Jamaica Stock Exchange

The Jamaica Stock Exchange was opened in 1969 in Kingston and is where different financial instruments are traded, including equities and bonds. Today the exchange has grown from a few listed companies to over a hundred securities: 70 on the Main Market, 46 on the Junior Market, 18 on the USD Market, and 2 on the Bond Market. There are 15 brokerages that you can trade through that are licensed with the stock exchange in Jamaica.

The key sectors include:

• Banking and finance - e.g. JMMB, NCB, Scotiabank, etc.

• Conglomerates - e.g. Grace Kennedy, Massy Group.

• Communications - e.g. FLOW.

• Insurance - e.g. Sagicor, Guardian.

• Leisure - e.g. Supreme Ventures, Palace Amusement.

• Manufacturing - e.g. Seprod, Carreras, Wisynco.

• Real Estate - 138 Student Living, Sygnus Real Estate.

• Services - RJR, Kingston Wharves.

 

It consists of more than one market:

• Main Market - comprised mostly of large companies

• Junior Market - comprised mostly of smaller companies

• USD Market - for securities denominated in United States dollars

• Bond Market - for fixed-interest corporate instruments

 

Why Do Companies List Shares?

Whether private or public, companies issue shares as part ownership in that company in exchange for capital. They then use that raised capital to grow the business. This may be to pay for a new manufacturing plant, for an acquisition of another company, etc.

 

Why Is There a Stock Exchange in Jamaica?

With private companies, buying and selling the shares you own can be difficult. You have to have contact with the owners and hope they allow you to buy shares in the company and when you are ready to sell, it may be difficult to find people to sell your shares to. This is why the Jamaica Stock Exchange was created, to make it easy for investors to buy and sell shares in companies. However, if we are to have a stock exchange in Jamaica, where companies can sell shares to the public and shareholders can buy and sell with each other, then there have to be rules and organisation. The Jamaica Stock Exchange provides the structure needed so that many people and institutions can buy and sell shares smoothly, efficiently, and safely.

 

The Role of Brokers

Stock exchanges were originally actual physical markets. For the trading of shares, naturally, you can't have millions of shareholders showing up to a market to buy or sell. Hence, brokerages. Stock brokers own seats on the stock exchange in Jamaica and are allowed to represent investors in the buying and selling of shares. This allows for better organisation and smoother running of the market. That said, whether physical or digital, stock changes still need to have stock brokers as these brokers are governed and regulated to ensure they operate in the best interest of the investor. Thus protecting you from fraud, mishandling of funds, fair prices, etc.

 

JMMB and the Jamaica Stock Exchange

JMMB has been a registered broker on the exchange since 1992. Offering professional investment advice and brokerage service to Jamaicans. Since that time JMMB has had several executives give their time in service to the exchange. Helping the Jamaica Stock Exchange to become one the best-performing stock markets in the world.

 

Click here to visit the Jamaica Stock Exchange

Click here to learn about Opening an account with JMMB