2014
First Half Report
8th Avenue Belleville, St. Michael BB11114, Barbados T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb
2
Overview Table 1 below, illustrates the total trading activity for the first half of 2014 compared to the activity which occurred for the corresponding period in 2013. Total trading volume decreased by 17%, while total trading value decreased by 41% in line with the declining performance which was recorded across all markets. The Put-Through Market, though only recording a 1% decline in the volume traded, recorded the largest decline in terms of value of 50%. There was no trading on the Junior or Block Trade Markets for the first half of 2014. There were no extra-ordinary transactions occurring on the board of the BSE for the first quarter of 2014. This as compared to (12) extra-ordinary transactions pursuant to the take-over of Republic Bank Barbados Limited by Republic Bank Limited for the corresponding period in 2013. Excluding these transactions would have resulted in increases in total trading volume of 16% but decreases in total trading value of 11%. There was one delisting on the board of the Exchange during the first half of 20141. Table 1 - Total Trading Activity - 1st Half 2014
Market
June
June
2014 Volume
2013 Volume
2,891,508
3,661,508
$
910,376
918,639
Junior
-
Block Trade
Regular Put Through
Total
June
June
2014 Value
% Change % Change
2013 Value
Volume
Value
9,480,243 $
15,215,728
-21%
-38%
$
2,247,374 $
4,524,531
-1%
-50%
-
$
- $
-
NA
NA
-
-
$
- $
-
NA
NA
3,801,844
4,579,838
$
11,727,617 $
19,740,258
-17%
-41%
Second quarter 2014 market performance showed lesser declines as there was improvement in the volumes traded, however, declining share prices meant that the value of the shares traded was not up to par with the 2013 figures. As illustrated in Table 2 below, total trading volume was down 2% with a corresponding decline in total trading value of 34%. The Regular Market recorded the only increase in terms of volume traded but declines in value traded. Put Through Market activity recorded large declines and there was no activity on the Junior or Block Trade Markets. Table 2 - Trading Activity - 2nd Quarter
Second Quarter
Second Quarter
Second Quarter
Second Quarter
2014 Volume
2013 Volume
2014 Value
2013 Value
1,689,665
1,356,675
$
5,192,242 $
5,820,796
25%
-11%
15,375
383,483
$
49,838 $
2,118,949
-96%
-98%
Junior
-
-
$
- $
-
NA
NA
Block Trade
-
-
$
- $
-
NA
NA
1,705,040
1,740,158
$
5,242,080 $
7,939,745
-2%
-34%
Market
Regular Put Through
Total
% Change % Change Volume
Value
1 Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Securities Commission, the shares of Barbados Shipping and Trading Company Limited were delisted from the Board of the BSE on February 5th, 2014.
3
Regular Market The trading activity on the Regular Market for the first half of 2014 recorded a decrease of 21% in trading volume and a decrease in value of 38%. The total volume of shares traded at the half year was 2,891,508 as compared to 3,661,199 shares traded for the corresponding period in 2013 as illustrated in Table 3. Similarly, the total value traded decreased from $15,215,728 in the first half of 2013 to $9,480,243 for the corresponding period in 2014. Excluding the extraordinary transactions occurring in the first half of 2013, Regular Market activity would have yielded increases in both volume and value traded of 23% and 9% respectively. The number of trades recorded during the first half rose from 579 in 2013 to 598 in 2014; an increase of 3%. Figure 1 illustrates a monthly comparison of the volume of trades for 2014 and 2013. The Average Share Price decreased by 8.36% from $5.97 to $5.47 due primarily to a sharp decrease in the share prices of Barbados Dairy Industries Limited, Cave Shepherd and Company Limited and CIBC FirstCaribbean International Bank which, by the close of the half, had all fallen in price by more than 15% of their respective December 31, 2013 positions. On February 5, 2014 Barbados Shipping and Trading Company Limited was delisted from the board of the BSE. Figure 1 - BSE Trade Frequency Comparison
BSE Trade Frequency Comparison
No. of Trades
