Jamaica Stock Exchange Introduces The JSE Financial Index Designed To Track Performance Of Financial Services Companies
The Jamaica Stock Exchange (JSE) has introduced the JSE Financial Index designed to track the performance of financial services companies, which includes insurance companies, banks, microfinance companies, consumer finance companies and diverse financial services companies that are listed on both the Main Market and Junior Market and trade in Jamaican dollars.
Introduced on Friday, March 1, 2019, this new Index will provide investors with useful information on the overall performance of the companies in the financial sector.
The JSE Financial Index is the JSE’s first Sector Index and will commence at a base of 100 points.
Mrs. Marlene Street Forrest, Managing Director of the JSE stated that, “Innovation is the key for survival of any company. In keeping with its 50th anniversary celebration, the JSE will be introducing new products, services and market measurements that will be of interest to all market participants. Consistent with other Indices on the market, the JSE Financial Index will be computed using the weighted average market capitalization method. The Index will be calculated in real time and reported daily, in the same manner as the other JSE’s Indices.”
The Managing Director went on to say that almost 30% of the companies listed on the Exchange are financial companies and therefore, this is a useful Index to track this important sector. “We are looking to develop more sector specific Indices in the near future.
Mr. Reynaldo Thompson, Manager Research and Fund Management at Sagicor Investments Jamaica Limited commenting on the new development stated, “This is a fantastic idea for the financial sector and at a glance this Index will show us how this sector has performed daily. The Index should provide an effective representation of the financial sector companies traded on the Jamaica Stock Exchange. We at Sagicor Investments congratulate the Stock Exchange on this move and look forward to having additional indices for the different sectors in the near future. This will greatly assist us in better tracking the market and provide greater insight for the benefit of investors in Jamaica.”