2017 FIRST HALF REPORT
Overview Table 1 illustrates the total trading activity for the first half of 2017 compared to the activity which occurred for the corresponding period in 2016. Total trading volume decreased by 80%, while total trading value decreased by 82%. The Regular and Put Through Markets both experienced declines in terms of both volume and value at the 2017 half-year close when compared to their performance for the corresponding period in 2016. There was one Block Trade conducted across the board of the BSE during the first half of 20171 with substantially greater volume and value to that of the single Block Trade which occurred during the first half of 2016. There were no significant extraordinary transactions2 conducted during the first half of 2017, however, transactions pursuant to the takeover of both Trinidad Cement Limited and The West Indies Rum Distillery Limited did occur. The Junior Market had no trading activity for the first half of 2017. Two securities were delisted from the board of the Exchange during the first half of 20173. Second quarter 2017 market performance showed similar performance as volumes and values traded both experienced declines across all markets. As illustrated in Table 2, total trading volume fell by 45% with a corresponding decrease in total trading value of 48%. The Regular Market recorded a decrease in terms of volume traded of 36% with a 29% decrease in terms of value traded while the Put Through Market activity recorded decreases of 41% and 29% in terms of volume and value traded respectively. There was no activity on the Block Trade and Junior Markets during the second quarter of 2017.
1 2 3
See Block Trade and Junior Market Section. See Regular Market Section. See Regular Market Section.
Table 1 – Total Trading Activity - 1st Half 2017 Year-to-Date Volume
Value ($)
% Change
Market
2017
2016
2017
2016
Volume
Value
Regular
3,465,819
30,776,389
9,620,859
198,979,071
-89
-95
236,640
424,021
596,344
881,768
-44
-32
-
-
-
-
NA
NA
2,519,171
368,769
25,771,119
2,581,383
583
898
6,221,630
31,569,179
35,988,323
202,442,222
-80
-82
Put - Through Junior Block Trade Total
Table 2 – Trading Activity - 2nd Quarter Year-to-Date Volume
Value ($)
% Change
Market
2017
2016
2017
2016
Volume
Value
Regular
1,406,111
2,210,566
4,879,322
6,858,163
-36
-29
80,083
135,757
200,208
281,040
-41
-29
Junior
-
-
-
-
NA
NA
Block Trade
-
368,769
-
2,581,383
NA
NA
1,486,194
2,715,092
5,079,529
9,720,586
-45
-48
Put - Through
Total
4
First Half Report 2017
Regular Market The trading activity on the Regular Market for the first half of 2017 recorded declines of 89% in trading volume and a corresponding decrease in value of 95%. The total volume of shares traded at the half year of 2017 was 3,465,819 as compared to 30,776,389 shares traded for the corresponding period in 2016 as illustrated in Table 3. Similarly, the total value traded decreased from $198,979,071 in the first half of 2016 to $9,620,859 for the corresponding period in 2017. Two securities were delisted from the board of the BSE during the first half of 2017. Massy Holdings Limited was delisted from the board of the BSE on January 9th, 2017 while Trinidad Cement Limited was delisted on March 6th, 2017.
of trades for 2017 and 2016. The number of trades recorded during the first half rose from 799 in 2016 to 925 in 2017 – an increase of 16% – while the Average Share Price fell by 24% from $6.37 to $4.86. Eleven securities advanced in price and five declined as at June 30th, 2017 as compared to 10 securities advancing and one declining at the close of the half in 2016. At the close of the first half of 2017, a total of 36 extraordinary transactions, either pursuant or subsequent to a takeover, had occurred across the board of the Exchange resulting in a volume of 297,719 shares trading with a corresponding value of $1,911,316. Table 4 illustrates a breakdown of the extraordinary transactions which occurred for the first half of 2017.
