The Jamaica Stock Exchange (JSE) has been a source of data collection and representation for over 40 years. This activity has become so ingrained in the company’s operations that we are defined by the many publications that are produced and circulated each year. We are a major institution in Jamaica and a valuable source of economic data which we compile every year and present with pride to the market.
Data and the collection of data are very important in our everyday life as the information gathered allows us to make important decisions. The investment decisions that we make today can either make us or break us financially, and affect our twilight years, particularly after retirement. The JSE recognizes the importance of publishing consistently accurate data to allow investors, market analysts, researchers and students to keep abreast of market trends.
The JSE collects a pool of data ranging from five year trading activities to stock splits, five year dividend summaries and year-end high and low stock prices. Such information is designed to assist the investing public to forecast possible market trends. Due care and diligence is used to compile the data. Data is also represented with graphs and charts to allow for quick analysis.
The JSE enables the public to access up to five years of this information free of cost to the public; however, information beyond five years is available at a cost (Visit our Online Store for more information).
The JSE uses the weighted average market capitalization method to calculate the index. The index is calculated by dividing the aggregate market capitalization by a base divisor. The market capitalization of each company is the product of its issued shares and its market price. The greater a company’s market capitalization, the greater the weight it carries in the composition of the index. The formula to compute the index is as follows:
Based on the above formula, an increase in stock prices will cause total market capitalization to increase, which will consequently cause the index to advance, and vice versa.
The JSE currently maintains seven indices:
JSE (Main) Index
The JSE (Main) Index measures the performance of all the ordinary shares listed on the Main Market.
JSE All Jamaican Composite Index
The JSE All Jamaican Composite Index measures the performance of the ordinary shares for Jamaican companies only that are listed on the Main Market.
JSE Select Index
The JSE Select Index measures the performance of the fifteen most liquid ordinary stocks on both the Main and Junior Markets. Liquidity is determined by: the number of days traded over a three-year period; the number of times traded over a three-year period; and the total ordinary trades over a three-year period.
JSE Cross Listed Index
The JSE Cross Listed Index measures the performance of the ordinary shares for foreign companies only that are listed on the Main Market.
JSE Junior Market Index
The JSE Junior Market Index measures the performance of all the ordinary shares listed on the Junior Market.
JSE Combined Index
The JSE Combined Index measures the performance of all the ordinary shares listed on both the Main and Junior Markets
JSE USD Equities Index
The JSE USD Equities Index measures the performance of all the ordinary shares listed on the US Dollar Equities Market.
The market quote provides investors with a list of each stock price at the end of each day’s trading. This is provided to the public by the JSE, by way of its trade sheets, which are uploaded to the website on a daily basis.
The Stock Market Summary is an overview of the trading activity on the market for a particular day. The Market summary normally gives the stocks traded for the day, the volume and value, along with the close price and the dollar value and the percentage change in the stock price for that particular period.
Circuit Breaker Rule
No stock should trade +/-15% from the close price or the effective close price at the opening of the market. The effective close price is determined whenever the closing bid is greater than the close price or whenever the closing ask is less than the close price. Use the closing bid as the effective close price, if the value is greater than the close price or use the closing ask as the effective close price, if the value is less than the close price. However, during the day if the Circuit Breaker is triggered for a security, the security will be halted for an hour to allow for the release, circulation and absorption of any relevant market news and a cool down period while investors consider their options. After the hour has passed the security will be released for trading and the new reference price, which is a simple average of the trigger price and the close price, will be used to determine the trade range for the remainder of the day. The price of the trade that triggered the Circuit Breaker should not be +/-15% outside of the original prescribed price band. The stock will not be allowed to trade +/- 15% of the new reference price.