Money Matters

Jamaican Stock Market Poised For More Growth!

Jamaican Stock Market Poised For More Growth! Jamaican Stock Market Poised For More Growth!

The recently held Mayberry Investor Forum was used to examine the stock market and make predictions for 2016 based on the expected performance.

What is the stock market?

The market in which shares of publicly held companies are issued and
traded either through exchanges or over the counter markets. Also known as the equity market, the stock market is one of the most vital components of a free market economy as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.

According to Gary Peart CEO of Mayberry Investments, similar conditions now exist as did in 2004 when the index reached a never before seen level of over 109,000 points. He is optimistic that this will continue and is supported by Financial Analyst, John Jackson.

In fact, stock prices increased so rapidly on the Jamaica Stock Exchange that over 20 stocks more than doubled in value since January 2015. These include Caribbean Cement which gained 636 per cent, the Jamaica Stock Exchange up 600 per cent, D&G up 506 per cent, Caribbean Cream Limited up 353 per cent, Radio Jamaica up 255 per cent, Lasco Manufacturing up 202 per cent, Honey Bun up 192 per cent, Paramount Trading up 171 per cent, Mayberry Investments up 166 per cent, LIME up 165 per cent, Lasco Financial up 153 per cent and Consolidated Bakeries up 140 per cent.

It is rare for stocks to rise this much and signals a bull market.

What is a bull market?

A financial market of a group of securities in which prices are rising or are expected to rise. Bull markets are characterised by optimism, investor
confidence and expectations that strong results will continue. It is difficult to predict consistently when the trends in the market will change; this may be attributed to speculation. Usually a bull thrusts its horns up in the air when attacking opponents or prey, this action is a metaphor for the movement of the market; if the trend is up, it is a bull market. Conversely a bear market occurs when prices of a group of securities falls over a period of time.

To continue reading, Purchase Vol. 8 Issue #3 2015.