Seven out of the nine Jamaica Stock Exchange (JSE) indices declined last week for a second consecutive week, after the market extended gains in the first two weeks of February. 

The JSE Cross Listed (-4.93%) and the JSE Manufacturing and Distribution (-2.50%) Indices showed the greatest depreciation. As the heaviest weighted stock in the Cross Listed Index, Massy Holdings’ 6.95% week-over-week decline was the main driver of the increase.

On the other hand, the -3.58% falloff in Wisynco contributed significantly to the decline in the Manufacturing & Distribution Index. The price decline is likely the result of a connected party selling a total of 411,971 stock units between February 9 and 16, and a member of the company’s executive management selling 280,426 stock units on February 13. 

The falloff in prices of Jamaica Producers (-8.10%) and Jamaica Broilers (-2.65%) also contributed to the decline in the index. At the same time, the JSE USD and Select Indices advanced by 2.33% and 0.5%, respectively. 

Positive developments for Wigton

The Select Index appreciation was due to Wigton’s share price increasing by 23.66% week-over-week, after Wigton announced it had entered into a Power Interchange Agreement, which would allow for the extension of operations of the Wigton Phase I plant for another three years. 

This optimistic outlook likely drove investors’ sentiments for the stock. Notably, this extension augurs well for Wigton, as the company will continue generating revenues from Phase I, which in turn bodes well for earnings and profitability.

Market volume last week amounted to 200.26 million units valued at over $890.72 million, up 64.2% and 89.0% volume and value, respectively week over week. Further, compared to February 24, 2023, volume and value increased by 86.3% and 0.5%, respectively. 

Wigton Windfarm ordinary shares, TransJamaican Highway and Derrimon Trading Company were the volume leaders with 64,827,733 units (32.03%), 28,039,212 units (13.86%), and 22,947,487 units (11.34%). Last week, stock market and investor sentiments appeared to have been influenced by the hawkish language used by the Bank of Jamaica (BOJ) in its latest monetary policy release. 

The BOJ Monetary Policy Committee (MPC), at its meetings on 16 and 19 February, agreed to maintain the policy interest rate at 7.0%. However, the committee decided to further tighten Jamaican dollar liquidity conditions.