SpaceX IPO Demand Fuels Jamaican Stock Sell-Off

A senior investment adviser says demand for SpaceX’s recent initial public offering helped drive heavy selling across the Jamaican stock market, as investors sought funds to buy shares in the Elon Musk-led company.

Christopher Thomas of Mayberry Investments said many Jamaicans offloaded local equities to take part in the SpaceX IPO, even though the company recorded losses of US$4.9 billion last year and US$5 billion in the first quarter of this year.

Speaking Monday on Radio Jamaica’s Real Business, Thomas said his office fielded many requests from clients who wanted to cash out domestic holdings so they could purchase SpaceX shares.

He said appetite for the stock remained strong, with SpaceX moving from an opening price of US$135 to end last week at US$165.65.

Thomas said the shift out of Jamaican positions was one factor behind sharp swings on the Jamaica Stock Exchange. He said the exchange had to activate its circuit breaker 22 times last week, with most pauses coming after share prices dropped by 15 per cent.

JSE rules require trading in a stock to be stopped for one hour when its price climbs or falls by 15 per cent.

In Monday’s market activity, the JSCE Index fell by 1,549 points, while the Junior Market slipped 39 points. Trading took place in 115 stocks, with 35 gaining, 57 losing ground and 23 closing unchanged.

Kintyre Holdings led volume, accounting for 33 per cent of all shares traded.