160 140 120 100 80 60 40 20 0
January
February
March
April
May
June
2014
64
152
103
81
101
97
2013
116
101
72
155
41
94
4 Table 3 - Regular Market Comparison
Regular Market Year on Year Comparison
30-Jun-14
30-Jun-13
% Change
Total Share Volume
2,891,508
3,661,199
-21%
Total Share Value
9,480,243
15,215,728
-38%
23,701
30,010
-21%
124,719
-38%
Average Daily Share Volume Average Daily Share Value
$
77,707 $
Number Of Trades
598
579
3%
Number Of Trade Days
122
122
0%
5.47 $
5.97
-8%
7/6
6/7
N/A
Local Index
2,161.03
3,062.33
-29%
Cross – Listed Index
1,676.68
1,442.59
16%
Average Share Price
$
Advance/Decline Ratio
Composite Market Index
611.75
748.03
-18%
Local Market Capitalization
5,423,749,949
8,662,306,420
-37%
Cross-Listed Market Capitalization
2,798,239,355
2,407,563,638
16%
Composite Market Capitalization
8,221,989,304
11,069,870,058
-26%
26
27
-4%
Number Of Listed Securities
Table 4 and Table 5 show the top five companies traded in the Regular Market for the first half of 2014 based on volume and value respectively. Fortress Caribbean Property Fund - Value Fund was the top traded company for the first half of 2014 in terms of volume accounting for 26.34% of the total volume traded. Goddard Enterprises Limited was second in terms of volume traded but first in terms of value traded accounting for 33.69% of the value traded. Table 4 - Top five traded companies by volume -1st half
Company
2014
2013
2014
2013
Volume
Volume
Value
Value
Fortress C'bean Property Fund - Val Fund
761,642
408,593 $
-
Goddard Enterprises Limited
516,860
271,759 $ 3,193,596 $
0 $
1,661,568
Sagicor Financial Corporation
471,992
783,818 $
Insurance Corporation Of Barbados Limited
288,879
78,411 $
749,762 $
201,310
Fortress C'bean Property Fund - Dev Fund
278,787
0 $
51,420 $
-
995,866 $ 1,629,203
Table 5 - Top Five Traded Companies by Value –1st Half
Company
2014
2013
2014
2013
Value
Value
Volume
Volume
Goddard Enterprises Limited
$
3,193,596
$
1,661,568
516,860
271,759
Light And Power Holdings Limited
$
1,571,769
$
1,278,497
61,161
49,747
Sagicor Financial Corporation
$
995,866
$
1,629,203
471,992
783,818
Neal And Massy Holdings Limited
$
800,462
$
1,296,493
40,876
79,841
Insurance Corporation Of Barbados Limited
$
749,762
$
201,310
288,879
78,411
5 As Table 6 and Table 7 illustrate, Fortress Caribbean Property Fund - Value Fund was the top security traded for the second quarter in terms of volume, trading 578,916 shares or 34.26% of the volume traded, but did not make the top five in terms of value traded. Trading just over $2.8 million and accounting for over 50% of the total value traded, Goddard Enterprises Limited took the top spot in terms of value traded for the second quarter of 2014. Notable mention is given to Sagicor Financial Corporation which traded a total of 82 times or 29.39% of the total number of trades for the second quarter of 2014. Table 6 - Top Five Traded Companies by Volume –2nd Quarter
2014
2013
2014
2013
Company
Volume
Volume
Value
Value
Fortress C'bean Property Fund - Val Fund
578,916
Goddard Enterprises Limited
0 $
321,160 $
-
465,852
180,951 $ 2,879,878 $
1,111,743
Sagicor Financial Corporation
198,396
571,400 $
380,346 $
1,175,334
Insurance Corporation Of Barbados Limited
182,292
39,095 $
473,464 $
100,186
Fortress C'bean Property Fund - Dev Fund
78,916
0 $
15,768 $
-
Table 7 - Top Five Traded Companies by Value –2nd Quarter
Company Goddard Enterprises Limited
2014
2013
2014
2013
Value
Value
Volume
Volume
1,111,743
465,852
180,951
$
2,879,878
$
Neal And Massy Holdings Limited
$
564,335
$
915,411
28,646
55,334
Insurance Corporation Of Barbados Limited
$
473,464
$
100,186
182,292
39,095
Sagicor Financial Corporation
$
380,346
$
1,175,334
198,396
571,400
One Caribbean Media Limited
$
328,511
$
736,506
53,192
154,314
6
Put-Through Market Table 8 below illustrates Put-Through market activity for the first half of 2014. This market recorded a nominal decrease in terms of volume traded (1%) but a large decrease in performance in terms of value (50%) for the period under examination over the corresponding period in 2013. A total of fifty-three (53) trades were conducted across four (4) securities.
