Durrant Pate/Contributor

Despite steady improvements in the local inflation rate, the Jamaica Stock Exchange (JSE) remains volatile given the roller-coaster performance in recent times. 

Following the upswing in the previous week where eight of the nine indices advanced, last week’s trading activity, resulted in a majority of the indices, eight of nine declining. The sole advancer was the JSE USD equities index (+0.20 per cent). 

Although this is left to be seen on a consistent basis, this performance begs the question of whether or not investors began to react to the continued improvement in the inflation rate, which is now for the second consecutive month within the Bank of Jamaica’s (BOJ) target range at 5.3 per cent for April 2024. 

The JSE Cross Listed (-1.61 per cent) and the JSE Financial (-1.46 per cent) Indices showed the greatest depreciation. Week-over-week price declines in Massy Holdings (-1.45 per cent), the heaviest weighted stock in the JSE Cross Listed Index, led to a decrease in the index and to a lesser extent, Guardian Holdings (-2.44 per cent). 

Large financial market capitalisation stocks namely, NCB Financial Group Limited (NCBFG) (-1.61 per cent), Guardian Holdings (-2.44 per cent) and Scotia Group Jamaica (-3.38 per cent) all contributed to the decline of the JSE Financial Index. There was no news to support the price movements.

Week-over-week increases in TransJamaican Highway (+1.45 per cent) and MPC Caribbean Clean Energy (+1.67 per cent) contributed to the appreciation in the JSE USD Equities Index. Last week’s overall market activity resulted from trading in 124 stocks of which 53 advanced, 54 declined and 17 traded firm. Market volume amounted to 61.13 million units valued at over $320.20 million. 

This reflects an 86.21 per cent decrease in volume and an 83.30 per cent decrease in value traded relative to the previous week ending May 17. Wigton Windfarm, One on One Educational Services and TransJamaican Highway were the week-over-week volume leaders with 18.45 million units (29.83 per cent), 4.74 million units (7.65 per cent), and 4.65 million units (7.51 per cent), respectively