Friday 3 April, 2020

TransJamaican Highway down 16% on first day of trading

Stock image of the Portmore leg of the TransJamaican Highway

Stock image of the Portmore leg of the TransJamaican Highway

Jamaica Stock Exchange’s (JSE) biggest listing, TransJamaican Highway, lost 16.3 per cent of its value on Tuesday, its first day of trading.

The stock closed at $1.18 with about 50 million units trading, as it led market volumes.

It will open on Wednesday at $1.41 equivalent to its listing price, but no trades are slated at that price. That’s because the highest buyer wants the stock at $1.06 and not the $1.40 asked by the lowest seller.

Speaking ahead of trading, JSE Managing Director Marlene Street Forrest said the TransJamaican Highway listing has come at the cusp of world events, particularly the coronavirus (COVID-19), which has triggered economies large and small to react by selling at reduced prices securities listed on many stock exchanges.

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“We have been affected, especially because many relatively new investors to the market are extremely cautious. We ask you to be calm as investing in stocks is a long-term activity and prices do rebound. TransJamaican Highway Ltd and the highway were here before COVID-19 and will be hereafter the virus goes. Commerce will resume,” she commented at the listing ceremony held at the JSE's office on Harbour Street in Kingston. 

“Between the period of one week before the offer opened and the close of the offer, just over 12,000 new accounts were opened, and we can safely say this was in keeping with the TransJamaican offer,” Street Forrest added.

This was an increase over the 11,772 new accounts that registered for the Wigton Windfarm transaction, she noted.

Street Forrest also disclosed that more females applied for shares within the IPO, with a 55 per cent: 45 per cent female to male ratio.

iStock photo of Jamaica Stock Exchange.

As for other trading activity on Tuesday, CAC preference shares led gains up 25 per cent to $1.00 followed by Sterling Investments Limited up 15 per cent to $2.57.

Leading declines were KLE Group down 25 per cent to $1.20 and Ciboney group down 22 per cent to $0.07.

The JSE Combined Index declined by 1,261.45 points (0.36 per cent) to close at 350,140.28.

The JSE Index declined by 748.61 points (0.21 per cent) to close at 355,986.97; the Junior Market Index declined by 52.80 points (2.45 per cent) to close at 2,100.86 and the JSE USD Equities Index declined by 15.09 points (7.55 per cent) to close at 184.86.

The JSE Financial Index advanced by 0.14 points (0.14 per cent) to close at 98.26. But the JSE Manufacturing & Distribution Index declined by 0.53 points (0.83 per cent) to close at 63.71.

Overall Market activity resulted from trading in 84 stocks of which 26 advanced, 53 declined and 5 traded firm.

The National Road Operating and Constructing Company Limited (“NROCC”), put up for sale 8 billion shares or a 64 per cent ownership Transjamaican Highway Limited to raise $11.2 billion from the base offer. The offer opened on from February 17 and closed on March 9, 2020.

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