Business News: Carib Cement stock rocketed during last Wednesday’s trading session to gain $5.3 billion in market cap and lead gains.
The stock gained 13 per cent to close at $48.25 with a mini block trade of 205,000 units. The stock fluctuated between a low of $39 this year in March due to the COVID-19 effect on the overall market from a high of $89.99 pre-COVID.
The 13 per cent gain increased Carib Cement’s market cap to $41 billion from $35.7 billion the day before.
The market now seems to be pricing in the company’s creditable performance with second-quarter June 2020 profit jumping to $521 million from $368.5 million in the similar period last year. The cash generated allowed the company to reduce its debt to $12.7 billion from $15.6 billion a year before.
The directors at the company say that while it is still “very early” to fully evaluate the long-term effects of COVID-19 on the operations, they believe that this event has strengthened efficiencies and resilience within the organisation.
Also on Wednesday, Transjamaican Highway gained 10 per cent and closed at $1.31.
The JSE Combined Index advanced by 2,926.81 points (0.80 per cent) to close at 366,679.99.
The JSE Index advanced by 2,872.53 points (0.79 per cent) to close at 368,546.40. The Junior Market Index advanced by 26.41 points (1.04 per cent) to close at 2,564.59. The JSE USD Equities Index declined by 3.96 points (2.14 per cent) to close at 181.17. The JSE Financial Index advanced by 0.60 points (0.62 per cent) to close at 97.15. The JSE Manufacturing & Distribution Index advanced by 0.95 points (1.30 per cent) to close at 74.14.
Overall Market activity resulted from trading in 80 stocks of which 37 advanced, 29 declined and 14 traded firm.
Market volume amounted to 25,273,545 units valued at over $214,350,376.85.
Transjamaican Highway was the volume leader with 11,064,299 units (43.78per cent) followed by Sagicor XFund, with 5,382,569 units (21.30per cent) and QWI Investments with 1,553,620 units (6.15 per cent).