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1st Quarter Report 2012 Overview Overall trading volume decreased by 78%, while trading value decreased by 93% for the 1st quarter of 2012. The Regular and Put-Through Markets were the two markets to register decreases in trading activity. Regular Market activity fell by 79% in terms of volume and by 94% in value and the Put-Through Market experienced a decreases of 35% and 29% in terms of volume and value respectively. Odd-Lot Market activity showed minor increases of 2% for volume and 3% for value while the total number of trades increased by 1.35% from 446 in 2011 to 452 in 2012. There were also increases in all market indices with the exception of the local index which recorded a minor decrease of 0.18% when compared to its December 31st 2011 figure. All market capitalization measures recorded increases when compared to their respective positions at the close of 2011. It must be noted, however, that the decline in market activity can be attributed to a decrease in the number of significant transactions on the Board of the BSE for the first quarter of 2012. To date there has only been one significant transaction for ANSA McAL (Barbados) Limited. During the first quarter of 2011 AMCL Holdings Limited commenced the purchase of all remaining shares of ANSA McAL (Barbados) Limited while EMERA (Barbados) Holdings No. 2 Incorporated also commenced similar action to purchase all outstanding common shares of Light and Power Holdings Limited; there were a total of 12 significant transactions recorded in the first quarter of 2011. Table 1 – Year to date Statistics

Market

Year-to-Date

Year-to-Date

Year-to-Date

Year-to-Date

% Change

% Change

2012 Volume

2011 Volume

2012 Value

2011 Value

Volume

Value

Regular

2,347,651

11,092,623

$

13,993,341

$

219,324,630

-79%

-94%

Odd-Lot

48,575

47,435

$

222,328

$

214,863

2%

3%

Put - Through

67,960

104,030

$

404,146

$

569,493

-35%

-29%

-

-

$

-

$

-

NA

NA

-

-

$

-

$

-

NA

NA

2,464,186

11,244,088

$

14,619,815

$

220,108,986

-78%

-93%

Junior Block Trade Total


BSE 1st Quarter Report 2012

Page |2

Regular Market

Regular Market volume and value decreased significantly for the first quarter of 2012 when compared to the same period in 2011. Trading volume decreased by 78.84% from 11,092,623 in 2011 to 2,347,651 in 2012; whereas trading value decreased by 93.62%. During the period under review there was also a 9.35% decrease in the number of trades occurring in the market and a 1.59% increase in the number of trading days. A snapshot of the advance-decline ratio at the end of the 1st quarter of 2012 showed declines, with only 5 securities advancing and 4 declining versus 8 securities advancing in price and 4 declining at the 1st quarter close of 2011. As mentioned previously, the two takeover transactions which occurred had significant impact on the activity in the Regular Market in 2011. These transactions resulted in the trading of a total of 9,749,238 shares at a value of $214,008,578.85. At the close of the first quarter of 2012 this single significant transaction resulted in volume of 761,324 shares in ANSA McAL (Barbados) Limited trading with a value of $8,945,557.00 Removing these significant transactions would have resulted in an increase in trading volume on the Regular Market of 18% but a decrease in trading value of 5% for 2012 when compared to the closing figures less the significant transactions that took place during the first quarter of 2011. st

Table 2 – 1 Quarter Regular Market Performance – Year on Year

Total Share Volume Total Share Value Average Daily Share Volume Average Daily Share Value Number of Trades Number of Trade Days Average Share Price Advance/Decline Ratio Local Index Cross – Listed Index Composite Market Index Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities

31-Mar-12

31-Mar-11

2,347,651 13,993,341 36,682 $ 218,646 252 64 $ 4.99 5/4 3,261.28 1,162.64 725.94 9,319,483,623 1,987,204,618 11,314,638,241 26

11,092,623 219,324,630 176,073 $ 3,481,343 278 63 $ 5.21 8/4 3,358.59 1,145.29 735.60 9,247,207,120 1,896,785,877 11,151,858,997 25

% Change -78.84% -93.62% -79.17% -93.72% -9.35% 1.59% -4.35% N/A -2.90% 1.51% -1.31% 0.78% 4.77% 1.46% 4.00%


