heavy equipment. This surge was evidenced in their most recent financial results.
RPL delivered a robust showing with its quarterly earnings growing by 552.8% to $31.81 million.
The cooking gas and retail petroleum company’s presence in Western Jamaica positioned it to capture the demand spike for gasoline and diesel as alternative power sources, given the damage to the electricity grid. Notably, stock price momentum for the sector accelerated after the war in Iran was announced on February 28th.
FESCO’s earnings for the December 2025 quarter jumped by 176.4% to $242.7 million, underpinned by a 21.7% increase in total litres pumped across all products following Hurricane Melissa. FESCO’s stock price jumped by as much as 55.8%, and RPL gained 15.5%, as investors sought exposure to the energy sector when global energy prices spiked.
Although fuel marketing companies like FESCO and RPL do not have control over energy costs, their performance during the Russia-Ukraine war demonstrated that they can expand volumes, maintain healthy margins, and grow profits even during energy price shocks.
BMCL stocks growing as well
BMCL stocks were also among the advancers, inching up by 5.5% to beat the broader market. This performance was driven by expectations of post-Melissa reconstruction demand and a generally positive earnings season.
Building material suppliers like Caribbean Cement Company (CCC: +6.5%) and Atlantic Hardware and Plumbing (AHPC: +16.0%) appreciated as investors responded to the prospects of sustained demand for building materials in upcoming quarters.
While CCC’s annual earnings were down 0.6% to $5.92 billion, Q4 2025 earnings were up 4.0%, underpinned by robust revenue momentum. The commissioning of its new Kiln should enable it to boost margins and meet higher local cement demand post-Melissa, whilst catering to export demand, which supports positive investor sentiment.
AHPC, whose earnings jumped 33.3% to J$38.60 million, highlighted the beginning of the reconstruction tailwind as strong product availability and supplier support contributed to stronger revenues from rebuilding demand.
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