BSE First Quarter Report 2017

2017 FIRST QUARTER R e p o rt

Overview Overall trading volume and value decreased by 84% each for the first quarter of 2017.

Regular Market activity fell by 93% in terms of volume traded and 98% in terms of value traded. The Put-Through Market also recorded decreases in activity as the volume traded declined by 46% with a corresponding decline in the value traded on this market of 34%. There was one Block Trade transaction recorded during the first quarter of 2017 while there was no trading activity occurring on the Junior Market. The total number of trades at the close of the first quarter of 2017 showed great improvement as 860 trades were conducted across the board of the BSE;

this represents a 41% increase in the number of trades. This as compared to 608 trades conducted for the first quarter of 2016.

Year to date and Year on Year market measures recorded similar mixed results.

The Local Index and Market Capitalization measures benefitted from the upward price movements of several locally listed securities, however, the Cross-Listed measures were severely impacted by the delisting of two (2) securities during the first quarter of 20171.

Table 1 - Year-to-Date Statistics shows a summary of year to date trading activity.

Table 1 – Year-to-Date Statistics Year-to-Date Market Regular Put - Through Junior Block Trade Total

1

Volume 2017 2016 2,059,708 28,565,823 156,557 288,264 2,519,171 4,735,436 28,854,087

See Company Activity Comparative Report.

Value ($) 2017 2016 4,741,537 192,120,908 396,137 600,728 25,771,119 30,908,794 192,721,636

% Change Volume Value -93% -98% -46 -34 NA NA NA NA -84 -84

|3

Regular Market Regular Market volume and value decreased substantially

There was a marginal increase in the number of trades

2017 when compared to the corresponding period in

2017, as compared to 436 trades for the corresponding period in 2016 as seen in Table 2 - 1st Quarter Regular Market Performance - Year on Year. A snapshot of the

absence of transactions conducted either pursuant, or subsequent, to a takeover 2 2016 Regular Market activity would have resulted in less substantial decreases in both traded volumes and values of 26% and 36% respectively.

declined versus nine securities advancing in price and

Table 2 – 1st Quarter Regular Market Performance – Year on Year 31-Mar-17

31-Mar-16

% Change

Total Share Volume

2,059,708

28,565,823

-93

Total Share Value

4,741,537

192,120,908

-98

32,183

460,739

-93

$74,087

$3,098,724

-98

505

436

16

64

62

3

$4.88

$6.20

-21

7/5

9/1

N/A

Local Index

2,866.91

2,478.82

16

Cross – Listed Index

1,029.34

1,738.11

-41

687.56

678.19

1

6,226,553,949

6,272,039,643

-1

694,849,524

2,862,760,630

-76

6,921,403,473

9,134,800,272

-24

18

24

-25

Average Daily Share Volume Average Daily Share Value Number of Trades Number of Trade Days Average Share Price Advance/Decline Ratio

Composite Market Index Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities

2 Limited traded at $7.10.

nks Holdings

4

Annual Report 2017

Sagicor Financial Corporation repeated its first quarter 2016 performance as the most actively traded security on the market accounting for 32.67% of the number of trades occurring in the market. They were followed by Goddard Enterprises Limited and Insurance Corporation of Barbados Limited which accounted for 15.45% and 14.46% of the number of trades for the quarter in this market respectively. Figure 1 - No. of Trades - 1st Quarter 2017 illustrates the number of trades occurring on the Regular Market by Security.

Table 3 and Table 4, illustrates the top traded companies for the quarter based on volume and value respectively.

Sagicor Financial Corporation Limited was the top performer in terms of both volume and value. Fortress Caribbean Property Fund’s Value and Development Funds rounded out the top three securities in terms of volume traded while Insurance Corporation of Barbados Limited and Goddard Enterprises Limited rounded out the top three in terms of value traded.

|5

Figure 1 – No. of Trades – 1st Quarter 2017 No. of Trades 200

165 150

100

78

50

0

37

33

24 3

ARI

73

8

BDI

8 BICO

20

21

13

CSP

CPFDF

GEL

9

7

1 JMMBGL

SFC65

WIR

1

4 WIB

Table 3 – Top Five Traded Companies by Volume 2017

2016

2017

2016

Company

Volume

Volume

Value ($)

