Stock market trade volume fell last week as the total value trade rose sharply

Durrant Pate/Contributor

Last month was a good one for the Jamaica Stock Exchange (JSE), particularly last week’s relatively strong performance. 

The combined index, which represents all ordinary stocks listed on the JSE, appreciated by 0.76% last week and is now up 8.49% since the start of the year. While trade volumes fell on the Jamaica Stock Exchange (JSE) last week, total value trade rose sharply. 

Market volume amounted to 230.51 million units, representing a 17.0% decrease relative to the prior week, while market value totalled $1.01 billion, a 59.6% increase relative to the previous week. Of the 128 stocks that traded, 64 advanced, 53 declined, and 11 held firm. 

Trading activity was less concentrated with the top three volume leaders accounting for 59.6% of total market volume, down from 67.9% in the previous week. Leading the pack were Wigton Energy with 91.48-million units (39.31%), TransJamaican Highway (TJH) with 24.16-million units (10.38%), and One on One Educational Services with 23-million units (9.88%). 

April ended on a high

Despite lower trade volumes, the market ended April on a high note with all nine JSE indices advancing last week. Gains were led by the JSE Select Index (+5.52%), followed by the JSE All Jamaican Composite Index (+3.30%). 

The Select Index was primarily driven by a 10.58% increase from Carreras Limited. Carreras’ appreciation coincides with its April 29th announcement of dividend consideration. 

Given its dividend yield of 6.15% and track record of successive increases in annual dividend distributions from $0.62 to $1.49 per share over the last five years, investors are likely pricing in continued dividend growth. A 7.03% appreciation from TJH also contributed to last week’s gains. 

The stock continues to bounce back from an 11.8% dip over the seven trading days since the April 7th ex-dividend date. An ex-dividend date represents the specific cutoff point after which buying TJH shares no longer includes the right to the upcoming dividend payment. 

Meanwhile, the Composite index was driven by Sagicor Group (+8.70%) and Carreras. In the absence of company-specific news, Sagicor’s price may be attributed to its typical price volatility, especially as it continues to oscillate within its $38.63 to $42.00 four-week price range.