Investors are continuing to pour money into shares of TransJamaican Highway, with market analysts pointing to the company's improving financial performance, and the prospect of higher toll rates as key drivers of demand.
Christopher Thomas, Senior Investment Advisor at Mayberry Investments, says the highway operator's monopoly position and steady revenue growth, have made the stock increasingly attractive to investors.
Mr. Thomas, speaking Monday on Radio Jamaica’s Real Business, said the proposed increase in toll rates is expected to translate into higher profits for the company, because motorists have few practical alternatives to using the toll roads.
He noted that, while the annual toll increases place an additional burden on drivers and commuters, they are viewed positively by investors, because they are expected to boost the company's earnings.
Mr. Thomas’s comments came as TransJamaican Highway shares closed at $9.24 on Tuesday after $9.5 million shares changed hands.
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