Table 8 - Put-Through Market Activity - 1st Half
Security
No. of Trades
Volume
Value
Banks Holdings Limited
5
35,655 $
115,649.50
CIBC FirstCaribbean International Bank
1
3,366 $
10,434.60
Goddard Enterprises Limited
1
25,396 $
158,725.00
Sagicor Financial Corporation
46
845,959 $
1,962,564.88
TOTAL
53
910,376 $
2,247,373.98
Junior Market There was no activity on the Junior Market during the first half of 2014.
7
Bond Market For the first half of 2014, twenty-two (22) Barbados Government Debentures and thirteen (13) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty (20) Barbados Government Debentures, twelve (12) Barbados Government Treasury Notes and one (1) Government-backed security trading for the corresponding period in 2013. A total of 131 trades occurred on the Bond Market, as compared to 104 trades in 2013, resulting in a face value of $4,675,000 traded for the first half of 2014 as compared to $32,224,000 traded as at June 30, 2013. Table 9 below summarises all bonds traded for the first half of 2014. Table 9 - Summary of Bonds Traded
Security
No. of Trades
Amount Traded
Barbados Government Debenture 4.75% 2016
2
54,000
Barbados Government Debenture 5.875% 2018
6
108,000
Barbados Government Debenture 6.125% 2021
8
120,000
Barbados Government Debenture 6.25% 2019
5
16,000
Barbados Government Debenture 6.25% 2022
6
805,000
Barbados Government Debenture 6.625% 2018
1
52,000
Barbados Government Debenture 6.625% 2020
3
52,000
Barbados Government Debenture 6.75% 2021
2
6,000
Barbados Government Debenture 6.75% 2022
3
518,000
Barbados Government Debenture 6.875% 2023
11
174,000
Barbados Government Debenture 6.875% 2024
5
23,000
Barbados Government Debenture 7% 2017
5
552,000
Barbados Government Debenture 7% 2023
7
37,000
Barbados Government Debenture 7.125% 2026
2
14,000
Barbados Government Debenture 7.25% 2025
1
10,000
Barbados Government Debenture 7.25% 2026
1
20,000
Barbados Government Debenture 7.375% 2027
3
12,000
Barbados Government Debenture 7.375% 2029
2
2,000
Barbados Government Debenture 7.50% 2026
1
1,500,000
Barbados Government Debenture 7.75% 2025
2
12,000
Barbados Government Debenture 7.75% 2032
2
2,000
Barbados Government Debenture 8.50% 2018
1
1,000
Barbados Government T/Note 4.125% 2015
1
2,000
8 Security
No. of Trades
Amount Traded
Barbados Government T/Note 4.375% 2014
1
1,000
Barbados Government T/Note 5.875% 2015
3
170,000
Barbados Government T/Note 6% 2016
12
136,000
Barbados Government T/Note 6% 2017
1
10,000
Barbados Government T/Note 6% 2018
1
9,000
Barbados Government T/Note 6.125% 2021
1
17,000
Barbados Government T/Note 6.25% 2018
3
14,000
Barbados Government T/Note 6.375% 2019
2
2,000
Barbados Government T/Note 6.5% 2016
12
155,000
Barbados Government T/Note 6.5% 2019
3
16,000
Barbados Government T/Note 6.625% 2019
10
47,000
Barbados Government T/Note 7.25% 2014
2
6,000
Total
131
4,675,000
9
