Economic enthusiasts around the world were captivated as the Jamaica Stock Exchange (JSE) saw a notable 3.0% climb in 2024, propelling the market valuation to an impressive $2.1 trillion.
Dr. Marlene Street Forrest, the managing director of the JSE, expressed optimism for the market’s trajectory as she anticipated the momentum from 2024 to spill over into 2025. The JSE Combined Index, a comprehensive gauge encompassing the Main, Junior, and US-denominated markets, closed the year at 347,896.22 points, marking a substantial increase from the initial 341,093.80 points.
Delving deeper into the individual market segments, the Main Market saw a 3.1% surge to reach 335,795 points, the Junior Market experienced a 2.9% growth to attain 3,735 points, while the US-Denominated market leaped by an impressive 9.0% to close at 252 points.
Despite encountering a flat performance up to November, the JSE Index witnessed a remarkable turnaround in December, driven by substantial gains that shifted the market into positive territory. Dr. Street Forrest underscored the potential hindrances to the market’s advancement in 2025, pointing towards internal and external economic adversities, including the looming threat of climate-induced disasters. She emphasized how negative factors, chiefly the repercussions of the COVID-19 pandemic, precipitated a drastic market decline despite its standing as one of the world’s fastest-growing markets at the time.
Interestingly, the Main Market Index, composed of prominent corporations, notched gains for the second consecutive year following a modest 0.1% uptick in 2021. Moreover, it marked the third instance wherein both the Junior Market Index and the US-denominated Market Index displayed positive growth since the onset of the pandemic.
Dr. Street Forrest shed light on the burgeoning interest in listings on the Exchange, particularly in the final quarter of the year, attributing this surge to businesses’ quest for increased access to patient capital. Accentuating the JSE’s resilience in the face of market fluctuations, she highlighted how a significant proportion of companies listed on the JSE had continued disbursing dividends to their shareholders throughout the year. Dividend-paying stocks during downturns offer a sense of stability, as the dividend yield becomes more appealing inversely proportional to the stock price decline.
Currently, the JSE boasts 105 listed companies representing 152 securities, with Dr. Street Forrest pointing out that since 2017, the Jamaican stock market has outperformed its US counterparts, affording investors an impressive return on investment of 20% per annum over the past seven years, notwithstanding the bear market conditions.
In 2024, a commendable upsurge prevailed in major US markets amidst prevalent global ambiguity. For instance, the NASDAQ, a tech-dominated marketplace, witnessed a striking one-third growth, largely fueled by the ascendancy of artificial intelligence. Notably, the stock Nvidia escalated by a whopping 185%, catapulting its value past the US$3.4 trillion (J$530 trillion) mark. Another significant player, the S&P 500 index, tracking 500 leading entities, experienced a quarter expansion throughout the year.
On the local front, standout performers included Blue Power Group, surging by 79.5% to $4.79, Wigton Energy with a 76% upsurge to $1.39, LASCO Manufacturing climbing by 75% to $7.85, Transjamaican Highway advancing by 70% to $4.63, and Carreras displaying a notable 58% hike to $13.05. Conversely, the top declining stocks comprised Edufocal Ltd, down by 76% to $0.36, MFS Capital Partners Ltd, plummeting by 73% to $0.52, CAC 2000 Ltd witnessing a 56% dip to $2.10, Pulse Investment retreating by 45% to $1.15, and Radio Jamaica experiencing a 35.5% decline to $1.25.
In light of the Bank of Jamaica’s pivotal move in 2021 to initiate a 14-fold escalation in the policy rate from 0.5% to 7.0% in a bid to curb inflation, market experts foresaw a challenging path for the combined indices until late 2025. This forecast coincided with the anticipated timeframe for the BOJ to commence lowering interest rates, which effectively commenced in August and culminated at 6.0% by year-end, reflecting a 1.0 percentage point decrease. Notably, the BOJ highlighted successful containment of inflation, with the 12-month inflation rate resting at 4.3% by November, comfortably within the BOJ’s target range.
Moreover, the historical performance of the JSE over the past decade shed light on its fluctuating yet resilient trajectory across different market segments:
JSE Main Market Performance Over a Decade:
– 2024: Up 3.1%
– 2023: Down 8.5%
– 2022: Down 10%
– 2021: Up 0.1%
– 2020: Down 22.4%
– 2019: Up 34%
– 2018: Up 31.7%
– 2017: Up 49.9%
– 2016: Up 27.6%
– 2015: Up 97.4%
– 2014: Down 5.3%
JSE Junior Market Performance Over a Decade:
– 2024: Up 2.9%
– 2023: Down 3.5%
– 2022: Up 16%
– 2021: Up 29.7%
– 2020: Down 21.1%
– 2019: Up 3.1%
– 2018: Up 18.8%
– 2017: Up 5.34%
– 2016: Up 44.8%
– 2015: Up 160.3%
– 2014: Down 9.2%
JSE USD Market Performance Over a Decade:
– 2024: Up 9.0%
– 2023: Down 1.25%
– 2022: Up 19.6%
– 2021: Up 4.9%
– 2020: Down 16.7%
– 2019: Up 41.74%
– 2018: Down 3.95%
– 2017: Up 1.02%
– 2016: Up 2.1%
– 2015: Up 18.9%
– 2014: Up 4.8%
Closing Thoughts:
Amidst the intricate web of economic nuances and market dynamics, the JSE stands as a testament to resilience, growth, and adaptability. As we traverse the realms of a fluctuating global economic landscape, the JSE’s performance serves as a beacon of hope and opportunity for investors seeking enduring returns and stability. Let us tread this financial journey with diligence, foresight, and unwavering optimism, for the markets hold a treasure trove of potential for those willing to navigate its ebbs and flows.