BSE 1st Quarter Report 2012

Page |3

Sagicor Financial Corporation was once again the most actively traded security on the market accounting for 28% of the number of trades occurring in the market. FirstCaribbean International Bank Limited was the second most actively traded security, accounting for 18% of the number of trades for the quarter in this market. Figure 1 below illustrates the number of trades occurring on the Regular Market by Security.

st

Figure 1 – No. of Trades – 1 Quarter 2011

Table 3 and Table 4 below show the top traded companies for the quarter based on volume and value respectively. ANSA McAL (Barbados) Limited was the top performer for both volume and value traded. Sagicor Financial Corporation was second in terms of volume traded while Goddard Enterprises Limited was second in terms of value traded. Table 3 – Top five traded companies by volume

2012

2011

2012

2011

Volume

Volume

Value

Value

ANSA MCAL (BARBADOS) LIMITED

761,324

2,619,845

$

8,945,557

$ 30,783,179

SAGICOR FINANCIAL CORPORATION

447,727

252,200

$

1,063,788

$

765,172

FIRSTCARIBBEAN INTERNATIONAL BANK

329,643

295463

$

1,023,356

$

913,025

FORTRESS CARIBBEAN PROPERTY FUND

265,781

156,661

$

238,260

$

179,435

GODDARD ENTERPRISES LIMITED

253,926

167,300

$

1,523,556

$

1,002,737

Company


BSE 1st Quarter Report 2012

Page |4

Table 4 – Top five traded companies by value

2012

2011

2012

2011

Value

Value

Volume

Volume

ANSA MCAL (BARBADOS) LIMITED

$ 8,945,557

$30,783,179

761,324

2,619,845

GODDARD ENTERPRISES LIMITED

$ 1,523,556

$ 1,002,737

253,926

167,300

SAGICOR FINANCIAL CORPORATION 6.5% PREF

$ 1,063,788

$

765,172

447,727

252200

FIRSTCARIBBEAN INTERNATIONAL BANK

$ 1,023,356

$

913,025

329,643

295,463

BANKS HOLDINGS LIMITED

$

$

210,885

87,585

53,954

Company

292,275

Odd-Lot Market There was a 2% increase in trading volume and an associated 3% increase in value traded for the first quarter of 2012 on the Odd-Lot Market. The number of trades occurring on this market also increased by 15% from 166 in 2011 to 191 in 2012. Table 5 and Table 6 show the top traded companies for the quarter based on volume and value respectively. Sagicor Financial Corporation was again the volume leader accounting for 31% of the total volume traded; up from 30% at the end of the 1st quarter in 2011. Goddard Enterprises Limited was the value leader, accounting for 24% of the total value; up from 10% in 2011. Sagicor Financial Corporation was also the most actively traded security accounting for 26% of the total activity in terms of the number of trades. Table 5 – Top five traded companies by volume

2012

2011

2012

2011

Volume

Volume

Value

Value

15,067

14,137

$ 36,621

$

42,831

GODDARD ENTERPRISES LIMITED

8,717

3,607

$ 52,302

$

21,285

CABLE & WIRELESS (BARBADOS) LIMITED

8,375

5,969

$ 44,775

$

32,194

INSURANCE CORPORATION OF BARBADOS LIMITED

4,478

3,243

$ 12,038

$

9,886

FIRSTCARIBBEAN INTERNATIONAL BANK

3,165

3,425

$

$

10,103

Company SAGICOR FINANCIAL CORPORATION

9,887

Table 6 – Top five traded companies by value

2012

2011

2012

2011

Value

Value

Volume

Volume

GODDARD ENTERPRISES LIMITED

$52,302

$ 21,285

8,717

3,607

CABLE & WIRELESS (BARBADOS) LIMITED

$44,775

$ 32,194

8,375

5,969

SAGICOR FINANCIAL CORPORATION

$36,621

$ 42,831

15,067

14,137

NEAL AND MASSY HOLDINGS LIMITED

$33,850

$ 51,836

2,489

3,887

LIGHT & POWER HOLDINGS LIMITED

$17,193

$

669

200

Company

5,140


BSE 1st Quarter Report 2012

Page |5

Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Junior or Block Trade Markets for the 1st Quarter of 2012. The Put Through Market did, however, record declines of 35% in terms of volume and 29% in terms of value. Table 7 below illustrates the activity which occurred on this market as at March 31st, 2012. st

