The bull expected to continue running in 2018

Did you make 50% on your money last year?


Wednesday, January 10, 2018

The year 2017 was another banner year for the Jamaica Stock Exchange (JSE). With a record number of initial public offers and solid performance by already listed companies, investors were well rewarded for the risk taken with their money to buy stocks.

According to research by Sagicor Investments, combined, the JSE Main and Junior markets provided average returns of 43.9 per cent, while the Main Market appreciated by 50 per cent in 2017. In 2016, the Main Market earned 27.6 per cent for investors while 2015 was a record year with a return on investment of 97.4 per cent.

And so what is the outlook for 2018? According to investment analysts, the outlook is very rosy.

Ryan Strachan of Ideal Finance states, “ Local stocks? Value to be had. I'm still blown away by the 7,382 applications and $18.8 billion raised. With the appreciation in price, it either means the market as a whole will rise to match that, or Wisynco will fall in line with the market. I don't know what's going to happen. Interesting times ahead!”

Investment guru John Jackson notes: “With the Initial Public Offerings (IPOs) out of the way, more life returned to the secondary market this past week with the Main Market enjoying buoyant volumes and the Junior Market recording some recovery with more buying interest. In technical terms, Jackson also notes: “The average price earnings (PE) for the overall main market is 15 and 13.6 for the Junior Market, based on 2017 estimated earnings.”

The price earnings are the number of years it takes an investor to make back their money (remember that investing is long-term and it is recommended that you only invest money that you don't need for the next 5 years).

And so Jackson recommends that investors "look for stocks trading at an average discount of 37 per cent to the average of the market for Junior Market and 44 per cent for the Main Market”.

According to Sagicor Investments, the upward trend of the JSE, “is likely to continue given the expected improved earnings for most listed companies and the favourable outlook on local economic conditions”.

And for people ready to buy, Sagicor Investments recommends the following:

* National Commercial Bank Financial Group

* Sagicor Group Jamaica


* Carreras

* Jamaica Producers

* Supreme Ventures Ltd


* Jamaica Teas

* Main Event Entertainment Group

* Caribbean Producers Jamaica.




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