Index and Market Capitalisation Movement The results for both the Index and Market Capitalisation measures were consistent when examined over the three, six and twelve month periods. For the second quarter of 2014, as illustrated in Table 10, the Cross-Listed Index recorded an increase over its March 31, 2014 figure of 8.91%. When the comparison is extended to six months and twelve months (Table 11 and Table 12), the local index recorded decreases of 27.86% and 29.43% respectively while the Cross-Listed Index recorded increases of 12.77% and 16.23% respectively. The Cross-Listed Index performance can be attributed to share price appreciation in both Neal and Massy Holdings Limited and One Caribbean Media Limited. Figure 2 below tracks the Index movement over a twelve (12) month period. The market capitalisation comparisons illustrated in Tables 13-15, closely mirror the performance of the index comparisons discussed above over the same three, six and twelve month periods. For the second quarter, CrossListed Market Capitalisation was impacted heavily as Neal and Massy Holdings Limited’s share price rose by 13.04% from $17.25 at the close of March 2014 to $19.50 at the close of the 1st half of 2014. Table 10 - Index Comparison - 2nd Quarter
Index
30-Jun-14
31-Mar-14
% Change
Local
2,161.03
2,568.58
-15.87%
Cross-Listed
1,676.68
1,539.55
8.91%
611.75
668.90
-8.54%
Index
30-Jun-14
31-Dec-13
% Change
Local
2,161.03
2,995.52
-27.86%
Cross-Listed
1,676.68
1,486.78
12.77%
611.75
740.42
-17.38%
Index
30-Jun-14
30-Jun-13
% Change
Local
2,161.03
3,062.33
-29.43%
Cross-Listed
1,676.68
1,442.59
16.23%
611.75
748.03
-18.22%
Composite Table 11 - Index Comparison - 1st half
Composite
Table 12- Index Comparison year-on-year
Composite
10 Table 13 - Market Capitalisation comparison - 2nd quarter
Market Capitalisation
30-Jun-14
31-Mar-14
% Change
Local
5,423,749,949
6,395,315,381.79
-15.19%
Cross-Listed
2,798,239,355
2,569,376,511.09
8.91%
Composite
8,221,989,304
8,964,691,893
-8.28%
30-Jun-14
31-Dec-13
% Change
Local
5,423,749,949
7,999,308,023
-32.20%
Cross-Listed
2,798,239,355
2,481,309,653
12.77%
Composite
8,221,989,304
10,480,617,676
-21.55%
30-Jun-14
30-Jun-13
% Change
Local
5,423,749,949
8,662,306,420
-37.39%
Cross-Listed
2,798,239,355
2,407,563,638
16.23%
Composite
8,221,989,304
11,069,870,058
-25.73%
Table 14 - Market Capitalisation comparison - 1st half
Market Capitalisation
Table 15 - Market Capitalisation Comparison year-on-year
Market Capitalisation
Figure 2 - Index Movement - 12 months
Year on Year Index Movement 40.00% 30.00%
10.00%
Local Index Cross-Listed Index
0.00%
Composite Index
-10.00% -20.00% June
May
April
March
February
January
December
November
October
September
August
-40.00%
July
-30.00% June
% Change
20.00%
11
Company Activity Comparative Report For the first half of the year ending June 30, 2014, seven (7) securities advanced, six (6) declined, six (6) remained unchanged and seven (7) did not trade; there was 1 delisting. This is compared to six (6) securities advanced, seven (7) declined, eight (8) remained unchanged including one (1) delisted security and six (6) did not trade with one (1) suspension for the first half of 2013. Fortress Caribbean Property Fund - Development Fund was the top advancer for the first half climbing 81.82% from $0.11 on December 31st 2013 to $0.20 at June 30, 2014. Fortress Caribbean Property Fund - Value Fund and One Caribbean Media Limited rounded out the top three (3) companies to increase in price during the first six months of 2014 increasing 42.50% and 