Figure 1 illustrates a monthly comparison of the volume
Table 3 – Regular Market Comparison – Year On Year 30-Jun-17
30-Jun-16
% Change
Total Share Volume
3,465,819
30,776,389
-89
Total Share Value
9,620,859
198,979,071
-95
27,950
248,197
-89
$77,588
$1,604,670
-95
Number of Trades
925
799
16
Number of Trade Days
124
124
0
$4.86
$6.37
-24
11/5
10/1
N/A
Local Index
2,930.95
2,528.63
16
Cross – Listed Index
1,004.82
1,738.11
-42
699.73
678.38
2
6,365,642,196
6,393,519,315
0
678,295,603
2,862,760,630
-76
7,043,937,799
9,256,279,945
-24
19
24
-21
Average Daily Share Volume Average Daily Share Value
Average Share Price Advance/Decline Ratio
Composite Market Index Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities
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Table 5 and Table 6 show the top five companies traded in the Regular Market for the first half of 2017 based on volume and value respectively. Sagicor Financial Corporation Limited was the top traded company for the first half of 2017 in terms of both volume and value accounting for 25.65% of the total volume traded and 21.42% of the total value traded. Fortress Caribbean Property Fund - Value Fund and Fortress Caribbean Property Fund - Development Fund followed, accounting for 20.41% and 10.58% of the volume traded respectively. In terms of value traded, Goddard Enterprises Limited and The West Indies Rum Distillery Limited rounded out the top three with the former accounting for 18.86% of the total value traded, while the latter accounted for 15.8% of the value of shares
traded at the close of the first half of 2017. As Table 7 and Table 8 illustrate, Sagicor Financial Corporation Limited was the top security traded for the second quarter in terms of volume traded while The West Indies Rum Distillery Limited was the top performer in terms of value traded. FirstCaribbean International Bank and Fortress Caribbean Property Fund - Value Fund rounded out the top three in terms of volume traded. In terms of value, Goddard Enterprises Limited and Sagicor Financial Corporation were the next best performers in terms of value traded for the second quarter of 2017.
Figure 1 - BSE Regular Market Trade Frequency Comparison 2016/2017
6
First Half Report 2017
Table 4 - Extraordinary Transactions - 1st Half Security
No. of Trades
Volume
Value
33
51,743
$367,375
Trinidad Cement Limited
1
111,513
$168,385
The West Inidies Rum Distillery Limited6
2
134,463
$1,375,556
36
297,719
$1,911,316
Banks Holdings Limited
4 5
TOTAL
Table 5 - Top Five Traded Companies By Volume -1st half 2017
2016
2017
2016
Company
Volume
Volume
Value
Value
Sagicor Financial Corporation Limited
888,964
1,358,977
$2,060,594
$2,716,419
Fortress Caribbean Property Fund - Val Fund
707,271
205,703
$374,514
$123,563
Fortress Caribbean Property Fund - Dev Fund
366,633
376,880
$53,605
$73,229
Insurance Corporation Of Barbados Limited
366,553
1,073,989
$1,387,965
$2,904,406
FirstCaribbean International Bank
273,937
885,712
$667,143
$1,717,832
2017
2016
2017
2016
Value
Value
Volume
Volume
Sagicor Financial Corporation Limited
$2,060,594
$2,716,419
888,964
1,358,977
Goddard Enterprises Limited
$1,814,795
$835,201
194,241
112,398
The West Indies Rum Distillery Limited
$1,520,476
$2,600
152,578
325
Insurance Corporation Of Barbados Limited
$1,387,965
$2,904,406
366,553
1,073,989
$667,143
$1,717,832
273,937
885,712
Table 6 - Top Five Traded Companies By Value –1st Half Company
FirstCaribbean International Bank
4
These transactions represent the trades pursuant to SLU Beverages Limited’s offer for Banks Holdings Limited.
5
These transactions represent the trades pursuant to Sierra Trading’s offer for Trinidad Cement Limited.
6 These transactions represent the trades pursuant to United Caribbean Rum Limited’s offer for The West Indies Rum Distilleries Limited.
