November saw the second largest monthly gain in the index, up 11.93%. Continued interest in DIH saw, for the first time since trading began, every outstanding order to sell DIH shares filled. Trading was much thinner than in the previous two weeks, so the lack of supply put upward pressure on the price, which at one point moved to $7.2 before settling at $6.5.
As such the average moved up to $6.7 - a 26.4% increase on the week and 59.5% increase on the month. Bids remain at $6.5 which will provide support at that price unless supply outstrips demand. Other stocks also rallied during November with average prices of three stocks increasing: NBI (up 6.3%), DDL (up 4.3%) and BTI (up 2.6%). The only stock to buck the trend was GSI, the average slipped 16% on the month. Altogether the net gains translated to 51.2 index points (4.74%) on the day and 120.7 points for the month with the market ending the month at an all time high of 1132.6, 25.9% above the level at the end of December.
The performance of the Guyanese market may seem extremely strong, put pales in comparison to that from its Caribbean peers, ranking only third place behind Jamaica (up 59.48%), Trinidad (up 52.52%), but coming ahead of Barbados (up 25%). However the returns (even in US$ terms) comfortably outstrip those on the S&P 500 (up 6.44%), and the NASDAQ (up 3.8%). (Source: http://www.searchcaribbean.com/servlet-bin/jsp/investment/index.jsp)
The question which must be on everybody's mind must be will the gains last? This largely boils down to investor sentiment, and with NBI, DIH, DTC and DDL making up 81.7% of the market it is largely the fortunes of these companies which will determine the future direction of the market.
One thing which suggests the gains are sustainable is that the prices being paid for these stocks as a multiple of earnings are actually less then at the year end - meaning that growth in earnings is actually increasing faster than the increase in the share price. *The market information provided here is provided for informational and educational purposes only and is provided on a time delayed basis. GASCI does not guarantee the accuracy or completeness of any information contained on this page. Although the information has been obtained by GASCI from sources believed to be reliable, it is provided on an "as is" basis without warranties of any kind. GASCI assumes no responsibility for the consequences of any errors or omissions. GASCI does not make or has not made any recommendation regarding any of the securities issued by any of the companies identified here nor the advisability of investing in securities generally for any particular individual.