By Anthony Morgan 

Managing Director of the Jamaica Stock Exchange Marlene Street-Forrest has projected that the market will see between 12 and 14 new listings in 2021. That’s at least four more than the eight recorded in 2020.  The JSE was anticipating 20 new listings for 2020, but the COVID-19 pandemic sidelined many plans, eventually contributing to the market’s 22% decline for the year. The outturn makes the JSE the second-worst performing market globally.

Marlene Street Forrest, Managing Director, Jamaica Stock Exchange

Speaking on Taking Stock with Kalilah Reynolds, Mrs Street-Forrest said the market may not see a substantial number of new listings until 2022, reasoning that a renewal of energy should be seen by the end of the second quarter this year. 

She said the market started to pick up over the last two months with many taking advantage of the liquidity in the space.

“While we did not get the listings, we could see that there is still a maturity in the market. Companies that intended to list, some of them still have that vision to list and are still working on it. You would have seen we had a number of APOs [additional public offers] and persons are working towards more APOs this year,” said Mrs. Street-Forrest 

A Teachable Moment

The Managing Director said 2020 was a learning moment, especially for new investors who continue to be more “skittish” to market shocks. 

She said while many institutional investors stayed, many young investors pulled out when stocks started tumbling from the fallout due to the pandemic. However, she’s optimistic about investors and issuers returning this year.

“This pandemic is a lesson which the stock exchange could not have taught, that investing in the market is long term and you will see the cycles, you will see the dip with a crisis but overall it provides the best form of investment over the long term,” she said.

Initiatives for 2021

Mrs. Street-Forrest said she expects online trading and other initiatives coming on stream to propel growth for the market this year.

On January 11, the JSE launched it’s latest offering, the Private Market, which allows dealers and their qualified clients to trade debt bonds and equities securities on the NASDAQ Platform.

The private listing and trading of securities on the new platform is in accordance with the Financial Service Commission’s (FSC) guidelines for exempt distributions. Mrs Street-Forrest said those guidelines speak to those securities that can be approved for capital raise as well as the type of companies and individuals most likely able to absorb certain risks. 

NCB Capital Markets Limited has already indicated their intention to file an application for two existing corporate bonds, valued at $7 billion dollars, on the market.

Mrs. Street-Forrest said Jamaicans will have direct market access to the Toronto Stock Exchange by the end of this quarter.  Access to US stock markets is also expected by the end of the year. 

-END-