Value ($)

Sagicor Financial Corporation Limited

511,265

359,585

1,134,187

712,355

Fortress Caribbean Property Fund - Val Fund

505,437

150,958

271,748

92,915

Fortress Caribbean Property Fund - Dev Fund

248,801

82,523

38,594

15,864

Insurance Corporation Of Barbados Limited

244,950

1,053,098

931,439

2,838,249

111,513

1,100

168,385

1,320

2017

2016

2017

2016

Company

Value ($)

Value ($)

Volume

Volume

Sagicor Financial Corporation Limited

1,134,187

712,355

511,265

359,585

Insurance Corporation Of Barbados Limited

931,439

2,838,249

244,950

1,053,098

Goddard Enterprises Limited

884,969

172,895

96,129

24,265

Banks Holdings Limited

507,238

182,654,263

71,442

25,726,590

Fortress Caribbean Property Fund - Val Fund

271,748

92,915

505,437

150,958

Trinidad Cement Limited

Table 4 – Top Five Traded Companies by Value

6

Annual Report 2017

Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Junior Market for the first quarter of 2017.

On March 10th, 2017, the Block Trade Market recorded one transaction which resulted in 2,519,171 shares in The West Indies Rum Distilleries Limited trading at $10.225586. The BSE approved this transaction in respect of item (d) in Section 7.01.21 Block Trade Rules of the Rules of the Barbados Stock Exchange which states, “the sale and purchase of a listed security pursuant to a take-over transaction, conducted or to be conducted in accordance with applicable laws�.

The Put-through Market recorded decreases terms of both volume and value traded. The total volume of shares traded decreased by 46% while the total value of shares traded decreased by 34%. Table 5 - Put-through Market Activity - 1st Quarter 2017 illustrates the activity which occurred on this market as at March 31st, 2017.

Fixed Income Market The Fixed Income Market recorded a total of 25 trades in which ten (10) Barbados Government Debentures and six (6) Barbados Government Treasury Notes were traded with a face value of $2,462,000. This as compared to the 92 trades in which twenty (20) Barbados Government Debentures and eleven (11) Barbados Government Treasury Notes traded with a face value of $38,685,000 at the close of the first quarter of 2016. Table 6 - Fixed Income Market Activity - 1st Quarter 2017 gives details on each bond traded as at March 31st, 2017.

|7

Table 5: Put-through Market Activity - 1st Quarter 2017 Company

No. of Trades

Volume

Value ($)

1

3,000

27,600.00

Sagicor Financial Corporation

354

153,557

368,536.80

Total

355

156,557

396,136.80

Goddard Enterprises Limited

Table 6: Fixed Income Market Activity - 1st Quarter 2017 Security

No. of Trades

Amount Traded

Barbados Government Debenture 6.125% 2021

3

20,000

Barbados Government Debenture 6.625% 2020

2

206,000

Barbados Government Debenture 6.875% 2023

1

11,000

Barbados Government Debenture 6.875% 2024

1

5,000

Barbados Government Debenture 7% 2017

1

1,000

Barbados Government Debenture 7% 2023

1

1,000

Barbados Government Debenture 7.25% 2029

2

65,000

Barbados Government Debenture 7.375% 2027

2

3,000

Barbados Government Debenture 7.375% 2029

1

1,000

Barbados Government Debenture 7.75% 2025

3

11,000

Barbados Government T/Note 5.5% 2020

2

4,000

Barbados Government T/Note 6% 2019

1

2,000,000

Barbados Government T/Note 6% 2020

2

125,000

Barbados Government T/Note 6.25% 2018

1

3,000

Barbados Government T/Note 6.25% 2024

1

5,000

Barbados Government T/Note 6.5% 2019

1

1,000

25

2,462,000

Total

8

Annual Report 2017

Index & Market Capitalization Movement A year on year comparison of the Index performance (Table 7) shows that all Index measures, except for the Cross-Listed Index, experienced increases over the last 12 months. The negative Cross-Listed Index performance can be attributed to the delisting of both Massy Holdings Limited and Trinidad Cement Limited reducing the number of Cross-Listed securities on the board of the BSE to two. It must be noted however, that having lifted the Odd-Lot Volume Limits, first implemented on October 8th, 2012, greater price discovery has occurred resulting in more frequent share price movements in the securities listed and traded on the board of the BSE. Evidence of this is indicated in the moderate improvements seen in year on year comparison of Local Index performance.

