ACCT3602 Semester 2 - Report, Stock Exchange

Report, Stock Exchange

Semester 2

Financial Market Analysis

THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA

BACHELOR’S DEGREE COURSEWORK

ACCT3602

 Semester 2

Financial Market Analysis

Study and prepare a report on the following companies, based on their listing on the Jamaica

Stock Exchange (JSE) for the period March 20 – 31, 2023.

i. Caribbean Producers Jamaica Limited (CPJ)

ii. Jamaica Broilers Group (JBG)

You are required to:

A. Provide an overview of the companies being studied . (5 marks)

i. Construct a price-weighted index for the two stocks and compute the percentage changes in the index for period 1 (Week 1) and period 2 (Week 2) (10 marks) 

ii. Construct a value-weighted index for the two stocks and compute the percentage changes in the index for period 1 (Week 1) and period 2 (Week 2) (10 marks)

B. Record the daily trading volume and closing price. (10 marks)

i. Calculate the percentage change in the stock’s price. (20 marks)

ii. Determine, for each day, whether the stock decline, advanced, or traded firm.(10 marks)

C. Discuss the use of earnings per share in the investment arena and comment on the earnings per share information for both companies, based on their last two quarterly reports. (5 marks)

 D. Discuss the use of Price-to-earnings growth ratio (PEG ratio). Calculate the PEG ratio for both companies and comment on the results. (10 marks)

E. Use the market capitalization to GDP ratio to evaluate the state of the Jamaica Stock Exchange. (5 marks)

F. Explain briefly the impact of dividend announcement on the price of a stock and

 on the effect of increasing interest rates on stock prices. (5 marks)