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Liquidity on the JSE
By Marston Gordon
Jul 11, 2020, 22:51

Liquidity on the JSE

Share turnover is a measure of stock liquidity calculated by dividing the total number of shares over a period of time by the average number of shares outstanding for the period. This method is not appropriate in the case of Jamaica because of the high level of concentration by top 10 shareholders; it ranges between 75% and 92%.

In our analysis we have looked at 45 listed companies on the main market for the six months to June 30, 2020 under three main headings:
1. Frequency of trades
2. Number of trades
3. Highest volume


Frequency of trades

Fifty percent of the companies traded every trading day of the first 6 months of this year, they are: Barita Investments Limited, Carreras Limited, Caribbean Cement Company, Grace Kennedy Limited, Jamaica Broilers Group, JMMB Group Limited, Jamaica Producers Group Ltd., Jamaica Stock Exchange, Mayberry Investments Limited, NCB Financial Group Limited, Panjam Investment Limited, Proven Investments Limited, Pulse Investments Limited, QWI Investments Limited, Syngus Credit Investment JMD, Sagicor Select Funds Limited Financial, Sagicor Select Funds Limited Manufacturing & Distribution, Seprod Limited, Scotia Group Jamaica Limited, Sagicor Group Jamaica Limited, Supreme Ventures Limited, Wigton Windfarm Limited Ordinary Shares and Wisynco Group Limited Ordinary Shares.


Number of trades

The largest number of monthly trades were by NCB Financial Group Limited {(3 times first), (once second) and (twice third)}, Wigton Windfarm {(once first), (twice second) and (twice third), Sagicor Select Funds Limited Financial and Wisynco Group Limited Ordinary tied at {(once first), (once second), and (once third).


Highest volume

The highest volume of monthly trades were by Wigton Windfarm (thrice), Pulse Investments (twice) and Sagicor Select Financial (once).


In concluding, the JSE main market is fairly liquid for a market of its size and pension funds should expand its holding of other liquid companies.


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Source: Jamaica Stock Exchange



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