by Franz Weathers
A stock exchange is a facility where stockbrokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments.
The JSE
The Jamaica Stock Exchange (JSE) was initially known as the “Kingston Stock Exchange”. It started trading operations on Monday, February 3, 1969 and on January 18, 2019, The JSE was named the world’s top-performing stock exchange by Bloomberg.
Bloomberg cites foreign acquisitions, stronger investor safeguards, and a rebounding economy as critical factors that explain the surge of JSE’s index but also highlights an innovation launched by the JSE: an online trading platform that allows the Jamaican diaspora and small retail investors to invest in companies in their home country.
Investing In Entrepreneurship
Another major factor that pushed the JSE index to the top is an ambitious and innovative endeavor in financing for small and medium-sized businesses: the JSE’s Junior Market, launched in 2009. A junior market is a type of stock exchange specifically designed for the needs of smaller enterprises. These exchanges are based on the premise that a simplified regulatory framework, coupled with streamlined requirements, allow these businesses to access growth capital that they otherwise couldn’t obtain because they are unable to comply with all the criteria for listing in traditional main markets.
According to Fomin.org, technical traders often look for a confluence of events when making an investment decision. Chart patterns, with moving average indicators; the latest economic trends; and market-moving news releases are all considered for optimal market entry. The simple strategy that underlines the complexity of this investment decision is to enter the market early, while the trend is still in its formative stages, and thus increase the opportunity to maximize the return on investment.
Upcoming & Recent IPOs
There are quite a few upcoming IPOs we’re excited about, one of which may be the JSE Junior Market’s largest listing ever – MailPac which posted revenue’s of US$8M in the past 12 months, also First Rock Capital aiming to raise US$14M in a year-end IPO and toll company TransJamaican Highway’s target is US$70M.
Energy company Wigton Windfarm last April aimed to raise US$40M in their IPO, they were oversubscribed and ended up raising US$100M.
The New Wave
Today I can safely say that the Jamaican spirit of entrepreneurship and ingenuity is alive and kicking. International venture capitalists, especially those from our diaspora who understand the regional landscape should be taking notes and exploring getting in early.
There are quite a few startups that I’m personally excited about, one is even listed on the JSE Junior Market – iCreate. The others are Edufocal, LoanCirrus, MyQuickPlate, FlowFacto and Bluedot. There are also some very early concepts that are currently being developed like AgriTech startups MindCrop & Rasta Friendly, Virtual BPO startup Outsource, Fine Art Ecommerce startup ArtYaad and PropTech startup CoCarib.
The Caribbean’s potential for growth is massive, with an economy worth approximately US$500B, tourism at US$60B, cross border eCommerce worth US$5B and internet penetration at 25M people (45% of the population). There are innumerable opportunities and what we’re witnessing in Jamaica may just be the beginning.
Franz is a seasoned Jamaican entrepreneur and information technologist who has an in-depth understanding of and experience in the Travel and Retail Ecommerce industries.
eCommerce4 months ago