By Andrew Green, Staff ReporterJAMAICA'S STOCK market index grew more last year than indices for the major markets in the world, says Jamaica Stock Exchange (JSE) general manager Wain Iton.
While major world stock market indices fell last year, Jamaica's index rose, Mr. Iton said. The stock market index is a measure of the value of the shares listed on the exchange.
"We were up 34.17 per cent last year," Mr. Iton said at the listing of Jamaica Money Market Brokers Limited on the JSE in Kingston yesterday. Across the world, major markets were down 20 per cent, following another decline the year before.
This performance by Jamaica was even better than that in 2001 when the index rose 17.1 per cent.
Starting with a base year, the index reflects upward or downward movement of market prices of stocks in relation to their base ear values
Market capitalisation at the end of 2002 was $292 billion. This was 31.7 per cent more than the level at the end of 2001. But the capitalisation in 2001 rose 38.6 per cent above the level in the previous year.
Courts Jamaica Limited was the top performing stock this year, Mr. Iton said. In 2001 Courts had been in the list of top ten declining stocks.
In calculating the JSE index, it is the change in market value caused by each share which trades on a given day, not absolute market capitalisation, which influences the change in the index. Market capitalisation is the product of the number of issued shares multiplied by the price.
Shares of the top ten performing stocks rose by an average of 203.6 per cent last year, Mr. Iton said. The top ten declining stocks fell by an average 17.6 per cent.
"We can be justly proud of our performance," he said. "I won't attempt to use a crystal ball, but I hope 2003 will be another bumper year.