Figure 2 - Index Movement March 2016 to March 2017 illustrates the trend of the indices over the period under consideration.

The year-on-year market capitalization figures illustrated in Table 8 show declines across the board; the most significant of which is the Cross-Listed Market

Capitalization measure caused by the aforementioned delisting of two Cross-Listed securities.

The indices and market capitalization measures for the first quarter of 2017 (Table 9 and 10) showed more positive results as several locally listed securities experienced share price appreciation more than 5% over their closing positions as at December 31st, 2016. The Local Index and Market Capitalization measures showed improvement recording increases of 10.31% and 10.34% respectively.

While the Cross-Listed Index and Market Capitalization recorded substantial decreases due to delistings, it must be noted that the appreciation in the share prices of some of the larger issuers – Sagicor Financial Corporation Limited and FirstCaribbean International Bank Limited – were sufficient to reduce the impacts of the delistings on the broad Composite market measures. The Composite Index increasing by 5.48% and its corresponding Market Capitalization fell by a nominal 12.15% when compared to their respective December 31st, 2016 results.

Table 7 – Index Comparison Year on Year Index

31-Mar-17

31-Mar-16

% Change

Local

2,866.91

2,478.82

15.66

Cross-Listed

1,029.34

1,738.11

-40.78

687.56

678.19

1.38

31-Mar-17

31-Mar-16

% Change

6,226,553,949

6,272,039,643

-0.73

694,849,524

2,862,760,630

-75.73

6,921,403,473

9,134,800,272

-24.23

Composite

Table 8 – Market Capitalization Comparison Year on Year Market Capitalization Local Cross-Listed Composite

|9

Figure 2 - Index Movement March 2016 to March 2017 Local Index

Cross-Listed Index

Composite Index

20% 10%

% Change

0% -10% -20% -30%

March

February

January

December

November

October

September

August

July

June

May

April

-50%

March

-40%

Table 9 – Index Comparison 1st Quarter

Index

31-Mar-17

31-Dec-16

% Change

Local

2,866.91

2,598.89

10.31

Cross-Listed

1,029.34

1,357.55

-24.18

687.56

651.85

5.48

31-Mar-17

31-Dec-16

% Change

6,226,553,949

5,643,146,945

10.34

694,849,524

2,235,947,791

-68.92

6,921,403,473

7,879,094,736

-12.15

Composite

Table 10 – Market Capitalization Comparison 1st Quarter

Market Capitalization Local Cross-Listed Composite

10

Annual Report 2017

Company Activity Comparative Report (4) did not trade – Emera Deposit Receipt advanced in price but did not trade; there were two (2) delistings3.

This as compared to nine (9) securities advanced, one (1) not trade one (1) of which was a new listing; there was one (1) delisting.

Sagicor Financial Corporation Limited was the top

quarter of 2017. Table 11 - 1st Quarter Trading Activity

by Company illustrates the price movements for the Table 12 illustrates the price movements over the last seven (7) securities have experienced price increases of 15%, or more, over their March 31st, 2016 position while only one (1) security experienced a decline more than 15%.

of 2017. FirstCaribbean International Bank Limited (14.29%) and Barbados Farms Limited (12.90%) were the remaining securities experiencing double digit increases during the quarter. Fortress Caribbean Property Fund – Development Fund was the only security to record

3

Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Massy

Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Trinidad Cement

| 11

Table 11 - 1st Quarter Trading Activity by Company (Regular and Junior market only) 1st Quarter 2017 Security Abv Investments Incorporated

