Durrant Pate/ Contributor

In contrast to the prior week, trading activity on the Jamaica Stock Exchange (JSE) went down again last week

In the previous week when most indices advanced, trading last week resulted in a majority of the indices (7/9) declining. The JSE Financial Index and the All Jamaican Composite Index had the largest week-over-week fall-off, declining 2.23% and 1.86%, respectively.

Reduction in NCB Financial Group (-2.45%) and Sagicor Group Jamaica (-4.66%) shares were the main drivers of the fall-off in the Financial index. According to NCB Capital market, “there was no direct news to support the movement in these stock prices. However, Sagicor advised that it will consider inter alia, the payment of a second interim dividend to the shareholders of the company.”

The JSE Cross Listed (+0.93%) and the Manufacturing & Distribution Indices (+0.37) were the only ones to advance.

Two advancing JSE indices

Of the two advancing indices, the JSE Cross Listed Index had the more significant week-over-week gain, buttressed by an appreciation in the share prices of Massy Holdings and to a lesser extent, MPC Caribbean Clean Energy of 2.06% and 0.36%, respectively. There was no direct news to support the price appreciations.

The Manufacturing and Distribution Index was largely buoyed by a 6.46% week-over-week upside in the share price of Seprod. On September 5, the group released its 2022 annual report, which reiterated its strong financial performance.

The company ended the year with net profit from continuing operations attributable to shareholders of J$2.32 billion (+8.57%) and J$78.4 billion in revenues, up 78.73%. The acquisition of A.S. Bryden Holdings, and a 22% growth in exports, aided by an expansion and deeper penetration of its distribution footprint, primarily in the Caribbean and North America, were key drivers of Seprod’s performance.

Seprod propels Manufacturing and Distribution Index

Importantly, year to date, Seprod continues to see increases in its top and bottom lines. The Jamaican regional manufacturing conglomerate achieved revenues of J$54.46 billion, a 96% improvement over the corresponding period in 2022, and a net profit of J$2.54 billion, which rose 61% over the prior period due to continued growth in the business post the AS Bryden acquisition in June 2022, and a 45% increase in export sales.

The elimination of third-party warehousing costs also contributed to the company’s bottom line. As Seprod continues to expand its regional footprint, the AS Bryden Group will continue to be a key driver of growth for the company.

Furthermore, significant progress has been made in its modernization of the margarine plants, which is expected to benefit Seprod’s bottom line as it prepares for more exports of the different types of margarine, inclusive of bulk for the baking and food industry; and hard stick and soft table margarine for home use.

Market activity resulted from trading in 120 stocks, of which 42 advanced, 69 declined, and 9 traded firm. Market volume amounted to 61,067,888 units valued at over $347,587,235.81. The volume leaders were JMMB Group 7.50% with 9,178,295 units (14.60%) TransJamaican Highway with 7,873,515 units (12.53%) and Future Energy Source Company ordinary shares with 5,150,662 units (8.19%).