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SOUTH PACIFIC STOCK EXCHANGE : Stock Market Review

SOUTH PACIFIC STOCK EXCHANGE : Stock Market Review
January 09
13:45 2018

A total of 147 new investors joined the Fijian stock market last year with 50 per cent aged below 35.

The new investors yielded 334 trades and contributed 715,554 shares in volume traded and garnered $1, 581, 662 in value traded.

This was reported in the South Pacific Stock Exchange’s 2017 Stock Market Review that was released yesterday.

The review states that majority of the new shareholders who invested in the listed companies last year were individuals who are public servants, private sector employees, domestic workers, retirees, students and farmers.

Thus, majority of the investors were from the private sector followed by retirees.

An analysis of the new investors showed that majority fall between the age range of 26 years to 35 years followed by the age range of 36 years to 55 years.

“This illustrates that the young working population are now becoming financially savy and are using the stock market as an investment mode to invest their savings and or their hard earned earnings,” stated the review.

At a glance

Fiji’s Stock Market recorded impressive gains in its key market indicators last year.

The market’s overall capitalisation recorded a strong growth on the back of greater investor demand, gaining a significant 36.25 per cent.

Last year was concluded with an all-time high value of $1.8 billion.

According to the review, strong capital gains were a result of the strong financial performance recorded by several listed companies, the increase in dividend payments and the demand for listed company shares resulted.

The Reserve Bank of Fiji (RBF) stated that the Fijian economy was expected to grow by 4.2 per cent last year.

Fiji’s growth trajectory is a result of an upward trend in consumer spending which is supported by higher incomes, favourable labour market conditions and accommodative monetary policy conditions.

The inflation rate was forecasted to end the year below the three per cent mark.

Dividend Returns and Capital Growth – Total Market Return

The overall capital growth for Fiji’s stock market for last year averaged 23.82 per cent (tax-free) while the average dividend yield for the market stood at 3.80 per cent (tax-free).

The impressive average total market return was driven by a huge demand for listed company shares which subsequently resulted to the increased price shares for majority of the listed companies.

Market Capitalisation

The overall capitalisation of the market recorded an outstanding performance last year, gaining a significant 36.25 per cent to conclude at an all-time high value of $1,796,850,636.

The achievement in the market capitalisation is justified given the share price increases recorded in majority of the listed stocks.

Price movers and shakers for 2017:

FijiCare Insurance Limited (FIL) 61.11 per cent

Toyota Tshusho (South Sea) Limited (TTS) 51.88 per cent.

Amalgamated Telecom Holdings Limited (ATH) 46.46 per cent

FMF Foods Limited (FMF) 43.75 per cent

Vision Investments Limited (VIL) 37.25 per cent

RB Patel Group Limited (RBG) 35.87 per cent

Fiji Television Limited (FTV) 31.79 per cent

Pleass Global Limited (PBP) 28.38 per cent

Free Bird Institute Limited (FBL) 27.50 per cent

Fijian Holdings Limited (FHL) 27.14 per cent

Kinetic Growth Fund Limited (KGF)  17.78 per cent

VB Holdings Limited 13.07 per cent

BSP Convertible Notes Limited (BCN) 9.64 per cent

The Rice Company of FIji Limited 9.33 per cent

Communications Fiji Limited (CFL) 7.59 per cent

Paradise Beverages (Fiji) Limited (PBF) 4.13 per cent

Feedback:  monica.aguilar@fijisun.com.fj

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