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Table 7 - Top Five Traded Companies By Volume –2nd Quarter 2017
2016
2017
2016
Company
Volume
Volume
Value
Value
Sagicor Financial Corporation Limited
377,699
999,392
$926,406
$2,004,064
FirstCaribbean International Bank
215,912
211,500
$532,979
$427,600
Fortress Caribbean Property Fund - Val Fund
201,834
54,745
$102,765
$30,648
The West Indies Rum Distillery Limited
134,463
325
$1,375,556
$2,600
Insurance Corporation Of Barbados Limited
121,603
20,891
$456,526
$66,157
2017
2016
2017
2016
Value
Value
Volume
Volume
$1,375,556
$2,600
134,463
325
Goddard Enterprises Limited
$929,827
$662,306
98,112
88,133
Sagicor Financial Corporation
$926,406
$2,004,064
377,699
999,392
FirstCaribbean International Bank
$532,979
$427,600
215,912
211,500
Insurance Corporation Of Barbados Limited
$456,526
$66,157
121,603
20,891
Table 8 - Top Five Traded Companies By Value –2nd Quarter Company The West Indies Rum Distillery Limited
8
First Half Report 2017
Put Through Market Table 9 illustrates Put Through market activity for the first half of 2017. This market recorded a decrease in terms of the volume traded (44%) and a corresponding decrease in value traded (32%) for the period under examination over the corresponding period in 2016. A total of five hundred and nineteen (519) trades occurred across two (2) securities; this as compared to seven hundred and nineteen (719) trades occurring across two (2) securities for the corresponding period in 2016.
Block Trade & Junior Market For the period ended June 30th, 2017, there was one (1) block trade transaction. The West Indies Rum Distillery Limited was the sole security trading a total of 2,519,171 shares at $10.225586 on March 10th, 2017. This transaction was approved by the BSE as it was in accordance with Item 2(d), Section 7.01.20 - Block Trade Rule - of the Rules of the Barbados Stock Exchange Inc. which states, “the sale and purchase of a Listed Security pursuant to a takeover, conducted or to be conducted in accordance with the applicable laws�. There was no activity on the Junior Market for the first half of 2017.
Bond Market For the first half of 2017, eighteen (18) Barbados Government Debentures and eight (8) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-seven (27) Barbados Government Debentures and twelve (12) Barbados Government Treasury Notes trading for the corresponding period in 2016. A total of 71 trades occurred on the Bond Market at the close of 2017 half, as compared to 150 trades in for the corresponding period in 2016. As at June 30th, 2017, the total face value of bonds traded stood at $1,206,000 as compared to $42,293,000 traded as at June 30th, 2016. Table 10 summarizes all bonds traded for the first half of 2017.
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Table 9 - Put Through Market Activity - 1st Half Security
No. of Trades
Volume
Value
1
3,000
$27,600
Sagicor Financial Corporation
518
233,640
$568,744
Total
519
236,640
$596,344
Goddard Enterprises Limited
Table 10 - Summary Of Bonds Traded Security
No. of Trades
Volume
Barbados Government Debenture 6.125% 2021
5
22,000
Barbados Government Debenture 6.25% 2019
1
7,000
Barbados Government Debenture 6.25% 2022
2
2,000
Barbados Government Debenture 6.625% 2018
1
35,000
Barbados Government Debenture 6.625% 2020
6
323,000
Barbados Government Debenture 6.875% 2023
7
57,000
Barbados Government Debenture 6.875% 2024
2
9,000
Barbados Government Debenture 7% 2017
2
2,000
Barbados Government Debenture 7% 2023
6
15,000
Barbados Government Debenture 7% 2024
2
2,000
Barbados Government Debenture 7% 2028
1
7,000
Barbados Government Debenture 7.125% 2026
6
186,000
Barbados Government Debenture 7.25% 2026
1
2,000
Barbados Government Debenture 7.25% 2029
