Durrant Pate/Contributor

The Jamaican stock market is exhibiting mixed reaction to the recently 25 basis point rate cut by the Bank of Jamaica (BOJ) with last week’s roller-coaster performance as five of the nine indices declined. 

The Jamaica Stock Exchange (JSE) Financial Index and the JSE Junior Market Index were the biggest underperformers with declines of 1.50% and 0.70%, respectively. The fall in the JSE Financial Index was largely driven by price from JMMB Group (-5.00%), Scotia Group Jamaica ( -5.02%) and Sagicor Group Jamaica (-0.89%) – the 4th, 8th and 1st largest JSE company by market capitalization respectively. 

However, there was no specific company news to explain the decline. Meanwhile, the 0.70% Junior Market decline was primarily attributed Express Catering Limited (-9.43%) and Stationery and Office Supplies (-10.24%) the 7th and 8th largest constituents by market capitalization. Market volatility due to its relative market illiquidity, further delays in its annual report and audited financials as well as data from the Planning Institute of Jamaica, suggesting a 1.20% contraction in the Tourism sector for Q3 2024 likely contributed to ECL’s decline. 

Notably, tourism company, Dolphin Cove (-3.24%) reported a 19.00% drop in visitors, mainly due to Hurricane Beryl-induced park closures in July which impacted revenues. The largest advancers were the JSE USD Equities Index (+9.73%) and the JSE Cross Listed Index (+2.64%). 

The USD Equities Index benefited from a resumption of trading for PBS1 the 3rd largest constituent, which saw its price increase by 21.23%. Additionally, TransJamaican Highway Limited, the 2nd largest market capitalized company on the JSE saw its price increase by 16.31%.  

For the JSE Cross-Listed Index, the growth was primarily attributed to a 4.35% gain in Massy Holdings, which last week declared its largest interim dividend of TT16.78 cents per share to be paid on December 20th, which likely contributed to its price appreciation. Overall, 129 stocks traded during the week, with most stocks (65) declining and just 46 stocks advancing and another 18 trading firm. Market volume amounted to 136.54 million units valued at J$951.06 million reflecting a 38.80% decrease in volume.