Investing In The Jamaica Stock Exchange Is Still Lucrative

Investing in financial instruments in Jamaica is still a lucrative venture, despite the COVID-19 pandemic, according to local financial experts.

A year ago, the Jamaica Stock Exchange (JSE) was crowned by Bloomberg as the best performing stock exchange in the world, for the last five years. The JSE outperformed other countries, such as Vietnam and the United States of America (USA).

Peta-Gay Miller Walker, assistant vice president of sales and client services at the JN Fund Managers

Now, Peta-Gay Miller Walker, assistant vice president of sales and client services at the JN Fund Managers, says that the COVID-19 pandemic provides possible opportunities for persons overseas to invest in financial instruments in Jamaica.

“Even with the COVID-19 pandemic, opportunities abound; therefore, we guide our clients to find those opportunities and take advantage of them,” she advised.

Dania Palmer, research manager at JN Fund Managers

Dania Palmer, research manager at JN Fund Managers, said that the COVID-19 pandemic provides an opportunity for investors to review and reallocate their portfolios; and take advantage of declining stocks prices locally and globally, amid the COVID-19 pandemic.

“Investors will need to be aware that investing in stocks is not for the short term; but is a long term, at least a three-year venture,” said Mr Palmer.

He made those points, as he noted that the Jamaican local stock market had become volatile since the COVID-19 pandemic.

“People tend to buy stocks when prices are rising; however, it is when stocks are going down that you should buy at a lower price; and then sell when they are higher,” he advised.

Mr Palmer explained that the COVID-19 pandemic has resulted in a decline in economic activity, and most companies are being negatively impacted at least in the short term; therefore, this may have played into investors selling those stocks.

“However, as an investor, you should look to see where there may have been overreaction out of fear and take advantage of those opportunities,” he maintained.

He also informed that some of the stocks to consider purchasing at this time, were those in the renewable energy sector, which he said would be least impacted by COVID-19.  And, he stated that it was unlikely that COVID-19 will affect those companies’ productivity, rather it would be factors such as lack of wind or sunlight.

Other companies which should also be considered, he stated, included essential items, such as: medical supplies, cleaning products, or those providing basic food items, which will do better during COVID-19.

Investors, who wish to get exposure to an overseas market such as Jamaica, will need to research the various stockbrokers in Jamaica, fill out the necessary paperwork and then open an account.