Contributing mostly to these movements were the Gleaner, Carreras and Lascelles deMercado, while Guardian Holdings and FirstCaribbean International Bank facilitated the advance of the JSE Index. Of the ordinary shares, 14 stocks advanced and 24 declined during the year.

The top performing stocks were Gleaner and Lascelles deMercado, advancing 116.08 per cent and 105.38 per cent, respectively.

TRINIDAD, BARBADOS MARKETS

Trinidad's stock market ended the year flat out, with the main TT Index increasing 1.3 per cent and the All TT Index down marginally.

Fifteen stocks advanced and 13 declined.

The main events in Trinidad's market for the year were the acquisition thrusts by AMCL Holdings and Neal and Massy Holdings for Barbados Shipping and Trading Company.

The (BS&T) top two stocks were Readymix Limited and BS&T, which increased 66 per cent and 75 per cent, respectively.

In Barbados, the market was a little more active, more so toward the end of the year. The main BSE Index advanced by 9.0 per cent while the BSE Local Index advanced 13 per cent.

The acquisition bid for BS&T would also have contributed to the movements in Barbados, where 15 stocks advanced and eight stocks declined.

The top stocks were Barbados Farms and BS&T up 105 per cent and 68 per cent, respectively. Cable and Wireless Barbados increased 28 per cent.

In recent times, Barbados Farms has also been an acquisition targetby Sagicor Financial Holdings and CLICO Holdings Limited

A 'VOTE' FOR DISCOUNTS

The stock market 'voted' on the side of discount prices in 2007.

For the first half year, stock-market activity had challenges, locally, beyond those presented by the Budget and floods, and later, the hurricane season.

As the summer months approached, with one month left before the election in Jamaica, investors became more apprehensive and retreated, given the historical dullness associated with these months, further compounded by the protracted bear market.

The stock market recorded year-to-June 2007 decreases in all three indices:

JSE Index: -10 per cent

The year at this point was definitely not looking good for stock-market investors, with many adopting the stance: 'When in doubt, stay out'.

But in fact, this was the best time to get in.

Uncertainty usually provides varying levels of opportunities, and the time to 'vote on the side of asset prices'.

It was purported that, regardless of the outcome of the election, there was an ideal opportunity for investors to attempt to merge timing strategies with value strategies.

Stock-market activity confirmed that the investment strategy to buy low and sell high materialised in the two weeks leading into the election, and in the week following the election.

In the period August 28 to September 11, 2007:

Seprod, Carreras, Lascelles and Jamaica Broilers were among the movers in the period.

However, the most aggressive portion of the upward movement in all three indices was during the final quarter, October to December, when the All Jamaica Index increased 16 per cent.

END-OF-YEAR RALLY

Admittedly, other factors facilitated the movement in stock prices.

These included the corporate actions announced by cross-listed companies, such as RBTT and GHL, and the pending acquisition of Lascelles deMercado by Angostura Holdings Limited.

There were also the preference-share offers by Mayberry Investments Limited and Jamaica Money Market Brokers that followed.

The earnings season covering the three months ended September 30, 2007, was a fair one for most companies.

Mayberry, Life of Jamaica and GraceKennedy all reported aggressive growth in net profit. Financial entities, which carry the major portion of market capitalisation, did better in the period, except for Capital and Credit.

Notwithstanding, there was no considerable movement in the price of the listed commercial banks nor investment houses, outside of Mayberry. The concern about the fallout of the financial schemes may be reflected in the lack of movement.

In the second half of the calendar year, 29 of 40 stocks registered price appreciation.

Dividend payments were slow in the month of November. However, several companies declared attractive dividend payments for December. Notwithstanding, market activity in December was in a softer mode than November.

Gleaner, Guardian Holdings, FCIBJ and Jamaica Producers have been the positive 'movers' month to date.

One common factor throughout this year was uncertainty.

For sure, uncertainty will be a force in the stock market throughout 2008.

Next week: Stock recommendations for 2008.

Keisa Ansine Samuels is senior equity analyst at Jamaica Money Market Brokers. Email: keisa_ansine-samuels@jmmb.com

Table 1: The performance of the JSE Indices

Dec. 31, 2007 Dec. 29, 2006 Point Change % Change

JSE Index 107,968.00 100,676.96 7,291.04 + 7.24%

All Jamaican 106,782.82 107,213.43 -430.61 - 0.40%