The Jamaica Stock Exchange saw ten new companies listing on the Jamaican stock market in 2017, along with the doubling of stock prices for several listed companies. It appears that an increasing number of Jamaicans have been convinced of the potential gains from investing and have been flocking Initial Public Offerings. The JSE reported that 12,000 new accounts were opened on the Jamaica Central Securities Depository (JCSD) and pushed investor interest and demand for brokers to bring new issues to market in 2018.
What influenced this significant shift in local trading is the economy’s ability to provide a sustainable environment for businesses to improve efficiency and expand operations. Businesses are growing and the reduction in interest rates are encouraging investments since returns are now higher. Since the JSE was named the best performing stock exchange in the world in 2015, it has seen significant improvements in stock indices by 44 percent at the end of 2017 in overall stock appreciation.
Additionally, with the new positive projection of the 2017/2018 fiscal year, the economic conditions are set to improve further, making business environments even more conducive to growth. We can then anticipate more listings on the exchange and possible rise in stocks’ values. The Jamaica Stock Exchange, along with lead broker houses in the country, have made the process of transitioning from private to public company smoother for business owners.
Given the current track record that the JSE has for listing companies and aiding in the significant increase of stock value on the first day of trading, more and more companies are relying on the Exchange to assist in raising much needed capital for expanding their operations.