29.17% respectively. The four (4) other companies to increase in price were Neal and Massy Holdings Limited, Barbados Farms Limited, Goddard Enterprises Limited and Banks Holdings Limited. Five (5) companies experienced declines in excess of 10% for the first six months of 2014. Barbados Dairy Industries Limited suffered the largest decline as their price fell by 50% during the half. FirstCaribbean International Bank, Cave Shepherd and Company Limited, Cable and Wireless Barbados Limited and Sagicor Financial Corporation were the other companies to experience double digit declines for the half of 39.6%, 18.52%, 11.76% and 10.71% respectively. Table 16 below illustrates the year to date activity for all listed securities while Table 17 shows the activity for the second quarter. Table 16 - 1st Half Trading Activity by Company (Regular and Junior market (J) only)
SECURITY
1st Half 2014
1st Half 2014
Volume
Value
CLOSING PRICE
CLOSING PRICE
% Change
June 30 December 31 2014 2013
Almond Resorts Incorporated
4,000
$
1,240
0.32
0.32
0.00%
Bico Industries Limited
2,021
$
3,585
1.80
1.80
0.00%
500
$
750
1.50
3.00
-50.00%
Barbados Farms Limited
16,468
$
8,385
0.51
0.50
2.00%
Banks Holdings Limited
146,757
$
447,601
3.04
3.03
0.33%
0
$
-
N/A
7.58
N/A
Fortress C'bean Property Fund - Dev Fund
278,787
$
51,420
0.20
0.11
81.82%
Fortress C'bean Property Fund - Val Fund
761,642
$
408,593
0.57
0.40
42.50%
Cave Shepherd And Company Limited
33,195
$
80,288
2.20
2.70
-18.52%
Cable And Wireless Barbados Limited
49,398
$
147,865
3.00
3.40
-11.76%
CIBC FirstCaribbean International Bank
85,688
$
188,320
1.80
2.98
-39.60%
Barbados Dairy Industries Limited
Barbados Shipping & Trading Co. Ltd.*
12 1st Half 2014
1st Half 2014
SECURITY
Volume
Value
Goddard Enterprises Limited
516,860
$
3,193,596
6.21
6.15
0.98%
Insurance Corporation Of Barbados Ltd.
288,879
$
749,762
2.59
2.60
-0.38%
Jamaica Money Market Brokers Limited
0
$
-
0.15
0.15
0.00%
61,161
$
1,571,769
25.70
25.70
0.00%
40
$
125
3.11
3.11
0.00%
40,876
$
800,462
19.50
17.25
13.04%
122,657
$
749,288
6.20
4.80
29.17%
587
$
1,327
2.26
2.26
0.00%
471,992
$
995,866
2.00
2.24
-10.71%
Trinidad Cement Limited
0
$
-
0.80
0.80
0.00%
West India Biscuit Company Limited
0
$
-
10.03
10.03
0.00%
10,000
$
80,000
8.00
8.00
0.00%
Royal Fidelity Tigrs A Fund
0
$
-
10.50
10.50
0.00%
Royal Fidelity Tigrs A1 Fund
0
$
-
10.00
10.00
0.00%
Royal Fidelity Tigrs A2 Fund
0
$
-
10.00
10.00
0.00%
Royal Fidelity Tigrs A3 Fund
0
$
-
10.00
10.00
0.00%
2,891,508
$
9,480,243
Light And Power Holdings Limited Light And Power Holdings Ltd 5.5% Pref Neal And Massey Holdings Limited One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation
The West Indies Rum Distilleries Limited
CLOSING PRICE
CLOSING PRICE
% Change
June 30 December 31 2014 2013
For the second quarter of 2014, six (6) securities advanced, four (4) declined, seven (7) remained unchanged and nine (9) did not trade. This is compared to four (4) securities advanced, five (5) declined, nine (9) remained unchanged including one (1) delisted security and nine (9) did not trade including one (1) suspension in the corresponding period in 2013.
4
Barbados Shipping & Trading Company Limited (BST) was delisted on February 5, 2014.
