Jamaica's 'obscure' stock market steps into

• January 20 2019
• http://www.jamaicaobserver.com/sunday-finance/jamaica-s-obscure-stock-market-steps-into_155039

The Jamaican Stock Exchange has caught the eye of the internationally renowned financial media company Bloomberg, which reported on Friday that it is the best-performing stock market in the world. Bloomberg explains that in addition to its performance, what makes this so noteworthy is that the island's stock exchange is also one of the world's most “obscure”.

It reinforces this point by revealing that there are actually no Jamaican stocks currently in US exchange-traded funds but the reason it has out-performed so many other stock exchanges globally is the same reason for its obscurity — it is a very small economy.

According to the article, “It doesn't take much investment to make a tiny market boom and the total value of the 37 stocks in the main Jamaica index is less than US$11 billion, smaller than the valuation of Chipotle Mexican Grill Inc.”

However, it also credits the reinvention of Kingston as a financial hub even in the wake of financial challenges brought on by Jamaica's debt load which the country is striving to diminish.

The world's best-performing stock market, therefore, possesses a certain allure for international investors as Jamaica's main index experienced an upswing of 29 per cent in US dollar terms in 2018.

Some of the challenges to investors, however, include the equity market's tiny size and the fact that fewer shares are available to the public due to majority ownership in companies by conglomerates. Bloomberg also notes that stocks are not being traded often.

However, the article goes on to mention improvements outlined by Marlene Street-Forrest, the exchange's managing director, which include faster trading times and more investment tools currently in use in bigger markets. It also notes that more than 20 new listings are expected this year.