1
50,000
Barbados Government Debenture 7.375% 2027
4
7,000
Barbados Government Debenture 7.375% 2029
1
50,000
Barbados Government Debenture 7.75% 2025
1
1,000
Barbados Government Debenture 7.75% 2035
1
10,000
Barbados Government T/Note 4% 2018
1
3,000
Barbados Government T/Note 4.25% 2019
2
6,000
Barbados Government T/Note 5.5% 2020
4
117,000
Barbados Government T/Note 6.25% 2018
5
41,000
Barbados Government T/Note 6.25% 2024
3
20,000
Barbados Government T/Note 6.5% 2019
3
28,000
Barbados Government T/Note 6.625% 2019
2
4,000
Barbados Government T/Note 6.625% 2020
1
200,000
Total
71
1,206,000
10
First Half Report 2017
Index & Market Capitalization Movement The results for both the Index and Market Capitalization measures were consistent when examined over the three, six and twelve month periods. For the second quarter of 2017, as illustrated in Table 11, both the Local and Composite Indices recorded increases of 2.23% and 1.77% respectively, when compared to their March 31st 2016 figures; the Cross Listed Index measure experienced a 2.38% decline. When the comparison is extended to six months and twelve months (Table 12 and Table 13), index measures recorded similar performance. The Local Index recorded its highest increase over the twelve month (15.91%) while the Composite Index recorded its highest increase of 7.35% over the six month. The upturn in index performance can be attributed to share
Figure 2 - Index Movement - 12 Months
price appreciation in eleven securities, eight of which experienced increases in excess of 10%. Figure 2 tracks the Index movement over a twelve (12) month period. The Market Capitalization comparisons illustrated in Table 14-16, closely mirror the performance of the Index comparisons discussed above over the three month, however, over the six and twelve month periods, these values deteriorated as two Cross Listed securities were delisted from the board of the BSE resulting in substantial decreases in the Cross Listed and Composite Market Capitalization measures.
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Table 11 - Index Comparison 2nd Quarter Index
30-Jun-17
31-Mar-17
% Change
Local
2,930.95
2,866.91
2.23
Cross Listed
1,004.82
1,029.34
-2.38
699.73
687.56
1.77
Index
30-Jun-17
31-Dec-16
% Change
Local
2,930.95
2,598.89
12.78
Cross Listed
1,004.82
1,357.55
-25.98
699.73
651.85
7.35
Index
30-Jun-17
30-Jun-16
% Change
Local
2,930.95
2,528.63
15.91
Cross Listed
1,004.82
1,738.11
-42.19
699.73
687.38
1.80
30-Jun-17
31-Mar-17
% Change
6,365,642,196
6,226,553,949
2.23
Cross Listed
678,295,603
694,849,524
-2.38
Composite
7,043,937,799
6,921,403,473
1.77
30-Jun-17
31-Dec-16
% Change
6,365,642,196
5,643,146,945
12.80
Cross Listed
678,295,603
2,235,947,791
-69.66
Composite
7,043,937,799
7,879,094,736
-10.60
30-Jun-17
30-Jun-16
% Change
6,365,642,196
6,393,519,315
-0.44%
Cross Listed
678,295,603
2,862,760,630
-76.31%
Composite
7,043,937,799
9,256,279,945
-23.90%
Composite
Table 12 - Index Comparison 1st Half
Composite
Table 13 - Index Comparison Year-On-Year
Composite
Table 14 - Market Capitalization comparison 2nd Quarter Market Capitalization Local
Table 15 - Market Capitalization comparison 1st Half Market Capitalization Local
Table 16 - Market Capitalization Comparison Year-On-Year Market Capitalization Local
12
First Half Report 2017
Company Activity Comparative Report For the first half of the year ending June 30th 2017, eleven (11) securities advanced7, five (5) declined, two (2) remained unchanged and one (1) did not trade; two (2) securities were delisted8. This is compared to ten (10) securities advancing, one (1) declining, eleven (11) remaining unchanged and two (2) did not trade; there was one ( 1) delisting and one (1) new listing.
