by Durrant Pate/Contributor 

Jamaica’s stock market is heating up even more as for the first time since the start of the year, all nine indices advanced last week.

Leading the charge were the Jamaica Stock Exchange (JSE) USD Equities and the JSE Manufacturing & Distribution Indices, which appreciated by 5.0 per cent and 2.8 per cent, respectively.

AS Bryden & Sons Holdings (ASBH) USD (+13.1 per cent) and TransJamaician Highway (+5.3 per cent) were the standout performers in the USD Equities Index. 

Meanwhile, the JSE Manufacturing & Distribution Index‘s rally was led by Seprod and its subsidiary ASBH, with their share prices climbing 7.2 per cent and 6.5 per cent respectively. There was no company-specific news to support these movements. 

However, the short-term forecast for the stock market suggests that the Bank of Jamaica‘s initial 25-basis point reduction last month is unlikely to significantly stimulate the market. 

Decline in interest rates will lead to a market rebound 

However, looking at the medium term (the next 1 to 3 years), it is expected that a continued decline in rates will lead to a market rebound. Notably, the Jamaica Stock Exchange (JSE) successfully completed its second Junior Market listing this year with the pharmaceutical company RA Williams listing last Wednesday, August 28, 2024. 

On its first day of trading, RA Williams closed at $0.78, 22 per cent below its initial public offer (IPO) price, marking the first occurrence of a stock trading below its IPO price on its first day of listing, since TJH‘s listing during the COVID-19 pandemic. The company’s shares further traded down to close the week at $0.72.

ast week‘s overall market activity resulted from trading in 124 stocks of 70 advanced, 40 declined, and 14 traded firm. 

Market volume amounted to 165.79 million units valued at over $677.85 million reflecting a 7.7 per cent decrease in volume, but a 14.5 per cent increase in value relative to the previous week. Radio Jamaica Limited, Jamaican Teas Limited and TJH USD were the volume leaders with 25.27 million units (14.07 per cent), 19.09 million units (10.64 per cent), and 13.53 million units (7.53 per cent), respectively.