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Amid continuing market softness, US equities on the Jamaica Stock Exchange notched substantial gains in value, growing their market capitalisation by nearly eight per cent in the first month following Hurricane Melissa, even as other indexes fell.
It lifted the value of the USD market to US$949 million, up from US$882.3 million a month earlier – reflecting a gain of US$66.7 million ($10.5 billion).
Contrastingly, the JSE main and junior markets fell by 1.3 per cent and 1.4 per cent, respectively. The perform of the indices suggest a flight to hard-currency safety, but strong fundamentals also drove gains in the USD index, led by Productive Business Solutions Limited, TransJamaican Highway Limited, and Margaritaville Turks Limited. The latter two are also cross-listed on the JMD side of the market.
“All three companies had great results,” said investment banker Gary Peart, CEO of Mayberry Group Limited, in responses to the Financial Gleaner regarding the market’s performance.
Margaritaville Turks, in particular, “rebounded strongly” after recovering from Hurricane Oscar, which struck Turks and Caicos in October 2024.
Despite main market and junior market pullbacks, several stocks grew in value, as investors sought out companies likely to benefit from the hurricane rebuilding and those involved in the property market. By contrast, there were sharp declines for some distribution and entertainment stocks, likely reflecting pessimism regarding consumer demand in the short term.
During November, the JSE Main Index shed $22.2 billion to close at $1.706 trillion, while the JSE Junior Index lost $1.9 billion of its value, ending at $134.6 billion.
Among the main market’s top performers, TransJamaican Highway JMD, up more than 22 per cent as investors bet on steady toll revenues despite the storm damage. Cement maker Caribbean Cement Company Limited also climbed, buoyed by expectations of increased demand for reconstruction materials. Cargo Handlers delivered a 30 per cent gain as shipping volumes rebounded. Insurance and property plays such as Guardian Holdings and Eppley Caribbean Property Fund also advanced, reflecting confidence in sectors tied to rebuilding and risk management.
Peart noted that outsized declines largely reflected “individual company issues” rather than anything systemic.
During the month, Jamaica Broilers lost nearly 25 per cent of its value as the poultry producer grappled with the continued fallout from irregularities unearthed in its US operations; Tropical Battery declined nine per cent as investors weighed its growth trajectory; and Supreme Ventures slipped more than 11 per cent, with gaming volumes softening after the storm.
NCB Financial Group also dipped despite favourable results, as investor focus shifted to Chairman Michael Lee-Chin, who utilised some of his NCB shares as collateral for maturing bonds.
On the junior market, R.A. Williams Distributors and Main Event Entertainment Group both posted double-digit declines, amid uncertainty surrounding consumers’ discretionary spending.
Year to date, all JSE indices are down – the USD market has fallen by 17 per cent, the main market by 5.1 per cent, and the junior market by 9.3 per cent.
The physical damage wrought by Hurricane Melissa is currently estimated at US$8.8 billion ($1.4 trillion), and the storm is expected to take a massive bite out of the country’s economic output.
Peart noted however that the US$6.7 billion of storm recovery funding newly secured by the Jamaican government from a consortium of donor entities, led by the International Monetary Fund, provides “significant confidence” to the economy.
English (US) ·