ABV Investments Incorporated was the top advancer for the first half climbing 150% from $0.02 on December 31st 2016 to $0.05 at June 30th 2017. Barbados Farms Limited and Barbados Dairy Industries Limited rounded out the top three companies to increase in price during the first six months of 2017 increasing 61.29% and 31.58% respectively. The eight other securities to increase
7 Due to the calculation of Emera Deposit Receipt’s closing price - being dependent on its parent security’s closing price and the currency exchange rate - it advanced in price but did not trade and has been included in the number of securities advancing. 8 Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Massy Holdings Limited were delisted from the Board of the BSE on January 9th, 2017. Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Trinidad Cement Limited were delisted from the Board of the BSE on March 6th, 2017.
| 13
in price were The West Indies Rum Distillery Limited (27.88%), Sagicor Financial Corporation Limited (21.89%), FirstCaribbean International Bank (17.14%), Emera Deposit Receipt (11.24%), Goddard Enterprises Limited (11.1%), West India Biscuit Company Limited (8.84%), BICO Limited (6.83%) and Cave Shepherd and Company Limited (5.14%). Five securities experienced declines in share price for the first six months of 2017. Fortress Caribbean Property Fund – Development Fund suffered a highest decline as
their share price fell by 40% during the half. Table 17 illustrates the year to date activity for all listed securities while Table 18 shows the activity for the second quarter. For the second quarter of 2017, ten (10) securities advanced, five (5) declined, one (1) remained unchanged and three (3) did not trade. This is compared to eight (8) securities advanced, one (1) declined, eleven (11) remained unchanged and four (4) did not trade for the corresponding period in 2016.
Table 17 - 1st Half Trading Activity By Company (Regular & Junior Market (J) Only) 1st Half 2017 Security
Closing Price
Volume
Value
30-Jun-17
31-Dec-16
% Change
2,000
$100
0.05
0.02
150.00
27,460
$59,482
2.19
2.05
6.83
7,405
$14,939
2.50
1.90
31.58
Barbados Farms Limited
62,676
$23,085
0.50
0.31
61.29
Banks Holdings Limited
87,380
$620,398
7.10
7.10
0.00
Fortress C’bean Property Fund - Dev Fund
366,633
$53,605
0.12
0.20
-40.00
Fortress C’bean Property Fund - Val Fund
707,271
$374,514
0.50
0.55
-9.09
77,161
$268,518
3.68
3.50
5.14
Cable And Wireless Barbados Limited
104,663
$253,733
2.21
2.60
-15.00
FirstCaribbean International Bank
273,937
$667,143
2.46
2.10
17.14
Goddard Enterprises Limited
194,241
$1,814,795
10.01
9.01
11.10
Insurance Corporation of Barbados Ltd
366,553
$1,387,965
3.73
3.76
-0.80
800
$120
0.15
0.15
0.00
Emera Deposit Receipt
0
$-
18.41
16.55
11.24
Massy Holdings Limited*
0
$-
N/A
13.50
N/A
25,136
$169,467
6.55
6.94
-5.62
0
$-
2.26
2.26
0.00
888,964
$2,060,594
2.45
2.01
21.89
111,513
$168,385
N/A
0.85
N/A
9,448
$163,539
17.36
15.95
8.84
152,578
$1,520,476
10.23
8.00
27.88
3,465,819
$9,620,859
ABV Investments Incorporated BICO Limited Barbados Dairy Industries Limited
Cave Shepherd and Company Limited
JMMB Group Limited
One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation Trinidad Cement Limited* West India Biscuit Company Limited The West Indies Rum Distilleries Limited
* Denotes delisted security
14
First Half Report 2017
Table 18 - 2nd Quarter Trading Activity By Company (Regular & Junior Market Only) 2nd Quarter 2017 Security
Closing Price
Volume
Value ($)
30-Jun-17
31-Mar17
% Change
2,000
100
0.05
0.02
150.00
0
-
2.19
2.19
0.00
3,622
7,658
2.50
1.95
28.21
Barbados Farms Limited
19,636
8,318
0.50
0.35
42.86
Banks Holdings Limited
15,938
113,160
7.10
7.10
0.00
Fortress C’bean Property Fund - Dev Fund
117,832
15,011