13 Table 17 - 2nd Quarter Trading Activity By Company (Regular and Junior market only)
SECURITY
2nd Quarter 2014
2nd Quarter 2014
CLOSING PRICE
CLOSING PRICE
Volume
Value
June 30 2014
March 31 2014 0.32
% Change
Almond Resorts Incorporated
4,000 $
1,240
0.32
Bico Industries Limited
1,661 $
2,990
1.80
1.65
9.09%
0 $
-
1.50
1.50
0.00%
Barbados Farms Limited
12,685 $
6,469
0.51
0.51
0.00%
Banks Holdings Limited
37,470 $
113,909
3.04
3.03
0.33%
Fortress C'bean Prpoerty Fund - Dev Fund
78,916 $
15,768
0.20
0.20
0.00%
578,916 $
321,160
0.57
0.47
21.28%
Barbados Dairy Industries Limited
Fortress C'bean Prpoerty Fund - Val Fund
0.00%
7,593 $
16,251
2.20
2.49
-11.65%
Cable And Wireless Barbados Limited
10,729 $
31,672
3.00
3.00
0.00%
CIBC FirstCaribbean International Bank
28,659 $
54,002
1.80
2.40
-25.00%
Goddard Enterprises Limited
465,852 $
2,879,878
6.21
6.15
0.98%
Insurance Corporation Of Barbados Ltd.
182,292 $
473,464
2.59
2.60
-0.38%
Jamaica Money Market Brokers Limited
0.00%
Cave Shepherd And Company Limited.
0 $
-
0.15
0.15
Light And Power Holdings Limited
31 $
797
25.70
25.70
0.00%
Light And Power Holdings Ltd 5.5% Pref
40 $
125
3.11
3.11
0.00%
Neal And Massy Holdings Limited
28,646 $
564,335
19.50
17.25
13.04%
One Caribbean Media Limited
53,192 $
328,511
6.20
6.13
1.14%
587 $
1,327
2.26
2.26
0.00%
2.00
2.10
-4.76%
Sagicor Financial Corporation 6.5% Pref
198,396 $
380,346
Trinidad Cement Limited
0 $
-
0.80
0.80
0.00%
West India Biscuit Company Limited
0 $
-
10.03
10.03
0.00%
The West Indies Rum Distilleries Limited
0 $
-
8.00
8.00
0.00%
Royal Fidelity Tigrs A Fund
0 $
-
10.50
10.50
0.00%
Royal Fidelity Tigrs A1 Fund
0 $
-
10.00
10.00
0.00%
Royal Fidelity Tigrs A2 Fund
0 $
-
10.00
10.00
0.00%
0 $
-
10.00
10.00
0.00%
1,689,665 $
5,192,242
Sagicor Financial Corporation
Royal Fidelity Tigrs A3 Fund
14
Conclusion Table 18 - Regional Comparison
Regional Index Performance
First Half 2014 Three Month
Six Month
First Half 2013 Twelve Month
Three Month
Six Month
Twelve Month
BSE Composite Index
-8.54%
-17.38%
-18.22%
1.25% 2.46%
3.55%
JSE Market Index
-5.97%
-12.27%
-8.55%
5.94% -5.70%
-0.61%
TTSE Composite Index
-0.40%
-1.56%
3.49%
2.86% 5.84%
10.25%
ECSE EC Share Index
-1.99%
-4.03%
-7.42%
11.85% -3.33%
11.95%
A look at three other regional exchanges in Table 18 above shows that a slump in performance is currently being experienced by all the Exchanges with almost all index values recording negative movements. The BSE Composite Index recorded declines over the three periods under examination, the largest being 17.38% over the six month period. The JSE Market Index also recorded its largest decline of 12.27% during this period as well; the ECSE EC Share Index recorded declines of 1.99%, 4.03% and 7.42% for the three, six and twelve month respectively. The TTSE Composite Index was the only index to record an increase in any period under examination. For the twelve month, the TTSE Composite Index recorded an increase of 3.49%, however, over the six and three month periods recorded declines of 1.56% and 0.40% respectively. A comparison of the index performance over the same periods at the close of first half of 2013 shows that all markets are currently experiencing very different trends in performance.
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