Table 7: Put-through Market Activity - 1 Quarter 2012

Company

Volume

Value

Goddard Enterprises Limited

65,867

$ 398,202.00

Sagicor Financial Corporation

2,093

$ 5,944.12

Fixed Income Market There were 36 trades recorded on this market with a total volume of 3,489,500 bonds traded as compared to the 35 trades and 2,475,000 bonds traded at the close of the first quarter of 2011.. Table 8 below, gives details on each bond traded as at March 31st, 2012. st

Table 8: Fixed Income Market activity 1 Quarter 2012

Security

No. of Trades

Amount Traded

Barbados Government Debenture 4.75% 2016

2

2,000

Barbados Government Debenture 5.875% 2018

2

2,000

Barbados Government Debenture 6.125% 2021

3

4,000

Barbados Government Debenture 6.25% 2022

2

2,000

Barbados Government Debenture 6.625% 2020

3

2,800,000

Barbados Government Debenture 6.75% 2022

1

15,000

Barbados Government Debenture 7% 2017

2

510,000

Barbados Government Debenture 7% 2023

4

8,000

Barbados Government Debenture 7.125% 2026

1

1,000

Barbados Government Debenture 7.375% 2027

1

2,000

Barbados Government Debenture 8% 2012

2

10,000

Barbados Government T/Note 4.25% 2013

1

3,000

Barbados Government T/Note 6% 2016

5

8,000

Barbados Government T/Note 6.5% 2016

1

7,500

Barbados Government T/Note 6.625% 2019

2

3,000

Barbados Government T/Note 7.25% 2014

1

100,000

Barbados Government T/Note 7.50% 2012

1

1,000

Barbados Government T/Note 7.75% 2013

1

10,000

Barbados Government T/Note 8% 2014

1

1,000

Total

36

3,489,500


BSE 1st Quarter Report 2012

Page |6

Index and Market Capitalization Movement A year on year comparison of the Index and Market Capitalization performance shows that the Cross Listed index was the only one to experience increases over the last 12 months. Performance of the cross listed securities showed improvement as three of the four securities listed - Jamaica Money Market Brokers Limited, Neal and Massy Holdings Limited and One Caribbean Media Limited - experienced share price appreciation; Trinidad Cement Limited did not trade. The Local Index registered the largest decline of 2.90% when compared to its position at the corresponding period in 2011 as twelve securities registered declines in share price over the 12 month period. Figure 2 - Index Comparison Year on Year illustrates the trend of the indices over the period under consideration. The market capitalization figures show improvements across the board with the Cross Listed Market Capitalization figure showing the highest increase of 4.77%. The minor increase in Local Market Capitalization performance can be attributed to the listing of 120 million Sagicor Financial Corporation 6.5% Preference shares at $2.00 in July 2011. Table 9 – Index Comparison Year on Year

Index

31-Mar-12

31-Mar-11

% Change

Local

3,261.28

3,358.59

-2.90%

Cross Listed

1,162.64

1,145.29

1.51%

725.94

735.60

-1.31%

Composite

Table 10 – Market Capitalization comparison Year on Year

Market Capitalization Local Cross Listed Composite

31-Mar-12 9,319,483,622.90 1,987,204,617.63 11,314,638,240.53

31-Mar-11 9,247,207,119.80 1,896,785,877.30 11,151,858,997.10

Figure 2 - Index Movement March 2011 to March 2012

% Change 0.78% 4.77% 1.46%


BSE 1st Quarter Report 2012

Page |7

The indices and market capitalization measures for the 1st quarter of 2012 showed similar results. Local Index performance recorded declines of 0.18%, however, the all market capitalization measures showed improvements over their respective December 2011 figures. st

