MJE Sees Bottom-Line Recovery Supported By Buoyancy In Local Financial Market 

• Mayberry Jamaican Equities Limited (MJE) reported a net profit of  $944.40Mn for its first quarter ended March 31, 2022, which represents a significant improvement from the net loss of $631.08Mn in the same period last year. This performance mainly resulted from a recovery in the net gains on investments in associates, net foreign exchange gains as well as an increase in dividend income. 
• With the local financial market experiencing improved buoyancy with the tempering of COVID- 19 fears and related government restrictions, as well as corporates posting improved financial results in several sectors, there were improvements in the performance of stocks in the MJE portfolio. 
• The company currently holds equities in 34 companies listed on the Main and Junior Markets of the Jamaica Stock Exchange (JSE). There was a favourable turnaround in stock prices for most of the securities in the portfolio, specifically in its top 10 stocks. 
• Further recovery is expected in the stock market in 2022, which should help to fuel additional gains on MJE’s portfolio. Listed companies are set to benefit from increased demand and business activity stemming from the full withdrawal of lockdown measures, especially within the tourism and entertainment sectors. Further, growth in the tourism sector should have spillover effects on the agriculture and manufacturing sectors.  However, commodity price shocks, and their impact on corporate input costs, consumer prices, and profit margins, are major downside risks to this outlook. The rising interest rate environment and its effect on borrowing, investments and stock valuations will also present downside risks. 
• MJE’s stock price has increased by 5.5% since the start of the calendar year. The stock closed Wednesday’s trading session at $9.50 which is 43.2% below its net asset value of $13.60 (as at March 31, 2022).

(Source: Company Financials and NCBCM Research)