THE ANALYSTS: JSE did “fairly well” in first half of 2022

The Jamaica Stock Exchange (JSE) has performed “fairly well” for the first half of 2022 despite the growing number of global economic challenges, says Equity Trader at JMMB, Clive Charlton.

Speaking on Taking Stock with Kalilah Reynolds, Charlton said that JSE’s indices managed to maintain relatively positive performances throughout the first half of the year.

According to Charlton, between the period December 31, 2021, to June 30, 2022, the Main Market Index declined marginally by 1.9 per cent while the Financial Index declined by almost five per cent.

He pointed out, however, that the Junior Market grew by 27 per cent during the same period. The remaining indices remained relatively flat advancing less than one per cent, he said.

“I think the market has treated the investing public fair over the last six months given what has happened in the international space and the impact it has had on certain macro variables, like inflation and interest rates. ,” he said.

Charlton said that the JSE’s three most recent Junior Market listings, namely Dolla Financial Services, JFP Limited and Edufocal, have contributed significantly to the index’s overall performance.

“They bought about $5.5 billion to the markets and right now these very same companies are valued in excess of $15 billion. So, it means that these companies have grown significantly in price and have contributed to the movement in the Junior Market,” he added.

Dolla Financial’s initial public offer (IPO) was 10x oversubscribed raking in $5 billion dollars worth of subscriptions, while Edufocal’s IPO, which was also oversubscribed, opened and closed within one minute.

The Equity Trader also noted that since the start of the year there have been a number of acquisitions by listed companies as well as new strategic partnerships.

Pointing to the acquisition of SSL Venture Capital by the MFS Group as well as Trinidad’s AS Bryden by the Seprod Group, Charlton said that these moves expose investors to more opportunities.

“I think the market is still, generally, very optimistic and I think that there is great value in the market still,” he said.

Over in the US

Meanwhile, the stock markets in the United States experienced their worst first half since 1970.
The S&P 500 and Nasdaq both entered bear market territory earlier this year, falling more than 20 per cent since the start of the year; the S&P 500 is down almost 21 per cent while the Nasdaq is down nearly 29 per cent. The Dow Jones has fallen by 15 per cent since the start of the year.

CEO of ProfitJumperstarter, Keisha Bailey noted that said that investors are still reacting to global uncertainties. She pointed to the ongoing Russia/Ukraine war which shows no signs of slowing down as well as rising inflation and interest rates.

On the other hand, Bailey noted that some sectors continued to earn money in the first half of the year despite the negative environment.

“Mainly commodities, like oil, wheat, grains; those types of investments did really well, they were the top performers. Oil and energy companies were the top performing,” she said.

She said that based on history, the US stock markets could recover in the second half of the year, however, she urged investors to do their own research before investing.

Categories: Taking Stock