Table 11 – Index Comparison 1 Quarter

Index

31-Mar-12

31-Dec-11

% Change

Local

3,261.28

3,267.18

-0.18%

Cross Listed

1,162.64

1,142.23

1.79%

725.94

722.07

0.54%

Composite

st

Table 12 – Market Capitalization Comparison 1 Quarter

Market Capitalization

31-Mar-12

31-Dec-11

% Change

Local

9,319,483,623

9,127,101,474

2.11%

Cross Listed

1,987,204,618

1,896,819,202

4.77%

Composite

11,314,638,241

11,031,870,677

2.56%

Company Activity Comparative Report For the first quarter of 2012 five (5) securities advanced, four (4) declined and seven (7) remained unchanged, ten (10) did not trade; one of which was suspended. This is compared to eight (8) securities advanced, four (4) declined and three (3) remained unchanged, ten (10) did not trade and one (1) was delisted for the corresponding period in 2011. Jamaica Money Market Brokers Limited was the top performer for the quarter climbing 50% from $0.10 to $0.15. One Caribbean Media Limited and Cave Shepherd and Company Limited had the next two largest increases climbing 8.81% and 8.7% respectively. Barbados Farms Limited registered the largest decline of the quarter as its share price fell by 20% from $1.50 to $1.20. Sagicor Financial Corporation was the only other company to register a decline in excess of 10% for the quarter with 19.86%.


BSE 1st Quarter Report 2012

Page |8

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Table 13 - 1 Quarter Trading Activity By Company (Regular and Junior market only)

1st Quarter 2012

1st Quarter 2012

CLOSING PRICE

Volume

ANSA McAL (Barbados) Limited

761,324

$

8,945,557

11.75

11.75

0.00%

0

$

-

1.25

1.25

0.00%

1,299

$

2,416

1.86

1.86

0.00%

0

$

-

5.29

5.29

0.00%

14,282

$

17,138

1.20

1.50

-20.00%

0

$

-

5.50

5.50

0.00%

87,585

$

292,275

3.28

3.29

-0.30%

0

$

-

7.58

7.58

0.00%

265,781

$

238,260

0.90

1.00

-10.00%

Cave Shepherd and Company Limited

19,100

$

92,850

5.00

4.60

8.70%

Cable and Wireless Barbados Limited

46,875

$

250,473

5.34

5.34

0.00%

FirstCaribbean International Bank

329,643

$

1,023,356

3.13

2.90

7.93%

Goddard Enterprises Limited

253,926

$

1,523,556

6.00

6.00

0.00%

Insurance Corporation of Barbados Ltd.

67,479

$

181,842

2.69

2.50

7.60%

Jamaica Money Market Brokers Limited

1,000

$

150

0.15

0.10

50.00%

Light and Power Holdings Limited

1,560

$

40,092

25.70

25.70

0.00%

0

$

-

3.11

3.11

0.00%

Neal and Massey Holdings Limited

15,722

$

213,819

13.60

13.60

0.00%

One Caribbean Media Limited

32,348

$

103,769

3.21

2.95

8.81%

2,000

$

4,000

2.00

2.00

0.00%

447,727

$

1,063,788

2.30

2.87

-19.86%

Trinidad Cement Limited

0

$

-

0.80

0.80

0.00%

West India Biscuit Company Limited

0

$

-

10.01

10.01

0.00%

The West Indies Rum Distilleries Limited

0

$

-

8.00

8.00

0.00%

Royal Fidelity TIGRS A Fund

0

$

-

10.75

10.75

0.00%

Royal Fidelity TIGRS A1 Fund

0

$

-

10.00

10.00

0.00%

BICO Industries Limited Barbados Dairy Industries Limited Barbados Farms Limited Barbados National Bank Incorporated Banks Holdings Limited Barbados Shipping & Trading Co. Limited Fortress Caribbean Property Fund

Light And Power Holdings Ltd 5.5% Pref

Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation

Mar 31 2012

% Change

SECURITY

Almond Resorts Incorporated

Value

CLOSING PRICE December 31 2011


BSE 1st Quarter Report 2012

Page |9

Conclusion

The first quarter of 2012 can only be described as challenging. The reduction in general trading activity can be attributed to the absence of the large volumes associated with the takeover transactions which occurred during the first quarter of 2011. Looking towards the second quarter, news of the impending delisting Barbados Dairy industries and also the closure and delisting of Almond Resorts Incorporated, though disappointing, serve as reminders of the harsh realities and challenges being faced, not only by individuals but businesses as well, as the negative effects global economic recession persists. Challenges, however, can be overcome and thus the BSE remains committed to the development of the capital market in Barbados. We will press on with our initiative to further develop our Junior Market to give Small to Medium Enterprises (SMEs) an additional vehicle to raise capital to improve their operations. We will also seek to establish an International Securities Market here in Barbados. We are also focusing our efforts on the establishment of a structured market for the trading of commercial paper and also the possibility of introducing new instruments to our market.


BSE 1st Quarter Report 2012