Jamaican Stock Market
Jamaica Stock Exchange (JSE) has been incorporated since 1968 and started trading in February 1969. JSE is located in downtown Kingston at 40 Harbour Street, Kingston Jamaica. The various securities trading at JSE includes:
Ordinary Common Shares
Visit JSE to learn more about the individual companies trading on the market. There are 57 stocks traded in both the Main and Junior Stock Markets in Jamaica in 2015. Year end results show that earnings have exceeded 10 percent or more in twenty-nine of the stocks traded in both market. For folks who are interested in learning more about investing in Jamaica and understanding the opportunities, the timing could not be better. The brokers/traders at Jamaica Stock Exchange will be happy to provide more information about companies listed on JSE. The information includes prospectus on stock performance over a period of time and or since inception of the individual stocks and funds.
The Junior Stock Market is not anything close to been a Junior in terms of risk. In this case in the Jamaican Stock Market, the Junior Stock Exchange is comprised of small cap and medium cap companies or small size and medium size companies. Historically, small and medium capitalization companies pays higher return but are also riskier investment.
Jamaica Stock Exchange Market Index is traded in the U.S. stock market on the Bloomberg Market under the symbol: JMSMX. If you’re just looking to diversify your current portfolio, JMSMX maybe one fund to consider. Researchers have found that index fund portfolios have outperformed comparable managed portfolios most of the time. As the saying goes, “…It’s not timing the market, It’s time in the market.” Historical data shows the longer investors hold their investments, the greater the opportunity for a better ROI (Return on Investment). Naturally, Past performance does not guarantee future results. When you invest in buying stocks, you are buying on growth expectations of future performance.
Individual companies which makes up JMSMX can be researched separately to determine performances as well as the index performance. Just like a mutual fund, and index fund is made up of selected companies suitable for the fund.
Whether you are a savvy investor or someone who is looking to park your money in an investment vehicle for your retirement, consider investing in Jamaica Securities and Jamaica Stock Market.
Early in 2012, an article was published in the Jamaica Gleaner Newspaper which gave a great explanation on Stock Market Trading.
At the closing of 2015 stock exchange, according to Bloomberg Business Report and Bloomberg Market in an article titled: “Its Jammin’, Jamaican Stock Market Conquers World in 2015.” The report written by Bloomberg writer Ezra Fieser, stated that The Jamaican Stock Market had a better year than any other market across the globe. Mr. Fiezer went on to say, “Foreign acquisitions, stronger investor safeguards and a rebounding economy helped the Jamaica Stock Exchange surge more than 80 percent in 2015.” Chart below courtesy of Bloomberg Business.
While JSE surged, well known market such as Dow Jones Industrial Average in the USA had a 1% declined.
Jamaica has a market capital of over $5 Billion. Although the Indexes had two successive years of down trending in 2013 and 2014 of 13% and 5% respectively, indicators remains bright. Which resulted in an above average performance in 2015. According to Vice President Carl Bennett of Bank of New York Mellon Investor Relations, he said, “I’m really impressed with what they’ve done to attract capital to the market.” The Jamaican Stock Market heads realized that it could no longer be business as usual, if they expected to attract overseas investors. Therefore, they have made changes by taken positive measures to stop insider trading and market manipulation.
Jamaica remains obligated to the IMF (International Monetary Fund) and there new 2013 finance restructuring lending demands. So, even though Jamaica continues to struggle with high borrowed debts, the growth of the country’s economy has position the JSE as an “Emerging Market.” Investment in JSE continues to soar. The Jamaica Stock Exchange Group’s had well over 1,658% growth in 2015. During the past 12 months with fiscal year ending in September, they saw a profit of $1.2 million. Other winners included Pulse Investments Ltd and Caribbean Cement Co. They reported profits of 557% and 969% respectively.
Jamaica Stock Exchange General Manager Marlene Street-Forrest, who is trying to encourage folks to invest in Brand Jamaica says, “It’s an emerging market and the fact is that you want to be in on the ground when we are growing.” While it’s fair to point out that with beer maker Desnoes & Geddes Ltd. selling of Jamaica’s Red Stripe Beer to Heineken NV’s, their shares rose significantly. Other major exchange includes Dolphin Discovery Group of Mexico, who operates a dolphin show theme park in Mexico. They became the majority owner of Dolphin Cove Ltd. in Jamaica when they brought 58.5% of ordinary shares.
Now that Caribbean’s first online trading platform has been launched, local and overseas investors will have easier access to invest in Jamaica. To invest in Jamaica Stock Market online, the first step would be to open an account with one of the Jamaican brokerage houses. Of course stock broker charge a commission but that’s the price of doing business if you lack the savvy skills of stock market and investment. Once the stock is purchase, your broker will register the stock holdings with the Jamaica Central Securities Depository. Be practical with your investment and know your risk tolerance level. It’s great to have high expectations but they should be realistic. Over exposure in any individual stock can be costly. A well diversified portfolio is less risky strategy in investment. The unwritten rule of investment is like gambling, never investment any money you can’t afford to lose.
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