0.12
0.15
-20.00
Fortress C’bean Property Fund - Val Fund
201,834
102,765
0.50
0.53
-5.66
Cave Shepherd and Company Limited
21,721
76,230
3.68
3.45
6.67
Cable And Wireless Barbados Limited
60,671
144,477
2.21
2.45
-9.80
215,912
532,979
2.46
2.40
2.50
98,112
929,827
10.01
9.27
7.98
121,603
456,526
3.73
3.79
-1.58
JMMB Group Limited
0
-
0.15
0.15
0.00
Emera Deposit Receipt
0
-
18.41
17.38
5.93
6,550
42,593
6.55
6.80
-3.68
0
-
2.26
2.26
0.00
377,699
926,406
2.45
2.38
2.94
8,518
147,716
17.36
17.26
0.58
134,463
1,375,556
10.23
8.00
27.88
1,406,111
4,879,322
-
-
ABV Investments Incorporated BICO Limited Barbados Dairy Industries Limited
FirstCaribbean International Bank Goddard Enterprises Limited Insurance Corporation of Barbados Ltd
One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation West India Biscuit Company Limited The West Indies Rum Distilleries Limited
15
| 15
First Half Report 2017
Conclusion A look at the four regional exchanges index measures in Table 19 shows that the BSE and the Jamaica Stock Exchange (JSE) are experiencing general improvements in market performance over the three, six and twelve month periods under examination. The Trinidad & Tobago Stock Exchange (TTSE) showed improvement over the twelve month but recorded declines for the six and three month periods. Over the three periods examined, the Eastern Caribbean Stock Exchange (ECSE) has recorded declines in its ECSE EC Share index measures; the largest of which was 12.54% over the six month. The BSE Composite Index recorded increases over the three periods under examination, the largest being 7.35% over the six month period while the JSE Market Index recorded its highest increase of 47.16% over the twelve month. Comparative index values for 2016 are provided for reference and illustrate improvements for each exchange.
The BSE continues to work towards the continued success of the International Securities Market (ISM). Having successfully launched the ISM in the first quarter of 2016, the BSE signed on two Listing Sponsors – Centurion ISM Services Incorporated and ListAssist Services (Barbados) Limited (formerly FGC Services Limited) by the close of 2016. On June 2nd, 2017, the BSE was pleased to announce that DGM Trust Corporation was approved as its third Listing Sponsor and expects to sign on two additional Listing Sponsors before the end of the third quarter of 2017. We continue to meet with several service providers of the local international business community and have undertaken an international outreach program aimed at educating prospective issuers and other market participants on the advantages of the ISM and the benefits to be derived by their involvement in this market.
As we commence the third quarter of 2017, we expect market conditions to show similar performance. While trading activity may not match that of 2016, due largely in part to the absence of major extraordinary transactions, we expect the general trend of share price appreciation to continue, resulting in improvements in the performance of our index measures.
At the close of the third quarter, the BSE will host its fifth annual Corporate Governance & Accountability Conference on September 21st and 22nd, 2017 at the Hilton Barbados Resort and invites interested parties to contact the Exchange for further information on this year’s conference.
Table 19 - Regional Comparison First Half 2017 Regional Index Performance BSE Composite Index
3-Month (%)
6-Month (%)
First Half 2016 12-Month (%)
3-Month (%)
6-Month (%)
12-Month (%)
1.77
7.35
1.80
1.36
4.69
9.88
JSE Market Index
16.86
22.24
47.16
3.77
5.99
64.20
E Composite Index
-1.99
-0.03
6.48
0.22
-2.30
-2.27
ECSE EC Share Index
-3.25
-12.54
-1.46
8.64
15.84
26.76
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