Volume

Closing Price

% Change

Value ($) Mar 31 2017 Dec 31 2016

0

-

0.02

0.02

0.00

27,460

59,482

2.19

2.05

6.83

3,783

7,282

1.95

1.90

2.63

Barbados Farms Limited

43,040

14,767

0.35

0.31

12.90

Banks Holdings Limited

71,442

507,238

7.10

7.10

0.00

Fortress C’bean Property Fund-Dev Fund

248,801

38,594

0.15

0.20

-25.00

Fortress C’bean Property Fund - Val Fund

505,437

271,748

0.53

0.55

-3.64

Cave Shepherd And Company Limited

55,440

192,288

3.45

3.50

-1.43

Cable And Wireless Barbados Limited

43,992

109,256

2.45

2.60

-5.77

Firstcaribbean International Bank

58,025

134,164

2.40

2.10

14.29

Goddard Enterprises Limited

96,129

884,969

9.27

9.01

2.89

800

120

0.15

0.15

0.00

Emera Deposit Receipt

0

-

17.38

16.55

5.02

Massy Holdings Limited*

-

-

NA

NA

NA

18,586

126,875

6.80

6.94

-2.02

0

-

2.26

2.26

0.00

Sagicor Financial Corporation

511,265

1,134,187

2.38

2.01

18.41

Trinidad Cement Limited*

111,513

168,385

-

0.85

NA

930

15,823

17.26

15.95

8.21

18,115

144,920

8.00

8.00

0.00

2,059,708

4,741,537

Bico Industries Limited Barbados Dairy Industries Limited

Jmmb Group Limited

One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref

West India Biscuit Company Limited The West Indies Rum Distilleries Limited Total * Denotes delisted security

12

Annual Report 2017

Table 12 - Year on Year Trading Activity by Company (Regular and Junior market only) Closing Price

Closing Price

Mar 31 2017

Mar 31 2016

Abv Investments Incorporated

0.02

0.02

0.00%

Bico Industries Limited

2.19

1.86

17.74%

Barbados Dairy Industries Limited

1.95

1.60

21.88%

Barbados Farms Limited

0.35

0.40

-12.50%

Banks Holdings Limited

7.10

7.10

0.00%

Fortress C’bean Property Fund - Dev Fund

0.15

0.19

-21.05%

Fortress C’bean Property Fund - Val Fund

0.53

0.61

-13.11%

Cave Shepherd And Company Limited

3.45

3.35

2.99%

Cable And Wireless Barbados Limited

2.45

2.66

-7.89%

Firstcaribbean International Bank

2.40

2.00

20.00%

Goddard Enterprises Limited

9.27

7.25

27.86%

Insurance Corporation Of Barbados Limited

3.79

3.08

23.05%

Jmmb Group Limited

0.15

0.15

0.00%

17.38

17.99

-3.39%

One Caribbean Media Limited

6.80

7.00

-2.86%

Sagicor Financial Corporation 6.5% Pref

2.26

2.26

0.00%

Sagicor Financial Corporation

2.38

2.00

19.00%

17.26

14.10

22.41%

8.00

8.00

0.00%

Security

Emera Deposit Receipt

West India Biscuit Company Limited The West Indies Rum Distilleries Limited *Denotes delisted security

% Change

| 13

Conclusion First quarter 2017 performance, when compared to the first quarter of 2016 figures, was indeed less than favorable. While the 2017 first quarter performance numbers may appear negative, it is imperative to be note that there was a substantial decline in the number of transactions conducted either pursuant, or subsequent, to the takeover of a company listed on the board of the BSE. Removing this activity from the year on year comparison would have resulted in a 54% increase in terms of the total volume traded with a corresponding increase in total value traded of 288%. Notable mention must also be given to the improvement in the number of trades conducted as this serves as a likely indicator of the level of interest in investing in securities listed and traded on the board of the BSE. An examination of closing indices for exchanges across the region reveal that, much like the BSE, all exchanges are experiencing an upturn in market performance when compared to their closing values as at December 31st, 2016. The BSE Composite Index, despite the challenges, recorded the highest increase of 5.48%. It was followed by the JSE Market Index (4.61%), the TTSE Composite Index (2.01%) and finally the ECSE Index, which recorded an increase of 0.82%.

Table 13 - Year to date Index Comparison Closing Index Name

Region/Exchange

BSE Composite Index

Barbados Stock Exchange

JSE Market Index

Jamaica Stock Exchange

TTSE Composite Index

Trinidad and Tobago Stock Exchange

ECSE Index

Eastern Caribbean Stock Exchange

March 31 2017 Dec 31 2016 % Change 687.56

651.85

5.48

201,139.49

192,276.64

4.61

1,233.79

1,209.53

2.01

157.41

156.13

0.82

8th Avenue Belleville, St. Michael BB11114, Barbados T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb