More juice in the stock market

• January 22 2020
• http://www.jamaicaobserver.com/business-observer/more-juice-in-the-stock-market-analysts-say-market-to-benefit-from-89-billion-in-maturing-jdx-bonds_185227

The local stock market is expected to remain bullish for 2020, particularly given the $89 billion in bonds that will be maturing by October this year.

That's the word from Jamaica Money Market Brokers (JMMB) investment experts Peter Thompson and Greig Lindo, who say “there remains some juice in the stock market”. This is particularly so because of the low interest rate cycle that Jamaica is going through.

Speaking on the weekend at the JMMB financial empowerment event series dubbed JMMB Elevate 2.0, Lindo made out a case that most of the $89 billion worth of government bonds maturing in October this year should be found in the stock market given the low interest rates on the bonds and in money market. He explained that the maturing bonds were invested in the Jamaica Debt Exchange Programme.

STOCK MARKET BOOM TO CONTINUE

According to Lindo, there is even more interest being shown among local investors in the stock market, particularly given the companies that will be coming to the market, citing the impending initial public offer (IPO) of shares in TransJamaica Highway, which is expected to be the biggest IPO in Jamaica.

The JMMB investment expert highlighted the fact that the main market of the stock exchange has been where most growth has been coming from, pointing to the potential for even more significant growth in the junior market.